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A

PROJECT

ON

STUDY OF MARKETING STRATEGY OF AIRCEL

Project Report Submitted to B. R Ambedkar University in Partial


Fulfillment of the Requirements for the Award Of
BACHELOR OF BUSINESS ADMINISTRATION
(2014-2017)

Submitted By: Under the Guidance Of:


Shashi Kumar
Roll No - 144159 {Faculty Guide}

LN Mishra College of Business Management

Bihar

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ACKNOWLEDGEMENT

A work is never of an individual. It is more a combination of ideas, suggestions, reviews,


contribution and work involving many folks. I take the opportunity to express my gratitude to
all the concerned people who have directly or indirectly contributed towards completion of
this project.

I am extremely grateful to my faculty guide Mr.. whose insight encouraged me to go


beyond the scope of the project and this broadened my learning on this project.

Shashi Kumar
Roll No - 144159

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CERTIFICATE

This is to certify that the project titled Study of Marketing Strategy of Aircel,
submitted by Shashi Kumar to LN Mishra College of Business Management, Bihar in
partial fulfillment of requirement for the award of the BBA Degree is an original
piece of work carried out under my guidance and may be submitted for evaluation.

The assistance rendered during the study has been duly acknowledged.

No part of this work has been submitted for any other degree.

Place: New Delhi Faculty Guide

Dated:

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DECLARATION

I hereby declare, to the best of my knowledge and belief, that this project

report titled, Application of Six Sigma in Training &


Development submitted by me to the department of Post Graduate
Diploma Examination of the Welingkar Institute of Management is a
bonafide work undertaken by me it is not submitted to any other University
or Institution for the award of any degree diploma / certificate or published
any time before.

Signature

Rahul Kishore Rai

Roll No.:-

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TABLE OF CONTENTS

S. No. CONTENTS PAGE


NO.

Chapter 1 Introduction 08-20

1.1 Brief overview of the study

1.2 Objectives of the Study

1.3 Scope and significance of the Study

1.4 Limitations of the study

Chapter 2 Research Methodology 21-23

2.1 Universe of the study

2.2 Sample Size and sampling technique

2.3 Data Collection

2.4 Presentation Tools Used

Chapter 3 Industry Overview 24-31

Chapter 4 Company Profile 42-49

4.1 History

4.2 Vision, Mission and Objectives of Company

4.3 Product & Services Offered

Chapter 5 Finding and Analysis 50-58

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5.1 Findings Based on Questionnaire

Chapter 6 Conclusion and Recommendation 59-65

6.1 C Conclusion

6.2 Suggestions

Annexure

Bibliography 67

Sample Questionnaire 68

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Table no. Table name Page no.

5.1 Number of Connections 34

5.2 Primary service provider 35

5.3 Reasons for choosing 36


Aircel

5.4 Perception regarding 37


advertiesement of aircel

5.5 Troubles faced by 38

customers

5.6 Perception about value 39


added services

5.7 Response of customer care 40


executive

5.8 Want to switch service 41


provider

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INTRODUCTION OF STUDY

i) BRIEF OVERVIEW
ii) OBJECTIVES OF THE
STUDY
iii) SCOPE AND
SIGNIFICANCE
iv) LIMITATIONS OF THE
STUDY

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1.1 BRIEF OVERVIEW OF THE STUDY

India's telecommunications market is amongst the highest-potential markets globally,


marked by deregulation and rapid growth. Its cellular market alone is growing at 60%
annually. This demand will only accelerate as new technologies emerge to make new
services possible. Idea plans to grow its telecom business both in terms of
geographical reach and in terms of the products and services we will offer.

The Indian telecommunications Network with 250m telephone connections is the fifth
largest in the world and is the second largest among the emerging economies of Asia.
Today it is the fastest growing market in the world and represents unique
opportunities for UK companies in the stagnant global scenario. Accordingly, India
requires incremental investments of USD 20-25 bln for the next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.) in
India. With more than 33 million users (both CDMA and GSM), wireless is the
principal growth engine of the Indian telecom industry. Given the current growth
trends, cellular connections in India will surpass fixed line by late 2004/early 2005.
Intense competition between the four main private groups - Bharti, Vodafone, Tata
and Reliance and with the State sector incumbents-BSNL and MTNL has brought
about a significant drop in tariffs. There has been almost 74% in cell phone charges,
70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the
consumers.

Telephone density in the country which is in an ongoing process of transforming into

next generation network, employs an extensive system of modern network elements

such as digital telephone exchanges, mobile switching centres, media gateways and

signaling gateways at the core, interconnected by a wide variety of transmission

system using fibre-optics or Microwave radio relay networks. The access network

which connects the subscriber to the core, is highly diversified with different copper-

pair, optic-fibre and wireless technologies. DTH, a relatively new broadcasting

technology has attained significant popularity in the Television segment. The

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introduction of private FM has given a fillip to the radio broadcasting in India.

Telecommunication in India has greatly been supported by the INSAT system of the

country, one of the largest domestic satellite systems in the world. India possesses

a diversified communications system, which links all parts of the country by

telephone, Internet, radio, television and satellite. Indian telecom industry underwent

a high pace of market liberalization and growth since 1990s and now has become the

world's most competitive and one of the fastest growing telecom markets. The

Industry has grown over twenty times in just ten years, from under 37 million

subscribers in the year 2001 to over 846 million subscribers in the year 2011. India

has the world's second-largest mobile phone user base with over 929.37 million

users as of May 2012.[6] It has the world's third-largest Internet user-base with over

137 million as of June 2012. The total revenue of the Indian telecom sector grew by

7% to 283207 crore (US$48 billion) for 201011 financial year, while revenues

from telecom equipment segment stood at 117039 crore (US$20 billion).

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.

It also has helped to increase the transparency of governance with the introduction

of e-governance in India. The government has pragmatically used modern

telecommunication facilities to deliver mass education programs for the rural folk of

India. Indian Tele-density, which was languishing at 2% in 1999, has shown an

amazing jump to 47.89 in 2010 and is set to increase by 20% in the next five years.

Accordingly, India requires incremental investments of USD 20-25 billion for the

next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.) in

India. With more than 930 million users (both CDMA and GSM), wireless is the

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principal growth engine of the Indian telecom industry. Intense competition between

the four main private groups - Bharti, Vodafone, Tata and Reliance and with the State

sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs.

There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in

NLD charges, resulting in a boom time for the consumers.

The Government has played a key enabling role by deregulating and liberalizing the

industry, ushering in competition and paving the way for growth. While there were

regulatory irregularities earlier, resulting in litigation, these have all been addressed

now. Customs duties on hardware and mobile handsets have been reduced from 14

percent to 5 percent.

The Indian government has merged the IT and Telecom Ministries to speed up

reforms and decision on the Communication Convergence Bill to enable the common

regulation of the Internet, broadcasting and telecoms will be taken after the new

Government assumes responsibilities in may this year. An independent regulatory

body (TRAI) and dispute settlement body (TDSAT) is fully functional.

