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PROJECT REPORT

ON

MARKETING STRATEGIES OF AIRTEL

SUBMITTED UNDER PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR

TRAINING SUPERVISOR: PROJECT ADVISOR:

SUBMITTED BY:

SESSION:

ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from

several rather unexpected quarters during the course of

execution of this study. It would be a mammoth task to place on

record my gratitude to each and every one of them but a whole

hearted attempt would be made nevertheless, least I be branded

ungrateful.

I am extremely thankful to Mr.Abhishek Yadav, (Unit
Advisor) for giving me an opportunity to undergo training in
BHARTI AIRTEL MARKETING and making my stay at AIRTEL
MARKETING a memorable learning experience.

Where the emotions are involved words cease to work. I am

deeply indebt to ---------------------- for her encouragement,

affections, valuable advice and guidance that helped me to

complete this project successfully.

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EXECUTIVE SUMMARY

The project aims at understanding the Marketing strategies at

Airtel and its impact on the perception of Airtel Cellular Services.

Research has demonstrated conclusively that it is far more costly

to win a new customer than it is to maintain an existing one. And

there is no better way to retain a customer than to exceed his

expectations. For this purpose it is essential to know the level of

customer satisfaction. The focus of my research was the

measurement of customer satisfaction level for the services

provided by Bharti Airtel. The research was done for the

corporate clients of Bharti Airtel. My job was not only to

represent the Corporate Sales Dept. and collect the feedback

from the clients but also to get the major complaints resolved

through internal counselling. There can be no better opportunity

to interact with the external as well as the internal customers of

an organization. Finally the results of the research verify the fact

that keeping the customer satisfied is the best strategy to not

only retain the existing customers but also to expand the

business to new horizons.

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TABLE OF CONTENTS

1. TELECOMMUNICATION MARKET IN INDIA 7

2. GSM MARKET IN INDIA 11

3. INTRODUCTION 23

4. TARIFF STRUCTURE 39

5. PROMOTIONAL STRATEGY 48

6. MARKET SITUATION 50

7. COMPETITIVE SITUATION 51

8. MARKETING STRATEGY ADAPTED BY BHARTI 60

9. OBJECTIVE 69

10. RESEARCH METHODOLOGY 70

11. LIMITATION 71

12. SWOT ANALYSIS 79

13. CONCLUSION 81

14. BIBLIOGRAPHY 82

15. QUESTIONNAIRE 83

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TELECOMMUNICATION MARKET IN INDIA The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. With more than 33 million users (both CDMA and GSM). Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Accordingly. Vodafone.5% in 2006 and 10.5% in 2007 and is set to increase to 20% in the next five years beating the Govt. Intense competition between the four main private groups . has shown an impressive jump to 9. India requires incremental investments of USD 20-25 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p. There has been almost 74% in cell 5 . Tele-density.a. target by three years. wireless is the principal growth engine of the Indian telecom industry.) in India. Tata and Reliance and with the State sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs. Given the current growth trends. which was languishing at 2% in 1999.Bharti. cellular connections in India will surpass fixed line by late 2004/early 2005.

Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal 6 . The Indian government has merged the IT and Telecom Ministries to speed up reforms and decision on the Communication Convergence Bill to enable the common regulation of the Internet. has a subscriber base of 37 lakh subscribers. Customs duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent. The Government has played a key enabling role by deregulating and liberalising the industry. these have all been addressed now. with 50 lakh subscribers. BSNL. While there were regulatory irregularities earlier. which operates in 23 circles. 70% in ILD calls and 25% drop in NLD charges. ushering in competition and paving the way for growth.phone charges. broadcasting and telecoms will be taken after the new Government assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute settlement body (TDSAT) is fully functional. continues to be the country's largest cellular operator. which operates in 22 circles. INDIAN CELLULAR MARKET The Bharti Group. resulting in litigation. resulting in a boom time for the consumers.

92% growth. followed by Reliance 7 .80 lakh. MTNL. Idea. higher than BPL's 11." said a telecom analyst. This is much higher than 5. is the fourth largest operator with a subscriber base of 17.ending March 31. having a subscriber base of 9. during March 2005. which operates in Mumbai and Delhi. BSNL has been a very aggressive player in the market. the cellular subscriber base in the country has almost doubled in March 2005. Vodafone. Spice Communications. the highest growth in any month so far. is the third largest operator with a subscriber base of 32 lakh. Year-on-year. the cell club has reported a 7. which operates in only eighteen circles. Unlike fellow public sector undertaking. which operates in Seven circles. displacing Vodafone from the second position.13 lakh in January 2005. Belying fears of a slowdown in cellular subscriber acquisitions. were taken by surprise and did not take effective steps to counter it. till it was too late in the day. "Cellular operators who expected BSNL to go the MTNL way.31 lakh subscribers across four circles. 2007.40 lakh.9 lakh subscribers added in February 2005 and 2. The subscriber numbers per operator drop sharply with the sixth largest operator. The cellular subscriber club expanded by 21.31 lakh last month. and is expanding at the rate of 25% per year thereafter.

Andhra Pradesh. While the cellular industry has been on roll for the first three quarters of the previous financial year with an average of 16. Uttar Pradesh (West).18 % to reach 43. with a base of 8.63.74 lakh subscribers. subscriber base of category A circles of Maharashtra. Category B circles of Kerala.58.9 lakh subscribers.64 lakh. Uttar Pradesh (East). Punjab. Karnataka and Tamil Nadu jumped by 10. Rajasthan.89 lakh. MTNL is the ninth largest operator.75 lakh monthly additions in the third quarter. Among the metros. Madhya Pradesh and West Bengal recorded a jump of 10. 8 .32 lakh subscribers. Gujarat.180 subscribers.69%.08 lakh. the first two months of 2007 had seen the growth slowing down. while Mumbai added 1.39 lakh in the metros. with a total base of 33.Telecom's 8. Circle C has reported 12. While the subscriber base-jumped by 3.74 % growth with subscriber numbers jumping to 5.38% to 44.646 added by Delhi. Haryana. the Capital's cellular subscriber base of over 80 lakh is still higher than Mumbai's 66. higher than the 1.

it has been the 9 .GSM India With a population of around 1. More significant liberalisation followed in 1996 with the licensing of new local fixed line and mobile service providers.1 billion growing at roughly 1. India's telecommunications have undergone a steady liberalisation since 1994 when the Indian government first sought private investment in the sector. Much of this success can be attributed to the stabilisation of the licensing and regulatory environment.7 per cent a year. After two rather difficult years. GSM MARKET IN INDIA Regional Interest Groups . India is potentially one of the most exciting GSM markets in the world. the past 12 months have seen the region's promise beginning to come to fruition. However.

government's New Telecom Policy (1999) that has had the most radical impact on the development of GSM services. IT and media.' Competition in the mobile sector has already had a visible impact on prices with calls currently costing less than 9 cents per minute. which cover the seven largest cities. It is estimated that more than Rs200 billion 10 . This means that service costs have fallen by 60 per cent since the first GSM networks became live in 1995. There is a genuine commitment to creating a modern and efficient communications infrastructure that takes account of the convergence of telecom. the policy places significant emphasis on greater competition for both fixed and mobile services. In addition. Such depth of coverage has required enormous investment from India's operators. 'The policy's mission statement is 'affordable communications for all'. India has more than 40 networks. One of the challenges facing GSM operators in India is the diversity of the coverage regions -from remote rural regions to some of the most densely populated metropolitan areas in the world. over 7000 towns and several Lacs villages. It also helps explain why a recent Telecom Asia survey revealed that more than 70 per cent of Indian mobile subscribers felt that prices were now at a reasonable level.

