WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

MARKETING RESEARCH ON COMPARATIVE ANALYSIS OF GSM SERVICES WITH SPECIAL REFERENCE TO AIRTEL WITH OTHER CELLULAR SERVICE PROVIDERS

PROJECT REPORT 2010 Submitted in the partial fulfillment of the requirement For the award of

Post Graduate Diploma in Business Administration SUBMITTED BY BHAVNA VAZIRANI Roll No: DPGD/JL08/0405 WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH
YEAR OF SUBMISSION: JUNE 2010.
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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

CERTIFICATE
It is hereby certify that the present project study on “Marketing Research on Comparative Analysis of GSM Services with special reference to Airtel with other Cellular service providers” is an original work done by “Ms. Bhavna Vazirani” (Roll No. DPGD/JL08/0405) student of Post Graduate Diploma in Business Administration programme at WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH under my guidance and direction.

……………………….. (Signature of Student) Date: 29th May 2010

……………….. (Signature of Project Guide)

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CONTENTS ACKNOWLEDGEMENT EXECUTIVE SUMMARY MARKETING RESEARCH • • • • • MEANING ROLE OF MARKETING RESEARCH THE RESEARCH PROCESS FEATURES ADVANTAGE & DISADVANTAGE 21 24 29 32 33 6 7 9 11 4 5

HISTORY OF INDIAN TELECOMMUNICATION CLASSIFICATION OF TELECOMMUNICATION LITERATURE REVIEW OBJECTIVES RESEARCH METHODOLOGY • • • Primary Data Secondary Data Procedure of research methodology

STRENGTHS AND LIMITATIONS OF MAJOR COMPETITORS • • Vodafone Essar Idea

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THREAT OF WLL TO AIRTEL’S BUSINESS • • Concept of WLL and current market overview Current Scenario in India

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MARKETING STRATEGIES OF AIRTEL TO FACE COMPETITION FINDING AND ANALYSIS MARKETING MIX OF AIRTEL HYPOTHESIS & QUICK FACTS LATEST NEWS CONCLUSION LIMITATIONS RECOMMENDATION ANNEXURE BLIOGRAPHY

39 41 61 63 64 66 67 67 69 72

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ACKNOWLEDGEMENT

I wish to express my deep gratitude to all the people whose help and cooperation has enabled me to complete this project. I am highly grateful to Mr. Vaibhav Thakkar, Sales and Marketing Manger at Bharti Airtel Ltd. who has continuously guided me on such a challenging Project.

Finally, I would like to thank my family and friends for their continuous support and encouragement during the entire Project. I acknowledge my thanks to them. This Project has helped me sharpen my skills as a student and I will always strive to maintain high standards in any of mine future assignments.

Thank You!

Bhavna Vazirani

.

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EXECUTIVE SUMMARY
In this project we have first defined what is Marketing Research and its various features. Also we have focused on the need of Marketing Research, its advantages and disadvantages.

And taking Airtel as a case study, we have also studied where it stands, relative to its competitors. The main tool used was, the questionnaire method,

which is shown at the End of the Project. It has also been found that
what are the relative strengths and weaknesses of Airtel vis-à-vis its competitors. Demographics of the cellular users are also found.

WLL Technology is studied and also consumer willingness to shift to WLL Technology from GSM Technology is found. Advantages & disadvantages of GSM with respect to WLL are also found in the Project.

After completion of this project I found that in spite of Airtel, being the market leader in the GSM Technology, it still lagged behind Idea and Vodafone as far as customer service and availability is concerned. Maximum numbers of mobile users are in the age group of 20-28, which are mostly students and young executives. Maximum numbers of people are using prepaid cards.

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Marketing Research:
Meaning:

Research means detailed study of a particular product. Here the details of a particular product are collected and studied, Conclusions are drawn and suggestions are made incase of any problem, to solve it quickly and systematically.

Marketing Research is a special brand of marketing management. It is comparatively of recent in origin. MR acts as an investigating arm of a marketing manager. It suggests solution on a marketing problem for the consideration and selection by a marketing manager. MR also acts as an important tool to study buyer behaviour, changes in consumer lifestyle and consumption pattern, brand loyalty and forecast market changes.

In brief MR facilitates accurate marketing decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is rightly treated as the soul of modern marketing management. It is also said that the beginning and end of marketing management is marketing research. It is primarily used to provide information needed to guide marketing decision, marketing mix. It acts as a support system to marketing management.

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Role of marketing research
ROLE OF MARKETING RESEARCH Customer Groups

Consumers Employees Shareholders Suppliers
Controllable Environment factors Uncontrollable Environment factors

Marketing Research
Assessing information needs Providing Information Marketing Decision Making

Product Price Promotion Distribution

MarketIngManagers

Market Segmentation Target market selection Marketing programme Performance and control

Economy Technology Competition Regulations Political factors Social & Cultural factors

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

When to conduct Marketing research??????
Conduct market(ing) research when: Time Constraints (Is sufficient time available??) Availability of data (Is the information on hand inadequate??) Nature of decision (Is the decision of considerable

importance??) Benefits v/s cost (Does the value of the research exceed the cost??)

Do not conduct marketing research for the below:
What is our market share? Will people drink tomato soup from a plastic jar?? Whose machine tools does our potential customer buy? Which medicine is more preferred for decease??