INDIAN CELLULAR MARKET

The Bharti Group, which operates in 23 circles, continues to be the country's largest
cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a
subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular
operator in terms of subscriber base at the end of the fiscal ending March 31, 2011,
displacing Vodafone from the second position. Vodafone, which operates in only
eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike
fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi,
BSNL has been a very aggressive player in the market. "Cellular operators who
expected BSNL to go the MTNL way, were taken by surprise and did not take
effective steps to counter it, till it was too late in the day," said a telecom analyst.

TELECOMMUNICATION MARKET IN INDIA

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Technological changes in the telecom and computers have radically changed the
business scenario. In turn, the new demands of business have spurred many telecom
based technological innovations. In order to exploit these innovations for competing
in global markets, business community the world over has been putting pressure on
governments to revise the policy, regulation and structure of the telecom sector.
Several countries across the world have responded by restructuring the state
controlled telecom service provider, increasing private participation, and deregulating
service provision. The emergent organizations have attempted to be more responsive
to the business needs and have evolved mechanisms to remain competitive even under
tremendous pressures.

Over the past several years, developing countries have also recognized the important
role a responsive, business oriented and technologically advanced telecom sector
plays in the growth of the economy. Many developing countries now accept the
limitations of a monolith state monopoly in responding to the twin challenges of
spurring internal growth and competing in an increasingly global economy.

Past experience of reform across many countries suggests that the fundamental
underlying issue that must be addressed in telecom reform is introduction of
competition for efficiency. Competition is considered to be an important factor than
ownership in introducing efficiency.

India's 21.59 million-line telephone network is one of the largest in the world and the
3rd largest among emerging economies (after China and Republic of Korea). Given
the low telephone penetration rate India offers vast scope for growth. It is therefore
not surprising that India has one of the fastest growing telecommunication systems in
the world with system size (total connections) growing at an average of more than 20
percent over the last 4 years.

The industry is considered as having the highest potential for investment in India. The
growth in demand for telecom services in India is not limited to basic telephone
services. India has witnessed rapid growth in cellular, radio paging, value-added
services, internet and global mobile communication by satellite (GMPCS) services.
This is expected to soar in the next few years.

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Recognizing that the telecom sector is one of the prime movers of the economy, the
Government's regulatory and policy initiatives have also been directed towards
establishing a world class telecommunications infrastructure in India. The telecom
sector in India therefore offers an Aircell environment for investment.

The telecommunications initiative in the country is lead by Ministry of


Communications through the Department of Telecommunication & Department
Telecom Services and its undertakings for provision of basic telephone services,
national and international long distance communications, manufacture of complete
range of telecom equipment, research and development, and consultancy services.
The Telecom Commission performs the Executive and Policy making functions. The
Telecom Regulatory Authority of India performs the functions of an independent
regulatory body.

Indian Telecom Sector to Be Most Vibrant In 2010

In 2010 we believe that Indian Telecom industry expects to continue with its fast pace
of subscriber additions, at least 11 million per month, launch of 3G and WiMAX
spectrum, while tariff would continue to slide during the year.

The industry having crossed the 500 million subscriber mark earlier in September
2009 itself, the next milestone would be 750 million. (Global research and analysis
firm Gartner, in a recent study, estimates Indian mobile users to touch 771 million by
2013).

However, this would be a long way off, even though subscriber addition is expected
to continue at fast pace in 2010 as companies expand networks to rural areas and new
firms commence operations.

3G

One of the main catalysts for growth would be the launch of 3G and WiMAX
spectrum, expected to take place by mid-January. 3G, or third generation telecom
services, would result in addition or more subscribers as they would bring in a host of
data-enabled services to the industry, and growth would come in from both voice and
data.

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WiMAX

Additionally, Department of Telecommunications (DoT) had announced the


simultaneous auction of WiMax spectrum that would result in adding of additional
data-enabled customers on telecom networks. A host of telecom operators are
expected to join the bandwagon for WiMax spectrum.

Tariffs

Cheap call tariffs and mobile handsets were other factors that drove demand in 2009,
and telecom companies are expected to continue price was both in call rates and
instruments in 2010. This, according to industry analysts, will result in telecom
sectors exponential growth.

The industry also expects launching of innovative and customer friendly schemes like
the one second billing in 2010. These schemes would continue to help in improving
tele-density and penetration of telecom services in rural and semi-urban areas in the
country.

Infrastructure operators

The year 2010 would be that of the infrastructure players. Apart from an expected
consolidation in the sector, the infrastructure majors will increase the pace of tower
rollout across all the 22 circles in the country.

Bandwidth

An expected increase in bandwidth landing in the country, with telecom companies


are laying more submarine cables, would also benefit the industry. This would be
beneficial to bandwidth-intensive sectors like BPO, IT and banking.

The industry expects telecom companies to launch terrestrial cables with 50 GB


capacities each, to be hiked depending on demand. This coupled with a planned
increase by operators this year and next year, would also result in an increase in
capacity landing at Indian shores.

Group Overview

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Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer
of bicycle parts to one of the largest and most respected business groups in India.
With its entrepreneurial spirit and passion to undertake business projects that are
transformational in nature, Bharti has created world-class businesses in telecom,
financial services, retail, and foods.

Bharti started its telecom services business by launching mobile services in Delhi
(India) in 1995. Since then there has been no looking back and Bharti Aircel, the
group's' flagship company, has emerged as one of the top telecom companies in the
world and is amongst the top five wireless operators in the world.

Through its global telecom operations Bharti group has presence in 21 countries
across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey,
Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo,
Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania,
Uganda, and Zambia.

Over the past few years, the group has diversified into emerging business areas in the
fast expanding Indian economy. With a vision to build India's finest conglomerate by
2020 the group has forayed into the retail sector by opening retail stores in multiple
formats - small and medium - as well establishing large scale cash & carry stores to
serve institutional customers and other retailers. The group offers a complete portfolio
of financial services - life insurance, general insurance and asset management - to
customers across India. Bharti also serves customers through its fresh and processed
foods business. The group has growing interests in other areas such as telecom
software, real estate, training and capacity building, and distribution of telecom/IT
products.

What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the
years some of biggest names in international business have partnered Bharti.
Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key
partners in telecom. Walmart is Bharti's partner for its cash & carry venture. Axa
Group is the partner for the financial services business and Del Monte Pacific for the
processed foods division.

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Bharti strongly believes in giving back to the society and through its philanthropic
arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children
and youth in India.

Mobile Strategy
Capture maximum telecommunications revenue potential with minimum
geographical coverage to maximise its revenues and margins.
Build high quality mobile networks by deploying state-of-the-art technology
to offer superior services.
Use the experience it has gained from operating its existing mobile networks
to develop and operate other mobile networks in India and to share the
expertise across all of its existing and new circles.
Attract and retain high revenue generating customers by providing competitive
tariffs, offering high quality customer support, proactive retention programs
and roaming packages across all of its mobile circles.
Provide affordable tariff plans to suit each segment of the market with a view
to expand the reach, thereby increasing the mobile customer base rapidly.

