Project Report

“Comparative analysis of MARKETING STRATEGIES OF
Vodafone & AIRTEL”
Submitted for the partial fulfillment of the requirement For the award of degree of

SUBMITTED BY:Umesh Garg MBA 1V Sem. Roll No. 08/MBA042 SUBMITTED TO Mr. Narender Tanwar Head of Management department Bhawani Shankar anangpuria institute of technology & management Alampur, Faridabad-121004

I Umesh Garg, sincerely thankful to all those people who have been giving me any kind of assistance in the making of this project report. I express my gratitude to Mrs. Priyanka Singh, who has through her vast experience and knowledge has been able to guide me, both ably and successfully towards the completion of the project. I express my gratitude to Bhawani Shankar Anangpuria Institute of Technology & Management, Faridabad

I would hereby, make most of the opportunity by expressing my sincerest thanks to all my faculties whose teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. Credit also goes to all my friends whose encouragement kept me in good stead. Their continuous support has given me the strength and confidence to complete the project without any difficulty. Last of all but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete. I am also thankful to authority of Airtel & Vodafone for providing me the information.


1. Acknowledgement 2. Contents 3. Declaration 4. Synopsis 5. introduction 6. Need of the study 7. objectives of the study 8. introduction of the topic • • • • • • • • • • Telecom sector in India Airtel Vodafone Background Company profile of Airtel The magic Comparison between marketing strategy of Bharti Airtel and Vodafone Type of research methodology Data collection method Method of collection

9. Research Methodology

10. Data Analysis and Interpretation 11. Swot analysis 12. Suggestion & Conclusion 13. Recommendations 14. Bibliography 15. Questionnaire 

I shall be highly obliged if errors (if any) be brought to my attention. Umesh Garg being a student of MBA of Bhawani Shankar Anangpuria Institute of Technology & Management. (B. .S.M.T. Thank You Umesh Garg. This project involves the big scale services involved in telecommunication sector provided by Airtel and Vodafone to its customers.I.A.” Is my own work it is the analysis of the big scale sector of communication. The survey was conducted so as to analyze the big scale sector prevailing in the current industry and the improvement that can be made upon it.). All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. Faridabad.Declaration I. Hereby declares that the project report under title “Comparative Analysis of Marketing Strategies of Vodafone & Airtel.

advertising. To compare various parameters of marketing strategies. To study customer buying behavior and factors which influence the purchase decision process. 7. collaboration. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector. To study the level of customer satisfaction in Airtel & Vodafone. 6. To study the consumer trend in telecommunication sector. . To identify the difference between market performance of Airtel industry and Vodafone. manufacturing process. 3. future prospect for the two companies and government policies. export scenario.NEED OF THE STUDY 1. To study competitive marketing strategies adopted by Airtel and Vodafone. 2. 8. 5. technology adopted production policy. To study consumer preferences. 4.

5. This survey research may be also aimed as to estimate potential buyer for the product.OBJECTIVE OF THE STUDY Every organization has to achieve its organization goals. The objective of the study is as under:- 1. To study customer buying behavior and factors which influence the purchase decision process. To compare various parameters of marketing strategies. 4. . To identify the difference between market performance of Airtel industry and Vodafone. collaboration. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. export scenario. For this it is very essential for an organization to know about the view of consumers and their competitive products. 3. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector. advertising. manufacturing process. technology adopted production policy. 2. future prospect for the two companies and government policies.

This pushed the total wireless subscribers base to 242.63%.20% in August 2007.63% in January 2008 as compared to 21. Today.SYNOPSIS Telecom Sector In India Than 125 million telephones network is one of the largest communication networks in world. Currently more than 30 lakh phones are being added each month and it is targeted that by the end of 2008 the total number of phones may reach a level of 350 million taking the tele-density to more than 30% which is currently at 24. The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector. more Two striking features of this growth viz. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have predominated the telecom sector.87 million in July 2007. The telecom sector has shown impressive growth during the past decade. The share of mobile phones (including WLL mobile) has overtaken the share of landlines with 62% in the total number of phones. Wireless Service: The wireless segment saw a surge of 8. Network Expansion: The total number of telephone subscribers has reached 281. .17 million in December2007. The overall Teledensity has increased to 23.40 million by Jan 31 2008.77 million subscribers last month compared to 8. which continues to grow at a blistering pace. The private sector's contribution is also increasing rapidly.62 million at the end of January 2008 as compared to 232.