In short, research should be done when:
It clarifies problems or investigates changes in the marketplace that can directly impact your product responsibility. If it resolves your selection of alternative courses of marketing action to achieve key marketing objectives
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If it helps you gain a meaningful competitive advantage If it allows you to stay abreast of your market(s)

The research process

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The research process is a set of iterative steps and relationships

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

Features of marketing research:
1. Systematic and continuous process:
MR is a continuous process. One type of research is not adequate to solve the entire marketing problem. Similarly new research projects will have to be undertaken to solve new marketing problems and challenges. A marketing company faces new marketing problem from time to time and for facing them marketing research activities need to be conducted from time to time. A marketing company has to conduct marketing research on regular basis for its survival and growth in the current dynamic marketing environment.

2. Wide in scope application:
MR is wide in scope as it deals with all aspects of marketing of goods and services. Introduction of new products, identification of potential buyers, selection of appropriate marketing technique, study of market competition, introduction of appropriate marketing strategy etc are some of the components of MR.

3. Emphasis on accurate data collection and critical analysis:
In MR required data should be collected objectively and accurately. The data collected should be reliable. It should be analyzed I systematic manner. This will provide comprehensive picture of the situation and possible situation.

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4. Offers benefits to sponsoring company and consumers:
MR is useful to the sponsoring company. It raises the turnover and the profit of the company. It also raises the competitive capacity and increases goodwill of the company. It enables a company to introduce consumer oriented marketing policies. Consumer also gets agreeable goods and more satisfaction due to MR activities. 5. Tool for managerial decisions: MR acts as a tool in the hands of management for identifying and analyzing marketing problem and finding out solution to them. It is an aid to decision making. It suggests possible solution for the consideration and selection by managers. MR is an aid to judgment and not a solution to it.

6. Applied type of research: MR is applied knowledge. It is also called decisional research as it provides specific alternative solution to deal with a specific marketing problem.

7. Reduces the gap between the consumers and the producers:
MR is an essential supplement for modern competitive marketing. It is useful for understanding the needs and expectation of consumers. It reduces the gap between producers and consumers and adjusts the marketing activities to suite the need of consumers.

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8. Not an exact science:
MR is both science and an art. It collects information and studies marketing problem in scientific manner. The information collected is also applied to real life problem. However MR is not an exact science. It only suggests possible solution and not the exact solution to the marketing manager for consideration and selection. At present MR is treated as an professional activity.

9. Use of different methods:
MR can be conducted by using different methods. Data can be collected through survey or other observational methods. Even computers and internet are used to collect data. The researcher has to deice the method suitable for research process.

10. Closely connected with marketing information system:
Both the concepts are interrelated. Infact MR is one component of MIS. Both are useful for solving marketing problems and for accurate and quick decision making in the field of marketing.

Increasing need of Marketing Research:
1. Growth and complexity of markets: 2. Determining the viability of a new market for your company to enter. 3. Estimating market size/share/adoption rate for investment or business planning.
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4. Identifying new product/service opportunities and value-added offerings. 5. Risk management - identifying what risks pose the greatest threat to your business. 6. Understanding what customers expect of you and how well you are delivering. 7. Root cause analysis for lost business or customer defections. 8. Identifying your most profitable customer segments and how to protect them. 9. Developing the right price points/identifying bundling opportunities. 10. SWOT intelligence on competitors to plan business strategies/identify M&A scenarios. Understanding how customers perceive your market positioning relative to competitors. 11. Determining the most effective marketing/advertising channels to support

Difference between market and marketing research
Most of the people are always confused about the difference between Marketing research and market research. Generally these terms are used as alternate terms but there is a minor difference in their concepts.

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1. Market research is the research which is conducted in a specific market like the research based on analyzing the prices of food items in Food-Market will be a market research. On the other hand, marketing research is the evaluation of the company's marketing process or doing any research which is linked with marketing. Secondly, market research is narrow while marketing research is broad. 2. Marketing research- this includes the 4 p's i.e. product, price, place & promotion. It covers all the possible measures. It has a systematic investigation. Market research- this include only place as a factor. It is narrow & only customer oriented. It is the measurement of market demand only.

3. Market research directly relates to market situation i.e. size, location, market situation and features of consumers. It provides details about the market and for decision making and policy framing. MR is a systematic and comprehensive study of different aspect of marketing problems and challenges for decision making and policy framing. 4. Market research is a branch of marketing research MR is a branch marketing information system. 5. The scope of market research is limited to the study of market or market situation. The scope of marketing research is wide as it covers all aspects of marketing.

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6. Market research is undertaken in order to deal with the problem and challenges relating to different aspect of market such as competition and consumer needs. Marketing research is undertaken in order to study varied type of marketing problem such as product line, marketing mix, advertising, packaging, branding and so on.

Advantages of Marketing Research:
1. Helpful for Business Entrepreneur:
It would allow the business or entrepreneur to see if the business would be successful, as market research determines whether the product or services are in demand. Therefore it would mean that money would not be wasted on an unsuccessful idea.