The Indian telecommunications Network with 250m telephone connections is the fifth
largest in the world and is the second largest among the emerging economies of Asia.
Today it is the fastest growing market in the world and represents unique
opportunities for UK companies in the stagnant global scenario. Accordingly, India
requires incremental investments of USD 20-25 bln for the next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.) in
India. With more than 33 million users (both CDMA and GSM), wireless is the
principal growth engine of the Indian telecom industry. Given the current growth
trends, cellular connections in India will surpass fixed line by late 2004/early 2005.
Intense competition between the four main private groups - Bharti, Vodafone, Tata
and Reliance and with the State sector incumbents-BSNL and MTNL has brought
about a significant drop in tariffs. There has been almost 74% in cell phone charges,
70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the
consumers.

16
The Government has played a key enabling role by deregulating and liberalizing the
industry, ushering in competition and paving the way for growth. While there were
regulatory irregularities earlier, resulting in litigation, these have all been addressed
now. Customs duties on hardware and mobile handsets have been reduced from 14
percent to 5 percent.
The Indian government has merged the IT and Telecom Ministries to speed up
reforms and decision on the Communication Convergence Bill to enable the common
regulation of the Internet, broadcasting and telecoms will be taken after the new
Government assumes responsibilities in may this year. An independent regulatory
body (TRAI) and dispute settlement body (TDSAT) is fully functional.

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1.2 Objectives of the Study:

Following are the main objective to study about the customer satisfaction on
Aircel.

To study Marketing Strategy of Aircel.


To study various Marketing activities provided by Aircel.
To study the various services provided by Aircel.

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Scope and significance of the study

To conduct this research the target population was the mobile


users, who arousing GSM technology.

Targeted geographic area of New Delhi Sample size of 100 respondents was
taken.

To these 100 respondents a questionnaire was given, the questionnaire was a


combination of both open ended and closed ended questions.

Finally the collected data and information was analyzed and compiled to
arrive at he conclusion and recommendations given.

During the stud y, on man y occasions the respondent


g r o u p s g a v e u s a c o l d shoulder.

Some retailers/whole sellers refuse to cooperate with the queries.

Money played a vital factor in the whole project duration

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Limitations of the study:

The study was restricted to only those clients who were related to Aircel
telecommunications.

The study was confined within specific regions of New Delhi only.

The sample size was limited so the results obtained from the study may not be
generalized for the whole population.

The time period of the study was not sufficient to measure the consumers
response effectively and reach to a more valid conclusion.

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RESEARCH METHODOLOGY

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2.1 RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the subject. As
the prime objective of the project is to find out market strategy of Aircel with the
existing competitors in the market. The research methodology adopted is basically
based on primary data via which the most recent and accurate piece of first hand
information could be collected. Secondary data has been used to support primary data
wherever needed.

RESEARCH DESIGN

A research design is a framework or blueprint or the structure for conducting the


marketing research project. It details the producers necessary for obtaining the
information needed to structure or solve marketing research problem.

The research design used in this research is Exploratory Research Design.

MEANING OF EXPLORATORY RESEARCH DESIGN

This is the type of research conducted for a problem that has not been clearly defined.
This research helps determine the best research design, data collection method and
selection of subject. It should draw definitive conclusions only with extreme caution.
Given its fundamental nature, exploratory research often includes that a perceived
problem does not actually exists.

2.2 Sample size and sampling technique

I have selected 100 respondents only. The sampling technique which I have selected
is convenience sampling.

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2.3 Data collection (Primary and secondary)

Primary Data

The primary data are those data which are collected fresh and for first time and thus
happens to be originally character with the help of questionnaire. Primary data was
collected by the researcher.

Primary data was collected by using following technique:

Questionnaire Method

The main tool used was, the questionnaire method. Lastly observation
method has been continuous with the questionnaire method, as one
continuously observes the surrounding environment he works in.

Secondary Data
Secondary data is basically primary data collected by someone else. Researchers
reused and repurpose information as secondary data because it is easier and less
expensive to collect. However, it is seldom as useful and accurate as primary data.
Secondary data was collected by using the following techniques:
Internet
Books
Magazines
Presentation Tools used

These tools help to make project interactive and easily understandable by any
individual who want to seek information about any particular subject.

The main presentation tools are as follows:

Graphs

Pie chats

Charts

Tables

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Industry overview

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INDUSTRY PROFILE

The telecom network in India is the fifth largest network in the world meeting up
with global standards. Presently, the Indian telecom industry is currently slated to
an estimated contribution of nearly 1% to Indias GDP.

The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber
base, which has grown by 40% in 2005, is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India has 9 million broadband


connections and 18 million internet connections in 2007. The wireless subscriber base
has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last
3 years, two out of every three new telephone subscribers were wireless subscribers.
Consequently, wireless now accounts for 54.6% of the total telephone subscriber base,
as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass
2.5 million new subscribers per month by 2007.

The wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There are
primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom
circles and 4 metro cities, covering 2000 towns across the country.

Evolution of the industry-Important Milestones

History of Indian Telecommunications:

1851 First operational land lines were laid by the government near Calcutta
(seat of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)

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1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government's
Ministry of Communications
1985 Department of Telecommunications (DOT) established, an exclusive
provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies: the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan
areas.
1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
2000 DoT becomes a corporation, BSNL

MAJOR
PLAYERS

Private Indian owned Foreign invested


State owned companies companies companies
(BSNL & MTNL) (Reliance Infocomm, (Vodafone-Essar, Aircel
Tata Teleservices) , Idea Cellular, etc)

BSNL

On October 1, 2000 the Department of Telecom Operations andGovernment of India


became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL).

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BSNL is now Indias leading Telecommunications Company and the largest public
sector undertaking. It has a network of over 45 million lines covering 5000 towns
with over 35 million telephone connections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile,
Internet and long distance services throughout India (except Delhi and Mumbai).
BSNL, which became the third operator of GSM mobile services in most circles, is
now planning to overtake Bharti to become the largest GSM operator in the country.
BSNL is also the largest operator in the Internet market, with a share of 21 per cent of
the entire subscriber base.

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network, and introduce new services
and to raise revenue for telecom development needs of Indias key metros Delhi and
Mumbai. In the past 17 years, the company has taken rapid strides to emerge as
Indias leading and one of Asias largest telecom operating companies. The company
has also been in the forefront of technology induction by converting 100% of its
telephone exchange network into the state-of-the-art digital mode. The Govt. of India
currently holds 56.25% stake in the company. MTNL has over 5 million subscribers
and 329,374 mobile subscribers.

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance Infocomm offers a complete range of telecom
services, covering mobile and fixed line telephony including broadband, national and
international long distance services, data services and a wide range of value added
services and applications.

However, it has now acquired a unified access license for 18 circles that permits it to
provide the full range of mobile services. It has rolled out its CDMA mobile network

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and enrolled more than 6 million subscribers in one year to become the countrys
largest mobile operator.

IDEA CELLULAR

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom circles, or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan
that it intends to fund through an IPO, according to parent company Aditya Birla
Group .

VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers
23 telecom circles in India . Despite the official name being Vodafone Essar, its
products are simply branded Vodafone. It offers both prepaid and postpaid GSM
cellular phone coverage throughout India with good presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 23 of the country's 23 license
areas. It is among the top three GSM mobile operators of India. Vodafone Essar is
owned by Vodafone 52%, Essar Group, 33% and other Indian nationals, 15%.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67%
held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the
remaining 33%. The whole company was valued at USD 18.8 billion. The transaction
closed on May 8, 2007.

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MAJOR PLAYERS OF INDIAN
TELECOMMUNICATION

MTNL

BSNL VSNL

RELIANC
E
AIRTEL
INFOCO
MM

IDEA
VODAFO
CELLUL
NE
AR
TATA
TELESERVIC
ES

29
COMPANY MARKET SHARES

COMPANY MILLION SUBSCRIBERS % SHARE

(January 2017)

BSNL 3,03,03,230 19.77

Reliance 43,47,593 2.84

Bharti 4,88,75,664 31.88

MTNL 27,72,120 1.81

Vodafone 3,56,57,546 23.26

Idea Cellular 1,86,71,860 12.18

BPL 11,53,357 0.75

Spice 34,81,710 2.27

Aircel 80,39,355 5.24

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble
PC, internet, broadband (both wireless and fixed), and cable, handset features, talking
SMS, IPTV, soft switches, and managed services to the local manufacturing and
supply chain.

This report discusses key trends in the Indian telecom industry, their drivers and the
major impacts of such trends affecting mobile operators, infrastructure and handset
vendors.

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Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself). They prefer
wireless services compared to wire-line services, which is evident from the fact that
while the wireless subscriber base has increased at 75 percent CAGR from 2001 to
2006, the wire-line subscriber base growth rate is negligible during the same period.

In fact, many customers are returning their wire-line phones to their service providers
as mobile provides a more attractive and competitive solution. The main drivers for
this trend are quick service delivery for mobile connections, affordable pricing plans
in the form of pre-paid cards and increased purchasing power among the 18 to 40
years age group as well as sizeable middle class a prime market for this service.

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation
in done on the basis of number of subscribers will force companies to merge so as to
claim large number of subscribers to gain more spectrum as a precursor to the launch
of larger and expanded services. However it must also be noted that this may very
well never happen on account of low telecom penetration.

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COMPANY PROFILE
I. History
II. Mission, Vision & Objectives
III. Product and services Offered

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4.1 History
Aircel is an Indian mobile network operator headquartered in Gurgaon that
offers voice and 2G, 3G and 4G data services. Maxis Communications holds a
74% stake and Sindya Securities and Investments holds the remaining
26%. Aircel was founded by C Sivasankaran and commenced operations
in Tamil Nadu in 1999. It is the fifth largest mobile service provider in India
with a subscriber base of 90.9 million subscribers as of March 2017. Aircel is
a market leader in Tamil Nadu and has considerable presence
in Odisha, Assam and North-East telecom circles.

Aircel was founded by Chinnakannan Sivasankaran and started its operations in


the Tamil Nadu telecom circle in 1999. It became the leading operator in
Tamil Nadu and one of the fastest growing mobile operators in
India. Malaysian telecom company Maxis Communications bought a 74%
stake in the company from Sivasankaran in 2005. The remaining 26% stake is
held by Sindya Securities and Investments promoted by Suneeta Reddy,
Managing Director of Apollo Hospitals.

In 2012, as a part of a major re-organization in its operations, the company


scaled down its operations in five telecom circles, namely Madhya
Pradesh, Gujarat, Haryana, Kerala and Punjab. In April 2015, Aircel
relaunched its service in Kerala

Our world

33
The Aircel Group is a result of alliance between Maxis Communications
Berhad of Malaysia (74% equity) and Sindya Securities & Investments Private
Limited (26% equity).

The Aircel Group, formed in 1994, offers affordable and outstanding mobile
services to a vast subscriber base in India. Aircel has a vision of delighting its
customers by giving them the respect they deserve. Our goal is to provide our
customers with exemplary service and persistently look for new ways to
surpass their expectations.

Aircel commenced operations in 1999. In our first decade of operations, we


concentrated on building our foundations in the southern part of the country,
and soon emerged as the regional market leaders. We worked hard and
achieved that success by remaining focused on growth opportunities. Soon
after our company began with its expansion in 2005 and has now set its sight
on becoming a pan India operator. Our project pipeline is robust, allowing for
sustainable long-term growth.

In addition to our leadership position in Tamil Nadu, Aircel met with


extraordinary success in the Eastern frontier circles. We pride ourselves on
customer satisfaction and managed to emerge as the market leaders in Assam
and North Eastern states within 18 months of operations. During this period,
our company gained a strong foothold in 10 circles, to provide better access to
our customers. Today, Aircel operates in 18 telecommunication circles and the
company is ready to embark on a dynamic expansion plan, swiftly rolling out
in new circles in the near future.

Aircel recognizes the tremendous growth in its customer base. We have also
got an authorization from the Department of Telecommunications for ILD and
NLD telephony services and are now on track to realize our dream of becoming
a nationwide player by the year 2020.

Aircel offers its customers, services and products that are easy to understand
and use. All offerings are stimulating and at the same time extremely unique as

34
Aircel continues to re-invent itself constantly to deliver the best and most up-
to-date services. The brand instils a felling of pride, confidence and reliance
among all stakeholders by anticipating their desires and fulfilling the same
efficiently.

With our foundations deeply set on our brand vales of simplicity, creativity,
trust and excitement, we will continue to deliver superior services to our
customers and will do our best to live up to their high expectations.

About Maxis Communications Berhad

Maxis Communications Berhad is a leading mobile communications service


provider in Malaysia that started operations in the year 1995. Maxis' vision is
to bring superior communication services to enhance its customers' lives and
businesses, in a manner that is simple and personalized, by efficiently and
creatively harnessing leading edge technology, and delivering a brand of
service experience that is reliable and enchanting.

Since its inception, Aircel has strived to provide the best of features and
services to its customers. It is this passion and enthusiasm that has helped us
grow leaps and bounds from what started as operations in Tamil Nadu in 1999,
to a pan-India presence across 18 circles today.

Aircel has also been recognized for its consistent and reliable efforts, receiving
the highest rating for overall customer satisfaction and network quality by
Voice and Data in 2006, an accolade given to only a select few. We succeeded
in keeping our promises to our customers as we were recognized for the same
award by IDC.

Aircel emerged as the top mid-size utility company in Business world's 'List of
Best Mid-Size Companies'. Additionally, we have also been recognised as the
best regional operator by the Tele.net Publication and have been honoured by
CMAI INFOCOM for excellence in marketing of new telecom service.

35
Thanks to our loyal customers, we have been rated as one of the most admired
mobile service brand in a pan-India survey conducted. Aircel today has reached
a subscriber base of 46 million plus and is still going strong. Rest assured
Aircel's commitment to providing you with the best of services and features
will be an ongoing endeavour.