Teledensity: The gross subscriber base reached 206. Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory Authority of India Act. The Teledensity is 24.83 million at the end of March 2007.14 per cent in November 2006. The long distance domestic as well as international charges have also fallen considerably.31% at the end of March 2007. (NTP) 1999. The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service. TRAI has endeavored to encourage greater corporation in the telecom sector together with .63%at the end of January 2008 as compared to 18.Wire line Subscribers: The wire line segment subscriber base stood at 39. The share of private sector has risen to 85 per cent in December 2007 from 64.16 million at the end of January 2008. 1997 enacted on March 28. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy better quality and affordable prices.1997. Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition. registering an increase of 6%.73 million with a decrease of 0.

Internet Connectivity(DSL) and Leased Line). Airtel is the largest cellular service provider in India in terms of number of subscribers. Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology).AIRTEL Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Broadband & Telephone Services (Fixed line. . Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07).

Vodafone Essar. offering voice and data services in 16 of the country's 23 license areas. Despite the official name being Vodafone Essar. previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India Despite the official name being Vodafone Essar. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. its products are simply branded Vodafone. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology. .VODAFONE ESSAR Vodafone Essar. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology. offering voice and data services in 16 of the country's 23 license areas. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India . its products are simply branded Vodafone.

Introduction of the topic .

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


Bharti had approximately 3. Apart from being the largest manufacturer of telephone instruments. Bharti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India's mobile networks. it is also the first telecom company to export its products to the USA. Kerala. the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer." These are the premise on which Bharti Enterprises has based its entire plan of action. Himachal Pradesh. first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Delhi. Karnataka. Bharti has been a pioneering force in the telecom sector. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Haryana.000 fixed line customers. Punjab. Mumbai. Madhya Pradesh circle. Tamil Nadu and Uttar Pradesh (West) circle. With many firsts and innovations to its credit. ranging from being the first mobile service in Delhi. Haryana. Karnataka and Tamil Nadu and nationwide broadband and long distance networks. The Company is also implementing a submarine cable project connecting Chennai-Singapore for providing international bandwidth. it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh. Kolkata.21 million total customers – nearly 2.88 million mobile and 334. first private basic telephone service provider in the country. Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Established in 1985. Its services sector businesses include mobile operations in Andhra Pradesh. Maharashtra circle. Chennai.Vision "As we spread wings to expand our capabilities and explore new horizons. Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its . Gujarat. Delhi. In addition.

position to be the leading integrated telecommunications services provider in key markets in India. Capture maximum telecommunications revenue potential with minimum geographical coverage. and Emphasize on human resource development to achieve operational efficiencies. • Offer multiple telecommunications services to provide customers with a "one-stop shop" solution. • • Leverage strengths of its strategic and financial partners. • Focus on satisfying and retaining customers by ensuring high level of customer satisfaction. with a focus on providing mobile services”. The Company has developed the following strategies to achieve its strategic objective: • • Focus on maximizing revenues and margins. • Position itself to tap data transmission opportunities and offer advanced mobile data services. .

and The Company's strong relationships with international strategic and financial investors such as SingTel. .Businesses Bharti Tele-Ventures current businesses include • • • • • Mobile services Fixed-line National and international long distance services VSAT. International Finance Corporation. Warburg Pincus. Asian Infrastructure Fund Group and New York Life Insurance. • The strong brand name recognition and a reputation for offering high quality service to its customers. These 15 circles collectively accounted for approximately 56% of India's land mass. Internet services and network solutions Broadband services with DSL and Wi-Fi network Competitive Strengths Bharti Tele-Ventures believes that the following elements will contribute to the Company's success as an integrated telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy: • Nationwide Footprint . • Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities. • • Quality management team with vision and proven execution skills.approximately 92% of India's total mobile subscribers resided in the Company's fifteen mobile circles.

.Brand Architecture: Bharti is working on a complex three-layered branding architecture — to: • • • Create specific brands for each service. Build sub-brands within each of these services and Use Bharti as the mother brand providing the group its corporate identity as well as defining its goal to become a national builder of telecoms infrastructure.

BHARTI AIRTEL (Cellular Operations) TOUCHTEL (Basic Service Operations) INDIA ONE (National Long Distance) Airtel . .The brand for national long distance (NLD) telephony Though the costs of creating new brands are heavy but the group wants to create “distinct independent brands to address different customers and profiles”.The brand earmarked for basic service operations. India One .The flagship brand for cellular operations all across the Indian country. Touchtel .

