A PROJECT RE P O RT

ON

“CONSUMER BEHAVIOUR OF

AIRTEL”

FOR PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGRE E O F

MASTER OF BUSINESS ADMINISTRATION (2009-2011)

SUBMITTEDTO: SUBMITTED BY:
ASIANCOLLEGEOF PRABHAKAR MANAGEMENT rd (3 sem ) SAHARANPUR
1

VINEET MBA ROLL NO-

0958970055

MANAGMENT

AFFILIATED TO AICTE AND U.P TECHNICAL UNIVERSITY LUCKNOW

COLLEGE OF
2

ASIAN

ACKNOWLEDEGEMENT

I am fortunate to have an opportunity to undergo the “Summer Training” at AIRTEL The training has been useful for me in understanding the various pragmatic aspect of the management function in practice in the real world. A work is never the work of individual. It is a combination of ideas, suggestion and contribution of supporting people.

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4 . To familiarize with the company as corporate world and its various aspects of functioning.PREFACE The project titled “CONSUMER BEHAVIOUR OF AIRTEL” is an outcome of my summer training project as a part of my MBA from ASIAN COLLEGE OF MANAGEMENT SAHARANPUR. salient features. I have taken utmost care to prepare the project. I hope that analysis and summary will certainly help the organization to make an effort to innovate their work culture and functioning. growth strategies.

5 .DECLARATION I hereby certify that the work which is being presented in this report and entitled as “CONSUMER BEHAVIOUR OF AIRTEL” is an authentic record of my work This matter embodied in this report has not been submitted by me for the award of any to degree.

it is very essential to not only exist but also to excel in the market. In today’s world of cutthroat fierce competition. to survive in the market. Hence forth. Today’s market is enormously more complex. This report also contains the basic marketing strategies that are used by the Airtel company of manufacturing process. export scenario. The report begins with the history of the products and the introduction of the Airtel company.EXCUTIVE SUMMARY The project is an extensive report on how the Airtel company markets its strategies and how the company has been able in tackling the present tough competition and how it is cooping up by the allegations of the quality of its products. production policy. the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there. The report includes some of the key salient features of market trend issues. collaboration. future prospect and government policies. technology. 6 .advertising.

To compare various parameters of manufacturing process. The appropriate methodology will improve the validity of the findings. collaboration. To identify the difference in market performance of Airtel industry. 3.  Data Collection: 7 . advertising. 2.  Area of the study: The study was mainly concentrated on Ernakulam district. as it exists at present. To study the market of Airtel Industry in big scale sector.export scenario. future prospect and government policies.OBJECTIVE OF THE STUDY 1.  Research Design: Descriptive Research: Descriptive research includes survey and fact-findings enquire of different kinds. The major purpose of descriptive research is description of the state affairs. RESEARCH METHEDOLOGY The success of the analysis mostly depends on the methodology on which it is carried out.

 Sample Size: From the universe. sample sizes of 100 customers were selected for the purpose of the study.  Secondary Data: Secondary data was collected from journals. 8 .  Primary Data: An interview schedule was designed to collect primary data from various broadband users.The study is based on the data collected through primary and secondary sources. sample frame and sampling method.  Sampling Design: The sampling design mainly consists of the sample taken for the study along with the sample size.  Sample Frame: The customers were selected on a random basis from which the respondents were selected based on convenience. magazines.  Sample Universe: All customers using broadband connection was taken as the sample universe. web sites and from other relevant publications.

From this.853 billion(2009) 25.in (32. The study was conducted on consumers with different type of business. Bharti Airtel Limited Type Industry Founded Founder(s) Headquarters Area served Key people Public (BSE: 532454) Telecommunications 7 July 1995 Sunil Bharti Mittal New Delhi. 30 days was spent for the collection of data.56%) SingTel 9 Vodafone (4.662 billion (2009) ▲ US$ 11.4%) Airtel.543 (2009) Bharti Enterprises (63. India Asia & African countries Sunil mittal (chairman) and (MD) Sanjeev kapoor (CEO) Wireless Bharti Airtel Limited (Hindi: भारती एयरटेल) (BSE: 532454) formerly known as Products Teliphone Internet Satellite telivision Bharti TeleVentures LTD (BTVL) is an Indian company offering Revenue Operating income Net income Total assets Employees Parent Website ▲ US$ 7. based on the willingness and availability of the respondents.254 billion (2009) ▲ US$ 2.  Research period The time for the project was limited to 45 days only (from 1-30 December).043 billion (2009) ▲ US$ 1.04%) . Sampling Method: Convenience sampling was used.

http://en. which connects the submarine cable connecting Chennai and Singapore.telcommunication services in 19 countries. The company is structured into four strategic business units . Bharti Airtel is the world's third largest. microwave links. The Telemedia business provides 10 .cite_note-4 Ericsson agreed for the first time. Telemedia. 1/minute (U$0. Bharti has roped in a strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal. Its network (base stations. The company has a submarine cable landing station at Chennai.) is maintained by Ericsson and Nokia Siemens Network. It also acts as a carrier for national and international long distance communication services. to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. Enterprise and Digital TV. This enables the company to provide pan-India phone call rates of Rs. During the last financial year [2009-10].wikipedia.org/wiki/Bharti_Airtel . It is known for being the first mobile phone company in the world to outsource everything except marketing and sales and finance. business support by IBM and transmission towers by another company.02/minute). It also offers fixed line services and broadband services.Mobile. The company also provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India. It the largest cellular service provider in India. single-country mobile operator and fifth largest telecom operator in the world with a subscriber base of over 180 million. with more than 140 million subscriptions as of July 2010. etc. The mobile business offers services in 18 countries across the Indian Subcontinent and Africa.

In India. Airtel also offer an integrated suite of telecom solutions to enterprise customers.461 use our Telemedia Services either for voice and/or broadband access delivered through DSL. of who 85. will replace Manoj Kohli and will be the CEO. company announced that Manoj Kohli.733 subscribe to 2. effective from 1 April 2010.270. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. the company has a 30. IPTV and telephone services in 89 Indian cities. Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base. CEO. Current Dy.650. based on the number of subscribers as of December 31. will become the Chief Executive Officer of the International Business Group from 1 April 2010. In January 2010. 2008. in addition to providing long distance connectivity both nationally 11 . The Digital TV business provides Direct -to. Airtel is the largest wireless service provider in the country. behind China Mobile and China Unicom. Airtel is India’s leading providers of telecommunication services with a nationwide presence in all the 23 licensed jurisdictions (also known as Telecom Circles).7% share of the wireless services market. He will be overseeing Bharti's overseas business. Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles taking its global presence to 19 countries.194 customers as of GSM services and December 31.broadband. served an aggregate of 88. 2008. Joint Managing Director and current Chief Executive Officer of Indian and South Asian operations.Home TV services across India. Sanjay Kapoor. On August 11.619. Globally. 2010.

The company also deploys. Brand & IT Data Products: Internet. combo plans CORE BUSINESS AREA Mobile Services-Airtel offer mobile services using GSM technology on 900MHz and 1800MHz bands. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. The service strategies of Bharti Airtel are-Best-in-class technology: World-class Installation & Customer Service Interactive VAS to Drive ARPU enhancement One Airtel Synergies for Distribution.650. based on the Number of customers. Integrated Solutions to Drive Share of wallet Strategic Alliances Indirect Channel to Drive Penetration Deeper & Not Wider: 94 Cities Vertical & Not Horizontal: Hi-Rise Network Enhancement to Deliver 8+ MBPS New Products & VAS to drive Flat.733 mobile customers 12 . Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India. 85. MPLS etc.and internationally. All these services are rendered under a unified brand “Airtel”. Airtel have recently forayed into media by launching DTH and IPTV Services. Bharti Infratel owns 42% of Indus Towers Limited. and are the largest wireless service provider in the country.

Airtel network is present in 5.069. pre-paid. We had 2. Our product offerings in this segment include supply and installation of fixed-line telephones providing local.461 Customers as on December 31. Enterprise Services . 2008 of which 37.Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers. Airtel offer post-paid. The business unit owns a state of the art national and international long distance network infrastructure enabling it to provide connectivity services both within India and connecting India to the world.882 non-census towns and villages in India. Carriers – Carrier business unit provides long distance wholesale voice and data services to carrier customers as well as to other business units of Airtel. roaming and value added services through our extensive sales and distribution channel covering 1. as on December 31. thus covering approximately 79% of the country’s population Telemedia Services – Airtel provide broadband (DSL) and telephone services (fixed line) in 95 cities with growing focus on new media and entertainment solutions such as DTH and IPTV.7% of wireless market. helping them to meet the challenges of growth.205 kms of 13 .9% were subscribing to broadband/internet services. The national long distance infrastructure comprises of 90.619. Enterprise Services is regarded as the trusted communications partner to India's leading organizations.accounted for a market share of 24. It also offers virtual calling card services in the overseas markets. This division comprises the Carrier and Corporate business units. national and international long distance voice connectivity and broadband Internet access through DSL.706 outlets.057 census towns and 401. 2008.

It serves as the single point of contact for all telecommunication needs for corporate customers in India by providing full suite of communication services across data.500 MPLS and SDH POPs and over 1. voice and managed services. consortium ownership of the SMW4 submarine cable system and investment in capacities across a number of diverse submarine cable systems across transatlantic and transpacific routes.250 POIs with the local exchanges. over 1. ITeS. Corporate – This business unit delivers end to end telecom solutions to India’s large corporate. telecom. Government and PSUs and retail among others. It specializes in providing customized solutions to address unique requirements of different industry verticals. The international infrastructure includes ownership of the i2i submarine cable system connecting Chennai to Singapore. providing a pan India reach. Manufacturing and distribution. education. 14 .optical fibre. BFSI. IT. media.