Aircel has multiple and convenient store locations throughout the country. We
provide sales and support through one of the largest and most extensive
networks of stores.

4.2 Mission:

Aircel is primarily a user of technology rather than a developer of it, and this fact is
reflected in the emphasis of our work program on enabling new applications of
mobile communications, using new technology for new services, research for
improving operational efficiency and quality of our networks, and providing
technology vision and leadership that can contribute directly to business decisions.

Vision:

Our Vision is to be the worlds mobile communication leader enriching customers


lives, helping individuals, businesses and Communities be more connected in a
mobile world.

4.3 Product & Services Offered

Services:

Staying connected becomes a lot easier with Aircel. We have a wide range of services
you can access right from your Aircel phone. From cell banking to flight updates to
call management services, get all that you want, instantly.

Prepaid services (latest):

- Aircel , one of Indias leading cellular service providers announced a new


Bonus Card 25 for its prepaid customers in Punjab. With this new bonus
card, Aircel customers can enjoy the benefit of unlimited national SMS at
just 20paisa/SMS. The new bonus card comes with 30 days validity.

36
Postpaid services (latest):

- Aircel , one of Indias leading cellular services providers has launched three
new monthly rental plans - Budget 500, Budget 750 and Budget 1000 - for its
postpaid customers in Kolkata and West Bengal. These Budget plans offer
combinations of free minutes over local and STD calls along with free local
SMS. This offer is valid for new and existing customers.

Dial 600 to activate:

To activate these values added services on your Aircel phone simply dial 600 and
access our Interactive Voice Response system.

SMS:

Message your family and friends through Aircel SMS Services. It's convenient and
affordable. Communicate with cell phone users in over 100 countries and anywhere in
India - by sending and receiving text msg.
Pay just Rs. 1.50 per message for sending SMS anywhere across the country.

Aircel Online:

Get all the useful information you need directly on your Aircel phone - with Aircel
Online. Including cricket, finance, entertainment, weather, astrology and more.

Simply go to the Aircel Online menu on your Aircel phone. If you do not see the
Aircel Online menu on your phone, send HELP to 123. We will send you the list of
keywords.

Scroll to the topic on which you need information.

Select the information and key input as requested on the screen.


You will be charged Rs. 2 per outgoing message. Incoming messages are free.

MTNL Directory:

With this facility you can get to know the address and telephone no. of MTNL
users.you will be charged Rs.2 per outgoing message.

37
STD / ISD Codes:

You don't need to look up your diary or a phone directory to find out STD and ISD
codes. You can find it directly through your Aircel phone.

Ringtones & Logos:

Now you can change the ringtone on your Aircel phone according to your moods.
You can download logos as well. With the Aircel and Yahoo! tieup you have
hundreds of tunes and logos to choose from.

For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS
sent). For every logo/picture message downloaded, you will charged Rs. 3.00
(including the cost of SMS sent).

Dial-in Services

Aircel brings you more conveniences at your fingertips. Use our Dial-in-Services to
check cricket scores, horoscope, up-to-the minute news and other relevant information
on services that touch your everyday life.

All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).


Here's a shortlist of services you can access

Service Number

NDTV Online 123

Info Line 301

Dial-n-Deliver 306

Cricket Online 123

Tarot Line 314

Cell Rashi 315

38
Dial-a-Pizza 303

Dial-a-Cab 335

Voice Response Service 123

There are occasions when you may not want to take a call, or your Aircel phone
maybe busy or simply unreachable. By paying a nominal monthly access fee, you can
now retrieve your messages at your convenience. Even if you are roaming, you can
retrieve your messages from your voice mailbox through a fixed line, anywhere on
earth.

Your Aircel voicemail can

Hold up over 17 messages at a time.

Receive a message that lasts up to 90 seconds.

Store a message for as long as you want.

you can also record your voice signature and welcome message.

Call Management Services

There may be occasions when you need to conference with up to six people at a time
or talk to just two. Or you are speaking to someone and want to forward an incoming
call to another phone. With your Aircel phone, you can do this and more. Aircelhelps
you manage your calls effortlessly so that you stay in control of your conversations,
always.

Voice Response

Get your Aircel phone to respond directly to your commands. Custom designed to
recognize Indian voices and accents, the Voice Response service makes your life
more convenient. You can get the latest updates on news, stocks, cricket and your
horoscope. Airtime charges will be Rs.6 per minute (1 minute pulse).

Voice Messaging

39
Voice Messaging has become even more affordable. You can now send voice
messages to cellular phones as well as fixed telephone lines in USA or Canada for just
Rs.3.95 per min* (as against Rs.4.95 per min earlier).
Voice messages within India across select networks will cost you Rs.95 per min
only. Also, recipients of the cellular Voice Messaging service have the option of
replying back to the messages, which get returned back as return Voice Mail
messages, facilitating two-way (though not simultaneous) voice communication.

Yahoo! Messenger For SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive
Aircel-Yahoo! tie-up, you can easily get connected through your Aircel phone. This
unique messenger comes with a lot of exciting features. You can connect with all
Yahoo! Messenger users, send, receive and reply to instant messages, view and
manage your friend list and also manage authorization requests. All this and more just
by using SMS. You will be charged Rs. 2 per outgoing message. Incoming messages
are free.

Cell Banking

Aircel now puts the bank in your pocket with Cell Banking. Access your bank
account and transact directly on your Aircel phone by sending text messages.

The first of its kind in India, this service enables you to conduct your banking without
having to visit the bank or making a call.
You can do Cell Banking from over 90 countries worldwide.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Roaming

Now you can always stay connected, no matter where you are. With the Aircel
Roaming facility, you can use your Aircel phone in over 100 countries worldwide and
over 1000 cities, towns and highways across India. Aircel Roaming makes life easy
and convenient for you.

- Aircel , one of Indias leading cellular services providers, today announced


significant reduction in international roaming rates for its Postpaid customers

40
traveling to South Africa during the upcoming DLF Indian Premier League
(IPL) cricket tournament. Aircel is the official partner to DLF IPL 2009

One number across the globe

Your Aircel phone number and PIN number remains the same whether you are in
Delhi, Chandigarh, London, Paris or anywhere else in the world.

National and International Roaming on Aircel Prepaid

Roaming on Aircel Prepaid gives you the most extensive coverage in over 1000 cities,
towns and highways across India, and in over 100 countries around the world. Enjoy
Roaming on your Aircel Prepaid card and stay in touch wherever you go.

Yahoo! Mail for SMS

You can now directly access your email account on Yahoo! Mail on your Aircel
phone. Whats more, you do not need a WAP enabled handset for this service as it is
based on SMS. So gain freedom from your PC and access your Yahoo! mails anytime,
anywhere on your Aircel phone. You will be charged Rs. 2 per outgoing message.
Incoming messages are free.

WAP

With WAP, you can have the Internet directly in your pocket. So if you are looking
for quick and easy delivery of information and services, your Aircel phone can show
it all. Use it to check out news, finance, shopping, entertainment, travel, entertainment
and city service information etc. To access this service all you need is a WAP enabled
handset and WAP services activated on your Aircel phone. This service comes to you
at a nominal charge of Re. 1 per minute (1 min pulse).