2. Added Benefit to Business Organization:
Marketing research offers the benefit of direct contact, through a survey or interview, with certain markets and/or customer groups. This type of research can be tailored to meet the needs of an organization and provide specific and detailed information. An additional benefit is the confidentiality of the findings. Secondary data is available publicly (at a cost or for free, but it is information in the public domain) while primary research data is collected directly by the organization that deploys the research. The results are, therefore, available to that organization only, providing an "insight edge" against the competition. However, because this method is time-consuming and expensive, most organizations rely on

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secondary market research, which is collecting and analyzing existing published data that has been prepared by a third-party such as

3. Improve Business Communication :
Will help you better communicate. Learn about your potential clients — who they are and what they want the most. Nothing improves communication skills better than a little person to person contact.

4. Enhances Opportunities:
MR will help identify opportunities. Check the competition. Are they missing something you can capitalize on? What can you do better than they can? Are you clients in need of something nobody else is offering?

5. Risk Minimization:
It will minimize risk. Just like any situation, if you come prepared you will be less likely to loose and more likely to win.

6. Measured Staff Progress:
Will create benchmarks to help you measure progress. How well are you doing? By setting the standard high from the start, you will be in a better position for sustained growth.

7. Suggests sales promotion technique:
MR enables a manufacturer to introduce sales promotion techniques, select most convenient channel of distribution, suitable pricing policy for the products, and provision of discounts and concession to dealers.

8. Offers guidance to marketing executives:
MR offers information and guidance to marketing executives while framing marketing policies. Continuous research enables a company to face adverse
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marketing situation boldly. It as an insurance against possible changes in marketing environment.

9. Promotes business activities:
MR enables a business unit grows its activities. It creates goodwill in the market and also enables a business unit to earn high profit through consumer oriented marketing policies and programme. Facilitates inventory study: MR is useful for the evaluation of companies’ inventory policies and also for the introduction of more efficient ways of managing inventories including finished goods and raw materials. Suggests appropriate distribution channel MR can be used to study the effectiveness of existing channels of distribution and the need of making suitable change sin the distribution system.

10.

Provides information on product acceptance:

MR helps in knowing the probability of acceptance of the product in its present form. It is also useful for the introduction of modifications in the existing product line of the firm

Disadvantages of Marketing Research
1. Marketing research offers suggestions and not decisions: MR is not a substitute for decision making process. It actually acts as a tool which facilitates decision making process. It guides marketing managers in taking balances, result oriented and rational decisions. 2. Marketing research cannot predict accurately: In MR, efforts are being made to predict the possible future situation. For this certain research studies are undertaken. However the results
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conclusions arrived at may not be complete, perfect or accurate. They predict possible tendencies but not certainties. 3.

MR conclusions are not dependable :
There are many who are skeptic of MR Their criticism is that MR conclusions are not dependable. There are examples where the research failed to deliver desired result or a product failed even when the research had shown promising market demand and consumer support.

4.

MR cannot study all the marketing problems:
MR is rather a very wide concept. However it cannot study all the marketing problems particularly where it is difficult to collect relevant data.

5.

Lengthy and time consuming activity:
It is a lengthy and time consuming activity. It involves various steps which need to be completed in an orderly manner. It is not desirable to conduct research work in a haphazard manner. So it takes longer period of time when findings prove to be outdates.

6. MR is a costly affair : It is costly as research work requires the service of expert and knowledgeable people. Such expert includes economist, management scientist, psychologist and computer expert. 7. Complexity of subject : MR fails to give complete and full proof solution to management. This is because MR itself not a complete and exact science. It is concerned with study of human beings and human behaviour is always difficult to predict.
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8. Changing behaviour of consumers: Consumer is a focal point in the market research. However his buying motive is difficult to judge precisely and accurately. This brings some sort of uncertainty in the conclusion drawn from research activity.

THE ROLE OF MARKETING RESEARCH
MARKETING RESEARCH

FORMAL COMMUNICATION LINK WITH ENVIRONMENT

PROVIDE ACCURATE AND USEFUL

Specifying Collecting Analyzing Interpreting
FOR

Planning Problem solving Control
BETTER DECISION MAKING

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NATURE OF MARKETING RESEARCH
Applied/Problem solving research Often based on cost-benefit analysis Vital for implementation of marketing concept Value of information declines with time Dynamic (ongoing)

DRIVERS OF MARKETING RESEARCH
Shift from production to customer-orientation Declining cost of unit information (digital age) Increase intensity of competition Globalization Technology and commercialization

Five Key Requirements of Marketing Research Information
Utility: Can we use it? Does it apply to us? Timeliness: Will it be available in Time? Cost-effectiveness: Do the benefits outweigh the costs? Accuracy: Is it accurate? Reliability: Is it reliable?

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INTRODUCTION
The telecom industry is one of the fastest growing industries in the country. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China.

India‘s mobile phone subscriber base is growing at a rate of 82.2%. China is the biggest market in Asia Pacific with a subscriber base of 48% of the total Subscribers in Asia Pacific as compared to that of India’s share in Asia Pacific Mobile Phone. Market is 6.4%. considering the fact that India and China have almost comparable Subscriber base

Populations, India’s low mobile penetration offers huge scope for growth

History of Indian Telecommunication
Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a
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monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of
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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. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone- Vodafone, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

Classification of Telecommunication Services
1. Basic services 2. Cellular services 3. Internet Service Provider (ISP)

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Cellular Service
Overview
There are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle.

Growth Drivers
Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. The Key players in the Telecom Market in India Cellular Service provider:

BSNL

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Airtel

Vodafone

Idea

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Reliance

.

Reliance

Tata Indicom

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Aircel

7.