Today. The largest Telecommunication player of India having its presence in more than 17 Circles of India.Sunil Bharati Mittal is the Chairman & MD of Bharti Group. The Company is one of the India’s Largest Telecomm sector Company having a Market Capitalization of more than Rs. India. 15 . Airtel has a national network with a presence in nearly every major sector.000 Crores.60.

5 Billions according to Forbes 2008 Data. both in terms of Age & Vision. Sunil Mittal’s Net worth is US $ 11.Sunil’s father was Satpaul Mittal.000.Sunil Mittal & his brothers own 32% of the Company and are therefore worth something like above Rs.Sunil Mittal was born in Rajasthan.Sunil has started small.Sunil’s first Venture was to import scrap and then moved it into bicycle parts at the age of 19 only. trying to persuade traders to buy his sheets. 1957.Sunil’s second venture was to manufacture stainless steel sheets. . . one is Sunil Mittal. .Satpaul Mittal has 3 sons. . . Sunil Mittal was used to sit on low stools in small cubicles in Pydhonie and Abdul Rehman Street. . Here is a History of “How Sunil Mittal has founded Bharti AirTel Group” .He lives in Delhi. .25.Sunil Mittal was born on 23rd October. India. a well-respected and much liked politician of Ludhiana. And this Business took him to Mumbai from Ludhiana.000 per Month . India and he has 3 Children.20. and he is India’s Top 10 Richest person. All of the 3 sons went into business and all the brothers are still partners in AirTel. India.His monthly Salary is Rs. 16 .1.

. he could sell generators to households that wanted an alternative during electricity cuts. he learned to do Business with Foreigners and moved into the branded product sector. The genset Business was booming. . he ran into a harassed Japanese salesman in the Capital’s Bengali Market. He made huge profits importing steel and zip fasteners till one day. Sunil was a Millionaire. that he was a natural salesman and Second. Sunil knew better. . Sunil moved to small MP’s flat that his father had been allotted in Delhi.By early 1980s. Inevitably.Bombay Experience taught Sunil 2 things. This experience was the turning point in his life.In 1979. .So Sunil Mittal became a dealer of Suzuki in its generator Business. Sunil moved into imports instead. the Big Boys (Birlas & Shrirams) enter into the market and his Business closed……. that he had to get out of Ludhiana. By this experience.How?…… 17 .. So this was Sunil’s Third Venture. He needed to move to Mumbai. a big city to think big and to take bog actions in his life. He realized that in a country that was always short of power. First. Suzuki operated on the assumption that the Indian market would mirror the rest of the world where generators were used to power fairs. outdoor exhibitions and hot-dog stands. He had a flair of trading and he’d made a fortune from property development. The salesman worked for Suzuki and had been sent to India to find a dealer for the Company’s generators. Sunil quickly created the Consumer genset market and in no time at all was the largest importer of Suzuki generators in the whole world. At a time when everybody dreamed of being an exporter.

But in reality it means “Mittal Brothers”. Basically he wanted to sound it like a foreign brand name because Indian consumers didn’t like Desi brands at that time.Fortunately.So Sunil had started finding alternative Income source. well the story doesn’t end here. The Japanese company Suzuki had a Sympathy on his so the company recommended that he would be appointed as a dealer for the nwe Maruti Suzuki Car. He launched this phone in the Indian market with the brand name of “Mitbrau” which was looking like a German name. . Yes. “All the other dealers were appointed on the basis of political influence. Sunil Mittal Says. To protect this developing Industry. “Beetel” And the Beetel did the sales of Rs. in the early 1983.25 Crores and that was huge sales in those days.The Big Break – Sunil’s 4th Venture Well. The only single request that Suzuki made was that I should be given a dealership. He decided that this was the future and began to import the components for the phone. He has chosen this name just to attract the Indian customers. the 4th venture of Sunil Mittal was an entirely illegal venture.But Sunil was not satisfied. . Government opened up the telecom market and Mittals were among the top 5 businesses chosen to manufacture handsets.Well. Even then. His business uses the brand name. entirely illegally. the government promptly banned all generator products And thus Sunil was out of Business. they turned me down and gave it to somebody else. The 4th Venture of Sunil Mittal was not the Bharti Airtel but it was the “Push Button Phone” from Taiwan. 18 . The Birlas & the Shrirams were given licenses to manufacture gensets in India.” .

The team reported back that they were small-timers and likely to remain so. after the deal had been signed. Vivendi pulled the plug days before the bid was to be submitted. Even though he had worked hard. Remember that something. So Sunil was left 19 . The problem was that he didn’t have much money and he didn’t have much reputation in the market.” Against the odds. Airtel had won all the 4 circles. nearly every global telecom player made a beeline for India. 1 Circle. He called the Company in the Paris and said. Mittals seemed like Pygmies. when the Government invited bids for mobile telephony. So What he did? Well. Vivendi stuck with him. Forget what your team has told you. 1 Company. Sadly. his father died within days.The Big break came in 1992. . you sensed something. the Company sent a team to India to check out exactly who the Mittals were. After that Sunil did a phone to Vivendi. took a break of 6 months from the business to put together his master plan for mobile telephony. Later. You saw something in me. And among them. When he was in Goa for a New Year holiday and decided that he was going to become among the bidders. Sunil saw the story about bids in The Economic Times news paper. he pushed Vivendi into going with him after a single meeting. The Government promptly declared that it had a new rule.When the Government of India first opened up the telecom sector. Go with your instincts.. When the bid was opened. “When you agreed to go with me.

Gujarat.And the trouble was. Maharashtra.But now the another trouble comes………. But the Delhi market was too big for Sunil and enough for him as a first timer.with one of the 2 Delhi License. After that during the 4th round of Licenses. So Sunil has talked with bakers and somehow cleared all the dues. Karnataka. the Company only won Himachal Pradesh. And rumors run in the market that weather the single family run company (Bharti Group) will survive? . The Ambanis were Big.After that in 1999. Kerala. The Ambanis were Smart. And thus at a stoke. The Big Boys (Ambanis/Reliance Group) wanted to enter in the Mobile Telephony market. And they had the Government of India wrapped up no matter which party was in power. . the mobile telephone industry was in a bad shape. with the multinationals still in the game. Not only this but the government policies were also in favour of Reliance (CDMA operators). Sunil swooped down and bought up their licenses. Airtel won 8 new circles. So when many operators could not clear the dues. Tamil Nadu. he acquired Andhra Pradesh. government asked operators to clear all existing dues. They had never failed at anything they had tried. MP. The general market view was that. Later on Kolkata. Government had allowed Reliance/CDMA Players to enter into the 20 . The telephone players couldn’t pay the huge license fees. Airtel is in trouble. Chennai & Punjab. . and such players as HFCL (Himachal Futuristics) on the rise.AirTel did well in the Delhi Circle but when the 2nd round of licenses were awarded. So government came with new policies but for that. Western UP & Mumbai. Because.

But I would tell them. He has seen other businessman enter the Parliament and does not believe that they have been able to make a significant difference. . Each time you feel like joining politics. Everywhere I went. He has lost his fascination for politics. One is dominated by AirTel and the other was dominated by Reliance.He quotes. The Chairman of British Telecom. Christopher Bland. The general view was that the mobile telephony market would now be transformed. the sort of story where guerillas defeated a big army.Sunil Mittal was planning to enter in the politics by the time he was fifty – in 2007. And thus 2 distinct markets have been developed. go and take a shower.” And at the end. NO POLITICS – . I went around meeting our people and giving them hope.Because morale was so low. This bad phase was lasted a year and Sunil Mittal says.market at very low cost and this is the reason why they claim that CDMA was a cheaper technology. another trouble.But afterwards. I told my people that I knew that we were not expected to win. Once upon a time.” 21 . The Reliance Venture is not a failure by any standards. It has around 10-12 Million subscribers against Airtel’s 14 Million. BSNL has announced that it would set up its own low price network. . then we make history. . “Do yourself a favour. he changed his plans. if we can win against the odds. I began to watch movies in which the underdog won. “It was one of the most difficult periods of my Life.And after that. Christopher told Sunil that.

Sierra Leone. Tanzania. Ghana. Democratic Republic of the Congo. Madagascar.Sunil today says that. Kenya. Nigeria. Uganda and Zambia. Chad. Airtel owns 70 % of Warid Telecom in Bangladesh through a joint venture. Bharti Airtel Limited will take management control of the company and its board. Gabon. India and Sri Lanka • 16 countries in Africa: Burkina Faso. Niger. Republic of the Congo. Its area of operations include: • 3 countries in the Indian Subcontinent: Bangladesh. Seychelles. his achievements are attributed to God and some Divine Intervention has played a role in his success………!!!!!!!!!! Worldwide presence Coverage map of Bharti Airtel across 19 countries Airtel is the 5th largest mobile operator in the world in terms of subscriber base and has a commercial presence in 19 countries. Malawi. and will 22 .