India fastest growing GSM mart India is expected to have 145 million GSM (global system for mobile communications) customers by 2007-08 compared to 26 million subscribers as on March 2005. the target of 150 million subscribers by 2007-2008 is definitely achievable. At this pace.had been invested in India's GSM industry by mid-2000. With India's low PC penetration and high average Internet usage -at 14-20 hours a month per user it is comparable to the US -the market for mobile data and m-commerce looks extremely promising. a figure that is set to be supplemented by a further Rs. according to the Global Mobile Suppliers Association. said at a news conference in New Delhi." Alan Hadden. 300 billion over the next five years. WAP services have already been launched in the subcontinent and the first GPRS networks are in the process of being rolled out. GSM India will work with its members to realise the potential of early packet services in anticipation of the award of 3GSM licences. "For GSM. president of GSA. The good news is that subscriber growth is beginning to look healthy. In the year ahead. 11 . India is a success story. It is one of the fastest growing markets with its subscriber base doubling in 2005.

Ramachandran. the GSM market reached 1 billion users in February 2005." India’s GSM mobile firms’ revenue up 30 pct India’s private telecoms firms offering GSM-based mobile services reported a 24 percent rise in revenue in the year to March 2007 but said future growth rates could slow because of heavy taxes on the nascent industry." he said. Although India’s mobile sector is the world’s fastest growing major wireless market. director 12 . In North America GSM growth is bigger than CDMA (code division multiple access).V.08 billion rupees ($1. spectrum charges and other taxes. he said. Hadden said: "GSM is the world's most successful mobile standard with over 1 billion users. The Cellular Operators Association of India (COAI) said revenue for fiscal 2003/04 stood at 83.Globally. it is amongst the highest taxed industries in the country. adding GSM accounted for 80 per cent of the new subscriber growth in 2005. Mobile carriers pay as much as 25 percent of their revenue as licence fee.86 billion) compared with 64 billion rupees a year earlier."Almost every Latin American operator has chosen GSM. and is an open mobile standard. According to T. It also supports automatic international roaming. Commenting on the raging debate over GSM versus CDMA in mobile services arena. which is a major contributor to business plans.

4 percent to 432 rupees in the fourth quarter compared with 523 rupees in the first quarter due to a cut in tariffs and excessive competition among companies. “These revenue growth rates cannot be maintained unless there is a concerted effort by the government to cut excessive levies and allow sharing of infrastructure” “But the potential to do much better exists as there is still huge demand in the sector. Sales jumped because of a doubling of the GSM (Global System of Mobile Communications) user base as more people entered the flourishing market thanks to one of the lowest call rates in the world. Growth slowing.general at COAI. the second-ranked player. demand untapped: The association has not included the financial performance and the GSM-user base of state-run firms Bharat Sanchar Nigam Ltd. The pace of growth in monthly additions is slowing after just 1.25 million users took up the service in April compared with 13 . a key measure of profitability. But the monthly average revenue per user. Ramachandran said. declined 17. and Mahanagar Telephone Nigam Ltd.” Ramachandran said the sector was still losing money but declined to elaborate. There are 150 million GSM customers and more than 96 million users of the rival CDMA-based mobile services in the country.

14 . Ramachandran blamed the slowdown on a majority of small GSM operators being unable to expand networks into rural swathes where demand remained largely untapped. Roughly three percent of Indians own a mobile phone compared with about 20 percent in China. 28 percent owned by Singapore Telecommunications.9 million in the previous month and 1.63 million in February.1.” he said. Carriers are now subsidising handset costs to woo users into the underpenetrated industry forecast to have more than 250 million customers by 2007. Reliance Infocomm Ltd and the Indian GSM-unit of Vodafone group battle in the hotly competitive sector. We are making money only to cover operating expenses. About a dozen firms such as Bharti Airtel Ltd. “Our surpluses are not enough to cover costs of network expansion and financing charges on loans.

who incidentally also have their other foot firmly placed in the CDMA pie. the miserable showing of the four global standard for mobile (GSM) 15 . are beginning to lose some sleep over what was earlier termed as `niche’ and `minuscule’ data carriage market by the operators Apart from the strong success of the two CDMA operators whose networks are based on code division multiple access (CDMA).DOES GSM HAVE THE EDGE? GSM operators are not the only ones who are worried about the rapid strides made by CDMA mobile players Reliance Infocomm and Tata Indicom in the Indian cellular market? The GSM suppliers – both handset and equipment .

THE CDMA CHALLENGE CDMA players had launched their services with CDMA 2000 1X- based networks. which can give hi-speed. and other data services. which has not 16 . GSM operators. have had to migrate from the frustrating experience of WAP (wireless application protocol) to GPRS. Global mobile Suppliers Association (GSA) now believes that even though India will primarily remain a voice traffic-led market in next two-three years. an optimism that it’s trying to make GSM operators feel as well. the data traffic component will grow by 25-30 per cent. always-on connectivity to the Internet. on the other hand.based networks that launched general packet radio service (GPRS) service for data connectivity in last three years. has the vendors worried.

61 crore. sources said. Though no figures are available as to how many use these for data services. Idea 17 . the two CDMA operators have about 120 lakh connections. Alcatel and Lucent Technologies . but the data transfer speeds of GPRS have been abysmal. but the actual speeds have not exceeded 14-18 kbps. The field trials gave a speed of around 54 kbps. BPL Mobile and Idea Cellular had launched GPRS. The company was the first to conduct field trials in November with its equipment supplier Ericsson. All these sets are data compliant. Only Airtel. As against the total GSM cellular base of 5.000 lakh GPRS users only.significantly improved the subscriber’s experience of surfing the Net on/from mobile.met on Tuesday in the capital to persuade the operators to adopt EDGE (Enhanced Data rates for GSM Evolution) and leave GPRS behind as a dream gone sour. Ericsson. the country has between 2. Siemens. an organisation comprising Nokia. Vodafone. the EDGE! Bharti Cellular is close to commercially launching its EDGE service in Delhi and Mumbai by end May or early June. The top brass of GSA. Bharti is almost there But first. the figure is believed to be respectable as a percentage ratio for CDMA. a major reason why GPRS growth has been so slow. In comparison.80.

claimed chairman of GSA India chapter Rakesh Malik. promises the launch of many data applications. EDGE holds the promise of delivering data speeds of around 170- 180 kbps (as against the theoretical speed of around 380 kbps) which. GSA president Alan Hadden predicted that GSM growth will far outstrip CDMA as was happening globally. up from nine million in December 2004. there are over 1. but perhaps after seeing the response to Bharti’s service. The scalable cost of migrating from GPRS to EDGE is not too high and mainly comprises software upgrades in case of a modern network such as Bharti and Hutch. According to GSA. The revenue of top 25 global operators from data averages 18 per cent and 22 of these operators run GSM 18 . Will GSM maintain its headstart? At the GSM Evolution Forum held in New Delhi. Vodafone and BPL are yet to hold the trials. He felt India could have as many as 200 million GSM subscribers by 2007-2008. if achieved.too held EDGE field trials in February this year with its vendor Nokia. The two companies would eventually migrate to EDGE.1 billion GSM subscribers worldwide as against 250 million CDMA customers.

networks. the automatic roaming provided by GSM networks in almost 200 countries is a power that CDMA doesn’t give you. Already.” said Hadden. “Besides. The Forum is a global GSA program to assist the operators for evolution to third generation (3G) technologies. The first CDMA 2000 1X was commercially deployed in October 2000. But CDMA is no pushover with Korea and Philippines as the shining jewels in its crown. Even the migration to a full-fledged 3G level of Wideband CDMA (WCDMA) will be smooth with EDGE.” he added. We know for sure that almost 20-25 per cent of the revenue for some GSM operators comes from roaming customers. were migrating gradually to GSM. which operated on now-defunct TDMA technology. there are 76 operators in 50 countries that have committed to deploy EDGE. Almost every country has a GSM-based network and even those US operators. pointed out Hadden at the GSM Evolution Forum. 81 operators have launched 77 CDMA 2000 1X networks whereas nine have launched services based on 1xEV-DO 19 . not CDMA. Fifteen networks have commercially launched EDGE as it can run 3G like services in the existing spectrum for the operators without needing a 3G license. Overall. “People are using their phones for much more than voice.