it became necessary for Airtel to appeal to a wider audience. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand — leadership. What they needed was to become Singapore Airlines.Brand Strategy: To understand the brand strategy. distant and efficient. A change in tack was important because this was a time when the cellular market was changing. let’s first look at the brand building exercise associated with Airtel — a brand that had to be repositioned recently to address new needs in the market. “Instead of the value-proposition model. it had now become important for Bharti to “humanize” Airtel and use that relationship as a major differentiation. we decided to address the sensory benefit it gave to the customer as the main selling tack. it meant Airtel was positioned as an inspirational brand that was meant for leaders.” he explains. And the various brand-tracking exercises showed that despite all these good things. cellular telephony wasn’t a mass market by any means. So the Airtel “leadership series” campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. for customers who stood out in a crowd. Bharti could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. These were valuable qualities. there was no emotional dimension to the brand — it was perceived as cold. but they only took Airtel far enough to establish its presence in the market. The brand had become something like Lufthansa — cold and efficient. The idea was to become a badge value brand. The reason with tariffs identical to competitor Vodafone telecomm and roughly the same level of service and schemes. dynamism and performance. But Sachdev says that such a strategy would not have worked for the simple reason that the value from using the phone at the time was not commensurate with the cost. . efficient but also human. As tariffs started dropping. owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep — sometimes as much as buying a second-hand car. For the average consumer. Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. In simple terms. When the brand was launched seven years ago.

existing customers were an important tool for market expansion and Bharti now focused on building closer relationships with them. the company decided that it needed to segment the market. This set of campaigns portrayed mobile users surrounded by caring family members. a brand aimed at the youth in the 14 to 19 age bracket . That is precisely what the brand tried to achieve through its new positioning under the Airtel “Touch Tomorrow” brand campaign. By that time. a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly through word-of-mouth endorsements from friends. family or colleagues. Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives — it was.77 lakh (it now has 1. launched last year.8 million customers). Thus. Also. is Youtopia. and a new exercise is being launched to this effect. And with tariffs becoming more affordable — as cell companies started cutting prices — it was time to expand the market. Once you reached them you had to expand the market so there was need to address to new customers. If Airtel is becoming more humane and more sensitive as a brand. Bharti was already the leading cellular subscriber in Delhi with a base of 3. Bharti has also understood that one common brand for all cellular operations might not always work in urban markets that are now getting increasingly saturated. How could Bharti leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customer’s minds was also changing. But broadly. a relationship game that needed to be reflected in the Airtel brand.The leadership series was okay when you were wooing the crème de la crème of society. Right now. To bring in new customers. Says Sachdev: “The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive.” As it looks to expand its cellular services nationwide —to eight new circles apart from the seven in which it already operates — Bharti is now realizing that there are new compulsions to rework the Airtel brand. again. the company is unwilling to discuss the new positioning in detail. One such experiment. the focus is on positioning Airtel as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country.

It also set up merchandising exercises around the scheme — like a special portal for young people to buy things or bid for goods. you need the two services to tango to offer customers a new choice”. The idea was to bring Internet and mobile in perfect harmony. there was nothing for younger people. Airtel hoped to reverse that. The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and bundling SMS rates with normal calls to make it cheaper for young people to use.and for those who are “young at heart”. In order to deliver the concept. With its earlier positioning. “The name was chosen from the popular movie title It Takes Two to Tango: basically. Subsequently. the ads were withdrawn. but the company re-iterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services — or permanent Internet connectivity on the mobile phone — which Airtel is expected to launch soon. says Sachdev. however. Airtel offered rock bottom tariff rates (25 paise for 30 seconds) at night to Youtopia customers — a time when they make the maximum number of calls. With Youtopia. Airtel was perceived as a brand for the well-heeled older customer. The brand was created to offer mobile users Internet-interface services or what is known as WAP (Wireless Application Protocol). . This. had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services. The other experiment that Bharti has worked on is to go in for product segmentation through the Tango brand name.

The Magic Perhaps the more ambitious experiment has been with Magic — the pre-paid card. most importantly. The idea was to make the brand affordable. PHASE I – Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. • One. . • Third. telephone booths and even kirana shops so that the offering was well within arms reach. the company came with vernacular ad campaigns Like “Magic Daalo Say Hello” which appealed to local sensibilities. To achieve its objectives Bharti did three things. the product was made available at prices ranging from Rs 300 to Rs 3. to make the product more “approachable” to the customer. the product was made accessible and distributed through small stores. Such a customer used the phone sparingly — mostly for emergencies — and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges). feasible as a means of expanding the market even faster. • Two. accessible and.000 with no strings attached and was simple to operate.

2 million today. . The company is now re-working its Magic strategy even further. which was launched much ahead of Magic.47 lakh to 1. While the exact strategy is under wraps. Earlier. with basic service providers having been allowed limited mobility at far cheaper rates.This apart. That is why the new exercise is aimed at co-opting non-adopters. overtaking Essar’s branded pre-paid card Speed. the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all across Delhi. insiders say the new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card. customers who were already inclined to opt for mobile services. But now. a ruse that saw the number of subscribers go up from 5. mobile service providers could find themselves under threat again. the branding strategy was aimed at roping in only interested customers — that is.