2010. an Abu Dhabi based consortium.com.bd Remarks Warid Telecom International LLC. and will relaunch the company's services under its own Airtel brand.[10] List of countries Airtel operates in the following countries. Country Bangladesh Site http://www. sold a majority 70% stake in the company to India's Bharti Airtel Limited for US$300 million.relaunch the company's services under its own Airtel brand. The 23 . Airtel is interimly known as Zain in its newly acquired Africa operations and will assume the Airtel brand name only in the coming months. Bharti Airtel Limited will take management control of the company and its board.waridtel. The Bangladesh Telecommunication Regulatory Commission approved the deal on January 4.

zain.zain.99 million subscribers and is ranked fourth among the six operators of Bangladesh. Airtel in Malawi is the market leader with Malawi http://www.4 million customers.ne.000 customers 24 .zain. Airtel in Ghana has over 1 million Ghana India Kenya http://www.ng.mw.com market share and over 1. 2010.zain. Airtel in Niger is the market leader with a Niger Nigeria http://www.com of Central African States.000 million with 17% market share.com Kenya customers stand at player with 1.gh. 1 operator with 69% market share. http://www. http://www.com 68% market share. Airtel holds second place in the mobile telecom market in Madagascar.cd.com a market share of 72%. Democratic Republic of the http://www.zain.000 customers and its market share stood at 61%.5 percent from 2007 to 2008 according to statistics from the Bank Gabon http://www.com industry.com Faso representing 50% market share.Bangladesh Telecommunication Regulatory Commission approved the deal on January 4. Airtel in Chad is the no.com 2.zain.in Airtel http://www.ga.bf. has a 39% Madagascar http://www. As of December. Airtel in Burkina Faso is the dominant Burkina http://www.com Congo The rapidly growing mobile sector in Gabon grew by 16.td.zain.zain.418.mg.airtel. A pioneer in the Chadian telecom Chad http://www.433. Airtel in Gabon has 829. 2009 Warid has secured 2.com customers.zain.ke.zain.

ug.com Tanzania Uganda Zambia http://www.tz.zain.zain.com with a 38% market share. Airtel is the leading comprehensive telecommunications services providers Seychelles http://www.com Sierra Leone http://www.sl.lk Sri Lanka Airtel in Tanzania is the market leader http://www. http://www.zain. 2 25 .com operator with a market share of 38%.com the Congo Airtel in Congo is the market leader with a 55% market share.Republic of http://www.zain.zm.sc with over 55% market share of mobile market in Seychelles.zain.cg.airtel. http://www.airtel. Airtel in Uganda stands as the no.

SERVICES
Mobile Services
Airtel is the name of the company's mobile services brand. It operates in 19 countries. It is the 5th largest mobile operator in the world in terms of subscriber base. Airtel's network consists of 3G and 2G services depending on the country of operation.

Airtel
In India, the company's mobile service is branded as Airtel. It has nationwide presence and is the market leader with a market share of 30.07% (as of May 2010). On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM). The Apple iPhone 3G was rolled out in India on 22 August 2008 by Airtel & Vodafone. Both the cellular service providers rolled out their Apple iPhone 3GS in the first quarter of

2010. However, high prices and contract bonds discouraged consumers and it was not as successful for both the service providers as much as the iPhone is successful in other markets of the world. On May 18, 2010, 3G spectrum auction was completed and Airtel will hav to pay the Indian government Rs. 12,295 crores for spectrum in 13 circles, the most amount spent by an operator in this auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, 26

Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir. It plans to launch 3G services in October 2010.

Subscriber base in India
The Airtel subscriber base according to Cellular Operators Association of India (COAI) as of May 2010 was: Metros
• • • •

Chennai - 2,704,067 Delhi - 6,204,025 Mumbai - 3,066,905 Kolkata - 2,821,065

"A" Circle
• • • • •

Andhra Pradesh - 13,547,616 Gujarat - 5,760,204 Karnataka - 13,209,270 Maharashtra - 6,701,424 Tamil Nadu - 8,423,702

"B" Circle
• • • • • •

Haryana - 1,554,034 Kerala - 3,185,876 Madhya Pradesh - 7,202,200 Punjab - 4,921,266 Rajasthan - 10,802,138 Uttar Pradesh (East) - 9,671,973 27

• •

Uttar Pradesh (West) - 4,317,918 West Bengal - 6,001,669

"C" Circle
• • • • • •

Assam - 2,570,283 Bihar - 9,652,206 Himachal Pradesh - 1,346,666 Jammu and Kashmir - 1,976,568 North Eastern States - 1,538,853 Orissa - 4,373,802

Airtel is the market leader in India with a total of 133,619,705 out of 444,295,711 GSM mobile connections or 31.18% market share as of July 2010.

Criticism
There has been lot of criticism about Airtel for its unauthorised VAS activation. Many of its services were activated automatically according to a complaint forum. In return Airtel lauched STOP/START 121 services for such issues. Airtel Lanka In December 2008, Bharti Airtel rolled out 3.5G services in Sri Lanka in association with Singapore Telecommunications. Airtel's operation in Sri Lanka, known as Airtel Lanka, commenced operations on the 12th of January 2009. Airtel Lanka has 1.4 million mobile customers in Sri Lanka, across 20 administrative districts.

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The combined revenue of the two entities would be around $12 billion. Minority shareholder Econet was seeking to overturn a 2006 deal by Zain . 2010. The deal would provide Bharti access to 15 more countries in the region. There was also a dispute about minority ownership of Zain's operations in Nigeria." The offer was for $10. Airtel's 70% stake in the company is said to be at a cost of an initial $300 million. The deal ran into hurdles after the government of the of Gabon had come out against the deal. adding around 40. February 2010 a statement issued by Zain Ghana. Warid Telecom covers the entire country and has over 2. after its meeting on February 14.in which it bought a majority stake in Nigerian mobile operator Vee Networks Ltd.1 million subscribers to its already 125 million-plus user base. The latter had till date invested a total of $600 million. with plans to bring their Bangladesh investments to the $1 billion mark. issued a resolution to accept a proposal received from Bharti Airtel Limited (Bharti) to enter into exclusive discussions until 25 March 2010.7 billion. The service is being operated under the brand name Warid Telecom.then called Celtel . the biggest market in the deal. now Zain 29 . but later approved the sale. said "the Board of Directors of Kuwait's Zain Group. it was announced that the Bangladesh Telecommuncations Regulatory Commission (BTRC) had given Bharti Airtel the go ahead to acquire a 70% stake in the Bangladesh business of Abu Dhabi based Warid Telcom. regarding the sale of its African unit.Airtel in Bangladesh In January 2010.5 million customers. Zain Africa BV. The government of Congo Republic had also said Bharti-Zain deal broke law. Airtel in Africa On 14.

Fixed Line. June 2010. The transaction is the largest ever cross-border deal in an emerging market and will result in combined revenues of about $13 billion. Airtel Seychelles On August 11." The overall integration should be complete by the end of this financial year. ship to shore services satellite telephony. 2010. The company has over 57 percent share of the mobile market of Seychelles.7 billion. Airtel announced plans to invest US$10 million in its fixed and mobile telecoms network in the Seychelles over three years . The US$34 million SEAS project is aimed at improving the Seychelles’ global connectivity by building a 2. Bharti said the Nigeria ownership dispute had been settled. 30 . Bharti Airtel. June 2010.000km undersea high speed link to Dar es Salaam in Tanzania. On 8. in the largest ever telecom takeover by an Indian firm. Telecom Seychelles began operations in 1998 and operates 3G. completed a deal to buy Kuwait-based Zain Telecom's businesses in 15 African countries for $10. whilst also participating in the Seychelles East Africa submarine cable (SEAS) project. On 8.Nigeria. Telemedia The Telemedia business provides services in 89 Indian cities and consists of two brands. among value added services like VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand. Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for US$62 million taking its global presence to 19 countries.

Airtel provides both capped as well as unlimited download plans. Merger talks In May 2008. The maximum speed available for home users is 16Mbps. Airtel Fixed Line which provides fixed line services. last mile connectivity in fixed-line and mobile circles. It started services on 9 October 2008 and has about 32. a South Africa-based telecommunications company with coverage 31 . it emerged that Bharti Airtel was exploring the possibility of buying the MTN Group. Digital Televison Main article: Airtel Digital TV The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand name Airtel Digital TV. ISP and international bandwidth access through the gateways and landing stations.15 million wireline customers.Airtel Broadband provides broadband and IPTV services. Enterprise The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos through its nationwide fiber optic backbone.44 million customers as of August 2010. 2004. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel". Until September 18.6% are broadband/internet subscribers as of August 2010. of which 42. Bharti provided fixed-line telephony and broadband services under the Touchtel brand. VSATs. Airtel has about 3.

which would be the largest overseas acquisition ever by an Indian firm. In May 2009. Sponsorship On May 9. However." as MTN has more subscribers. the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company. 2009 Airtel signed a major deal with Manchester United Football Club.in 21 countries in Africa and the Middle East.Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of the Champions League Twenty20 cricket tournament. both sides emphasize the tentative nature of the talks. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN. The tournament itself is named "Airtel Champions League Twenty20. However. Bharti Airtel again confirmed that it is in Talks with MTN and companies have now agreed discuss the potential transaction exclusively by July 31. while The Economist magazine noted. Bharti Airtel said in a statement "Bharti Airtel Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN Group". Airtel gets the rights to broadcast the matches played by the team to its customers. "If anything. As a result of the deal." 32 . due to the South African government opposition. 2009. Talks eventually ended without agreement. higher revenues and broader geographic coverage. Bharti would be marrying up.

one private company per circle was to be allowed entry into basic services while two operators were to be allowed to compete in providing cellular services in each of the circles. As per NTP 94. the government formulated the NATIONAL TELECOM POLICY of 1994 with the objective of expanding the telecom infrastructure by encouraging private sector participated in telecom services. NEW TELECOM POLICY 1999 33 .Telecommunication Companies in India TELECOM POLICIES NEW TELECOM POLICY 1994 The first step towards opening the telecom services sector took place with cellular licenses for the four metros being awarded to private companies in 1994. In the same year.