16 new 1X and six 1xEV-DO networks are scheduled to be deployed in 2004. Where are the models? What will matter a lot in this war will be the availability of EDGE compliant handsets at affordable rates. WCDMA for 20 . the Americas and Europe. capable of delivering services comparable to 3G WCDMA. according to CDMA Development Group.platform across Asia. While the two CDMA operators have been giving out handsets that can give hi-speed data transfer. same has not been the case with GSM. End sum game When the networks deploy EDGE. full multimedia messaging. subscribers can expect the delivery of advanced mobile services such as easy downloading of video and music clips. But the real cruncher will be the migration at a later stage to 3G technologies such as WCDMA. besides high-speed Internet and e-mail access. At least. GPRS handsets have not become commonplace and GPRS feature is found only in mid and high-end segment handsets. EV-DO or EV-DA as and when the government decides what to do with the 3G licences. EV-DO and EV-DV are the next level of evolution on the CDMA 2000 1X platform. Even now. provided their handset supports all this.

but Indian market could well throw an interesting scenario that industry experts will do well to watch. GSM rules! 21 . WCDMA will spawn a whole new range of full motion audio-video applications. including video telephony.example promises delivery of a phenomenal 2 megabytes per second (mbps). Who succeeds in this battle for mobile customer’s eyeballs is most difficult to predict. but India will probably be more like the Chinese market with both standards co-existing. In the coming months. GSM lobby may continue to remain gung ho over the future of their technologies over that boosted by the American firms Qualcomm and Motorola. equivalent to what a leased line in many middle level corporates gives. For now. Reliance plans to offer its CDMA subscribers much more than what GSM players intend to deliver through their EDGE for their subscribers. A Korea and Japan may not be waiting to happen in India. More importantly.

6 million mobile and 5. 44. 1995 for promoting investments in telecommunications services. Bharti Airtel is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 50 million total customers. INTRODUCTION Airtel (Bharti Airtel Ltd.) Bharti Airtel Limited was incorporated on July 7. 2007.4 million fixed line customers. Its subsidiaries operate telecom services across India. Bharti Enterprises. Bharti provides a range of telecom services.a part of the biggest private integrated telecom conglomerate. which 22 . Airtel comes to us from Bharti Airtel Limited . as of March 31. which constitute.

with a footprint in 23 states covering all four metros and more than 50 million satisfied customers. 23 . No more rentals or deposits – simply recharge as much as you need to from as low as Rs.include Cellular. Airtel Prepaid makes everything that you dreamt and believed. also simple to use. Total Cost Control You can control your Airtel Prepaid like never before. Basic. Bharti is the leading cellular service provider. possible. Bharti has also put its footsteps into Insurance and Retail segment in collaboration with Multi. With a host of great features. it is also the first company to export its products to the USA.000/-. SERVICES Airtel Prepaid Airtel Prepaid. to as high as Rs. Bharti also manufactures and exports telephone terminals and cordless phones. Internet and recently introduced National Long Distance. 10.National giants. India's leading integrated telecom service provider. 10. Apart from being the largest manufacturer of telephone instruments in India. the Ready Cellular Card from Airtel comes to you from Bharti Enterprises. Going mobile with Airtel Prepaid is a new way of life.

Instant Balance and Validity Enquiry Your account balance is updated on the screen of your handset at the end of each chargeable call. from a variety of tailor– made recharge coupons with different 24 . No more paying deposits or having a minimum balance in your account to make an STD/ISD call.Pre activated STD/ISD without deposits or rentals You can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. press 'OK' or 'YES' button and your account balance will be displayed on the screen of your handset. Choose the Airtel Prepaid Recharge Coupon that’s right for you. Hassle-free calls are here to stay! Strong Network Coverage Enjoy complete clarity when calling with Airtel’s world-class technology and unbreakable network coverage that spans over 23 circles across the country. The calling value on your card keeps reducing as you make calls or use any other chargeable service. You can also call 123 from your mobile phone and listen to the voice announcement or simply dial *123#. Recharge your Airtel Prepaid Recharging is Easy.

check your email and access other GPRS services while roaming in India as you would in your own city. Voice Mail 25 . which are available at a number of outlets across your city. Prepaid Roaming Airtel Prepaid comes preactivated with 'National Roaming'. Other Services Airtel brings you. Simply follow the procedure mentioned below. While traveling abroad you can receive calls & send or receive SMS. Call management Services Call waiting. so you stay connected no matter wherever you are. Try them and discover a whole new world of fun and excitement. call hold. call divert and Caller Line Identification Presentation – all with your Airtel prepaid connection. You can also send or receive MMS.denominations. to recharge your phone. a wide range of Services that will change the way you communicate.

<SUB JOKE> for Jokes. or you’re too busy to answer the phone. health and films on your Airtel mobile phone with Subscription Services. Subscription Alerts Get regular alerts on news. The best part is that there's no extra monthly cost for setting up Voicemail . SMS (Short Messaging Service) Send messages quickly and easily using text. if it's too noisy to talk or you don't have much time.When your handset is switched off. Airtel Voicemail will answer your calls and record a message. jokes. SMS <SUB NEWS> to 3333 for News. business. important reminders and rib-tickling jokes. with anyone. Airtel Live! 26 . <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastu tips. images and video clippings. anywhere in the world. anytime.you just pay for the phone call when you use the service. with MMS from Airtel! To activate MMS on your phone. MMS (Multi-media Messaging Service): Jazz up your messages with pictures. It's the way to share those interesting one-liners. SMS 'MMS' to 56465 and save service settings. <SUB BIZ> for Business News.

g. say ring tones to download your favorite ring tones. For e. SMS 'Live' to 56465 and save the settings that you receive as your preferred connection. games. Airtel Live! Portal can be accessed from you GPRS enabled phone. Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword as an SMS to 56465! Choose Astrology / 27 . You can also choose a variety of content options like Live Cricket Commentary. right on your phone! Airtel Live! WAP Services: Download the latest ring tones. wallpapers. on your phone at the touch of a few buttons with Airtel Live! SIM based Services on your SIM card menu. To download new services on your Airtel SIM. choose the "What's new" option under the "Airtel services" menu. videos and much more. Movie Reviews or Stock Market Updates. watch live TV and download full songs on you phone. Airtel Live! Voice Services: Just Dial 56465. You can also get news clips. and name the service. stocks. Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket. by sending a SMS 'FUN' to 56465.Make your mobile the most happening entertainment destination with Airtel Live! Airtel brings you the latest in entertainment and information services. latest National / International News. To get Airtel Live! settings on your phone.

In case you need assistance SMS.Horoscope. Cricket. Help to 56465. 28 . Bollywood / Hollywood / Indi Pop Ring tones.