Group Messaging

41
Party invitations, movie outings, festive greetings... whatever be the occasion, you can
send your message to all your friends at one go!
With Group Messaging from Aircel, you can thus save yourself the bother of pain
stakingly sending your message to one person at a time whether you are on Aircel
Prepaid or Postpaid.

Aircel4help

Aircel4help now lets you take advantage of a lot more services than before. You can
connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you
are stranded in the middle of the road, or if you you need immediate medical attention
or if you are looking for a police station close by, Aircel4help gives you instant access
to your nearest source of help, anywhere in Delhi or the NCR.

All the help services are charged@Rs.6/min. While for police and fire help only local
airtime charge is applicable.

STRENGTHS:
Aircel has its brand image and its ranking is 2nd in world. so here one thing is
conform that Aircel has good network and outstanding services thats why its users
are most after china mobiles. At gave some special packages to the attract customers.
it can offer international roaming facility more than any network in India. Financially
Aircel is strong and is able to invest heavy amount in India.

WEAKNESS:

It has to take license from TRAI and act according to rules of India due to which it
may not give its special services like 3G video calling and call to someone by hiding
your phone number.

OPPURTUNITIES:

Aircel can capture Asian market if it can grow more in India, 62% of population of
India is young and mobile phones are most commonly used by young ones. Demo
graphs of India tell us that in this company India can earn heavy amount of revenue.

42
So there is space for market penetration. if Aircel offers some special packages for
limited time then customer of other networks may switch. Aircel have better
technology so it can capture the customers of the other networks as well. With India
Aircel can capture Asia as well because of population or demography of India.

THREATS:

The current recession in market is not good for any kind of business including
telecommunication. Five cellular companies are already working in India. The
situation in is not good especially political and peace. There are a lot of uncertainties
in the country.

MARKETING STRATEGYADOPTED BY AIRCEL


Aircel has spent a considerable amount on advertising its mobile phone service.

Besides print advertising, the company had put up large no of hoardings and kiosks in

and around Delhi.

The objective behind designing a promotion campaign for the Aircel services is to

promote the brand awareness and to build brand preferences.

It is trying to set up a thematic campaign to build a stronger brand equity for Aircel.

Since the cellular phone category itself is too restricted, also the fact that a Cellular

phone is a high involvement product, price doesn't qualify as an effective

differentiator. The image of the service provider counts a great deal. Given the Cell

phone category, it is the network efficiency and the quality of service that becomes

important. What now the buyer is looking at is to get the optimum price-performance

package. This also serves as an effective differentiator

Brand awareness is spread through the' campaigns and brand preference through

brand stature. Aircel's campaign in the capital began with a series of 'teaser' hoardings

43
across the city,' bearing just the company's name and without explaining what Aircel

was. Vans with Aircel logos roamed the city, handing out brochures about the

company and its services to all consumers. About 50,000 direct callers were sent out.

When the name was well entrenched in the Delhiitess mind, the Aircel campaign

began to focus on the utility of Cell phone. In the first four months alone Aircel's

advertisement spend exceeded Rs. 4 crores.

As of today the awareness level is 60% unaided. This implies that if potential or

knowledgeable consumers are asked to name a Cellular phone service provider that is

on the top of his/her mind 60% of them would name Aircel. As for aided it -is 100%

(by giving clues and hints etc.).

Brand strength of a product or the health of a brand is measured by the percentage

score of the brand on the above aided and the unaided tests. The figures show that

Aircel is a healthy and a thriving brand.

Every company has a goal, which might comprise a sales target and a game plan with

due regard to its competitor. Aircels campaign strategy is designed keeping in mind

its marketing strategy. The tone, tenor and the stance of the visual ads are designed to

convey the image of a market leader in terms of its market share. It tries to portray

the image of being a "first mover every time" and that of a "market leader".The status

of the product in terms of its life cycle has just reached the maturity stage in India. It

is still on the rising part of the product life cycle curve in the maturity stage.

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. Aircel, keeping in mind the importance of the

customer retention, values its heavy users the most and constantly indulges in service

44
innovation. But, since heavy users comprise only 15 - 20% of the population the

other segment cannot be neglected.

The population which has just realized the importance of cellular phones has to be

roped in. It is for this reason that the service provider offers a plethora of incentives

and discounts. Concerts like the "Freedom concert" are being organized by Aircel in

order to promote sales. The media channel is chosen with economy in mind. The

target segment is not very concrete but, there is an attempt to focus on those who can

afford. The print advertisements and hoarding are placed in those strategic areas

which most likely to catch the attention of those who need a cellular phone. The

product promise (which might cost different 1 higher) is an important variable in

determining the target audience.

Besides this, other promotional strategies that Aircel has adopted are .

(i) People who have booked Aircel services have been treated to exclusive premiers
of blockbuster movies. Aircel has tied up with Lufthansa to offer customer bonus
miles on the German airlines frequent flier's programs.
(ii) There have been educational campaigns, image campaigns, pre launch

advertisements, launch advertisements, congratulatory advertisements,

promotional advertise--ments, attacking advertisements and tactical

advertisements.

45
DISTRIBUTION

Company

Franchisee Distributor

Dealers
Dealer

Customer
Customer

The- company whose operations are concentrated in and around Delhi. It 27

Franchisees and 15 Distributors- They also have 8 'instant access cash card counters-

Each franchises or distributor can have any number of dealers under him as long as

the person is approved by the Aircel authority. Each franchise has to invest Rupees

Ten Lakhs. To obtain a franchise and should employ an officer recruited by Aircel.

This person acts as a liaison between the company and the franchises. The franchises

can it any number of dealers as long as their territories do not overlap. But

unfortunately Aircel has not been very successful in controlling territorial overlaps of

dealers. The franchises can carry out his/her own promotional strategy. For this the.

company contributes 75% of the money and the franchises contributes 25% of the

money. The dealers under the franchisee receive the same commission. The

franchises and the dealer obtain the feedback from the customers and they are sent

46
through the liaison officer on a day-to-day basis to Aircel. The dealer has to invest

Rupees. One Lakh as an initial investment. The dealer of Aircel are not allowed to

provide any other operators' service.

Target set for distributors and the dealers is 100 -150 activations per month. Hence

the dealers can also go for their own promotions like banners and discounts on

festivals etc. The dealer provides service promptly. The consumer on providing the

bill of purchase for the handset and proof of residence has only to wait an hour before

getting connected. The staff of the dealers and the franchisees are provided training

by the Aircel personnel.

The complaints encountered by the franchisees and dealers are either handset being

non-functional or the SIM Card not getting activated. Anything more complicated is

referred to the main Aircel office.

WHAT DOES AIRCEL OFFER?

With Aircel, the subscriber wouldn't just get a personal phone that lets him/her be in

touch, always, but also gets a host of benefits that let him/her manage his/her time like

never before.

