CONTENTS

1. Introduction 8

2. Industry Profile 12

3. Company Profile 15

4. Need for the Study 20

5. Offers from Airtel 22

6. Research Methodology 24

7. Concepts 28

8. Data Analysis 33

9. Findings 44

10. Annexure

 Questionnaire

 Bibliography

INTRODUCTION

MARKETING
1
Goods and services do not move automatically from producers to the users. There is
a definite mechanism that brings about exchange of goods and services against
money. Marketing is the belt that connects two major wheels of any economy
namely producers and consumers. It is the creation of utilities as goods and services
get value addition by the time they reach the consumers.

“Marketing is the social process which

Individuals and organizations obtain what

they need and want through creating and

exchanging value with others.”

---- Kotler and Amstrong

SERVICE

Services are activities or benefits that one party can offer to another that are
essentially Intangible and do not result in the ownership of anything.

SERVICE MARKETING

It is a specialized branch of marketing. Services marketing emerged as a separate

field of study in the early,1980’s,characteristics of services required different
strategies compared with the marketing of physical products .

Services marketing typically refers to both Business to Consumer [B2C] ,and

Business to Business [B2B] services such as telecommunication services, financial
services, all type of Hospitality, tourism and entertainment services ,car rental
services, healthcare services,professional services and trade services.

IMPORTANCE:

2
Given the intangibility of services marketing team becomes a particularly
challenging and yetextremely important task. Due to increasing homogeneity in
product offering, the attendantservices provided are emerging as a key differentiator
in the mind of the consumers.

IMPORTANCE OF RELATIONSHIPS

Relationships are a key factor when it comes to the marketing of services .Since, the
products areIntangible, a large part of the customers buying decisions depends on
the degree to which heTrusts the seller. Hence, the need to listen to the needs of the
customer and fulfill them through.The appropriate service offering and build a long
lasting relationship which would lead to repeatSales and positive word of mouth.

SCOPE OF SERVICE MARKETING

1. Services are intangible: Service, it is a deed performance and an effort .There is

nothing Tangible to show for it where a service is sold. One can say that services are
consumed but not Possessed.

Example: Banking, Baby sitting etc

2. Services are heterogeneous: The services are non-standardized and uniform in

very clear terms. All the services cannot give the identical service in terms of quality
satisfaction or benefits.

Example: Teachers, Lawyers, Bankers etc

3. Services are inseparable: With customer participation in the process, services are
typically Produced and consumed at a time.

3
Example: A surgeon is able to operate upon a patient, who is a ready patient.

4. Services are perishable: The utility of majority of services is short-lived .As a

result ,they cannot be produced a head of time and stocked for the periods of peak
loads of demand.

Example: Credit not utilized.

5. Services are susceptible to change in demand: The market for services has
wider fluctuations. These fluctuations in demand might be seasonal, monthly,
weekly, daily or hourly.

Example: Tourism has seasonal demand.

6. Services are subject to special pricing tactics: The distinct characteristics of

perishability, Fluctuations in demand and in separability in services involve
significant implications in pricing. Prices of other services are determined on the
basis of demand and competition .Variable pricing policy is also restored to in
services.

TELECOMMUNICATION INDUSTRY

4
The Indian tele communication industry is one of the fastest growing
in the world. The industry has witnessed consistent growth during th e last
year on the back of rollout of newer circles by operators, successful auction
of third-generation (3G) and broadband wireless access (BWA) spectrum,
network rollout in semi-rural areas and increased focus on the value added
services (VAS) market.

2.1TELECOM REGULATORY AUTHORITY OF INDIA

The TRAI was set up in Mar ’97, to arbitrate between Department Of

Telecommunication and Private Operation with respect to licensing issues
technical compatibility and traffic settings. However, since the role of TRAI under
the TRAI Act was unclear, protract acted litigating ensued. IN an effort to remove
ambiguities and put an end to controversy surrounding the regulatory authority,
in Jan’ 00, the government promulgated the TRAI in Jan’00, to reconstitutes the
power of TRAI.