Aircel

MTNL

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LITERATURE REVIEW Subscribers:
Wireless subscribers crosses 200 million mark

Tele density reaches 49.50%
The total number of telephone subscribers has reached 247.07 millions at the end of Dec 2009 as compared to 232.87 million in July 2007. The overall tele density has increased to 49.50 % in March 2010 as compared to 41.08% in Dec 2009. In the wireless segment, 46.37 million subscribers have been added in 2010. The total wireless subscribers (GSM, CDMA & WLL (F)) base reaches 488.40 million at the end of Oct 2009. India Also overtakes U.S to become second Wireless Network in the World.

(Subscribers in Million)
FY 2007 - 08
March-08 August08 Additions during Apr - Aug 2008 March-09

FY 2008 - 09
July-09 August09 Adds. During Aug 2009 Adds. During Apr Aug 2009

Wireless* 98.78 123.44 24.66 165.11 192.98 201.29 8.31 36.18 Wire line* 41.54 40.87 -0.67 40.75 39.89 39.73 -0.16 -1.02 Total 140.32 164.13 23.99 205.86 232.87 241.02 8.15 356.16 • The present data is tentative and likely to be adjusted on the basis of Quarterly Reports received from the Telecom Service Providers

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Total Wireless Market in India.

Market Share of the Telecom Company in India

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Group Company wise Market Share as on 31/12/2009

India is seen as the key potential markets in the world by global telecom firms about 2.5 million users are adding each month. The Indian government has forecast the country will have 550 million telephones by Dec 2010. Up from 110 million now. Recently India has raised FDI cap in telecom industry from 49% to 74%. The foreign investment can be made directly or indirectly in the operating company or through a holding company. The remaining 26% stake shall be owned by resident Indian foreign Indian citizens or an Indian company. FDI would include FIIs, NRI, Overseas commercial borrowing, FCCB, ADRs, GDRs, convertible preferential shares, Proportionate foreign investment in Indian promotes and investment companies including their holding companies. Telecom industries are now concentrating also on mobile gaming. After ring Tones, cool wallpapers and MMS, Mobile gaming seems to be the next big, business of the telecom service providers. According to the market research by
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In-Sat/MDR, the Indian mobile gaming market has the potential to generate annual revenue of about $ 536 million by 2010.

OBJECTIVES
To compare marketing strategies of Airtel with existing players in GSM in particular IDEA AND VODAFONE To find the willingness of GSM users to switch to WLL To study the threat of WLL in particular to Airtel’s business. To study the Demographics of cellular subscriber

The Airtel Logo
The Airtel logo is a strong, contemporary and Confident symbol for a brand that is always ahead of the rest. It is a specially drawn word mark. The Airtel Image style The Airtel Typographical style The Airtel Colour Palette

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

• Primary data
The main tool used was, the questionnaire method, which is shown at the End of the Project. Further direct interview method, where a face to face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment works in.

• Secondary data
1. Company Sites 2. Magazines 3. Newspapers 4. Bharti Circulars 5. Bharti News Letters

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• Procedure of research methodology
To conduct this research the target population was the mobile users, who are using GSM technology. Target geographic area was Mumbai Sample size of 50 was taken. To these 50 people a questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions. Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.

STRENGTHS AND LIMITATIONS OF MAJOR COMPETITORS
VODAFONE ESSAR Vodafone Essar (Vodafone Max Telecom, Vodafone Essar Telecom, Vodafone Essar South)

Strengths
• It has existing operations in metros and (New Delhi, Mumbai, Hyderabad, Bangaluru and Kolkata). • Vodafone Whampoa, which is controlled by Hong Kong billionaire Li Kashing, is cash rich and will be able to finance any capital investments easily.

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• It has a strong brand image (Vodafone) in Mumbai, and the brand could be leveraged in the other circles. It is also perceived as an innovative service provider. • Strong Customer service

Limitations
• The 49 % limit on foreign ownership could pose a problem in Vodafone's plan to expand to other circles. • It has created increased competition in New Delhi and Mumbai. MTNL has commenced its cellular offerings there, and Idea and Bharti have also acquired licenses to operate in New Delhi and Mumbai, respectively.

IDEA (BIRLA-AT&T-TATA AND RPG CELLCOM)

Strengths

Idea has service licenses in two of the metros (Mumbai and New Delhi), with extensive retail outlets in Mumbai (over 1,500). It has also managed to secure licenses for a large, contiguous service area covering Southern and Central India.

• It currently has the largest market share and is able to leverage on economies of scale in its operations. • It is backed by large and reputed Indian business house — Birla and Tata. • It has an experienced foreign partner in AT&T.
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Limitations
• Idea does not have cellular licenses in any Southern states of India except for Andhra Pradesh. With the BPL merger not taking off, it has deprived Idea of a presence in South India. • It will face intense competition in its service area from the Bharti Group and Vodafone • It will have to manage cultural differences very carefully. There is little clarity as to who is providing strategic direction to the group — Birla, Tata or AT&T.

Threat of WLL to Airtel’s Business
Concept of WLL
Since the advent of the telephone system, copper wire has traditionally provided the link in the local loop between the telephone subscriber and the local exchange. Economic imperatives and emerging technologies are opening the door for WLL solutions and WLL uses wireless technology coupled with line interfaces and other circuitry to complete the last mile between the customer premise and the exchange equipment.