In an attempt to remove the defects of the old policy and provide a new direction to the telecom sector. The government has envisaged the total envisaged the total investment of Rs. which translated into the tele-density of 11.9 Billion by private operators RECENT POLICY CHANGES NEW LICENCES FOR BASIC TELECOM SERVICES In Jan’01. 441.5%by 2007. 462. By 34 . to be replaced by a new legislation. Indian Telegraph Act. 1885. the government came out with NTP’99.606. THE TENTH PLAN (02-07) During tenth plan the government target to add 81.6 Billion in rural areas and Rs. 6 were issued Lols for basic telecom services.71 million lines for both fixed and cellular lines. 1. Out of 18 companies. guidelines for entry of new fixed services providers were announced. Interconnection between fixed. License period extended from 10 to 20 years. cellular and other telecom service operators to be allowed freely.DOT’s monopoly over domestic National Long Distance (NDL) services to end in 2000. The highlights of NTP 99 are:-Private basic and cellular operators allowed migrating from revenue sharing regime to one time entry fee plus revenue sharing system.7 Billions including telecom investment of RS.

It proposed rebalancing the monthly rentals and ceiling rates for STD and ISD tariffs. Reliance. CALLING PARTY PAYS The introduction of CPP has resulted in a growth in cellular subscriber in the countries. vodapone.March’02. LIMETED MOBILITY SERVICES In March’02. THIRD PHASE OF TARIFF REBALANCNG In March’02. the TDSAT gave the decision. the TRAI issued 20th amendment to its Telecom Tariff Order. allowing the basic telecom operators to provide limited mobility services using CDMA-WLL. Reliance and Bharti have signed license agreements. government issued licenses to successful bidders like Bharti Escotel. which has shifted from the mobile party pays (MPP) arrangement to CPP arrangement. 03 companies Tata. FORTH CELLULAR LICENSE In October’01. Birla AT&T and Tata. March’99. against the petition filled by COAL. Services The services offered by Airtel Broadband & Internet are listed below: 35 .

using a PC or a TV and a Broadband (high speed) Internet connection. video & Audio Calling. all by yourself. With NetXpert. shop and staff from your PC from anywhere and at all times. It is an easy-to-use personal communications service that connects you with your friends and family. GMAT. SAT and MBA. it helps to identify any system or network problems that may come up from time to time. Video Postcard TM service etc. and experience the joys of uninterrupted Broadband. from the comfort of your home. In Touch In Touch is a great way to stay connected. warehouse. with the Video Surveillance Solution. NetXpert NetXpert is automated broadband care technology. The NetXpert helps in the speedy installation and activation of the Broadband connection on your PC. Thereafter. Online Tests Airtel Broadband Services offer you online competitive tests for GRE. Globally accepted and successfully used by over 38 million customers worldwide. 36 . the NetXpert provides immediate solutions for Internet connectivity related problems.Video Surveillance Solutions With this service you can observe your office. With In Touch you can do various activities like Video & Audio messaging. you can detect and repair most problems.

gaming. Just like cell phones. The simple installation procedure gives you access to unsurpassed performance instantly. DVD players.Wifi Wifi is a wireless technology brand by the Wifii Alliance that gives you a host of fantastic advantages ranging from reliability to security. Common applications for Wifi include Internet and VoIP phone access. and network connectivity for consumer electronics such as televisions. televisions and radios. Vision & promise By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses Products of Bharti Airtel Broadband and Telephony Services. DEL – Direct Exchange Line – Land line Phone (Voice) DSL – Digital Subscriber Line – for data Telephone Instrument 37 . the wireless network also uses radio waves. and digital cameras.

Centralized reporting system 38 . Act transparently and couragebly. Process focus of Bharti Airtel broadband and Telephony Services. Cut hierarchy to where knowledge resides.Touchnet Dial-up-service Business focus of Bharti Airtel Broadband and Telephony Services. Operational excellence Reducing churns Tightening cost Utilizing capacity Quality Policy of Bharti Airtel broadband and Telephony Services. Organizational Culture of Bharti. Reduction of error level. Reduction of cycle time. Reduction of operating cost. Process standisation and customization Best practice replication Speed of urgency Strategy Of Bharti Airtel Broadband And Telephony Services.

PCO. In marketing department there are different segments such as SME. Residents Small and middle enterprises PCO’s(public call office) Corporate’s Competitors Of Bharti In Broadband And Telephony Services. technicians and customer care service. As a new comer to the landline and broadband field in which there are many other competitors they were able to make profits and also they were able to make their customers satisfy with their service. Bsnl Relience Tata indicom AIRTEL Broadband and Telephony Services. sales officers.Customers of Bharti Airtel Broadband and Telephony Services. In this two and a half year time they have made there own identity in the market has a landline and broadband service provider with a good number of high pulsing customers. They have a good number of efficient managers. Lucknow The Bharti Airtel landline and broadband services has there in the market of LUCKNOW for last 3 years. They have their customers in Mass 39 . Mass and Cooperates and there is a market construct department.

Airtel Prepaid makes everything that you dreamt and believed. 40 . while receive calls on two phone numbers. one phone number to others. PCO and Corporate. SME. download the hippest tunes from the new tracks and dress up your phone with the latest wallpapers. just when you want to. possible. a simple to use. Airtel Prepaid .  Airtel Postpaid Airtel welcomes you to a vibrant world of unlimited oppurtnities.  Airtel MTV Card The best offers and the coolest of bargains on the hippest stuff in the market . You can have incoming calls ringing simultaneously on two numbers. picture messages. Going mobile with Airtel Prepaid is a new of life. India’s leading integrated tele-services provider. emotions and feelings. innovative yet simple new ways to communicate. With a host of great features. It gives you unlimited freedom to reach out to your special in a special way. screensavers and backgrounds . More exciting. not just trough words but through ideas.  Airtel Pre-paid. only with the MTV Airtel SIM. ring tones.the Ready Cellular Card from Airtel comes to you from Bharti Enterprises. All this and lots more.(Residents). Ring stops on the other line as soon as you pick up the call on one phone.

Cold Billing.A.Hot Billing. . in nearly countries including U. etc.. UNDERSTANDING THE PRODUCT BASKET • PREPAID: Customer pays first & then uses the mobile. our National Long Distance facility allows you to make distance calls in India and Overseas from cellular phone. • 119 Airtel International – Roam across international destinations. This services is applicable to both Postpaid and Prepaid customers. • POST PAID: Customer uses the service first & pays later. Airtel Roaming gives you two great options: • Airtel National – Enjoy roaming in India across 42 partners Networks and over 750 cities. Canada. PRE-PAID CONNECTION 41 .  Long Distance Now experience complete freedom like never before with Airtel. Airtel Roaming Airtel’s Roaming service allows you to use your mobile phone to make or receive calls from almost anywhere in India and abroad. with 284 partner networks.S.

activates the pre-paid SIM.Under Prepaid connection. the mobile user first makes payment for recharge coupon.  Cost Control: The pre-paid connection prevents a user from over billing. which contains a number of 16 digits which when fed in the mobile. The billing done in case of Prepaid connection is termed as “Cold Billing”. BENEFITS OF PRE-PAID CONNECTION:  Convenience: coupon. The user can use the services rendered as per denomination of the Recharge coupon. The recharge coupon of Airtel can be easily had from any outlet of CONTITUENTS OF PEP CONNECTION 42 . This is very convenient.  Availability: The prepaid SIM Airtel can be easily had from any outlet of Airtel. All it requires is just acquiring a Recharge This is a non-refundable one time investment made in order to get enrolled.  Easy Recharge: Airtel.

3. May have stored talk value. 2.U. Recharge Coupons 1. SIM Expiry A paper/paperless Recharge with various denomination for recharging the prepaid SIM.PEP PACKAGE S. LIFE CYCLE OF SIM Active Grace Forfeiture De-active Time out POST PAID CONNECTION 43 . Talk value validity period 4.K. Sim Pack.

the mobile user is allowed to use the mobile services being provided and makes payment of the charges thus subjected to at the end of the billing period. As we know. mobile originating and terminating charges. • More economical for high users. SMS originating & exterminating charges etc. Some more details about this are as following: BENEFITS OF POSTPAID CONNECTION: The benefits of possessing post-paid connection may be given as following: • Always connected.Under postpaid connection.S. The billing done under postpaid connection is termed as “Hot Billing”. Here the mobile user can the phone as much as he wants and then make payment of Bill at the end of the billing period. • the Different plans to suit individual needs. in case of pre-paid connection the user will incur certain additional expenses every time he/she acquires a recharge coupon. Airtel has designed different plans to suit individual needs of high users possessing POP connection. because. Unlike pre-paid connection the mobile phone does not get disconnected with the de-activated of SIM card. For those who are high of users of mobile phone. - The post-paid connection holders get an itemized monthly bill mentioning. different high users expect different services from mobile phone.A. nominal charges. Thus. it is wise to post-paid connection. • Advantage of unique V. 44 .

Security Deposit: This varies between Rs. Rs. Connect & Retail. CONNECT: after AV/CV.S. This is a nonrefundable amount.to Rs. B.1000/. which is refundable on surrender. which has been discussed later in the project. The credit limit is generally equal to the amount of security deposit.500/.A. CHANNELS OF DISTRIBUTION: For post paid connections there are basically two channels of distribution. RETAIL : Plans. pre-activated SIM & low Rental Under this the user gets connected to the Airtel POP Services CHARGES IN POP CONNECTION: These are classified under three heads 1. These two are discussed as under: A. after adjustment of pending dues. 45 . This includes OTC plans. 2. 500/.. Generally the customers with high rentals and more usage are targeted.for POP Connection.- Airtel is bringing in a wide range of V.Activation Charges: The activation charges vary from plan to plan for high rental plans.is charge on a pre-activated instant-card. This is more suitable for regular local area users. viz.