The brand is positioned to be relevant to the mass-market who want to make all their dreams. The strategy is targeted at the nonuser segment defined as young adults. tone & language created to connect the category to the lives of the SEC B & SEC C segment – the middle class non-mobile user.) Improving productivity. • Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic. hopes & desires come alive… instantly.any pre-paid card brand goes on TV A combination of the film genre exposed through the TV medium designed to connect with the masses of India • Youth based . letting you befriend the world and opening up new horizons. India’s leading pre-paid mobile card. 15-30 years of age. context. in the Sec B & C segment is aimed at accelerating market expansion. Indeed.per month Airtel Magic is so easy to buy.user imagery. It gives you the freedom to control your life in a way never possible before. The value proposition is centered around a person’s desire to make all his / her dreams. . Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic hai to Mumkin hai’. • Airtel Magic positions itself on the platform of being excellent for emergency situations increasing productivity as a part of everyday life. ambitions & aspirations instantly possible. anything that you think is possible is possible with Airtel Magic. The new brand slogan ‘Magic hai to Mumkin hai’ has been specially created to capture this effectively.PHASE II Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • • First time ever in India . The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives.300/.romance driven strategy platform makes the value proposition of Airtel Magic ‘Mumkin Hai’ come alive • All elements . (At just Rs.

Where Sharukh Khan. holds millions of Indians together as one. well known to most as Bollywood. magnifies the empowering optimism of “Mumkin Hai”. dancing… the Indian cinema. Both these stars have said ‘Mumkin hai’ and made it happen for themselves. The new strategy. This genre connects millions across India. The new TV campaign of Airtel Magic crafted in the Hindi film idiom. brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of Airtel Magic’s new multi-media campaign. The spirit of romance. The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’ or “Mumkin Hai” spirit (infact that is the reason they were selected as brand ambassadors). talent. in the endearing situation of a boy-girl romance. sets his eyes on Kareena Kapoor and wins her love with the help of Airtel Magic. The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A. The campaign has been created by Percept Advertising. The new strategy aims at correcting the perception that the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios. Kareena’s success is due to her ‘attitude’. Sharukh rose from a TV actor to become India’s top film star and national heartthrob.This strategy is designed to help us talk to this segment directly in the tone. The genre of this new strategy & campaign is Hindi cinema led. The “Mumkin hai” value proposition will help us expand the market and gain a higher percentage of market shares in the process. The estimated addressable market of such customers in the next two years is around 25 million in Airtel’s 16 states. manner & language of the masses. . hard work and the sheer ability to make a mark in such a short time. (Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won). B & C.

Indeed. The brand is positioned to be relevant to the mass-market who want to make all their dreams.At a amount of your choice you can recharge your account with available validity time . hopes & desires come alive… instantly . . letting you befriend the world and opening up new horizons. It gives you the freedom to control your life in a way never possible before. The value proposition is centered on a person’s desire to make all his / her dreams.Improving productivity.PHASE III Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • • First time ever in India .romance driven strategy platform makes the value proposition of Airtel Magic ‘Aisi azaadi aur kahan?” come alive • Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic Hai to Mumkin Hai’. The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives. ambitions & aspirations instantly possible. The new brand slogan ‘Aisi azadi aur kahan’ has been specially created to capture this effectively.any pre-paid card brand gives such freedom to recharge any value A combination of the film genre exposed through the TV medium designed to connect with the masses of India • Youth based . anything that you think is possible is possible with Airtel Magic. .

• Bharti expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of the total new subscriber base) would come from the pre-paid card segment. Airtel has devised common numbers for subscribers across the country for services like customer care. • The loyalty program will not be only for a ‘badge value’.Other Brand Building Initiatives:The main idea is to stay ahead of competition for at least six months. So. food services and cinema amongst others. To ensure that customers don’t migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month). for the first time for a cellular operator. is to offer better quality of service. • Another key area which Bharti is concentrating its attention upon is a new roaming service launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network. it will provide real benefits to customers. Working on the above game plan Bharti is constantly coming up with newer product offerings for the customers. • It will also launch a unified billing system across circles so. . the company is also working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone. • Bharti. has decided to offer roaming services even to its pre-paid customers. they must be given value-added products and services which competitors don’t provide. but the facility would be limited to the region in which they buy the card.000 frequently asked questions and their answers have been stored on the computers. • To make the service simpler for customers using roaming facilities. of course. customers moving from one place to another do not have to close and then again open new accounts at another place. The focus. a storehouse of 40. The idea is to create an Airtel community. • To assist customer care personnel to deal with subscriber queries.