An Aircel subscriber is provided with a Subscriber Identity Module Card (SIM card) -

that is the key to operating his/her cellular phone. His card activates Aircel cellular

services and contains a complete micro-computer chip with memory to enable one to

enjoy one's cellular phone thoroughly. Each SIM card contains a PIN code (Personal

Identity Number) which may be entered by one. Just plug your SIM card into your

cellular phone, enter the PIN code and it becomes 'your' personal phone'.

47
PRODUCT LIFE CYCLE

The pattern of cellophane subscriber growth observed elsewhere in the world reveals

that the growth in the market is initially slow followed by a sharp acceleration, but so

far that has not happened in India. As far as the Product Life Cycle is concerned.

Indians are at the beginning of the maturity stage.

Introduction Growth Maturity

MARKETING OBJECTIVES

Create product Maximize market Maximize profits

awareness and trial share whole defending

market share

STRATEGIES

Product Offer a basic Offer value Increase in

product/ added services number of value

service. added services.

Price Charge cost- Price to Price to match

plus penetrate or best

market competitors

Distribution Build selective Build Intensive Build more

distribution distribution. intensive

distribution.

48
Advertising Build product Build awareness Stress brand

awareness and interest in differences and

among early the mass benefits.

adopters and market

dealers.

Sales Promotion Use heavy sales Increase to Increase to

promotion to build and encourage

entice people to maintain brand-

subscribe. relationships switching.

with customers.

49
FINDING AND ANALYSIS
I. Findings based on
Questionnaire

50
Statement 5.1 .How many mobile connection do you have?

Table 5.1 number of Connections

percentage of
options no. of respondents
respondents
1 35 36%

2 46 46%

3 11 11%

more than 3 8 8%

total 100 100%

Figure 5.1 number of Connections

8%
11%
35%

1
2
3
46% more than 3

INTERPRETATION:

As per manjority of the respondents, i.e 46% use 2 mobile connections. Whereas 35%
of the respondents stick to one connection only.

51
Statement 5.2.which is your primary service provider?

Table 5.2 Primary service provider

options no. of respondents percentage of respondents

Aircel 68 68%

Aircel 12 12%

Vodafone 18 18%

MTNL 2 2%

total 100 100%

Figure 5.2 Primary service provider

2%

18%

Aircel
12%
Airtel
68% Vodafone
MTNL

INTERPRETATION:

According to majority of the respondents 68% have primary service provider as


Aircel.

52
Statement 5.3. Why have you chosen aircel as you service provider?

Table 5.3 Reasons for choosing Aircel

percentage of
options no. of respondents
respondents
Easy availability of
6 6%
recharge coupans

Better network options 14 14%

Low tariffs 64 64%

Better service 12 12%

Any other 4 4%

Total 100 100%

Figure 5.3 Reasons for choosing Aircel

4% Easy availability of
recharge coupans
12% 6%
14% Better network options

Low tariffs

64%
Better service

Any other

INTERPRETATION:

According to the above table and figure 64% of the respondents say that Aircel charges
lowest as compared to the competitors.

53
Statement 5.4. How do find advertisement of aircel?

Table 5.4 Perception regarding advertiesement of aircel

options no. of respondents percentage of respondents

Very attractive 26 26%

attractive 56 56%

poor 10 10%

indifferent 8 8%

Total 100 100%

Figure 5.4 Perception regarding advertiesement of aircel

8%
10% 26%
Very attractive
attractive
poor
56% indifferent

INTERPRETATION:

As per majority of the respondents, i.e 56% of the respondents feel that they find the
advertisements of aircel very attractive.

54
Statement 5.5.what kind of troubles do you face with aircel connection?

Table 5.5 troubles faced by customers

percentage of
options no. of respondents respondents

Poor network 37 37%


unreasonable balance
deduction 35 35%
poor customer care
response 10 10%

high tariffs 6 6%

no trouble at all 12 12%

Total 100 100%

Figure 5.5 troubles faced by customers

Poor network
6% 12%
37% unreasonable balance
10% deduction
poor customer care
response
35% high tariffs

no trouble at all

INTERPRETATION:

As per the above table and graph, majority of the respondents i.e 37% say that they face
poor network problem.

55
Statement 5.6.How do you find value added services of aircel?

Table 5.6 Perception about value added services

options no. of respondents percentage of respondents


Excellent 19 19%
Good 66 66%
Average 13 13%
Poor 2 2%
Total 100 100%

Figure 5.6 Perception about value added services

2%

13% 19%

Excellent
Good
Average
66% Poor

INTERPRETATION:

After analyzing the above table and graph, it was identified that 66% of the respondents
found the value added services to be good.

56
Statement 5.7. How do you find response of customer care executive when you put a
query?

Table 5.7 Response of customer care executive

percentage of
options no. of respondents respondents

Positive 77 77%

Negative 23 23%

Total 100 100%

Figure 5.7 Response of customer care executive

23%

Positive
Negative
77%

INTERPRETATION:

From the above table and graph it is identified that majority of the respondents i.e 77%
are satisfied with the response of customer care executives when they had ever put a
query.

57
Statement 5.8. Do you want to switch to any other service provider?

Table 5.8 want to switch service provider

options no. of respondents percentage of respondents

Yes 11 11%

No 89 89%

Total 100 100%

Figure 5.8 want to switch service provider

100
90
89
80
70
60
50
no. of respondents
40
30
20
10
11
0
Yes No

INTERPRETATION:

From the above table and graph it was found that 89% of the respondents do not want
to switch their service provider.

58
Conclusion and
Recommendation

i. Conclusion

ii. Suggestion

59
6.1 CONCLUSION

After analyzing the findings of the research, I can conclude that Aircel lagged behind
its ompetitors as far as customer service and availability is concerned. The maximum
no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the
most popular type of mobile connections, as they are consumer friendly and
recharging the connection is not a problem.

Maximum no. of people spend RS 500 on their connections. As Aircel is the only
company having the maximum no of mobile connections so it must seriously look
into the loop holes of the existing customer service department.

Although people are aware about the tariff plans offered by WLL service providers,
but right now they are not in hurry to adopt it. The public wants to wait and watch
their respective performances.

So far findings from this research are concerned these are the major findings as
follows.

Being a market leader Aircel has got the maximum no of subscribers base. From this
research I found that Aircel has got 48% customer base in Delhi. Trump has got 28%
customer base followed by Hutch with 14% and finally only 10% of Aircel.

Second thing what I found from this research is that out of 150 respondents 100 i.e.
66.6% of the consumers have switch over from their service provider. Out of 100
consumers 46 is the figure from Aircel, 29 from Trump, 14 from Aircel, & 11 from
Hutch.

The major reason I found for switch over price value i.e. an expensive in case of
Aircel. In case of trump network coverage & non availability of recharge voucher
while consumers go for roaming is the major reason come out, Aircels customers are
having the major problem of billing related in case of postpaid connection.

This seems to be the new age of communication all most 90% of the customers are
aware about the market.