The role of TRAI has been redefined and it has been bifurcated into two
bodies’ one acting as a regulatory and the other acting as an adjudicator, in the
formal of tribunal. The new TRAI sets and tariffs and fixes terms and
condition under which operators can interconnect with other and the
government is required to seek recommendation from the authority before
issuing the license. The judicial power has been vested with the Telecom Dispute
Settlement and Arbitration Tribunal (TDSAT).

According to the data released by Telecom Regulatory Authority of India

(TRAI), the number of telephone subscribers in the country reached 806.13
million at the end of January 2011 from 787.28 million in December 2010,
thereby registering a growth rate of 2.39 per cent. With this the overall tele-
5
density (telephones per 100 people) has touched 67.67. The wireless subscriber
base has increased to

771.18 million at the end of January 2011 from 752.19 million in December
2010, registering a growth of 2.52 per cent. Meanwhile, Indian Global System
of Mobile Communication (GSM) telecom operators added 14.69 million new
subscribers in February 2011, taking the all-India GSM cellular subscriber base to
555.06 million, according to the Cellular Operators Association of India (COAI).
The GSM subscriber base stood at 540.37 million at the end of January 2011.

The sector will witness up to US$ 55.95 billion investments and the market will
cross the US$ 100 billion mark in 5 years, according to consultancy firm Boston
Consulting Group (BCG). BCG India's Partner and Director, Arvind
Subramanian said the industry will continue to grow at 12-13 per cent
annually.

6
 COMPANY PROFILE

LOGO OF AIRTEL: CEO OF AIRTEL:GOPAL VITTAL

The name of the company is Bharti mobinet limited. The company

is owned and governed by Bharti group of companies. It was several of
companies like Bharti health care, Bharti global, Bharti foundation, Bharti
enterprises, and Bharti ventures limited. Bharti Telnet, Bharti Telescopic, Bharti
Broadband etc. The Chairman and Managing Director of Bharti group is Mr.
Sunil Bharti Mittal.In 1996, Sky cell was launched and in 2000, Airtel took over
sky cell. Airtel has its presence in 15 circles in India, which is worth of Rs.9000
cores. It has 866 towers in A.P, each costs 1 Crore rupees and made a proposal
for doubling that in near future, which covers 65Kms.
Airtel has the largest customer base which crossed 2 lakhs when
compared to BSNL, which has 1, 55,000 customers, and HUTCH of less than
50,000 customers.Airtel has 28 connects in A.P, where Reach Tele
Communications stands arouse union. It provides various services like bill
payments, customer relations for problems solving, activations and is also
dealing with sub-dealers.

An overview
7
 Bharti Enterprises has been at the forefront of technology and has eased
telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector
with many firsts and innovations to its credit, ranging from being the first
Mobile service in Delhi, first private basic telephone service provider in the
country, first Indian company to provide comprehensive telecom service outside
India in Seychelles and first private sector service provide to launch National
Long Distance Services in India. As of February 28, 2003, Bharti had
approximately 3.34 million total customers nearly 2.99 million mobile and
354,000 fixed line custom Its services sector businesses include mobile
operations in Andhra Pradesh, Chennai, Delhi , Haryana, Himachal Pradesh,
Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle,
Mumbai, Punjab, Tamilnadu and Uttar Pradesh (west) circle. In addition, it also
has a fixed-line Operations in the states of Madhya Pradesh and Chhattisgarh,
Haryana, Delhi, Karnataka, Tamil Nadu and nationwide broadband and distance
networks.
Bharti has recently launched national long distance services by offering
data transmission service and voice transmission service for calls originating
and terminating on most of Indian's mobile networks.
The company is also implementing a submarine cable project connecting
Chennai-Singapore for providing international brand width. Bharti Enterprises
also manufactures and exports telephone terminals and phones. Apart from
being the largest manufacturer of telephone instrument, it is also the first
telecom company to export its products to the USA.