The company is constantly innovating to enhance the value proposition for its pre-paid service. to reach its Magic pre-paid cards to subscribers' doorsteps.• The company also offers multi-media messaging systems under which customers having a specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the phone. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers. . Bharti is focusing on two factors to make pre-paid cards more attractive. Unlike post-paid. • Bharti is in the process of launching a new system in alliance with Mumbai-based Company Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a card. the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances. • Bharti Televentures has tied up with 'Waiter on wheels. one need not pay security deposits for picking up a pre-paid card. Keeping the entry cost low for consumers and making recharging more convenience.' a company delivering food at home. The cost per picture is between Rs 5 to Rs 7. and not only by Connect outlets. As befits a fast-moving consumer service. It is often available even with paanwalas. Now activation can be done by all of them. Earlier Bharti had 250 Airtel Connect stores which were exclusive outlets (for its services) and about 250 Airtel Points which were kiosks in larger shops. they are easier to obtain and convenient to use. the competition takes two to four hours. First. • Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than it is today. all within 15 to 20 minutes. Apart from improving the convenience of recharging. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. The system will not only save users the hassle of going out and buying a card every time it expires but also enable mobile companies to reduce the cost of printing and distributing cards.paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. • Pre. In comparison. A key area is to increase the number of activation centers. mobile operators are beefing up their distribution channels.

single-point access for any assistance they require. Bharti Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. Highly interactive VJ based show with real-time feedback mechanism. which includes easier payment of bills.• Bharti Cellular has also launched a special service. and value-added services without any additional paper work. the first ‘on-air’ SMS based interactive music dedication show exclusively for Airtel and Airtel Magic customers. Dedicated ‘CareTouch’ executives are expected to assist customers with any service on priority basis. . corporate customers. • Airtel presented MTV Inbox. Both brands joined hands to target the high growth youth segment. Customers can dial 777 and enjoy a slew of services. customers can also call CareTouch for bill payments at free of cost. for high-value. Besides the regular proactive reminder calls for bill payment. providing them with instant. service on priority basis. CareTouch.

not only will the cost of building a regional or a national (or an international) brand will continue to rise but also the time taken to do so will be longer and will need sustained and focused efforts. This is not to say that advertising and promotion are less relevant. becoming more individualistic in their needs and far more demanding with the passage of time. As far as allocation of time and financial resources are concerned. The positive spin to this argument is that by first addressing the fundamentals. . Customers (be it for industrial products or consumer goods and services) across the world are more informed and. Unflinching orientation to customer needs is the second key success factor. at the same time. businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise-wide “reengineering” of the business philosophy and core design. Pro-active tracking of shifts in consumer behavior. too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. however. the enterprise itself becomes more competitive. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. and then reacting in “real-time” are essential to attract and retain customer loyalty — a key element of creating brand equity in the present situation. and delivery operations for the product itself. This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. with more choices and higher media clutter. anticipating redefined or emerging customer needs.Bharti’s View on its Branding strategy:First. production. crucial to note that in the years to come. It is. On the contrary. brand building efforts in today’s context have to be seen in a more holistic manner. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation.

.Comparison of marketing strategies between Bharti Airtel and Vodafone.

 However.Purpose of comparison • The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti Airtel and its rival Vodafone • The comparison shows how both of the companies have been challenging each other to gain market shares. .  Since its launch Vodafone has been adopting aggressive marketing strategies.  Bharti Airtel holds the lion share of market of communication sector. Vodafone has been giving tough competition to Bharti Airtel.  Vodafone is the second largest player and share holder in Communication sector. Why comparison with vodafone  Bharti Airtel is the leader in telecommunication sector.

The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month of its first launch of postpaid subscription in 2002.AD.

With a different technology Vodafone creates its own market.

Vodafone odafone. Today deals in every business of communication sector. Vodafone making and changing the strategies to capture the market shares

Brand positioning by Bharti Airtel

Market segmentation
 Geographical segment (metropolitans & cities India) Demographic segment - middle income groups People age group of 20 to 28 year

Target marketing
 People who living in cities and towns. Poor or middle income group people. Youngsters in big cities. Businessmen

 Creating brands (Sharukh khan & Sachin Tendulker) Ads and promotions Promotion for study of poor childrens.

Marketing mix
 Price: Place: Product: Promotion: low price strategy maximum outlets and service centers verities available for various groups various schemes for pre-paid and post-paid



By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages and towns.Vodafone target the rural India The main targeted customers of Vodafone are from rural India. Free support and services In every district and big towns Vodafone opens its service centers to provide better support and services. The cost for these sets was Rs-799-849-1099\set and onward. Offering cheap handsets Vodafone offers cheap and free connections to all customers. . In every small town the potential customers can easily purchase the Vodafone SIM & Sets. Targeting youngsters in metropolitans Vodafone attracts youngsters by offering colorful handset at very low prices. Strong logistics and supply chain Vodafone has a strong logistic and supply all over India.