60
Future to retain its market share

i) Aircel should look into the short comings of its customer care service.
ii) Aircel should make sure, that their prepared card should always be readily
available with the retailers.
iii) Aircel should keep on coming with attractive tariff plans.
iv) As maximum no. of users are between 20 to 28 they should specially come
out with some plans which are attractive for this segment.
v) Main advantage of WLL is its tariff plan. So GSM service providers
should try to reduce their tariff plans if possible, at least initially.
From above the details I conclude that 70% Aircel users preferred to remain with
Aircel. Also good number of users who were willing to switch from their respective
subscribers showed interest in Aircel. Hence, these statistics imply a bright future for
the company. Also the company is now providing more services like the door to door
services which is you dial the Aircel customer care and would like to send someone
flowers the Aircel company delivers those flowers to the person concerned. Also
Aircel is providing voice mail service and free text messaging service. Call
conferencing is also another feature Aircel provides.

61
6.2 Suggestion

Being a market leader Aircel still striking in the telecom industry.


Trump is coming up with such a rapid growth rate.
But the point to be noted over here i.e. Trump has the maximum subscriber
base in terms of students.
Whereas Aircel has subscriber base of multi functional area.
Aircel is good service provider but because of some issues in billing and
some others consumer dont take interest in it.
Business class mostly prefer hutch; recently hutch has extended its
recharge voucher limit from Rs 10 up to as your need.
Top of Mind: This is clear that Aircel enjoys the clear preference of the
consumers
Overall Image: Aircel has been more successful, not through product
features but an overall image.
Aircel should look into the short comings of its customer care service.
Aircel should make sure, that their prepared card should always be readily
available with the retailers.
Aircel should keep on coming with attractive tariff plans.
As maximum no. of users are between 20 to 28 they should specially come
out with some plans which are attractive for this segment.
Main advantage of WLL is its tariff plan. So GSM service providers should
try to reduce their tariff plans if possible, at least initially.
Many of the respondents perceived Air Tels tariffs to be high. The
company should focus its advertising message on this issue and compare it
with the rival operators tariffs (which are almost similar).
Air Tel should focus on those customers whose satisfaction is high but low
loyalty. Loyalty based programs should be introduced, which the company
has introduced now in terms of Rewards programmes. Also an alarming
proportion of its customers are those with low satisfaction and low loyalty.
This category poses a threat and their loyalty should be established.
In their advertising messages, Air Tel uses more than one caption Touch
Tomorrow and The Good Life. This creates a confusion in the

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customers mind. They should focus on their main line Touch Tomorrow
used in the Air Tel brand architecture.

The first come advantage

Value added services are the norm of the day. The service providers can gain a
long term advantage by consistently introducing new incentives in value added
services or

tariff structures. Every time a new scheme is launched it provides temporary edge
to the service provider over its counterpart. This temporary advantage is in terms
of the new clients it acquires who have been attracted by the offer. However after
some time this advantage is neutralized by the other player offering something
similar. Thus it important to innovate before the competition time and again so that
one can make the short term advantage cumulatively long term and help increase
mind share as well as market share.

Corporate clientele

Since this a target market by itself its marketing methodology itself would be
different. Most organizations prefer to take services for their employees in groups.
Hence, this order becomes very big for the service provider. Personalized selling
would be the order of the day for these users. The presence in the various business
and corporate circles would also enhance Aircel brand image. Special incentives
can be given to these employees for maintaining their loyalty to the Aircel brand.

The Aircel - Aircel advantage

Aircel could lure more customers by introducing schemes in which calls from one
Aircel user to another would be possible at a reduced tariff. This would encourage
a group of users who need to communicate frequently to opt for this service only.
Also it would help in promoting bondage between the users and thus further
promote loyalty.

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New innovative packages

Aircel has to come up with new innovative packages like the CALL HOME
scheme offered by Vodafone. Such schemes launched at regular intervals will help
in maintaining customer loyalty and also attract new customers.

Collaborative schemes with other companies

Aircel can collaborate with companies like Nokia or any other hardware provider
and launch schemes like providing free airtime with every hardware instrument
bought. Exposing the customer to the brand increases the chances of the customer
being hooked on to the brand. The companies can ensure this by offering the
option of renewal of the account at the expiry of the free airtime.

Discounted products

The company has to offer more discount schemes like reducing the activation
charges or reducing the security fees. This will provide the company a competitive
edge. However this may lead to a price war. Hence the trade offs of indulging in
this exercise must be considered.

Regular freebees

Aircel can offer at regular intervals and specially at festivals schemes like free
airtime to its users, free coupons for shopping, free entry to shows etc. this would
keep the customers interested in the brand and ensure that they remain loyal to the
brand. The other competitor will also be indulging in the same hence the
effectiveness of these would depend on the timing of these offers.

Special offers

Aircel may offer special incentives and rewards to the frequent and regular users
by offering them free maintenance checks.

Free or minimal cost up gradation to a category of users who use the service over a
specified limit of airtime

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More of the e-factor

The future belongs to the net. The players who will be able to integrate the net in
their operations will lead the market. This would mean advertising over the net,
allowing an interface of the net with the cellular service. Aircel is already on the
right track as far as this is concerned. They have introduced the concept of being
able to send messages to the user like a pager message. This can be done from the
Aircel site.
Consolidate WAP

Aircel has the advantage of having introduced the WAP before its competitor
Vodafone has. They can use this as platform for taking a lead when this technology
becomes widespread. Till then it will act as bait for status conscious users who
want the latest innovations irrespective of its present application.

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ANNEXURE

BIBLIOGRAPHY

SAMPLE
QUESTIONNAIRE

66
BIBLIOGRAPHY

A. BOOKS:
1. PHILIP KOTLER: MARKETING MANAGEMENT

2. DENNIS ADCOCK: MARKETING PRINCIPLES & PRACTICE

3. S.R, BAJPAI: METHODS OF SOCIAL SURVEY AND


RESEARCH

4. GODDE & HATT: METHODS OF SOCIAL RESEARCH

5. W.S.JAWADEKAR: MANAGEMENT INFORMATION


SYSTEM

B. MAGAZINES:
Business World
C. JOURNALS:
1. THE TIMES OF INDIA

2. BUSINESS STANDARD

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QUESTIONNAIRE

Respected Maam/Sir, I am a student of BBA; given questionnaire is a part of

my project which aim to explore the need of revised methodology of

marketing strategies of Aircel.

Please spare some time and respond to these questions:

1. How many mobile connection do you have?

1)

2)

3)
more than 3

2.which is your primary service provider?

Aricel Vodafone

Aircel MTNL

3. Why have you chosen aircel as you service provider?

Easy availability of recharge coupons

Better network coverage

Low tariffs

Better service
Any other please mention

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4. How do find advertisement of aircel?

Very attractive

Indifferent

Attractive

Poor

5.what kind of troubles do you face with aircel connection?

Poor network

Unreasonable balance deduction

Poor customer care response

High tariffs

No trouble at all

Any other please mention

6.How do you find value added services of aircel?

Excellent

Good

Average

poor

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7. How do you find response of customer care executive when you put a query?

Positive

Negative

8. Do you want to switch to any other service provider?

Yes

No

9. Any suggestion you would like to recommend to aircel?................................

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