WLL Subscribers rose to 2.7 million, from 2.3 million at the start of 2009. The growth is some what reflective of increasing preference of users to switch to WLL from fixed line where the Subscribers dropped

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Moreover, the popularity of the recently launched EvDo technology has escalated, which is evident from the increasing subscribers, which as jumped to 38,000 as Nov 09. 2009. Proved to be an impressive year despite the difficult economic environment.

WLL Market Segments
The two basic market segments for WLL are for basic phone service in emerging economies and for wireless by pass in developed economies. The requirements for each of these segments in urban/suburban and rural area. Developed (Bypass) High-speed data enhanced services Urban/suburban limited mobility high traffic/subscriber densities High-speed data enhanced services Rural limited mobility low subscriber densities wide coverage POTS (voice quality) modem data no (limited) mobility low subscriber densities Emerging (POTS) POTS (voice quality) modem data no (limited) mobility high traffic/subscriber densities

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COMPARISON OF WLL SYSTEMS
Current Scenario in India
Currently there are two major players in India who are providing WLL Services. TATA Indicom was launched in Jan, 2003 and Reliance has just been launched. Initially it was expected that they would pose a major threat to GSM service provider when they were supposedly giving both SMS and Roaming facilities.

Advantages of WLL Cost
– wireless systems are less expensive due to cost of cable installation

that’s avoided

Installation time

– WLL systems can be installed in a small fraction of the

time required for a new wired system

Selective installation – radio units installed for subscribers who want service
at a given time with a wired system, cable is laid out in anticipation of serving every subscriber in a given area

Disadvantages of WLL
1. Instrument cost is high. 2. Once you pay for set for Reliance you are bound to it for three years even after that are not the owner of the set.
3. It is a new technology in India and people are a bit apprehensive about it.
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Now considering above advantages and disadvantages of WLL, I think that WLL service provider should be posing a great threat to Airtel; Airtel has to keep its customer satisfied and keep coming out with innovative and attractive tariff plans.

MARKETING STRATEGIES OF AIRTEL TO FACE COMPETITION

Easy Recharge: Latest strategy of Airtel to give pre paid users freedom
of amount of recharge.

Monthly Plans ranging from 150 per month to 1799 per month. Remote recharging: To recharge from anywhere in the country. International Roaming at Pakistan during cricket matches. Reduced roaming rates to face the challenge of reliance & Others Regional Roaming: Free Roaming in Maharashtra & Goa and at five
states without any security deposit and monthly rent of 49 Rs.

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Airtel has launched 128k sim which is having more memory to store
phone book numbers and messages. It is having an inbuilt menu for various call based and Text based services.

Text base services: services like Chatting and checking mail through
SMS.

Phone Banking: Tie up with HDFC and bank of Punjab to offer banking
services on handset.

Dial a service: To get pizza, flowers train timings, car mechanics etc. GPRS at Rs. 396 per month for unlimited internet usage. Recharge from ATM. Bill payment through credit card and banks without giving cheques and
credit card number every month.

Fax and Data services: Different numbers for fax and calls. Latest Recharge of Rs. 64/- wherein Airtel Call Home launches pay
per Second plan for its all customers.

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

FINDINGS AND ANALYSIS

AGE GROUP GRAPH

AGE GROUP

28-35 20%

15-21 15%

21-28 65%

As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. This segment is the one which gives maximum business to the mobile operators. This segment constitutes the young executives and other office going people. They are 65% of the total people who were interviewed. The next age group is the people who are 28-35 years old. They are 20% of the total. They are those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 years old. They are school and college

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going students and carry mobile phones to flaunt. They are 15% of the total interviewed people.

OCCUPATION GRAPH

60% 50% 40% Percentage 30% 20% 10% 0% Student s 15% Series1 Executives 55%
Households Others

20%

10%

Occupation

As the above graph shows that 55% of the total people are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele - callers etc. who require mobile for their official purposes. The next category is the households, who are either housewife, small units which operate from their homes etc. They are 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of the whole is categories who are the professionals.

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MODE OF COMMUNICATION
100% 80% P e rce nta ge 60% Series1 40% 20% 5% 0% Series1 Telephone Cell Phone 5% 90% 2% E-Mail 2% 3% Other 3% 90%

Mode of Communication

Telecom industry in India is increasing at a very fast rate. The telecom industry has maintained its strong growth in FY09 backed by the higher demand for mobile phones. It found that today 90% people are using Cell phone and it is increasing with the tremendous rate in India. On the other side people are using only 5% telephone, 2% E-mail and 3 % other.

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SERVICE PROVIDER GRAPH

50% 40% 30% Percentage 20% 10% 0% Series1 Idea 15% Airtel 50% Vodafone 30%
Trump & Others

5%

Service Providers

The above graph shows a slice of 50% are the total no. of people who are using Airtel. It seems that people are more aware of Airtel than any other brand. The next popular brand is Vodafone. 30% of the people interviewed had Vodafone connections. 15% people had Idea connections. As it came very late in the market when Airtel had established it self very well. So, that could be one of the reasons of such a low percentage. The remaining 5% had trump connections.