About Bharti:

Bharti Tele-ventures is Indian's leading private sector providing of

8
telecommunications service based on an aggregate of approximately 3.34
million customers as of February 28, 2003 consisting of approximately 2.99
million mobile and 3,54,000 fixed-line customers. The company through its
subsidiaries also provides fixed-line, VSAT, Internet service and network
solutions. The company has also commenced offering national and international
long distance services.
The company seeks to capitalize on the growth opportunities that it
believes are available in the Indian market and consolidate its position to be an
integrated telecommunications service provider, with a focus on mobile service.

The company today offers mobile service in fifteen out of 22circles in India.
Bharti Tele-venture was the first private sector operator to provide fixed-line
service in India when it commenced providing services in the Madhya Pradesh
Chhattisgarh circle in June 1998.BTVL recently launched its fixed-line service
in the license areas Haryana, Delhi, Tamilnadu and Karnataka and thus because
the first private sector service provider to provide fixed-line services in all its
licensed areas.Bharti Tele-Ventures has always believed in creating storing
partnerships with its joint venture partners. Today, SingTel and Warburg Pincus
are its leading the other partners includes leading international financial
investments such as International Finance Corporation, Asian Infrastructure
Fund Group and New York Life Insurance.
VISION:

 “To be globally admired for telecom services that delight customers”.

 most admired brand in India- By 2010

o Loved by more customers

o Targeted by top talent

o Benchmarked by more business

MISSION:

9
We will meet global standards for telecom services that delight customers
through:

 Customer Service Focus

 Empowered Employees
 Innovative Services
 Cost Efficiency

BRAND AMBASSDOR: SASAHA

MAJOR COMPETITORS FOR AIRTEL

 JIO

 VODAFONE

 IDEA

 BSNL

PRODUCTS

 Post paid connection

 Prepaid connection

 Calling cards

 Handy phones

 Airtel PCO

10
AIRTEL CUSTOMER SUPPORT

Our customer care personnel are available 24 X 7 to support you for call
completion requests, dialing instructions, country/city codes information, access
number information, unit balance and card expiration date.

SERVICES

NEWS

ASTROLOGY

ENTERTAINMENT

MOVIES

MUSIC

JOKES

GAMES

TELEVISION

CONTESTS

SPORTS

CRICKET

STOCKS, FOREX & BULLION

ATMS

MOBILE BANKING

COMMODITY PRICES / MANDI RATES

TRAVEL

TRAIN SCHEDULES

11
RAILWAY BOOKINGS

FLIGHT BOOKINGS

TAXI FARES

RING TONES, DOWNLOADS

CALLER TUNES

BUSY CALLERTUNES

SMS TONES.

RINGTONES

FUN CARDS

LOGOS & PICTURE MESSAGES

THEMES, WALLPAPERS & MORE

AIRTEL PREPAID

It’s an easy choice.

Get big savings, simple payment options and no long-term commitments.

Prepaid items are paid for in advance, before the time

when you would normally pay for them. A prepaid phone plan, sometimes
called a pay-as-you-go plan, is one of the best ways to save money on cellular
service. You only pay for the minutes you use, and you're not tied into a lengthy
service contract.
Prepaid Phone Plans. Prepaid, or no-contract cell phone plans do not require a
monthly contract. Instead, users prepay to have a certain amount of minutes of
access per month. These minutes are available for use until they are used or
until they expire, at which time more minutes can then be purchased or added.
12
prepaid rent
prepaid rent definition. A current asset account that reports the amount of
futurerent expense that was paid in advance of the rental period. The amount
reported on the balance sheet is the amount that has not yet been used or expired
as of the balance sheet date.
Prepaid debit cards work almost like a combination of a credit card and
achecking account. They are issued by a bank holding company and branded by
major credit card companies, such as Visa, MasterCard, Discover or American
Express. Money is loaded on to the prepaid card much like a gift card.
.