Once inside the copy feature.Hello Tunes Tired of that boring old ‘tring tring’ on your phone? Well now when a friend calls. Say it with a song instead! Gift a Hello Tune to that special someone. Copy a Hello Tune Get the tune you want. 29 . This would directly take you to your favorite artist's Hello Tunes listing. Follow the simple voice instructions and key in the 10-digit Airtel mobile number that you want to gift the Hello Tune to. just key in the 10-digit Airtel mobile number you want to copy the Hello Tune from and you get the same Hello Tune assigned to your number.g. e. all you have to do is call 55055 and follow the simple voice instructions to copy your favorite Hello Tunes. flowers and greeting cards. you can make them groove to the hottest new tracks burning up the music charts with Hello Tunes from Airtel! You get a wide choice of songs in the Popular & New Arrivals categories that are updated regularly. What's more you can directly call the number for your kind of music. Just call 55055 and choose the song that you want to gift. call 678005 for English New and 678001 for Hindi New. Gift a Hello Tune Forget gifting chocolates. You will get an SMS notification upon successful receipt of that gift.

emotions and feelings. *In case of email. dial '121' . even while roaming. More exciting. mention your mobile no. To give you the unlimited freedom to reach out to your special people in your special way.Buy Music . Bhajans to Jazz. just when you want to. not just through words but ideas. Hard Rock to Gujrati Garba. Reach us Anytime Anywhere In case you need assistance. Airtel Postpaid Airtel welcomes you to a vibrant world of unlimited opportunities. accessible from anywhere in the country. Choose from Bollywood Hits to Indipop Remixes. 30 .com.our toll-free number. like. You can also send us an SMS to 121 or mail us at 121@airtelindia.Airtel Music Shops Buying your favorite Hello Tune or Ring tone is as simple as recharging your phone with talk time. Simply walk into your nearest Airtel Shop and walk out with your favorite song. in the subject of the mail for a quicker response. innovative yet simple new ways to communicate. 9810012345. Bhangra Beats to foot tapping Tamil Hits from a list of more than 18000 songs.

You can also opt for easy payment options like: Standing Instructions You can give us standing instructions to debit your credit card account for your monthly Airtel bills.Easy Billing Enjoy a host of rich features only with Airtel e-bill. To change your tariff plan call our IVR at 121 and leave a request. fax it to us or drop it any of our relationship centres. Sort your calls between personal and official or analyze your usage. Anytime Anywhere You can choose from a host of convenient payment options only with Airtel. Register free on ‘My Airtel’ section and view your monthly bill with call details for last three months. Walk into any Airtel relationship centre and make your payments by cash or credit card. Drop a cheque at any of the drop boxes for making payments or simply log on to My Airtel section and pay instantly through your credit card. at the click of a button. All you have to do is fill the Standing Instruction Form and mail. 31 . Easy Payment Options.

You may also choose to pay us an additional refundable deposit to enhance your credit limit or opt for our convenient payment method of Credit Card Standing instruction .You can also make use of ECS facility. keeps track of your usage and ensures that your mobile phone is not misused. 32 . you will be informed via a voice or a non-voice message to make an interim payment and reduce your account balance below your credit limit.Electronic Clearing System Fill an ECS form and mail. Should you exceed your credit limit. Walk in to any Airtel Relationship Centre in the country. Credit limit Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges in control. make payments by cash or credit card and enjoy uninterrupted Airtel Services. fax it to us or drop it any of our relationship centres to directly debit your bank account for your monthly Airtel bill. Pay while roaming Airtel has introduced 'Anywhere payment' that offers you the convenience of making payments while you roam.

Say it.Roaming Use Airtel Postpaid's GPRS services. Try them and discover a whole new world of fun and excitement. In more than just words. to access the internet and office mails (eg.Strong Network Coverage Enjoy complete clarity when calling with Airtel . Widest Roaming . with Services from Airtel Airtel brings you a wide range of Services that will change the way you communicate.National and International Airtel's roaming service allows you to stay connected and use your mobile phone to make or receive calls from almost anywhere in India and also over 160 countries. GPRS . from almost anywhere in India and abroad. while roaming. BlackBerry services). Long Distance Calling Facility Call long distance calls in India and Overseas with STD / ISD facility on your Airtel phone. 33 .It offers you world class technology and unbreakable network coverage that spans over 23 circles across the country. abroad.

34 . To activate. The best part is that there's no extra monthly cost for setting up Voicemail .Call management Services Call waiting. call hold.you just pay for the phone call when you use the service. call divert and Caller Line Identification Presentation. call customer service at 121. To know more. In fact. help you do more with your Airtel Postpaid connection! Conference call You can hold a teleconference with 5 people simultaneously with Call Conferencing service from Airtel. you can set up a conference even when the other five are using a landline phone. Voice Mail When your handset is switched off. Missed call alert A missed call alert is a SMS that you will receive for all the calls that you missed. or you’re too busy to answer the phone. dial *135*2# then press the call button and wait for the request to be completed. Airtel Voicemail will answer your calls and record a message. The SMS will detail the CLI and the time when the call was made.

health and films on your Airtel mobile phone with Subscription Services. anytime.SMS (Short Messaging Service) Send messages quickly and easily. right on your phone! 35 . images and video clippings. <SUB JOKE> for Jokes. with anyone. important reminders and rib-tickling jokes. anywhere in the world. Subscription Alerts Get regular alerts on news. business. if it's too noisy to talk or you don't have much time. Airtel Live! Make your mobile the most happening entertainment destination with Airtel Live! Airtel brings you the latest in entertainment and information services. SMS 'MMS' to 56465 and save service settings. SMS <SUB NEWS> for News. jokes. with MMS from Airtel! To activate MMS on your phone. <SUB BIZ> for Business News. MMS (Multi-media Messaging Service): Jazz up your messages with pictures. It's the way to Share those interesting one-liners. <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastu tips to 3333. using text.

games. You can also choose a variety of content options like Live Cricket Commentary. In case you need assistance SMS ‘Help’ to 56465.Airtel Live! WAP Services: Download the latest ringtones. stocks. For e. Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket. You can also get news clips.g. To download new services on your Airtel SIM. Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword as an SMS to 56465 ! Choose Astrology / Horoscope. choose the "What's new" option under the "Airtel services" menu. Airtel Live! Voice Services: Just Dial 56465 and say the name of the service. on your phone at the touch of a few buttons with Airtel Live! SIM based Services on your SIM card menu. say ‘Ring tones’ to download your favourite ring tones. by sending a SMS 'FUN' to 56465. latest National / International News. wallpapers. Bollywood / Hollywood / Indi Pop Ring tones. Cricket. watch live TV and download full songs on you phone! To get Airtel Live! settings on your phone SMS 'Live' to 56465 and save the settings that you receive as your preferred connection. Airtel Live! Portal can be accessed from you GPRS enabled phone. Movie Reviews or Stock Market Updates. 36 . videos and much more.

GPRS (General Packet Radio Services)

Log on to the internet, with GPRS that allows data transmission

at a higher speed. Access e-mails and internet across Airtel's

pan-India presence using 'Mobile Office' with your phone or a

phone and laptop both.

Get the EDGE

Browse the internet on your mobile phone with Airtel's EDGE

services. Enjoy live TV, enhanced WAP experience and Airtel

Data Cards on our high speed network.

Hello Tunes

Tired of that boring old ‘tring tring’ on your phone? Well now

when a friend calls, you can make them groove to the hottest

new tracks burning up the music charts with Hello Tunes from

Airtel! You get a wide choice of songs in the Popular & New

Arrivals categories that are updated regularly. What's more, you

can directly call the number for your kind of music, e.g. call

678005 for ‘English New’ and 678001 for ‘Hindi New’. This would

directly take you to your favourite artist's Hello Tunes listing.

37

Copy a Hello Tunes

Like a tune you want, all you have to do is call 55055 and follow

the simple voice instructions to copy your favourite Hello Tunes.

Once inside the copy feature, just key in the 10-digit Airtel

mobile number you want to copy the Hello Tune from and you

get the same Hello Tune assigned to your number.

Gift a Hello Tunes

Forget gifting chocolates, flowers and greeting cards. Say it with

a song instead! Gift a Hello Tune to that special someone. Just

call 55055 and choose the song that you want to gift. Follow the

simple voice instructions and key in the 10-digit Airtel mobile

number that you want to gift the Hello Tune to. You will get an

SMS notification upon successful receipt of that gift.

Buy Music - Airtel Music Shops

Buying your favourite Hello Tune or Ringtone is as simple as

recharging your phone with talktime. Simply walk into your

nearest Airtel Shop and walk out with your favourite song.