Other than this the itemized bill also gives a break up of the calls made/ Nominal charge-Helps to track the usage pattern. Mobile Terminating.This refers to the calls being made by the user. viz. This consists of the following. 3) Itemized Billing. BILLING IN CASE OF POP-CONNECTION: This billing in case of POP connection constitute of three Components.A. Your Mobile your best friend. SERVICES: 46 .CALL MGT.3. CONSTITUENTS: I.This refers to the SMS received by the user.This refers to the SMS sent by the user. a) b) c) users. 2) CLIP Charges. Traveling & waiting time no longer a bore.Plan Enrolments: This is a non-refundable one time investment made in order to get enrolled into a plan. V.S. VALUE ADDED SERVICES: DEFINITION: • • • Stay connected and updated where as you are. SMS terminating.This refers to the incoming calls being received by the received. SMS made/ received while on roaming. Mobile originating. d) e) f) SMS originating. 1) Monthly Rentals.

5. 2. It includes transmission of following media types : a) b) c) Text Picture Audio 47 .GENERAL PACKET RADIO SERVICE ( G. 3.P.S.) : It is a non-voice application for enhanced user connectivity. Displays the incoming Call number or name on Mobile screen.R. Call Wait: During conservation. Call Barring: Call is barred if bill goes above the credit limit. CLIP. It is possible to type a text up to 100 characters. II. alerts the user about another incoming call. III. Conference Call: Teleconferencing up to five people at a time. mobile VMQ.MESSAGING SERVICES: 1Short Messaging Service (SMS) It facilitates sending & receiving of text messages. a) b) c) Internet on mobile Wireless Surfing MMS BENEFITS: a) b) allways connected No modem required for internet connectivity. It enables. 2Multimedia messaging services (MMS) : It is a total communication experience. Call Divert: Diverts incoming calls to the specified L/L.Calling Line Identification Presentation.1. 4.

d) e) Video Combination of all the above.ROAMING: 1. Airtel Telemedia Services: Airtel is offering broadband & Internet services across 94 cities in India. All these services are provided under the Airtel brand. It also gives you the power of limitless. International Roaming (ISD) It enables the subscriber to make & receive calls which traveling outside the home network outside the country. Airtel Telemedia Services Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities. National Roaming (STD) It enables the subscriber to make and receive calls which traveling outside the home network within the country. 48 . The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. secure Internet access as soon as you switch on your computer. 2. IV. It is powered by DSL technology which gives you blazing-fast.

paying bills to making new friends and not to mention endless fun & learning for children.discovery on Internet – from shopping to banking. No more waiting for dial-up to connect. Surf while you talk . Power Surfing . Robust installation . Superior server technology and a dedicated port provide total security to data storage and information exchange through the Internet.No more missed calls or blocked telephone lines while using the internet. You are ready to use the internet as soon as you switch on your computer. No more disconnections in the middle of download. feel the excitement of doing more on Internet. What’s more. 24x7 customer supports – The 24x7 customer support unit helps you to serve better. 49 . Shop. always available.The world class infrastructure & end-to-end digital network of underground copper cable lines ensure an extremely robust connection that eliminates the risk of damage. Airtel Broadband Services connection does not block existing telephone lines and allows one family member to use the phone while another member surfs the net. The customer feedbacks are carried out with great care. all thanks to an extensive Broadband Services infrastructure.With Airtel Broadband. It works for round-the-clock. Speed on demand – The customer can enjoy a dedicated speed of up to 2 Mbps without having to change your subscription plan. the internet is always ON. you only pay for what you use.With speed of up to 2Mbps. The Why wait to connect . download MP3. 365 days a year. exchange heavy files and chat at an enviable speed.

one of the best in PC security. Reduction of operating cost. check drop boxes. online payment. Organizational Culture of Bharti. provides you with a service that tries to answer a Broadband customer’s most frequently asked question “Is my PC safe?”. 50 .     Operational excellence Reducing churns Tightening cost Utilizing capacity Quality Policy of Bharti Airtel broadband and Telephony Services. Credit card method.  Act transparently and couragebly.Airtel along with F–Secure. Payment options – Airtel offers you a number of payment methods like cash payment.Easy payment method. You can choose any one of the method for paying the cash. Products of Bharti Airtel Broadband and Telephony Services.Airtel PC security . ECS.  DEL – Direct Exchange Line – Land line Phone (Voice)  DSL – Digital Subscriber Line – for data  Telephone Instrument  Touchnet Dial-up-service Business focus of Bharti Airtel Broadband and Telephony Services.    Reduction of error level.  Cut hierarchy to where knowledge resides. Reduction of cycle time.

 Centralized reporting system Customers of Bharti Airtel Broadband and Telephony Services. In marketing department there are different segments such as SME.Anand is the Zonal Manager and he is the person who is leading the marketing department. Mass and Cooperates and there is a market construct department. There are altogether 250 employees in AIRTEL at Cochin.  Bsnl  Relience  Tata indicom  Asianet AIRTEL Broadband and Telephony Services. The Bharti Airtel landline and broadband services has there in the market of Ernakulam for last two and a half years. PCO.Process focus of Bharti Airtel broadband and Telephony Services.     Residents Small and middle enterprises PCO’s(public call office) Corporate’s Competitors Of Bharti In Broadband And Telephony Services. Mr.  Process standisation and customization  Best practice replication  Speed of urgency Strategy Of Bharti Airtel Broadband And Telephony Services. Cochin. In this two and a 51 .

Finance 3. Customer service desk (csd) 4. technicians and customer care service.half year time they have made there own identity in the market has a landline and broadband service provider with a good number of high pulsing customers. sales officers. 1. Training and development HOW A CALL IS MADE : Airtel to other Mobile Operator CALL ROUTING : Airtel to P S T N 52 . PCO and Corporate. They have a good number of efficient managers. IT 8. Quality management 6. As a new comer to the landline and broadband field in which there are many other competitors they were able to make profits and also they were able to make their customers satisfy with their service. Departments in Bharti Airtel Landline and Broadband Services. Marketing & sales 2. Technical 7. Kochi. They have their customers in Mass (Residents). SME. Human resource & administration 5.

53 .

8 million households in India.6 million villages.CONSUMER BEHAVIOR IN INDIA 1.4 million lower middle income households ( US$ 581 to US$ 1162). India is a lucrative market even though the per capita income in India is low and it remains a huge market. 19. 54 . This rural population is spread all over India. in close to 0. India is a big country with 28 states. Among the total 164. even for costly products.7 million middle income group (US$ 1162 to US$ 1190 ). and income. status.0 Introduction This study on Indian consumer behavior is aimed at helping Malaysian businessmen to get a better understanding of the Indian market place thus enabling them to embarkon selected strategies to effectively reach the Indian consumers. followed by 50. 80.8 million high income group (>US$ 2465). people of India comprise different segments of consumers.7 million households comes under low income group ( <US$ 581 ). Three-fourths of India’s population lives in rural areas. over one billion people and 120 dialects/languages.2 million upper middle income group (US$ 1790 to US$ 2465) and 5. based on class. and contribute one-third of the national income. 8. From the market perspective. An important and recent development in India’s consumerism is the emergence of the rural market for several basic consumer goods.

0 Different Segments Of Indian Consumers 3. go to clubs on weekends. They are always looking for something different. the role of history and tradition in shaping the Indian consumer behavior is quite unique.2.0 Characteristics Of The Indian Consumer Behavior The Indian consumers are noted for the high degree of value orientation. Apart from psychology and economics. and spend a good amount on luxury goods. 3. one sees traditional products along side modern products. This orientation in fact. 55 . Product Indian consumers. These values are far more dominant that values of ambition and which communicate feelings and emotions gel with the achievement. extends to the extended family and friends as well. care and affection. For example. luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market. They prefer to shop in specialty stores. Indian consumers are also associated with values of nurturing.1 The Socialites Socialites belong to the upper class. hair oils and tooth powder existing with shampoos and toothpaste. Such orientation to value has labeled Indians as one of the most discerning consumers in the world. Perhaps. They are the darlings of exclusive establishments. Even. Indian consumers have a high degree of family orientation. only in India. Brands with identities that support family values tend to be popular and accepted easily in the Indian market.

They are traditional in their outlook.2 The Conservatives The Conservatives belong to the middle class. 3. They prefer high value consumer products. proving herself to be equally good. The working woman today has grown out of her long-standing image of being the homemaker. These habits in turn affect their purchasing habits where they are trying to go for the middle and upper middle level priced products. but often have to settle for the more affordable one. Socialites are also very brand conscious and would go only for the best known in the market. Working women have their own mind in decision to purchase the products that appeal to them. They look for durability and functionality but at the same time are also image conscious. exclusive products.3 The Working Women The working woman segment is the one. which has seen a tremendous growth in the late nineties. Slow in decision making. 56 . 3. she is rubbing shoulders with men. they seek a lot of information before making any purchase. spend more time with family than in partying and focus more on savings than spending. Today.They go for high value. The conservative segment is the reflection of the true Indian culture. if not better. This segment has opened the floodgates for the Indian retailers. cautious in their approach towards purchases.

The Super Rich are mainly professionals and devoted to consumerism.4. The number of households in this category is 98.900. Some rich farmers. Across the category. They aspire. backgrounds are distinctly middle class. They buy many durables and are status conscious.per annum. to attain the super-rich status.289.961. There is no typical profile of the ultrarich. There are less DINK families here than in the rich category. 57 .000/. 4. There are some DINK households of middle-level executives. These people are upwardly mobile.058.2 The Super Rich The Super Rich have income greater than US$22. Some of them in this category are Double Income No Kids (DINK) households.000/. Total number of households is 320. Total household having such incomes are 1.3 The Ultra Rich The Ultra Rich have income greater than US$44. therefore.0 India’s Rich India’s rich can be categorized into five major categories as follows: 4.000/. who have been rich for a long time.1 The Rich The rich have income greater than US$11.per annum.per annum. Some single earning households are of first generation entrepreneurs. They spend more on leisure and entertainment-activities than on future looking investments. 4. belong to this category.