Advantages for using Airtel Prepaid

 Price: You only pay for the minutes you use, so a prepaid plan can save
you a lot of money, especially if you're not a frequent cell phone user.
 No Credit Check: Applying for a two-year service contract with many
carriers means you're required to submit to — and pass — a credit check.
If your credit score is blemished, you may not qualify, so a prepaid plan
can be a better option.

 Choice: You can find prepaid plans from all of the nationwide cellular
carriers, and you can find additional prepaid service options from smaller
and regional carriers, too.

 Freedom: You're not tied into a lengthy service contract, so you can
change carriers or phones at any time.

 Control: If you're buying a phone for someone else — like a child — to

use, a prepaid plan puts you in control. They can only use as many
minutes as you've purchased, so you won't be faced with an astronomical
bill after a month of way-too-many calls and texts

13
 Benefits for using Airtel prepaid

 prepaid gives you flexibility

 If you don’t like your service, or just don’t need it anymore, cancel it.
 No long-term commitments here.

Advantages of using a Airtel prepaid :

 ∙No credit check required

 ·No deposit required
 ·No monthly rental fee
 ·No termination fee if you decide not to use your phone again
 ·No service fee
 ·A large selection of phones available including camera cell phones
 ·Always in control of call costs


REASONS FOR USING AIRTELPREPAID

1) Flexibility and selection

2) Business use quality service and cutting costs

3) Increase in children using cell phones

4) Privacy

5) Business use

OBJECTIVES
14
 To study the telecommunication sector in India.
 To study the reasons as to why the customers are switching
from Airtel to other service providers
 To find out the problems faced by Airtel prepaid users in
particular.
 Tocarryout the competitor analyses
 To study the market potential.
 To study marketing strategies adopted by Airtel
 To study the market potential.

15
OFFERS FROM AIRTEL

16
RESEARCH METHODOLOGY
17
 “Marketing research means the systematic gathering, recording,
analyzing of data about problems relating to the marketing of goods and
services”

1. Data collection:
For quantitative research, the primary data collection is the
questionnaires .

Primary data:
The primary data is collected through Questionnaires, which
from the major part of the project

Secondary data :
The secondary data is readily available from the dealers , new s
magazines. Data like company profile and organization procedures
obtained from office

2. Research instruments
marketing researchers have a choice of to main research
instruments in collecting primary data from “Questionnaires”

Questionnaires:

This part is being explained briefly in the following theories of

approach

They are “sampling plan” after deciding on the research approach

and the instruments .The marketing researcher must design a sampling plan.
This plan comprise of 3 parts

1. Sample size

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2. Sample unit

3. Sample procedure

1. Sampling unit:
The sampling units for the study consisted of respondents from all walks
of life, either sex, different age groups, different income groups and so on, but
all residents of KURNOOL CITY.

2. Sampling Size:
Considering the nature and extent of the study and with the time
constraints, a sample size of 50 costumers was chosen .

3. Sampling procedure:
Sample random sampling method has been adopted for the study. In random
sampling each elements of the population has an equal chance of being
selection for the same.

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 CONCEPTS

What is a 'Customer'

A customer is an individual or business that purchases the goods or services

produced by a business. Attracting customers is the primary goal of most
public-facing businesses, because it is the customer who creates demand for
goods and services. The word customer historically derives from “custom”,
meaning ”habit”, a customer was someone who frequented a particular shop,
who made it a habit to purchase goods there, and with whom the shopkeeper
had to maintain a relationship to keep his or her “custom”, meaning expected
purchases in the future.