Choose from Bollywood Hits to Indipop Remixes, Hard Rock to

Gujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tapping

Tamil Hits from a list of more than 18000 songs.

38

Reach us, Anytime Anywhere

In case you need assistance, dial '121' - our toll-free number,

accessible from anywhere in the country, even while roaming. *In

case of email, mention your mobile no. like 9810012345 in the

subject of the mail for a quicker response. TARIFF

STRUCTURE

Prepaid Tariffs

Airtel Prepaid Ready Cellular Card and Recharge Cards are

available, all over the city at over retail outlets including 24-hour

outlets. Airtel Prepaid Ready Cellular Card and Recharge Cards

are available, all over the city at over retail outlets including 24-

hour outlets.

39

Airtel Prepaid Regular

449
SUK
Pulse Rate 60 sec

Price of Pack (Rs.) Rs.449

Free Airtime on Pack (Rs.) Nil

Incoming Calls (Rs.) Free while in home network

Airtel GSM / CDMA Landline / WLL
(10 Digit)

LOCAL RATES (Rs./min) Rs.1.20 Rs.2.00 Rs.2.40

STD RATES (Rs./min) Rs.2.75 Rs.2.75 Rs.2.75

ISD (Rs./min)

USA, Canada, Europe (Fixed Rs.6.40
Line), Australia, Singapore,
Hong Kong, Thailand, Malaysia,
Indonesia, New Zealand.

Gulf, Europe (Mobile), SAARC Rs.9.20
countries, Africa & Rest of the
world

Cuba, Sao Tome & Principe, Rs.40.00
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands,
Vanuatu, Cook Islands, Tuvalu,
Tokelau, Norfolk Island,
Sakhalin

SMS (Rs.)

Local Rs.1.20

National Rs.2.00

International Rs.5.00

Other Details

*Rs 50 Local Airtel-Airtel Mobile talktime per month for 6 months
* First month Airtel-Airtel credit within 72hrs of activation & balance credit by 1st week of eve
month)
*The SMS charge as applicable is per 160 characters
* Validity- 24 months.

40

Indonesia. Europe (Fixed Line). Nauru. 250 Membership Fee Rs. Hong Kong. Canda. 41 . new Zealand Gulf. Malaysia. Solomon Islands. Rs. convenient payment options and host of rich features.POSTPAID Airtel Postpaid allows you to choose from a variety of affordable talk plans. Diego Garcia. 40. Africa & Rest of the world Cuba. Europe (Mobile).20 Austalia. 250 Security Deposit NA MONTHLY CHARGES (FIXED) Rs.99 Rs 1.99 Rs 1. 524 Bill plan Charge Rs.00 Guinea Bissau.99 Countries. So get set to enjoy a world of limitless possibilities! Reference Tarif Packages (RTP) ON TIME CHARGES Activation Charges Rs. 7. Sao tome & Principle. 1. 444 Monthly Rental Rs. Thailand. Rs.99 STD RATES 50 – 200 Km 200 – 500 Km 500 + Km ISD USA. 99 Airtel GSM / Landline / CDMA (10 WLL Digit) Local Rates Rs. Vanuatu. Singapore. SAARC Rs 9. 150 Clip NA MONTHLY CHARGES (OPTIONAL) Clip Rs.

00  This Bill Plan is also available under Advance Rental of Rs.00 Airtel One Standard 150 ONE TIME CHARGES Activation Charges Rs 250 Membership Fee Rs 250 (Converts into security after 24 months) Security Deposit NA MONTHLY CHARGES (FIXED) Rs. 3. 2. 5.00 VAS Rs. Tuvalu. Solomon Islands. Diego Garcia.00 National Rs.) Rs. 3.00 National Rs 2. Norfolk Island. Cook Islands.00 International Rs. Nauru. Sakhalin SMS Local Rs. Local Pack Airtel to other local mobiles (non Airtel) At Rs 1 / min  Monthly rental Rs 25 per months/-  STD Pack 42 . 50 Bissau. 5. Norfolk Island. Sakhalin SMS Local Rs 1. 1.Cook Island. Vanuatu. Tokelau.00 Intentional Rs. 799 for 2 years. Tokelau. 150 Clip NA MONTHLY CHARGES (OPTIONAL) Clip Rs. 150 Bill Plan Charge Rs. Tuvalu. 50 Monthly Rental Rs.00 Value Added Services (Rs.

you can buy a new Airtel Mobile connection under Airtel One Standard 150 Plan.  Monthly rental Rs 75 per month/-  Special offer for Airtel Telephone service customers for availing Airtel Mobile services If you already have Airtel Telephone service. call us 516-12345 Advance Rental benefits (1year scheme) Pay an advance rent of Rs 499 and enjoy Airtel One Standard 150 plan at Zero monthly rental for one year. All other options and charges are as per the existing Airtel One Standard 150 Plan. Benefits:  Non security deposit.Airtel to other mobiles (non Airtel) & fixed lines nos. Advance rental of Rs 499 gives you a rental discount of Rs 150 every month for the next 2 months. at Rs 2 / min. 43 .  No membership / activation fee  Enjoy calls to your Airtel fixed line no. at just 50 P / min. For details.  Monthly rent of Rs 25 for reduced call rates to your Airtel fixed line has been waived off for 1 year.

new Zealand Gulf. 2. Europe (Fixed Line).40 ISD USA. Diego Garcia. 2.00 Rs. Vanuatu. Solomon Islands. 2.20 Austalia. Thailand. 2. Sao tome & Principle. 2.40 500 + Km Rs. 1.40 Rs. 50 Airtel GSM / Landline / CDMA (10 WLL Digit) LOCAL RATES Re.40 200 – 500 Km Rs. Africa & Rest of the world Cuba. 2.99 Countries. Rs. Rs.00 44 . Singapore.00 Rs.00 National Rs. Canda. Tokelau. Malaysia. Cook Island. Tuvalu.00 Guinea Bissau. 2. 299 Clip NA MONTHLY CHARGES (OPTIONAL) Clip Rs.40 Rs. 2. Nauru. 7.Airtel one Standard 299 ONE TIME CHARGES Activation Charges Rs 250 Membership Fee Rs 250 (Converts into security after 24 months) Security Deposit NA MONTHLY CHARGES (FIXED) Rs 299 Bill Plan Charge Rs. Norfolk Island. 1. 2. Sakhalin SMS Local Rs. 40.00 Rs.00 Rs. Indonesia. SAARC Rs 9. Europe (Mobile).00 STD RATES 50-200Km Rs. Hong Kong. 2. 150 Monthly Rental Rs.40 Rs. 1. 1.00 Rs.

00 You also enjoy 25 FREE local mobile to mobile SMS 45 .International Rs. 3. 5.00 Value Added Services (Rs.) Rs.

51 Monthly Rental Rs.50 National Rs. Nauru. Tokelau. 3. 2. 250 (Concerts into security deposit after 24 months) Security Deposit NA MONTHLY CHARGES (FIXED) Rs. Sakhalin SMS Local Rs.00 With Senior Citizen Plan 46 . 5. Vanuatu. 150 Bill Plan Charge Rs.00 VAS Rs. 99 Clip NA Cuba. 250 Membership Fee Rs. Cook Islands. Tuvalu. Norfolk Island. Solomon Islands. 1. Diego Garcia.Senior Citizen Plan ONE TIME CHARGES Activation Charges Rs. Sao Tome & Principle. Guinea Bissau.00 International Rs.

9.) – Rs 1.) – Rs.99 / min You also get FREE alert subscription worth Rs 30 / alert or 3 months on:  News  Astrology  Health Tips The SMS charges as applicable is per 160 Characters.You can take 3 Friends and Family numbers:  Airtel to Airtel (1local no.5 / min.  Airtel to Airtel (1 STD no.5 / min  ISD calls to US / Canada / South East Asia / Australia / New Zealand) – Rs. 0. 47 .