Businessmen    Positioning  Creating brands Ads and promotions  Marketing mix Price : low price strategy Place : maximum outlets and service centers Product : verities available for various groups    .Market segmentation  Geographical segment (rural India) Demographic segment .middle income groups  Target marketing  People living in small towns and villages. Youngsters in big cities. Poor and middle income groups.

 Promotion: various schemes for pre-paid and post-paid Services provided by Bharti Airtel • • • • • Mobile services with GSM technology Fixed-line connections National and international long distance services VSAT. ●mobile services with GSM technology ●fixed-line telephone services ●Universal Internetworking ●VoIP (Voice over Internet Protocol) ●Interactive Television ●Visual Communication ●Broadband Portal . Internet services and network solutions Broadband services Services provided by Vodafone.

The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Further direct interview method.●Telecommuting RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the subject. The prime objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market and the impact of WLL on Airtel. as one continuously observes the surrounding environment he works in. Secondary data has been used to support primary data wherever needed. . where a faceto-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method. the questionnaire method. Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was.


SECONDARY DATA: DATA: .DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION. Further direct interview method. the questionnaire method. as one continuously observes the surrounding environment he works in. Lastly observation method has been continuous with the questionnaire method. DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. PRIMARY DATA: DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER. • PRIMARY DATA • SECONDARY DATA Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was. THE QUESTIONNAIRE CONSISTS OF 15 QUESTIONS. QUESTIONNAIRE SURVEY: IN THE STUDIES A QUESTIONNAIRE IS PREPARED. COLLECTION. where a faceto-face formal interview was taken.



The regulatory body at that time — the Department of Telecommunications (DOT) — allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. it was stipulated that no firm can win in more than one metro. Modi Telstra in Kolkata in August 1995. Prior to the creation of TRAI. In 1996. Under this new policy. the telecom service areas are divided into four metros (New Delhi. The first cellular service was provided by. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators. the old fixed-licensing regime was to be replaced by a revenuesharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.A brief history of Tele sector in India In the early 1990s. three circles or both. For the auction. The circles are further classified under "A. In March 1999. . these functions were the sole responsibility of the DOT. diverting funds away from network development and enhancements. The government decided to set up TRAI to separate regulatory functions from policy formulation. Mumbai. In India. and the president officially announced the TRAI ordinance on 25 January 1997. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders. Key to achieving these goals was a world-class telecom infrastructure. while West Bengal and Assam had only one bidder each. licensing and telecom operations. a new telecom policy was put in place (New Telecom Policy [NTP] 1999). As a result. the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports." with the "A" circle being the most attractive and "C" being the least attractive. which roughly correspond to the states in India. by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn." "B" and "C. the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha. Chennai and Kolkata) and 20 circles.

Some of these roadblocks / current position is tabulated below: .EARLIER ROADBLOCKS AND THEIR RESOLUTION Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several problems for 3 .4 years till the New Telecom Policy of 1999 was announced.INDIAN CELLULAR MARKET .

and its role being accepted by all operators. spectrum availability cleared with vacation of frequencies for usage by GSM operators. risks on pass through income to DOT / BHARTI (Mahanagar Telecom Nigam Ltd. Deptt of Telecommunications (DOT) restructured. .ROADBLOCKS CURRENT POSITION High license fees Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing. with 4/5 major groups emerging in the last one/two years. Inadequately funded businesses / weak and fragmented promoters Businesses that have since been adequately funded growing at over 60% per annum. Regulatory authority not in place Telecom Regulatory Authority of India (TRAI) firmly in place. intra circle long distance. intra circle long distance allowed. spectrum availability and allocation and the like remained unresolved for long periods. Interconnect terms since rationalized. Issues relating to unfavorable interconnect terms for private operators.spate of acquisitions / mergers. pass through income. while businesses with weak promoters continuing to languish . with operations and policy making roles vested in different bodies.

.   Licensing tenure increased from 10 to 20 years Large upfront cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure.Problems in Financial closures due to:   Licensing tenure of 10 years Large upfront cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions. project financing being considered by most financial institutions.

.paves the way for full control of businesses by foreign companies. market / subscriber base expected to zoom. and change of partners allowed as a matter of routine allowing ease of entry / exit .Foreign ownership / change of partner limitations Foreign ownership norms clarified. but with corrective measures taken. Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth.