Customer retention Strategy…

In today’ challenging economy and competitive business world, retaining

their customer base is critical to organization success. If they don't give their
customers some good reasons to stay, organization’s competitors will give them
a reason to leave. Customer retention and satisfaction drive profits. It's far less
expensive to cultivate organization existing customer base and sell more
services to them than it is to seek new, single-transaction customers. Most
surveys across industries show that keeping one existing customer is five to
seven times more profitable than attracting one new one.
A customer-focused approach among its employees is still not present. In
this era of intense competition, it is very important for any service company to
understand that merely acquiring customers is not sufficient because there is a
direct link between customer retention over time and profitability & growth.
Customer retention to a great extent depends on service quality and customer

20
satisfaction. It also depends on the ability of the organization to encourage
customers to complain and then recover when things go wrong. Complaints are
natural part of any service activity as mistakes are an unavoidable feature of all
human endeavor and thus also of service recovery. Service recovery is the
process of putting things right after something goes wrong in the service
delivery.
Customer retention is the maintenance of continuous trading relationships
with customers over the long term. Customer retention is the mirror image of
customer defection or churn. High retention is equivalent to low defection.
Customer retention is about keeping the customers organization has spent
that money to acquire. And if you’re in an industry where they make multiple
purchases over the years, organization entire team should be very focused on
retaining those customers:
Customer Retention - keeping customers - can be improved by explaining
to your employees - especially those on the front line who deal directly with
your customers - just how much each customer is worth to your business.

Reasons Customers Leave:

 Move or Die 4%
 Other Company Friendship 5%
 Competition 9%
 Product Dissatisfaction 15%
 No Customer Contact Strategy 67%

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 Customer Retention Formula:

S.E.R.V. = Serve + Engage + Relate + Verify

SERVE your customers. So many companies seem to be forgetting this basic

point. Eventually, these organizations pay a stiff penalty. The customer must
know that they are going to walk through your doors and consistently receive
the "WOW" experience

ENGAGE your customers. Connect with them whenever possible. Make the
effort to reach out to your customers at every opportunity. Know the names of
your customers. Know their likes/dislikes and know a little about what is
happening in their lives. It’s not difficult; it just takes a moment of actually
speaking, listening and paying attention to what they say.
RELATE to your customers. Let them know that you understand their needs.
Showing indifference to your customers will only have them quickly turning to
your competitors for reassurance.

VERIFY that what you are doing is working. There cannot be too much follow
up. Send out customer service surveys. Drop in for courtesy calls - do whatever
is necessary to keep the communication flowing.

Advantages of customer retention

 Possibility of repeat business
 Reduced costs for customer acquisition

22
  Fostering greater interaction between business and
customer

 Having more delighted customers

Benefits of Customer Retention Strategy

 Acquiring new customers can cost five times more than satisfying and
retaining current customers
 A 2% increase in customer retention has the same effect on profits as
cutting costs by 10%
 The average company loses 10% of its customers each year
 A 5% reduction in customer defection rate can increase profits by 25-
125%, depending on the industry
 The customer profitability rate tends to increase over the life of a
retained customer

Type of customer retention rate

1. Raw customer retention rate:
2. Sales-adjusted retention rate:

3. Profit-adjusted retention rate:

23
 1. Is Airtel signal at your area is good?

PARTICULARS NO.OF PERCENTAGE

RESPONDENTS
YES 45 90%
NO 5 10%
TOTAL 50 100%

INTERPRETATION:

From the above graph it is interpreted that 80% of the customers responded yes
and 20% of the customers no.

2. Are you satisfied with costumer care services?

24
PARTICULARS NO.OF PERCENTAGE
RESPONDENTS
Satisfied 40 80%
Not satisfied 5 10%
Never use 5 10%
Total 50 100%

INTERPRETATION: From the above graph it is analyzed that 80%of the people

are satisfied with the Airtel customer care services and 10%of the customers are

not satisfied and 10%of the customers are never used customer care services.

3. Do you use internet Services?

PARTICULARS NO.OF PERCENTAGE

RESPONDENTS

25
YES 45 90%
NO 5 10%
TOTAL 50 100%

INTERPRETATION: From the above graph it is interpretated that 90% of the

customers are using internet services, 10% of the customers not using the
internet services.