Aimed at re- engineering its image as just simply a cellular service provider to an all out information communications services provider. followed by "The Good Life". Chief Operating Officer.the first of which will communicate overall brand philosophy and the second products and services. etc but which engulfs the whole gamut of wireless digital broadband services that will constitute tomorrows cellular services. Karnataka "We are adopting a new brand- 48 . which underscores the leading theme for the new brand vision. Touch Tomorrow is meant to embrace the new generation of mobile communication services and the changing scope of customer needs and aspirations that come along with it The new communication is about a new dimension in the cellular category that goes beyond the Internet. Bharti Mobile Limited. Jagdish Kini. According to Mr. IVRS. The new brand ethos is portrayed in two distinct fashions . more customer centric organization. roaming.PROMOTIONAL STRATEGY Airtel to “Touch Tomorrow” with a new brand vision The Bharti Mobile promoted AirTel cellular service will go in for repositioning of its brand image. which underscores a more caring.the tag line "Touch Tomorrow". SMS. The new campaign is in two phases .

LIFE TIME PLAN PRE-PAID card users need not worry anymore about recharging their coupons every month. Subscribers availing themselves of this scheme will also get full talk time for the recharge coupon they purchase and also have the option to buy Taiwanese manufactured Bird mobile handsets for as low as Rs. 999. Company has launched a plan that allows users to take a pre-paid connection with lifetime validity for a one time payment of Rs. The move is aimed at stopping the churn in the pre-paid subscriber base.not only to reflect our corporate ethos but also business strategy".platform . The new identity will have the logo in Red. 49 . he will always be an Airtel subscriber whether the mobile is being used or not. 1.Touch Tomorrow . Once a subscriber takes this plan. AirTel will incorporate the latest branding in all of its communication and will soon be going in for an enhanced promotional drive to establish the brand's presence. Black and White colours along with lower case typography to convey warmth.399.

At this point of time. The average capacity installed was for 1. MARKET SITUATION At the time of launch The first mover in the market was Airtel which launched its services in Delhi in Aug 1995 (Informal launch). this led to a number of schemes being offered and prices crashing. the market was at a nascent stage. In the first two years. awareness level was low and both operators independently tried to spread awareness and educate the people Once the networks were commercially launched. 50 . Essar Cellphone followed by launching its services informally in Oct 95. it became a number game with a multitude of schemes being offered to woo customers Initially the cellphone was perceived as a status symbol and utility took a back seat The target segment in Delhi were corporate and the high income group.5 lakh subscribers. This coupled with the steep license fee paid to DOT put pressure on the operators to break-even by rapidly expanding their markets.

However. is perceived as the lower end service provider. Major Accounts (Direct Channel) • Handles corporate (named and famed) accounts • Forecasting of sales • Mapping the accounts • Providing after sales support to the subscribers. on the other hand. they have restrained from using comparative advertising Hoardings have been a very popular medium for carrying the advertisements Airtel has also been advertising on television using the Bharti Telecom name. Essar is trying to counter this by emphasising on the reach of its network and the quality of its service. 51 .COMPETITIVE SITUATION Airtel launched its services before Essar and skimmed the market picking up the bulk of the high usage premium clients. Airtel positions itself as the market leader on the basis of the number of subscribers. Essar is somewhat not been very successful largely due to the inconsistency in advertising To promote themselves. both the players have been dependent on tactical advertising However. SALES DEPARTMENT AND STRATEGY A. This is a very competitive industry with the two companies differentiating either on value-added services or price. Airtel is perceived as the high quality provider and has a premium image. Essar.

• Provide cellular phones on rent • Useful for people visiting Delhi for a short interval. • Maintaining call reports for records. Rental • Provide cellular services (SIM cards) on rent. Distribution Support 1. Logistics • Monitor handset and SIM card requirements of channel partners and co-ordinate with stores • Settle areas of concerns such as incentive claims of channel partners 2. B. 3 Telesales • Call customers and generate sales lead. • Target achievement • Training the executives of the channel C. • Providing Feedback to the marketing department regarding the requirement of the market. • Follow up with the customers. IDC (indirect Channel) • Handling distribution • Maintaining records and level check of the channel partner • Liaisoning between the channel partner and the company. if they need any assistance 52 .

Retail • Locate shops to open retail counters. • Monitor the retail counters. - Pager X X X X . • Monitor the operations at the AirTel distribution outlets Organize training. MARKET SEGMENTATION Segmentation is beneficial because of better predictability of the target consumer group. minimization of risk exposure. pagers and conventional phones is as follows Premium Middle Economy Upper Lower Upper Lower Upper Lower Cellular Phones X X X . - Conventional X X X X X - Phones 53 . 4 Audit • Consultant to the AirTel showrooms. . 5. • Pass on the sales lead to the channel department. In evaluating different market segments the company looks at two factors The overall attractiveness of the segments and the company's objectives & resources The present market for Cellular phones. better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income.

a lifestyle revolution and a status symbol The emphasis is to remove misconception that the cellphone is an expensive means 54 . because getting them to switch brand loyalty later would be hard So far Airtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has beer) built up and prices have declined to a certain extent they are planning to venture further a field. During the introduction stage there was intense pressure to get consumers across to hook up with their brand. The rationale behind it is that only those segments should be targeted who value time and have the paying capacity.X Market Segment Targeted TARGET MARKET SEGMENT Airtel has targeted the premium and upper middle class. POSITIONING The product is sought to be positioned as a business efficiency tool. It Is also planning to target the business tourists during their stay in the capital About 60% of the clientele are top executives of corporate houses. About 15% are foreign organisations and the rest are professionals and small businessmen.

because in the field of Communication & Information Technology changes occur at a tremendous pace. Without a product or a service customers' needs cannot be satisfied. It has recognised the significance of making the first move-. 55 . Airtel seeks to carry out this segmentation through provision of new information services and making new facilities available.of communication and drive home the point that the cellphone is actually a day-to-day utility PRODUCT POLICY AND PLANNING The product or service is the heart of the marketing mix. At present the cellular phone market has reached the maturity stage. Airtel's main marketing strategy is to be a first mover all the time. In order to do so Airtel is trying to optimise the price performance package by offering suitable "product bundling". Effective product segmentation has to be carried on continuously because basic services can be and will be copied and in time become expected component of the product. The basic product promise by Airtel is mobility. Since. The product policy and planning depends on the stage of the product life cycle. the premium segment is nearing saturation the company targeting the upper middle and middle-middle class.

It has also opened a 24 hours customer service. Voice Mail service This system is similar to the answering machine . value added services become the effective differentiator. It gives an option of sending and receiving text messages directly from one mobile phone to another without the intervention of an operator. iii) Mobile Fax 1 Data Service 56 . The "Value Added Services" provided from Airtel are:- 1).) with reasonable price in order to deliver maximum price performance to its customers. In addition.This involves the selection of the suitable hardware (handset) and its software (its services. Only price doesn't serve as an effective differentiator. it offers free Airtime services and other concessions to make the prices and thus the product more attractive.if the user is not able to answer a call for some reason the caller can leave messages in the voice mail box which can be later retrieved by the user ii) Short Message Service The short message service is like a two-way pager.

vi) Outgoing call restriction To prevent or limit outgoing calls.Call conferencing. download computer files from other systems and remotely log on to another computer and surf the Internet. viii) Call forward Incoming calls can be forwarded to another fixed or mobile phone. to permit only local calls. 57 . for example. Call Broadcast et cetera. or to limit the outgoing calls to a listed number. in peak hours. All it requires is the payment of an initial amount. or any geographical region.This service helps the subscriber to send and receive Faxes. v) Caller ID Displays calling person's number. iv) Cash Card The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time in advance. Also possible to exclude one or several countries. access E-mail. Besides these some other services provided by Airtel are . This is a useful service for people who travel to Delhi often and those who want to control the expenses on their calls.