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CUSTOMER SERVICE GRAPH
60% 50% 40% Percentage 30% 20% 10% 0% Fully Series1 20% Partially 10% Dissatisfi Fully ed Dissatisfi 60% 10%

Customer Satisfaction Level

As the above graph clearly shows that customer services seems poor. 60% of the people are dissatisfied with the customer services provided by their service provider. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. 10% of the people were fully dissatisfied with the customer services. This could leave an impact on the mind of the consumer. He can even switch over his brand. 10% of the people seemed partially satisfied with the customer services and only 20% seem to be fully satisfied with customer services, which is a very small amount.

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PROVIDER OFFERS SCHEMES
100% 80% Percentage 60% Series1 40% 20% 4% 0% Series1 Yes 95% Sometimes 4% 1% Rarely 1% 0% Not at all 0% 95%

Provider offers schemes

While survey it was found that 95% people believe that their service provider offers new schemes on time. Only 4% 1% and 0% people said that their service provider offers new schemes sometimes, rarely and not at all respectively.

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IMPORTANCE OF MOBILE PHONE
120% 100% Percentage 80% 60% 40% 20% 1% 0% Very important 97% Some what important 1% 2% Not very important 2% 0% Not at all important 0% Series1 97%

Series1

Importance of Mobile Phone

With reference to 97% people think that mobile phone is very important now days. Only 1%, 2% and 0% people think that mobile phone is some what important, Not very important and Not at all important respectively.

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

SERVICE PROVIDER LISTENS PROBLEMS
45% 40% 35%
Percentage

40% 35%

30% 25% 20% 15% 10% 5% 0% Series1 Every time 40% Sometime 35% Rarely 15% Not at all 10% 15% 10% Series1

Service provider listens problems

After conducting the survey 40% people think that service provider listens to their problems every time and 35% people think that service provider listens to their problems sometimes. But with 15% and 10% people think that service provider listens to their problems rarely and not at all respectively.

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TYPE OF CARD GRAPH
TYPES OF CARDS

POSTPAID CARD 30% PREPAID CARD 70%

Prepaid cards seemed quite popular among the people interviewed. 70% of the total mobile users were having prepaid card connections. This means that the prepaid cards should be easily and readily available in the local markets. 30% of the people were having sim connections which are the regular bill.

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MONTHLY EXPENSE GRAPH

80% 60% Percentage 40% 20% 0% Series1

Rs. 200450 24%

Rs. 450600 64%

More than Rs. 600 12%

Series1

Monthly Expenses

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining 12% had an expense more than Rs. 600, they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles.

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

AWARENESS ABOUT WLL

100% 80% 60% Percentage 40% 20% 0% Series1 Aware 85% Not Aware 15% Series1

Awareness about WLL

WLL doesn’t seem to be a new word for many of the people. 85% of the people are aware of such a technology. So, in order to get the answer for this question they were first explained the concept. Only, 15% people don’t know what WLL is all about.

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AWARENESS OF WLL PLAYERS GRAPH

AWARENESS OF WLL PLAYERS

TATA INDICOM 15%

RELIANC E 85%

Reliance was the brand which was popular amongst the interviewed people. As Reliance had done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly, because of less promotions done by them as compared to Reliance. They spend a maximum of Rs. 500 as their mobile expense. There is no more of prepaid cards than post paid cards. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. Now when I compared Airtel with its competitor from the point of view of the consumer I found that on the basis of Tariff plan, value added services
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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

and billing accuracy Airtel is at par or ahead of its competitor but in the case of customer care and availability they lag behind there competitors. As far as WLL is concerned people are aware about it but not many people are aware about Tata. They only know more about Reliance.

COMPARISON OF AIRTEL, VODAFONE, IDEA AND WLL
• NETWORK CONNECTIVITY

Airtel

Vodafone

Idea

o

Airtel is better in network connectivity in terms of all India roaming facility with 45%

o o

Vodafone is getting better with its operations in 20 circles with 35% Idea is competing Airtel and Vodafone with 20%
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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

• EASY AVAILABILITY

36% 35% 34% Percentage 33% 32% 31% 30% 29% 28% 27%

35%

35%

Series2 30%

Airtel Airtel

Hutch Vodafone Easy Availability

Idea Idea

Customers find all connections easily available in major market places, service provider’s outlets etc with Airtel 35%, Vodafone 35% and Idea 30%.

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• SERVICE QUALITY

45% 40% 35% Percentage 30% 25% 20% 15% 10% 5% 0% Airtel Airtel 35%

40%

25% Series2

Hutch Vodafone Good Service Quality

Idea Idea

o 40% of the customers think that Vodafone has the best service quality on all India basis. o 35% of the customers think that Airtel has a better service quality.

o 25% of the customers think that Idea has good service quality.

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

• LOW PRICE
45% 40% 35% Percentage 30% 25% 20% 15% 10% 5% 0% Series2 30% 30%

40%

Airtel Airtel

Vodafone Hutch
Price

Idea

Idea

40% of the customers think that Idea is offering services at low price than Airtel and Vodafone, while 30% customers of Airtel and 30% of Vodafone think that their service provider is offering low price than Reliance Infocomm.