Such households are 20. The Indian rural market has been growing at 3-4% per annum. There are joint families as well as nuclear families in this category.per annum. Some of them are techies. 4. They are just equivalent to the rich in the developed countries. They crave for exclusivity in what they buy.4. A variety of people belong to this category.000/.5 The Obscenely Rich The Obscenely Rich is made up of households having income exceeding US$222. specially in the Indian cities.per annum. They own multiple cars and houses.863. Most premium brands are relevant to them. adding more than 1 million new consumers every year and now accounts for close to 50% of the 58 .0 Rural Consumer About three quarters of the Indian population are in the rural areas and with the growing middle class.000/. They consume services greatly. 5.4 The Sheer Rich The Sheer Rich is made up by households having income exceeding US$110. the spill over effect of the growing urban middle class is also felt in the rural areas. They are first-generation entrepreneurs who have made it big. There are hardly 6.515 such households in India. They do not have a homogenous profile. They aspire to social status and power.

6. As a result. Indian consumers are now more aware and discerning. The Indian consumers are price sensitive and prefer to buy value for money products.16 billion. 7. satellite television. The market size of the fast moving consumer goods sector is projected to more than double to US$ 23. as a result of the increasing literacy in the country. This awareness has made the Indian consumers seek more and more reliable sources for purchases such as organized retail chains that have a corporate background and where the accountability is more pronounced. Today more and more consumers are selective on the quality of the products/services.0 Increasing Awareness Of Indian Consumers Over the years. it is becoming an important market place for fast moving consumer goods as well as consumer durables. products and the market and are beginning to demand benefits beyond just availability of a range of products that came from ‘trusted’ manufacturers.0 Marketing Strategies 59 .25 billion by 2010 from the present US$ 11. exposure to the west.volume consumption of fast-moving consumer goods (FMCG) in India. there is a significant increase of consumer awareness among the Indians. The consumer also seeks to purchase from a place where his/her feedback is more valued. foreign magazines and newspapers. and are knowledgeable about technology.

CDs/VCDs/DVDs. Their activities and movements are being 60 .tribuneindia.in www.http://www. the products Indian consumers are buying through online are greeting cards.reliablegreetings.expomarkets.2 Celebrity Influence This is an important tool which is able to influence Indian consumer buying behaviour. With the visual media becoming more popular the use of celebrities in the TV media has increased.1 Online Marketing A study by the Confederation of Indian Industry (CII) and the International Trade Centre predicts that e-commerce activity in India will rise from US$ 0.htm Currently. In India.8 billion in 2005-06.com www.com 7. The popular online shops in India include: • • • • www. Celebrities create headlines. celebrities are being increasingly used in marketing communication by marketers to lend personality to their products. medicine and educational material.41 billion.com www.shopping.rediff. cassettes. books.com/2002/20021230/login/index.ebay.shopping. magazines. clothes. of which the business to business segment will account for US$ 5.7.10 million in 2000-01 to US$ 5.

Celebrities may also help reposition products. The contact addresses are given in the appendix-1.closely watched and imitated. In India especially.3 Quality Oriented Outlets 61 . Consumers like advertisements more if they are admirers of the celebrities in the advertisements. The Malaysian businessmen can contact celebrities for endorsing their products through advertising agencies. the advertisements that celebrities endorse also achieve high recall rates. When a consumer likes the celebrity in the advertisement. What they endorse sell like hot cakes. Products with sagging sales needs some boosting and in this Indian celebrities can help by way of they endorsing the product concerned. he or she is more likely to accept what the celebrity says about the advertised product and therefore will develop more positive feelings toward the advertisement and the brand itself. Indians always love their heroes and heroines. they pay more attention to them. When people see their favoured reference group members or celebrities in the advertisements. Famous celebrities are able to attract attention and retain attention by their mere presence in the advertisements. 7. In the midst of the advertisement clutter. it is not difficult to look for the reasons as to why companies are increasingly using celebrities. It is not surprising therefore that using celebrities in advertisements has become common practice.

4 Freebies Indian consumer buying behaviour is influenced by freebies. Some of the established retail outlets in India for selected products are found in Appendix II. soaps. detergent. consumers that these outlets are likely to take cues from well established retail outlets hoping carry quality products. Freebies generally comprise tooth paste. Malaysian companies wanting to penetrate the Indian market. perhaps should consider giving freebies for the purchases made by the Indian consumers. Malaysian businessmen who prefer not to go for high-visibility. 7. cooking oil etc. in the absence of well known brands in selected product range. 62 . Malaysians can work with the local business partners to attract the consumers by way of such promotion campaigns. TVs. washing machines. However. costly campaigns may embark on the strategy to engage well known retail outlets to capture the segment of Indian consumers looking for quality products.Indian consumers looking for quality choose expensive brands as they feel that price is an indicator of quality. Freebies are consumer products given free of charge as gifts to purchases of selected products above a certain value. and ready made clothes are some of the product categories in which freebies are given to Indian consumers. refrigerators.

thus.5 Eco-Friendly Products The environmental awareness in India has started affecting marketing of products based upon their eco-friendliness. Bulk purchases from hyper stores seems to be the trend these days with purchasing becoming more of a once-a-week affair. The future key for marketing could be to select more ethical and ecological responsible products and packaging. rather than frequent visits to the neighbourhood market/store/vendor. balancing environmental concerns with commercial considerations. they take less pain in traditional method of cooking and cleaning. which is also convenient for consumers. The working urbanites are depending more on fast and ready-to-serve food.0 Changing Trends In Indian Consumer Behaviour 8. In general.7. Indian consumers are likely to buy environmentally responsible products and packs. The popular growing shopping trend among urbanities is purchasing from super markets to hyper stores.1 Bulk Purchasing Urbanisation is taking place in India at a dramatic pace and is influencing the life style and buying behaviour of the consumers. 63 . Consumers in India are taking lead in prompting manufacturers to adopt technologies to produce eco-friendly products. 8.

Foreign brands have gained wide consumer acceptance in India.2 Trendy Lifestyles The current urban middle and upper class Indian consumer buying behaviour to a large extent has western influence. Malaysian. Indian consumers have also developed lifestyles which have emerged from changing attitudes and mind sets.8. The Indian consumer has become much more openminded and experimental in his/her perspective. There is now an exponential growth of western trend reaching the Indian consumer by way of the media and Indians working abroad. There is an increase in positive attitude towards western trends. they include items such as. Italian furniture are growing in popularity in India. • • • • • • • • • • Beverages Packed food Ready to eat food Pre-cooked food Canned food Personal care products Footwear Sportswear Toys Gift items Foreign brands vie increasingly with domestic brands for the growing market in India. exposure to western influences and a need for 64 . Foreign made furniture is well accepted by the Indian consumers. Chinese.

eateries.Since.0 Consumer Spending Behaviour The Indian consumer spending has increased from US$ 133. Indian consumers have always preferred foreign goods and with the liberalization. designer wear.74 in 2002-03. The way Indian consumers are spending their money on various items has changed in recent years.60 in 1992-93 to US$ 350. many new product offerings have entered the Indian market and product variety has also increased manifold.13 per cent at current prices. 9. they now have a choice of foreign products vis-à-vis the local products.3 Buyers’ Market In The Making The sellers’ market is slowly moving towards becoming the buyers’ market.self-gratification. hi-tech products are a few instances which reflect these changes. India’s economic liberalization policies were initiated in 1991. watches. Beauty parlours in cities. a compound annual growth of 10. Import licensing restrictions are being eliminated and tariffs significantly reduced and this has led to large range of consumer goods made available in India. The share being spent on the basis (food and beverages) has fallen from 65 . 8.

00 for food and US$ 13. a compound growth rate of 19. average Monthly Per Capita Consumer Expenditure (MPCE) of US$ 23.96 on other food items. vegetables.5 per cent of total expenditure over the same period. Food expenditure included US$ 2. and another US$1.56 for non-food. footwear and US$3. for example. and US$ 1.2 per cent.37 for milk.11 for fuel and light.45 on other non-food expenditure. vegetables and edible oil and US$3. and US$ 5.78. medical and healthcare spending has increased from 3. per capita 30 days' consumer expenditure of US$ 12. For rural India.11 was spent per person per month on fuel and light.71 per cent. milk products.53 for non-food. there have been sharp ups and downs.67 was spent on milk. US$ 2.07 per cent in 1992-93 to 44. Non-food expenditure included US$ 1. milk products. edible oil and US$ 2. Consumer expenditure has been in tandem with the annual GDP growth. Similarly spending on transport and communication has grown at 13. for food.25 for cereals and cereal substitutes. and US$ 2. Of food expenditure.00 for clothing. US$ 2. on an average.5 per cent to 8.54. While the Compound Annual Growth Rate (CAGR) in total consumer spending has been around 12 per cent a year over the past decade.65 on clothing and footwear and US$9. Other items have increased in importance.16 on others.53 was split up into US$ 10.37 went towards cereals and cereal substitutes while US$ 3. 66 . For the urban sector.8 per cent in 2002-03.77 on other non-food items.34 was split up into US$ 6.

16.162 – US$1.190) spends more on consumer expendables than the rich. 67 . conveyance and rent contributed to the gap significantly. the higher income group (>US$2.0 Conclusion Top class. milk and milk products. The gap between rural and urban averages of MPCE was of the order of US$ 11. Combined the middle and the lower income group provide 60 per cent of the value of the Indian market. The item-groups viz. where it was about US$ 5. Non-food expenditure per person in the urban sector was more than double of that for the rural sector.55.Urban expenditure levels per capita exceeded rural levels for all the product groups. education. 10. beverages etc. except on cereals and cereal substitutes. The average monthly per capita expenditures on cereals and cereal substitutes for rural and urban areas are very close to each other. middle class and lower class are income related classifications of the population and each of this class has its own consumption pattern.465) spends more amount of their income on luxury goods and trendy products than fact moving consumer products. miscellaneous consumer goods & services. The middle income group (US$1. fuel and light. In India.