4. How many times do you login to internet per day?

PARTICULARS NO.OF PERCENTAGE

26
 RESPONDENTS
ONCE 2 4%
TWICE 3 6%
MORE THAN ONCE 40 80%
NOT EVEN ONCE 5 10%
TOTAL 50 100%

INTERPRETATION:

From the above graph it is analyzed that 80% of the people are using
internet services more than once per day, 10% of the people not even using once
per day, 4% of the people are using once per day and 6%of the people are using
twice a day.

5. Are you using any offers?

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

27
YES 45 90%

NO 5 10%

TOTAL 50 100%

INTERPRETATION: From the above graph it is analyzed that 90% of the

customers are using recharge offers and 10% of the customers are not using

recharge offers.

6. Are you satisfied with the offers by Airtel?

PARTICULARS NO.OF RESPONDENTS PERCETAGE

SATISFIED 45 90%

NOT SATISFIED 3 6%

28
NEVER USE 2 4%

TOTAL 50 100%

INTERPRETATION: From the above graph 92% of the customers satisfied with

the offers and 6% of the customers are not satisfied with the offers and 4% of

the customers never used any offers.

7. What type of Airtel services you are using?

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

POST- PAID 15 30%

PRE –PAID 35 70%

Total 50 100%

29
INTERPRETATION: From the above graph it is analyzed that 70% of the costumers are

using pre paid services and 30%of the costumers using post paid services.

30
8. Did you feel Airtel is better than any other service providers?

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

BETTER 45 90%

NOT BETTER 5 10%

TOTAL 50 100%

INTERPRETATION: From the above graph it is interpretated that 97%of the

customers feel Airtel provides better services than any other service providers.

31
9. Do you use any other net work connection other than Airtel?

PARTICULARS NO.OF PERCENTAGE

RESPONDENTS

YES 5 10%

NO 45 90%

TOTAL 50 100%

INTERPRETATION: From the above graphs 10%of the customers using other

network connections and 90% of the customers are using Airtel network

connections.

Findings

 Customers are well satisfied with the airtel signels .

 Costumers are satisfied with the customer care services given by airtel.
32
 Most of the people are using airtel internet services other than the other
networkes.

 It is found that most of the people are using pre –paid than post –paid.

33
 SUGGESTIONS

Following are some of the suggestions given by the researcher so that Airtel can

serve people and its customers in an improved way:

 Airtel should decrease call rates for local users.

 Airtel should provide pre paid and post paid both are equal.

 Airtel should introduce some new SMS schemes for the youngsters.

 Airtel should introduce more schemes and offers.

 Airtel should provide more schemes and offers to its old customers.

 Airtel should decrease call rates of STD and ISD.

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 LIMITATIONs OF STUDY

 The study is confined only to Kurnool city.

 Time factor is the main limitation of the study.

 The research has been confined only to 50 persons.

 The method used in this project is survey method and result obtain may

not be fully accurate.

 The analysis is purely based answer in formation and reaction of

respondents, which may involve loss of actual information due to

manipulation of the reaction.

QUESTIONNAIRE
35
Name:
Age:
Occupation:

1. Is the Airtel signal at your area is good ?

A. Yes B. No

2. Are you satisfied with the costumer care services?

A. Satisfied B. Not satisfied C. Never used

3. Do you use Internet Services?

A. Yes B. No

4. How many times do you login to internet per day?

A. Once B. Twice C. More than once D. Not even once

5. Are you using any offers?

A. Yes b. No

6. Are you satisfied with the offers?

A. Satisfied B. Not satisfied

7. What type of Airtel services you are using?

A. Post paid B. Pre paid

8. Do you feel Airtel is better than any other service providers?

A. Better B. Not better

9. Do you use any other net work connection other than Airtel?

36
A. Yes B. NO

BIBLOGRAPHY
37
www.Bharti.com

www.Airtelworld.com

www.google.com

www.indiatelecomnews.com

www.iamai.in

BOOKS:

Service Marketing Management - Philip Kotler

Customer retention strategy - Peter Drucker

Marketing management - kotler and amstrong

38