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• VALUE ADDED SERVICES
45% 40% 35% Percentage 30% 25% 20% 15% 10% 5% 0% Series2 30% 30% 40%

Airtel Airtel

Vodafone Hutch
Promotinal Schemes

Idea Idea

o 40% of the customers think that Idea provides most value added services. o Airtel and Vodafone have also started providing more value added service with 30%

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

• ADVERTISEMENT AND BRAND AMBASSADOR
36% 35% 34% Percentage 33% 32% 31% 30% 29% 28% 27% 30% Series2 35% 35%

Airtel Airtel

Vodafone Hutch

Idea Idea

Advertisements & Brand Ambassador

o 35% of the customers are influenced by the advertisements and Brand ambassadors of Airtel and Vodafone o 30% of the customers are influenced by Advertisements and brand ambassadors of Idea.

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

• BRAND NAME
50% 45% 40% Percentage 35% 30% 25% 20% 15% 10% 5% 0% Airtel Airtel Hutch Vodafone Brand Name Idea Idea 15% Series2 45% 40%

o 45% of the respondents are influenced by Airtel name before purchasing a GSM service o 40% are influenced by Vodafone brand name before purchasing a GSM service o Only 15% are influenced by Idea brand name before purchasing a GSM service

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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

• INFLUENCE FROM FAMILY, FRIENDS & RELATIVES
45% 40% 35% Percentage 30% 25% 20% 15% 10% 5% 0% 20% Series2

40%

40%

Airtel Airtel

Vodafone Hutch

Idea Idea

Influence from Family, Friends & Relatives

o 40% of the respondents are influenced by their family ,friends & relatives for purchasing Airtel and Vodafone o Only 20% of the respondents are influenced by family, friends and relatives for a purchasing Idea

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MARKETING MIX

Product
Airtel Pre-paid Airtel Pre-paid Airtel Post-paid Blackberry Wireless Handheld Value Added Services (VAS) The different value added services provided by Airtel areInstant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Airtel Live Portal SMS based Information Service Hello Tunes & Ring Tones Voice Mail Service Easy Post-paid bill collection Gifting of Ring Tones & Hello Tunes GPRS

Price
Customer based pricing strategies. Flexible pricing mechanism
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Controlled by TRAI.

Place
It has wide and extensive presence even in the remotest areas Airtel Customer Care Touch Points Distributors like E.g. Pan shops, grocery stores, chemists, outlet etc.

Outlets

Promotion
Large scale print and video advertising. Big celebrities like SRK and Sachin are roped in to endorse the product. In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps the most downloaded tune in India.

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Provides innovations such as Bollywood movie premiers, music services such as ring back tones & many more. "Friends" pre-paid connection for youth," Ladies Special" plan, seniors plan. Executive’s corporate plan (First to give prepaid in this category). Special discounts in calling rates & sms services. Providing wallpapers and screensavers on website.

HYPOTHESIS
• There is no significant difference between the consumers who use GSM services and any other services. • There is a significant difference between the consumers who use GSM services and any other services.

Quick facts
Bharti Airtel is 3rd largest in-country mobile operator in the world 6th largest in-country integrated telecom operator in the world Ranked number 5 in the best performing technology companies in the world by Business Week India’s most innovative company by Wall Street Journal Winner of Gallup Great workplace for being one of the best places to work worldwide Ranked 188 in the FT 500 world’s largest companies 2009 ranked by Financial Times

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LATEST NEWS
Bharti Airtel joins hands with Manchester United for a five year exclusive agreement.
Manchester, May 8, 2009: Bharti Airtel, Asia's leading integrated telecom services provider, today announced a five-year partnership with Manchester United Football Club. The partnership is first of its kind for both Manchester United and Airtel. With this, Airtel customers across India, Sri Lanka and the Seychelles will get exclusive access to rich football content of Manchester United (MU) on Airtel mobile phones. In addition, Airtel users will also get an opportunity to participate in the Manchester United Soccer Schools program currently operated by Manchester United Merchandising Limited. Airtel customers will also get an opportunity to watch football matches at Old Trafford and travel to Europe to watch Manchester United play the UEFA Champions League.

The announcement was made by Sanjay Kapoor, Deputy CEO, Bharti Airtel in the presence of Manchester United Club CEO David Gill, Sir Alex Ferguson and Manchester United players Wayne Rooney, Carlos Tevez and Darren Fletcher at Old Trafford, Manchester City, UK.

Benefits to the customers:
THIS PARTNERSHIP IS INTENDED TO DELIGHT AIRTEL CUSTOMERS ACROSS INDIA, SRI LANKA AND SEYCHELLES BY OFFERING THEM A VARIETY OF BENEFITS AIRTEL CUSTOMERS WILL HAVE ACCESS TO RICH AND EXCLUSIVE MANCHESTER UNITED CONTENT ON THEIR MOBILES
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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

NOMINATED AIRTEL CUSTOMERS TO PARTICIPATE IN MANCHESTER UNITED SOCCER SCHOOLS TRAINING SESSION. A ONCE IN A LIFETIME OPPORTUNITY FOR AIRTEL GUESTS TO TRAVEL WITH THE MANCHESTER UNITED FIRST TEAM DURING THEIR AWAY UEFA CHAMPIONS LEAGUE MATCHES AND ALSO WATCH MATCHES AT OLD TRAFFORD.