For the Indian market, Malaysian exporters/manufacturers should see the substantial middle class and base the market demand/projections on this roughly estimated at 250 million people with substantial disposable income.

INDUSTRY ANALISYS

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Market Share of Public and Private Players Both fixed line and mobile segments serve the basic needs of local calls, long distance calls and the international calls, with the provision of broadband services in the fixed line segment and GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and the wireless instruments. Mobile phone providers have also come up with GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce. The much-awaited 3G mobile technology is now entered the Indian telecom market. The 68

GSM, CDMA, WILL service providers are all upgrading themselves to provide 3G mobile services. The telecom sector in the country has already adopted the latest technological advancements to cater to the demands of the growing market. Telecom Expo India, Convergence India, VAS India and IPTV India being organized year to year are all efforts in this direction.Moreover, with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. Also, the telecom industry this year will be focusing more on rural areas to connect them with the urban areas so that the farmers and the small-scale industries can have faster access to information related to weather and market conditions.

69

TELECOM REGULATORY AUTHORITY OF INDIA

The TRAI was set up in Mar ’97, to arbitrate between Department Of Telecommunication and Private Operation with respect to licensing issues technical

compatibility and traffic settings. However, since the role of TRAI under the TRAI Act was unclear, protract acted litigating ensued. IN an effort to remove ambiguities and put an end to controversy surrounding the regulatory authority, in Jan’ 00, the government promulgated the TRAI in Jan’00, to reconstitutes the power of TRAI. The role of TRAI has been redefined and it has been bifurcated into two bodies’ one acting as a regulatory and the other acting as an adjudicator, in the formal of tribunal. The new TRAI sets and tariffs and fixes terms and condition under which operators can interconnect with other and the government is required to seek recommendation from the authority before issuing the license. The judicial power has been vested with the Telecom Dispute Settlement and Arbitration Tribunal (TDSAT).

ti Airtel Fact sheet

70

as a Public Limited Company Proportionate Revenue Rs. Mumbai (BSE) The National Stock Exchange of India Limited (NSE) Market Capitalization Market Capitalization(as on May 2009) Approx Rs 1.Name Bharti Airtel Limited. Business Description Provides mobile. 8483. 42.2007) As per Indian GAAP Accounts Proportionate EBITDA Rs. 1995. 2009) Rs. 2006Audited) As per Indian GAAP Accounts Shares in Issue 1.6Cr (as on June 30.464 as at June 30.407 million (as on June 30. 5404.250 million (year ended March 31.2009) Rs.696 billion 71 . 74. telemedia services (fixed line) and enterprise services (carriers & services to corporates) Established July 07.148. 2007 Listings The Stock Exchange.897.3Cr (as on June 30.

17Cr.649. 2009) Total 7. Provides telemedia services (fixed line) in 94 cities in India.726. (as on June 30 2008)-61% increase in a year.2% (as on June 30 2008) as compared to 72 .239 telemedia customers (Status as at month ended March 31. Customer Base 96. New Delhi . Operational Network Provides GSM mobile services in all the 23 telecom circles in India.Closing BSE share price =Rs 793. Mehrauli Road.: +91 11 4166 6000 Fax No. Registered Office Bharti Airtel Limited (A Bharti Enterprise) Qutab Ambience (at Qutab Minar).110 030 Tel.487 GSM mobile and 2. No.: +91 11 4166 6011/12 Proprtionate 24. and was the first private operator to have an all India presence.

Market Share ARPU 23. But company generates 2210Cr. For the first quarter of FY’09 Company’s expected sales was 7401Cr but the company sold 8506Cr. The company beat expectations with 44% year on year growth in revenue and operating profit. of respondents 57 39 4 100 Chart 1 Percentage 57 39 4 100 73 . Analysis and Interpretation Table showing necessity of net connection in the organization Table 1 Opinion Very much needed Some what needed Not so needed Total No. Company expected net profit of 1716Cr.1% (as on June 30 2007) Rs 350(as on June 30 2008) Rs 357(as on June 30 2007). The growth in subscribers in the 1 st Quarter of the FY09 was highest ever.

of respondents 100 0 0 0 100 Chart 2 Percentage 100 0 0 0 100 74 . Only 4 % of the organizations are thinking that internet is not necessary for doing there business. Table showing the type of connection used in the organizations Table 2 Connection type Broadband Dial-up GPRS others Total No.The Interpretation is that 57 % of the organizations are primarily depending on Internet usage. And 39 % of the organizations are using it as supporting activity for doing their business.

Table showing number of systems used in organizations Table 3 Number of systems Lesser than 10 10 – 20 21 – 30 Greater than 30 Total No.The Interpretation is that all of the sample units were using Broadband connection and none of them were using other type of connection for organizational usage. of respondents 76 16 4 4 100 Percentage 100 16 4 4 100 Chart 3 75 .

of respondents 45 37 13 5 100 Chart 4 Percentage 45 37 13 5 100 76 . Table showing telecom expense for voice Table 4 Amount Below 2500 2500-5000 5001-1000 Above 10000 Total No. Sixteen percentages of organizations are having between ten to 20 computers. Only 4 organizations are having between 21-30 and greater than 30 systems.The interpretation is that 76 percentage of the organization is having less than 10 systems.

And 13 % of the customers have billing in between 5001 and 1000. 37 % of the customers have billing between 2500 and 5000. of respondents 20 38 37 5 77 Percentage 20 38 37 5 . Only 5 customers have billing above 10000.The interpretation is that around 45 % of the customers in the sample have voice billing below 2500 Rs. Table showing telecom expense for Data transmission Table 5 Amount Below 2500 2500-5000 5001-1000 Above 10000 No.

of respondents 13 37 30 20 100 78 Percentage 13 37 30 20 100 . The remaining 5 % of the customers have data billing above 10000/. 38 % of the customers have billing in between 2500 and 5000. Table showing reason for choosing Airtel broadband connection Table 6 Characteristics Offers Service quality Speed & security of Data Brand Name Total No..Total 100 Chart 5 100 The interpretation is that 20 % of the customers have Data (internet) billing below 2500/.Rs. 37 % of the customers have billing of between 5001 and 1000.

20% of the customer has chosen Airtel because of the brand name ‘Airtel’. of respondents 6 21 55 16 2 100 Chart 7 79 Percentage 6 21 55 16 2 100 .Chart 6 The interpretation is that only 13% of the customers preferred Airtel broadband because of offers. Table showing customer rating of speed of Data transmission Table 7 Ranking Poor Fair Good Very good Excellent Total No. The second most 30% of the customers have preferred because of the Speed of internet service. The highest 37 % of the customers preferred Airtel because of the quality of service offered by Airtel. It also shows the brand name also has some implication before choosing Airtel Broadband services.

of respondents 6 20 47 80 Percentage 6 20 47 .The interpretation is that around 55% of the customers rated the speed of data transmission is very good in Airtel broadband. Table showing customer rating of Safety of Data transmission Table 8 Ranking Poor Fair Good No. Only 6% of the customers are worried about the speed. 2% of the customers rated it as Excellent.

22 % of customers ranked it as very good.Very good Excellent Total 22 5 100 Chart 8 22 5 100 The interpretation is that 47% of the customers rate safety of data as good. Table showing customer rating of security of Data during processing Table 9 Ranking Poor Fair Good Very good Excellent Total No. of respondents 3 25 45 19 8 100 81 Percentage 3 25 45 19 8 100 . The customer who ranked it excellent contributes 5 % of the sample size. Only 6 % of the customer feels it as bad.

of respondents 10 15 38 25 12 100 Chart 10 82 Percentage 10 15 38 25 12 100 . Only 3% has ranked it as poor.Chart 9 The interpretation is that 45 % of the customer has ranked network security in Airtel broadband connection as good. Some 19 % has ranked it as very good. Table showing customer ranking of usage experience Table 10 Ranking Poor Fair Good Very good Excellent Total No. 25% of the customers has ranked it as fair.

The interpretation is that around 38% of the customers has ranked the usage experience was good. Table showing customer rating of after sales service Table 11 Ranking Poor Fair Good Very good Excellent Total No. Also 10 % of the customer rated it as poor. 12% of the customers ranked it as excellent. 25% of the customers ranked it as very good. of respondents 13 14 35 26 12 100 Chart 11 Percentage 13 14 35 26 12 100 83 .

Some 26 % rated it as very good and 35% as good. But the concern is that 13 % of the customer also feel that the after sales service is poor. 12% of the customer has rated the after sales service as excellent. Table showing customer rating of How Airtel helped them solve their problem Table 12 Ranking Poor Fair Good Excellent Total No.The interpretation is that. of respondents 7 27 53 13 100 Chart 12 84 Percentage 7 27 53 13 100 .

Table showing Rating of Airtel broadband with other competitors in the same category Table 13 Ranking Much better Some what Same Worse Total No. of respondents 45 35 10 10 100 Table 13 85 Percentage 45 35 10 10 100 .The interpretation is that 13 % of the customer feels that the connection with Airtel broadband helped them to solve their network related problem which exists in earlier. 27% of the customer felt it was fair. Most of around 53 % felt that. it was good. Only 7% of the customer felt it as poor solving their network problem.