a) They take personal responsibility to "get" the answer for any problem faced by the customer 58 .It is in the operators -Interest that they not only get many subscribers but also get them to use the mobile facility frequently. AIRTEL'S MARKETING ORIENTATION. the service provider has to fully take care of the customers. The billing is done in the home network (Delhi). simply insert the SIM card of the local operator Into your handset and start talking. Once a subscriber is In any other city or country. Roaming facility is available manually* as well as semi-automatically. where a GSM network is available. * Manual Roaming means a separate SIM card is provided for each city ** Semi automatic roaming means one card has the facility for different cities. In the early stages getting increases to subscribe may be easier than getting them to talk since they will find it costlier to use the mobile phone as compared to a conventional phone [if is believed that initially cellphones would be used buy] viii) Roaming Facility Roaming facility is available while the subscriber is travelling. Since this is a high-involvement expensive product.

d) They have a positive tone & manner while interacting with customers. This is due to the reason that the operating companies are required to pay a fee to the government for using airtime. Therefore it care of the has come up with various innovative tariff schemes to take needs of different category of customers- Generally. PRICE AND PRICING POLICY AIRTEL has realised that the Indian market is price sensitive. e) They end the interaction on a positive or a humorous note- making the last 30 seconds count. Airtel realises that attracting people 'Is easy but converting them into loyal customers is hard. hence emphasis is on maintaining a 'Smiling and a Friendly Atmosphere' to please and retain the customer. 59 .b) They anticipate customers' problems and take pro-active steps to prevent them c) They give answers to the questions & requests. the cellular services are more expensive than the land line based telephone services. quickly & efficiently.

Airtel. price doesn't qualify as an effective differentiator. Given the Cell phone category. MARKETING STRATEGY ADOPTED BY BHARTI Bharti has spent a considerable amount on advertising its mobile phone service.' bearing just the company's name and without explaining what Airtel was. Since the cellular phone category itself is too restricted. It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. it is the network efficiency and the quality of service that becomes important. the company had put up large no of hoardings and kiosks in and around Delhi. Besides print advertising. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the city. What now the buyer is looking at is to get the optimum price-performance package. The objective behind designing a promotion campaign for the ‘Airtel’ services is to promote the brand awareness and to build brand preferences. This also serves as an effective differentiator Brand awareness is spread through the' campaigns and brand preference through brand stature. In the next phase the campaign associated Airtel with Cellular only thereafter was the Bharti Cellular connection 60 . The image of the service provider counts a great deal. also the fact that a Cellular phone is a high involvement product.

). 4 crores. The tone.000 direct callers were sent out.brought up. handing out brochures about the company and its services to all consumers. Every company has a goal. Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. tenor and the stance of the visual ads are designed to convey the image of a market leader in terms of its market share. Vans with Airtel logos roamed the city. Airtel 's campaign strategy is designed keeping in mind its marketing strategy. 61 . This implies that if potential or knowledgeable consumers are asked to name a Cellular phone service provider that is on the top of his/her mind 60% of them would name Airtel. About 50. As for aided it -is 100% (by giving clues and hints etc. In the first four months alone Airtei's advertisement spend exceeded Rs. the Airtel campaign began to focus on the utility of Cellphone. It tries to portray the image of being a "first mover every time" and that of a "market leader". which might comprise a sales target and a game plan with due regard to Its competitor. The figures show that Airtel is a healthy and a thriving brand. When the name was well entrenched in the Delhiites’s mind. As of today the awareness level Is 60% unaided.

It is still on the rising part of the product life cycle curve in the maturity stage. But. values its heavy users the most and constantly indulges in service innovation. 62 . The diagram on the left hand side shows the percentage of the users classified into heavy. keeping in mind the importance of the customer retention. The population which has just realised the importance of cellular phones has to be roped in. since heavy users comprise only 15 - 20% of the population the other segment cannot be neglected.The status of the product in terms of its life cycle has just reached the maturity stage in India. Concerts like the "Freedom concert" are being organised by Airtel in order to promote sales. The media channel is chosen with economy in mind. The right hand side shows the revenue share earned from the three types of users. The product promise (which might cost different 1 higher) is an important variable in determining the target audience. there is an attempt to focus on those who can afford. medium and low categories. The print advertisements and hoarding are placed in those strategic areas which most likely to catch the attention of those who need a cellular phone. The target segment is not very concrete but. It is for this reason that the service provider offers a plethora of incentives and discounts. Airtel.

Besides this. 63 . image campaigns. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent flier's programs. launch advertisements. (ii) There have been educational campaigns. other promotional strategies that Airtel has adopted are . (i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. pre launch advertisements. congratulatory advertisements. attacking advertisements and tactical advertisements. promotional advertise-ments.

Each franchises or distributor can have any number of dealers under him as long as the person is approved by the Airtel authority. But unfortunately Airtel has not been very successful in controlling territorial overlaps of dealers. For this the. company contributes 64 . to obtain a franchise and should employ an officer recruited by Airtel. DISTRIBUTION Company Franchisee Distributor Dealers Dealer Customer Customer The. This person acts as an liaison between the company and the franchises. The franchises can carry out his 1 her own promotional strategy.company whose operations are concentrated in and around Delhi. The franchises can it any number of dealers as long as their territories do not overlap. Each franchises has to invest Rupees Ten Lakhs.They also have 8 'instant access cash card counters. It 27 Franchisees and 15 Distributors.

The dealer of Airtel are not allowed to provide any other operators' service. 65 . The staff of the dealers and the franchisees are provided training by the Airtel personnel. Hence the dealers can also go for their own promotions like banners and discounts on festivals etc.75% of the money and the franchises contributes 25% of the money. The dealers under the franchisee receive the same commission. The consumer on providing the bill of purchase for the handset and proof of residence has only to wait an hour before getting connected. The dealer has to invest Rupees. Target set for distributors and the dealers is 100 -150 activations per month. Anything more complicated is referred to the main Airtel office in Delhi. The franchises and the dealer obtain the feedback from the customers and they are sent through the liaison officer on a day-to-day basis to Airtel. The dealer provides service promptly. The complaints encountered by the franchisees and dealers are either handset being non-functional or the SIM Card not getting activated. One Lakh as an initial investment.

Indians are at the beginning of the maturity stage. His card activates Airtel cellular services and contains a complete micro-computer chip with memory to enable one to enjoy one's cellular phone thoroughly. the subscriber wouldn't just get a personal phone that lets him/her be in touch.that is the key to operating his/her cellular phone. 66 .WHAT DOES AIRTEL OFFER? With Airtel. Just plug your SIM card into your cellular phone. but also gets a host of benefits that let him/her manage his/her time like never before. An Airtel subscriber is provided with a Subscriber Identity Module Card (SIM card) . PRODUCT LIFE CYCLE The pattern of cellphone subscriber growth observed elsewhere in the world reveals that the growth in the market is Initially slow followed by a sharp acceleration. but so far that has not happened in India. Each SIM card contains a PIN code (Personal Identity Number) which may be entered by one. always. enter the PIN code and it becomes 'your' personal phone'. As far as the Product Life Cycle is concerned.

Sales Use heavy sales Increase to Increase to 67 . Introduction Growth Maturity MARKETING OBJECTIVES Create product Maximise market Maximise profits awareness and trial share whole defending market share Strategies Product Offer a basic Offer value Increase in product/ added services number of service. Advertising Build product Build Stress brand awareness awareness and differences and among early interest in the benefits. Price to Price to match plus penetrate or best market competitors Distribution Build selective Build Intensive Build more distribution distribution. intensive distribution. adopters and mass market dealers. Price Charge cost. value added services.

Promotion promotion to build and encourage entice people maintain brand- to subscribe. 68 . with customers. relationships switching.