KEY HIGHLIGHTS OF THE AGREEMENT
AIRTEL WILL BE ABLE TO BRING FOR ITS CUSTOMER RICH EXCLUSIVE CONTENT SUCH AS VIDEO CLIPS OF PREMIERSHIP MATCHES AND UEFA CHAMPION’S LEAGUE HIGHLIGHTS, CLASSIC GOALS AND GAMES OF MANCHESTER UNITED, MATCH FEEDS & REPORTS AND EDITORIAL FEATURES. ALSO, DOWNLOADS OF MOBILE GAMES, RINGTONES, ANIMATIONS, AND WALLPAPERS OF POPULAR MANCHESTER UNITED FIRST TEAM PLAYERS SUCH AS RONALDO, ROONEY, AND FERDINAND.

AIRTEL

CUSTOMERS

WILL

BE

ABLE

TO

ACCESS

THE

INTERNATIONALLY POPULAR MANCHESTER UNITED MOBILE PORTAL WHERE RICH MOBILE PRODUCTS AND CONTENT WILL BE

EXCLUSIVELY AVAILABLE FOR THE AIRTEL CUSTOMERS.

AIRTEL CUSTOMERS CAN ALSO WATCH MANCHESTER UNITED FOOTBALL MATCHES AT THE OLD TRAFFORD GROUND IN THE PREMIER LEAGUE, FA CUP, FOOTBALL LEAGUE CUP, UEFA
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WEKINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

CHAMPIONS LEAGUE. A FEW LUCKY AIRTEL CUSTOMERS WILL ALSO GET AN OPPORTUNITY TO TRAVEL WITH THE MANCHESTER UNITED FIRST TEAM DURING THEIR AWAY UEFA CHAMPIONS LEAGUE MATCHES.

FOOTBALL ENTHUSIASTS AMONG AIRTEL CUSTOMERS WILL GET AN OPPORTUNITY TO TRAIN AT ONE OF THE MANCHESTER UNITED SOCCER SCHOOLS (MUSS). MUSS ARE CURRENTLY RUN IN HONG KONG, SEATTLE, TORONTO AND DUBAI AS WELL AS MANCHESTER AND IT ENABLES PEOPLE AROUND THE WORLD TO PARTICIPATE IN SOCCER ACTIVITIES. THESE PROGRAMMES TAKE THEIR LEAD FROM THE COACHING AT THE MANCHESTER UNITED ACADEMY AND FIRST TEAM TRAINING SESSIONS.

CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use mobiles in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spends RS 500 on their connections. 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. People are aware about the tariff plans offered by WLL service providers, so to face the challenge the bill plans must be competitive.
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Pre paid Users cover a larger share of market. Although the call rates had come down for post paid users but for prepaid users are still not competitive. If this portion has to be grabbed Airtel has to keep competitive call rates in re paid connections.

LIMITATIONS
While compiling the project no such problem can be stated as limitation, as constant help was provided by the faculty members in the effort to bring the project in the shape it is. However a few difficulties cropped up in handling the consumers while conducting the survey, which are the limitations in the project: The study is restricted to Mumbai region only. The sample size is only 50 so nothing conclusive can be derived from this sample size. There can be errors in sampling. Time constraints were there. People might give their biased opinion.

RECOMMENDATIONS
Airtel should look into the short comings of its customer care service. Airtel should make sure, that their prepaid card should always be readily available with the retailers.
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Airtel should keep on coming with attractive tariff plans. As maximum no. of users is between 20 to 28 they should specially come out with some plans which are attractive for this segment. Main advantage of WLL is its tariff plan. So GSM service providers should try to reduce their tariff plans if possible, at least initially. More competitive call rates for Pre paid users will help in grabbing the market. Reduced roaming rates for pre paid users will also help in grabbing the market. Value based services at a lower cost will help in grabbing the market.

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ANNEXURE
QUESTIONNAIRE

NAME: SEX:

AGE: OCCUPATION:

1. What mode of communication are you using presently? Telephone Cell phone E-Mail Any other ………………….. 2. Are you using a GSM mobile? Yes No

3. Which present GSM service provider are you using? Airtel Idea Vodafone Other 4. Are you satisfied with the customer service provider? Fully Partial Dissatisfied Fully dissatisfied 5. Does your service provider offer schemes on time and repeatedly? Yes Sometimes Rarely Not at all

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6. What do good telecom services mean to you? Very important Some what important Not very important Not at all important

7. Do you feel that existing service provider listens to your problems? Every time Sometime Rarely Not at all 8. Do you have A prepaid connection A postpaid connection

9. Do you easily get a cash card from the local market? Always Occasionally Not at all 10. Do you understand the concept of WLL? Yes No

11. Which of the following have you heard about? Tata Indicom Reliance

12. What do you think should be the rent on the usage of cell phones per month? More than Rs. 600 Rs. 450 - 600 Rs. 200 - 450
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13. Give your comments (which you think is the best in the scale).

AIRTEL Network Connectivity Easy Availability Service Quality Low Price Value added services Advertisement and Brand Ambassador • Brand Name • Influence from Family, Friends & Relatives • • • • • •

VODAFONE

IDEA

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BIBLIOGRAPHY
BOOKS KOTLER PHILIPS, MARKETING MANAGEMENT, PUBLISHED BY PRENTICE HALL OF INDIA PVT. LTD., Ed. 10, 2003. AAKER KUMAR DAY, MARKETING RESEARCH

MAGAZINES
BUSINESS INDIA BUSINESS WORLD

WEBSITES: www.coai.com www.trai.com www.airtelindia.com www.khoj.com www.airtelworld.com www.Vodafone.in www.idea.com

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