35% customer feels that Airtel broadband is somewhat better than competitor products. of respondents 7 11 19 44 19 100 Chart 14 Percentage 7 11 19 44 19 100 86 . Around 10% of the customer feels that it has the same service as that of competitors.The interpretation is that around 45 % of the customers feel that Airtel broadband is much better than other products in this category. Overall satisfaction level of Airtel broadband customers Table 14 Ranking Highly dissatisfied Dissatisfied Average Satisfied Highly satisfied Total No. And 10% of customer feels that it is worse than its competitors.

Quality of the service provided plays an important role in keeping the existing customers and to bring new customers. Internet plays an important role in the day to day activities. 2. In most of the organization. Findings 1.The interpretation is that 19% of the SME customer is highly satisfied with the overall service provided by Airtel broadband. Most of the organizations prefer broadband connection over other type of connection because of speed and other compatibility of service. 44% of the customer is satisfied with the overall service offered by the service. 3. Around 7% of the customer are highly dissatisfied bye the service. 87 .

More than 10% customers have complaints regarding the after sales service of Airtel broadband. This is mostly due to number of systems connected by single broadband connection.4.The customer rate quality of the service as the most relevant one and hence Airtel Broadband services should 88 . 6. Customers feel Airtel broadband was much better than other competitive products of the same category. This shows the place Airtel has achieved in the minds of the customer in Kochi region. Airtel with its own PC security suite helps organizations protect its data from theft and prevents it from harmful attacks. The safety and security of Airtel network is rated very well by most of its customers. Some customers had complaints regarding the speed. The overall satisfaction level is very high among customers. Suggestions On completion of the project work “Customer perception towards Airtel broadband service among Small and medium scale industries (SME) customers of Cochin. 5. Many customers have rated the speed of data transmission is very good. 9. Safety of data is very important in any type of organization. 8. A number of the organization preferred Airtel because of the quality of service provided and also for the speed of data transmission. 7. After sales service plays essential part of customer satisfaction. But a number of customers have reported it excellent and very good. I would like to give my suggestions which the company can make use of:1.

SME segment is a high potential market (especially in Cochin) and the company should take care of more promotional activities in which advertisement plays and effective role and hence to have a competitive edge over other brands. Though it is a small percentage the company should focus on these to keep the brand image in the minds of people. So the dissatisfaction may be due to providing wrong plans by the sales persons. 7. So the company could provide the service as free of cost. This will reduce the chance for dissatisfaction. it should be dealt quickly. It will help customers clear their doubts about billing and hence to improve their satisfaction level. 4. Lack of awareness about the plans is high among customers. maintain the quality in services and should make improvements in this feature. It is free of cost in its competitors like BSNL.2. TERMINOLOGY • • • • handsets ) 89 GSM – Global System For Mobile Communication. 3. If any complaint is observed from the customers. So the company can make use of this opportunity to retain its customers by providing the right plans. So the company must provide an awareness program about the specialized plans for them. GSM-900 –Frequency Level ( Mono Band Handset ) GSM-1800-Frequency Level ( Dual Band ) GSM-1900( Tri Band . 6. Many dissatisfied customers asked for more information about other plans or change of plans. The detailed billing is provided as a value added service in Airtel broadband. 5. Some customers are planned to discontinue because of high billing and after sales service is not good.

International Mobile Subscriber Identity (15digits) IMEI. 5.Wireless Application Protocol GPRS.International Mobile Subscriber Equipment Identity*#06# IVR-Interactive Voice Responcse WAP. 3.Call Detail Records PSTN-Public Switched Telephone Network 90 .General Packet Radio Service MSC-Mobile Switch Centre • • • • • • • BSC-Base Station Controller BTS-Base Transceiver Station AUC-Authentication Centre HLR-Home Location Register VLR-Visitor Location Register CDR. 7. 6.• 1. 4. SIM – Subscriber Identity Module ( 19 digits ) SIM designator-89 Country code -91 Network code-35 Vendor identifier-01 mmyy-0402 Unique SIM number-123456 Check digit-8 • • • • • • • • • PIN-Personal Identification Number (4digits) The default PIN for Airtel SIM cards is 1234 PUK-PIN Unblocking Key (8 digits) IMSI. 2.

Address Verification / Credit Verification RC.Mobile Originating MT.Recharge Coupon MO.Frequently Asked Question AIRTEL STRATEGY.Value Added Services FAQ.KEY DRIVERS     brand .• • • • • • • • • AV/CV. highest TOMA in UP East. Fastest growing network coverage 400 sites Services differentiation : Customer Delight Quality : Towards Six Sigma 91 .Enhanced Full Rate SEF-Subscriber Enrollment Form VAS.Mobile Terminating CDMA-Code Division Multiple Access EFR.

POST PAID BENEFITS                 More economical for high users Different plans to suit individual’s need Experience complete freedom Itemized monthly bill Easy billing STD/ISD Facility Roaming (national / international CLIP Call Divert Call Hold Call Wait Voice Messaging SMS 646 Voice Portal 678 Hello Tunes MMS 92 .  Drive VAS : Innovative always no.1 Aggressive penetration . market distribution and expression.

SWOT ANALYSIS S t r e n g th s 93 .

which affects its margins. Premium priced products. superior quality products and an enviable distribution network. hence can’t compete in low price segment. It has a clear and well-defined organization structure and limits of financial authority. Increase in advertisement spends affect the company’s margins.Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. It has a strong brand name. The company‘s bottom line falls victim to the bloated and highly paid workforce. No separate strategy for rural market. Weakness: Little efforts over the Advertising of products. 94 . Distribution channel is not accurately categorized.

O p po rt un i t ie s : The company's financial performance can receive a major boost from its cost reduction efforts. Rural penetration too holds vast potential to bring Th r e a t s The slowdown in the economy has restricted topline growth of most FMCG majors and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario. Moreover. Airtel’s business has ample scope for gaining market share from the unorganized about growth. 95 . inordinate hike in Broad Band Internet products would also increases company’s production and distribution cost. There is a lot of scope of product and market diversification. sector. Exports of products will also have huge chances in the coming years. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company.Company’s major raw materials are influenced by government policies /controls as well asvagariesofthe monsoons.

The company should makes its marketing strategy flexible enough in orde to face competition. The company should keep an eye on the proper delivery of the goods to exporter on time.RECOMMENDATION I have made following recommendation to the company after doing the summer training there: The company should modify its credit policy as they only target the cash paying customers who are not easy to trace. The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company. as it has been recommended by exporters to make the delivery on time. The company should offers such rate in the market so that it may able to catch a biger market share and it should be able to compete with the local traders and commission agents while having a brand name. The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesn’t matches with the sample’s quality shown before giving orders. The company should take the opinion of exporters from time to time to know what problems they are facing from the company’s side? and if any change they require in present supplying condition? 96 .

LIMITATIONS No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. b) The shortage of time was another constrain for the study. The following points in this direction would add to our total deliberations:- a) The behavior of the customer while approaching them to fill the questionnaire was unpredictable. which may restrict the scope and completion of study. d) Lack of customer’s cooperation was a major constraint. 97 . c) There may be error due to bias of respondents. e) Majority of the customer were too aggressive in nature. f) The sample was restricted to 300 customers.

Cash cards are the most popular type of mobile connections. of people spend RS 500 on their connections. Maximum no. it tries its best to understand the need of its important customer. 98 . As we know that now airtel has already launched its product with logo “’ Aisi azaadi aur kahan”’ has already became popular in market. The maximum no. So we can say that inspite of so many competitor in the market Airtel is having a good position just because every time. As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. I can conclude that Airtel lagged behind its competitors asfar as customer service and availability is concerned. as they are consumer friendly and recharging the connection is not a problem.CONCLUSION After analyzing the findings of the research. of people who use the mobile are in the age group of 20 to 28.

BIBLIOGRAPHY BOOKS  KOTLER PHILIPS.COM HTTP:)//EN.  AAKER KUMAR DAY. MARKETING MANAGEMENT.COM HTTP://KHOJ.COM HTTP://ECONOMICSTIME.TRAI.WIKIPEDIA. MARKETING RESEARCH MAGAZINES  BUSINESS INDIA  BUSINESS WORLD WEBSITES:      HTTP:// WWW.ORG/WIKI/BHARTI AIRTEL#TELICOMIDIA . PUBLISHED BY PRENTICE HALL OF INDIA PVT.LTD.COM HTTP://WWW.COAI.

100 .

1 For how long you have been using Airtel Product?     0-2 Years 2-5 Years 5-10 Years More than 10 years Q. Q. Please give your precious time for filling these details.2 Are you using other product instead of Airtel? 101 . I am a student of MBA of Asian College Of Management.QUESTIONNAIRE Dear Sir/Madam. Saharanpur doing my summer training project on consumer behavior of Airtel.

6 If yes.3 Among them.5 Do you collect any information search before making purchase?   Yes No Q. OA B N SL Q. which sources are used?     Magazines Dealers Sales Executives Operators reference 102 . 4 How would you rate the experience with Brand? Excellent Good Average Below Average AR E I TL V D . prefer most?    Idea vodapone Airtel Q..  Yes No Q. which Brand you.

network  Value for money  Add on features or ergonomics of design 8.7 making credibility What are the features you look for in a product before purchase decision? Give preferences (1-Highest.least) Brand  Price and Discount  After sales services and parts. If you have to purchase a new connection or product in near Which Brand will you go for and why? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 103 . Which of these marketing / sales schemes attracts you while purchasing any connection?     Good Network Discount scheme Service package Any other Q.   Pamphlets and catalogue Reference from friends and relatives Any other Q. 6.9 future.

Q.10 Are you aware of various promotional activities being run by Airtel.11 What are you suggestions for improving the product quality. if yes then how? Are you satisfied with these promotional activities? Very Satisfied Satisfied Somewhat Satisfied Not satisfied     Customer Care By Ad Films By Camp 24 hrs call center services Q. service availability and parts availability? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 104 .

105 .

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