69 . OBJECTIVES OF THE STUDY Objectives: To study the importance and development of tele – communication industry in today’s scenario. To make a comparative study of the major players in Indian Service Provider. To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry.

A good amount of data has been collected from various published articles and reports found in magazines and journals. The conclusions have been drawn by exploratory research work. There have been two sources of information collected: a) Primary Sources I have met retailers of the Airtel of the company and have been able to get first hand information regarding the product. RESEARCH METHODOLOGY The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. its features and the buying patterns of the product. b) Secondary Sources Secondary source has played a vital role to play in this report. Their input has been valuable. 70 . Another vital source has been the Internet and particularly the companies own website.

71 . LIMITATIONS Every attempt will be taken to obtain the error free and meaningful result but as nothing in this world is 100% perfect I believe that there will still the chance for error on account of following limitations- (1) Respondent’s unavailability. (3) Courtesy bias. (2) Time pressure and fatigue on the part of respondents and interviewer.

whereas some 4 (20%) of them do not agree to this view. No 1 1 1 1 Yes 4 4 4 4 0 2 4 6 8 10 12 14 16 18 AirTel Vodafone Idea MTNL 72 . FINDINGS 1. Do you believe that India is potentially one of the most exciting mobile service providers in the world? Company Yes No Airtel 4 1 Vodafone 4 1 Idea 4 1 MTNL 4 1 As according to the above table 16 (80%) out of the total 20 interviewed people in all the above four specified Indian mobile service providers are of belief that India is potentially one of the most exciting mobile service providers in the world.

Do you find that the government’s telecom policy has had the most radical impact on the development of mobile service providers? Company Yes No Airtel 4 1 Vodafone 3 2 Idea 3 2 MTNL 5 -- As according to the above table 15 (75%) out of the total 20 interviewed people in all the above four specified Indian mobile service providers find that the government’s telecom policy has had the most radical impact on the development of mobile service providers.5 0 Yes No 73 . 5 4.5 AirTel 3 Vodafone 2.5 1 0.5 Idea 2 MTNL 1.2.5 4 3. whereas some 5 (25%) of them deny this.

3.5 2 AirTel Vodafone 1.5 0 Yes No 74 . 3 2.5 Idea MTNL 1 0. whereas interestingly another 10 (50%) of them deny this. Do you believe that one of the challenges facing mobile operators in India is the diversity of the coverage regions? Company Yes No Airtel 2 3 Vodafone 3 2 Idea 3 2 MTNL 2 3 As according to the above table 10 (50%) out of the total 20 interviewed people in the mobile service providers are of belief that one of the challenges facing mobile operations in India is the diversify of the coverage regions.

5 AirTel 2 Vodafone 1.5 0 To some extent To great extent 75 . whereas the another 10 (50%) respondents find to great extent that mobile service providers is a very complex standard. does you find that mobile service providers is a very complex standard? Company To some extent To great extent (1-5) (6-10) Airtel 3 2 Vodafone 2 3 Idea 2 3 MTNL 3 2 As according to the above table 10 (50%) out of the total 20 interviewed people in all the above four major the mobile service providers in Indian Cellular industry find only to some extent that GSM is a very complex standard. 3 2.5 Idea 1 MTNL 0.4. To what extent.

whereas 10 (25%) of them are in no way to this belief. CONSUMER LEVEL 1. 3 2 No 2 2 MTNL Idea Vodafone 2 AirTel 3 Yes 3 3 76 . Do you believe that mobile service providers comes close to fulfilling the requirements for a personal communication system? Company Yes No Airtel 9 1 Vodafone 8 2 Idea 8 2 MTNL 5 5 As the above shows 30 (75%) out of total 40 respondents are of the belief that mobile service providers comes close to fulfilling the requirements for a personal communication system.

2. No 1 3 2 2 Yes 9 7 8 8 0 5 10 15 20 25 30 35 AirTel Vodafone Idea MTNL 77 . whereas the remaining 8 (10%) respondents deny this. Do you find that mobile service providers as the most exciting and satisfying mobile standard? Company Yes No Airtel 9 1 Vodafone 7 3 Idea 8 2 MTNL 8 2 As the above shows 32 (80%) out of total 40 respondents find that mobile service providers as the most exciting and satisfying mobile standard.

Do you believe that your service provider has a genuine commitment to creating a modern and efficient communications? Company Yes No Airtel 10 -- Vodafone 8 2 Idea 10 -- MTNL 8 2 As the above shows 36 (90%) out of total 40 respondents are of the belief that their service providers have a genuine commitment to creating a modern and efficient communications whereas the remaining 4 (10%) respondents deny this.3. 2 0 No 2 0 MTNL Idea Vodafone 8 AirTel 10 Yes 8 10 SWOT ANALYSIS 78 .

STRENGTHS • Cost advantage • Current leaders in quality service • Largest distribution network • Ability to constantly innovate • Highly skilled workforce • Entrepreneurial zeal • Airtel’s increased equity and market cap. WEAKNESSES • To prove credibility • Price pressures • Need for Government support • Awareness • Sales and Marketing 79 .

THREATS • Foreign investment • Global trends moving from GPS to WLL. • Low penetration level in rural markets.OPPORTUNITIES • To sustain passion and commitment • Airtel’s market share increasing at other service provider expense. • Lack of global parity in telecom tariff • Other competition 80 . Thus opportunity to wipe it out. • Attain higher value services • Collaborative business needs to be explored • Vertical repeatable solutions.

Also the company is now providing more services like the door to door services which is you dial the Airtel customer care and would like to send someone flowers the Airtel company delivers those flowers to the person concerned. these statistics imply a bright future for the company. 81 . Also good no. Call conferencing is also another feature Airtel provides. of users who were willing to switch from their respective subscribers showed interest in Airtel. CONCLUSION From above the details I conclude that 70% Airtel users preferred to remain with Airtel. Hence. Also Airtel is providing free text messaging service and free voice mail service.

April 1993. • Seshadri Mohan and Ravi Jain.V Macario. IEEE Communications Magazine. June 2005. 1993. Mallinder. 1993. 1(1). IEEE Personal Communications. McGrawHill New York. 1994. Cellular Radio Systems. Telecommunication Transmission Systems. Specification Methodology Applied to the GSM System. Overview of the GSM System and Protocol Architecture. • Moe Rahnema. Winch. editors.C. In EUROCON 88. T. In D.M. Watson. Boston. Balston and R. BIBLIOGRAPHY • Bernard J. Radio Equipment for GSM. • Robert G. • C. • Vodafone • Airtel • Idea • MTNL 82 . Two User Location Strategies for Personal Communication Services. Artech House.

Do you find that the government’s telecom policy has had the most radical impact on the development of mobile service providers? Company Yes No Airtel Vodafone Idea MTNL 3. Do you believe that India is potentially one of the most exciting mobile service providers in the world? Company Yes No Airtel Vodafone Idea MTNL 2. Do you believe that one of the challenges facing mobile operators in India is the diversity of the coverage regions? Company Yes No Airtel Vodafone 83 . QUESTIONNAIRE NAME: ____________________________________ ADDRESS: ____________________________________ OCCUPATION: ____________________________________ 1.

Idea MTNL 4. To what extent. does you find that mobile service providers is a very complex standard? Company To some extent To great extent (1-5) (6-10) Airtel Vodafone Idea MTNL 84 .

Do you believe that your service provider has a genuine commitment to creating a modern and efficient communications? Company Yes No Airtel Vodafone Idea MTNL 85 . Do you find that mobile service providers as the most exciting and satisfying mobile standard? Company Yes No Airtel Vodafone Idea MTNL 3. Do you believe that mobile service providers comes close to fulfilling the requirements for a personal communication system? Company Yes No Airtel Vodafone Idea MTNL 2. CONSUMER LEVEL 1.