Kotak Mahindra Finance. Bharti also acquired the Punjab license of Essar and started operations. Swisscom pulled out from Sterling Cellular. Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile.8 percent in a nation of over one billion people. many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. In 2000. Telecom Malaysia sold its stake in Usha Martin Telecom. In recent years. Hong Kong-based Hutchison Whampoa. . Spice Communications. and the former is reviewing various options. acquired major stakes in Sterling Cellular (December 1999). British Telecom exited from Bharti Cellular. giving competition to the lone operator there. and Skycell Communications renamed Bharti Mobinet (August 2000). thus circumventing the 49 percent limit on foreign ownership in Indian cellular operators.2. and both Shinawatra of Thailand and Bezeq exited from Fascel. Through a partnership with local company. In 1999 alone. not everything is rosy. and Hong Kong-based Distacom is seeking to sell its stake in Spice Communications. Despite the recent gains of the cellular industry. Going forward. Bell South International has also indicated its intention to pull out from Skycell Communications. via Hutchison Telecommunications (HK). Hutchison Whampoa practically controls Fascel and Usha Martin Telecom. In June 2001. Usha Martin Telecom (mid-2000) and Fascel (September 2000). First Pacific's (based in Hong Kong) continued commitment to Escotel is uncertain.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY The interconnection regime between cellular operators and fixed-line operators is still biased against the former. Bharti is likely to merge all its cellular companies into one entity. Not to be outdone. Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Bharti Enterprises — another major cellular player — acquired control of JT Telecom. there has been a merger and acquisition wave sweeping across the Indian cellular industry in recent years. The string of sell-outs notwithstanding. The cellular penetration rate is still very low at 0. which was later renamed Bharti Mobile (December 1999).

The total size of the IPO was 185 million shares at a floor price of Rs10. There will be tremendous competitive pressure.5 times. Future rate cuts are expected. which will drive demand. Leveraging on the success of its cellular service.3 billion. the success of GPRS remains a question. BSNL. In the midst of declining interest in technology stocks. launched services in Kolkatta and Bihar in January 2002. However. Once BSNL rolls out its service. With hardly any applications. While both Bharti and Idea have GPRS-enabled networks. the third cellular operator for Delhi and Mumbai. Hutchison with three.Five companies together bid Rs16. followed by Escotel with four. Bharti emerged as the No. The issue was oversubscribed by more than 2. BHARTI. the company got a very good response from the primary market. only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. This was followed by Tamil Nadu in July 2002. This will be used to fuel its investment in long-distance. . this has been postponed until after mid October. As of October 2002. large-scale uptake remains elusive. However. together with falling handset prices and the introduction of prepaid services. 1 bidder with eight new licenses. started services in March 2001. Bharti and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. which will result in lower tariffs. and Vodafone and Idea cellular with one each. there is caution on their part to launch the service. Bharti came out with its long-awaited initial public offering (IPO) in January 2002. In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was taken over by the United Kingdom based telecommunication company name Vodafone telecomm services and comes with the name of Vodafone essar. A nationwide launch was scheduled for 2 October 2002. Escotel and Vodafone have not made any headway. most telecom circles will have four cellular operators. as the third nationwide cellular operator. basic and cellular services. netting Rs8.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles.

Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication Maharashtra in 2008. . Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take over first rainbow in Rajasthan with CDMA network criteria.

cinemas and music shops. Others offer special privileges in retail outlets. Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare.Building visibility and awareness Deviating from competing on the price platform. cellular operators are actively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns. Orange and BPL Mobile have been advertising aggressively on hoardings and kiosks. Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. . food and beverages. Public transport like the city rail system and cabs are used widely to carry the message of mobility. Cellular operators like Bharti. among others.

especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status. especially among fast food centers that have a central number. However. Broadcasting services are also quite popular. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. Few operators have concentrated on offering differentiated services for businesses.Enterprise mobile applications — promising revenue stream All along. limiting access to select numbers and diverting calls to one single number. . • The implementation of enhanced networks like 2. 2. Banks too find bulk SMS service very useful to forward transactional alerts to their customers. Calls can be barred. value-adds like unified messaging and instant alerts are being offered. forcing operators to constantly focus on differentiations to maintain their lead. Corporations can choose enhanced services like user-defined call routing to prevent misuse. discount schemes and movement of goods from warehouse to the retail outlet. Group SMS is quite popular. Bharti is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use. accurate route planning. A variety of mobile applications are finding takers among the enterprise segment. Cost-centered solutions like closed user group (CUG).3 FUTURE TRENDS AND DEVELOPMENT There will be more competition. customer acquisition and the top line have been the focus.5G will enable operators to offer data services. as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins. some are now seriously looking at the enterprise segment for provisioning superior services. This is an opportunity to customize and differentiate better.

. • Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term.• The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled. • The bigger the service provider's national presence. thus there is less chance of a cartel being formed. On the roaming front. signing up with a national operator is advantageous. Consequently. operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies. • Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber. the better it is for businesses.

which laid out broad policy guidelines rather than a series of action points. at reasonable rates. August 1995 January 1996 November 1998 VSNL launches Internet services TRAI formed Internet policy announced The National Telecom Policy of 1994 document. which was produced. . Year 1851 1943 1985 1986 1991 1994 1994 September 1994 November 1994 December 1994 January 1995 Event First telephones in India Nationalization of telephone companies DOT was created Creation of BHARTI and VSNL Telecom equipment liberalized Licenses for paging Telecom policy announced Guidelines for private sector participation in basic services Cellular licenses issued for metros Tenders for cellular licenses in 19 cities apart from 4 metros Tenders for 2nd operator in basic services apart from DOT on circle basis. The next major policy document. etc.4 REGULATORY ISSUES The operations of this sector are determined as under the Indian Telegraph Act of 1885. The targets in quantifiable terms were installation of 9. a consequence of the on going process of liberalization. wide coverage (a phone in every village). it sought to achieve the impossible in finite time like improve quality of service and its availability.5mn additional lines. A document buried in the sands of time. was the National Telecom Policy of 1994.2. Like other policies.

Even liberalization policies were not implemented properly. which need to be implemented. the economic costs are still borne by the end user. The regulator TRAI was set up after delays and confusion and even after its creation. BOOT and BOLT was not used at all. Reorganization of DOT. To facilitate licensing. separating policymaking function and service provision and corporatization of DOT's operational network are two major institutional reforms. DoT continued to fight with it in courts. DoT/ BHARTI have the option to become the third cellular operator in future. has not been met.telephone on demand by 1997. though noble failed to achieve its goals because of improper implementation. Telecom equipment manufacturing was completely deregulated in 1991. the nation was divided into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. The basic theme. The Eighth Plan had also allowed private operators in value added services. It was also affected by the resource crunch. A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ BHARTI for basic and two operators for cellular. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention. Value-added services (including cellular services) were thrown open to private sector participation in 1992. Basic services were opened to private participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DOT. which was broadening the reach of telephony in India. An independent telecom regulatory Authority of India was set up in 1997. The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. Mumbai falls in Maharashtra circle and Delhi in itself a circle. and a PCO pop of 500. . and financing options like BOT. Government did not achieve most of its stated targets.

Who are using GSM technology. # Internet # Magazines # Newspapers # Journals # Bharti Circulars Store # Bharti News Letters # Vodafone Store # Vodafone Ministore . Bharti’s history. # The date during which questionnaires were filled. the questionnaire was a combination of both open ended and closed ended questions. Interviews with the managers of GSM service providers were also conducted. # Some dealers were also interviewed to know their prospective. current issues. procedures etc. # To these 50 people a questionnaire was given. Sample size of 50 persons was taken. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.Scope of the study # To conduct this research the target population was the mobile users. wherever required. policies. Sources of secondary data Used to obtain information on. # Targeted geographic area of Delhi/ NCR.

Data analysis And Interpretation .

98 10.07 12.19 Dec-07 5.26 Dec-08 10.Subscriber numbers in (mn) held by Vodafone and Airtel June-05 Airtel Vodafone 3.50 6.54 7.99 Source TRAI: .45 Mar-09 14.62 4.82 Sep-06 4.24 Mar-08 6.19 1.

96 16.03 Idea Cellular 10.49 share Aug''05 Bharti Airtel 19.45 2 5 2 0 1 5 1 0 5 0 B rti Airtel ha voda fone R nce infoc m elia om IdeaC ellula r Ma et sha Aug 5 rk re ''0 Ma et sha Aug 9 rk re ''0 .49 16.81 Vodafonecomm 17.06 Vodafone 21.01 8.MARKET PLAYERS IN TELE COMMUNICATION Operator Market share Market Aug''09 22.

The next age group are the .FINDINGS AND ANALYSIS Age Group Graph As we can see from the above graph. This segment constitutes the young executives and other office going people. This segment is the one which gives maximum business to the mobile operators. the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. They are 65% of the total people who were interviewed.

who require mobile for their official purposes. They are 20% of the whole.callers etc. Occupation Graph OCCUPATION 10% 20% 15% 55% STUDENTS EXECUTIVES HOUSEHOLDS OTHERS As the above graph shows that 55% of the total people interviewed are working. They are school and college going students and carry mobile phones to flaunt. And 10% of the whole is categories who are the professionals. managers. Tele . So.people who are 28-35 years old. They are the young executives. . who are either housewife. They are those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 years old. The next segment is the students. They are 15% of the total interviewed people. these people are the ones who are the maximum users of mobile phones. The next category is the households. They are 15% of the whole. small units which operate from their homes etc. They are 20% of the total.

There two major company in mobile phone service sector Vodafone and Airtel who respectively hold the market share with other company as 17% and 20% of total market user segment of mobile customer. .Service Provider Graph These are the total market share of mobile user or people captured by the mobile provider company.

They are the ones who have the maximum share in the market but they are lagging behind in the customer services. . This could leave an impact on the mind of the consumer.Customer Service At Airtel Graph CUSTOMER SATISFACTION LEVEL 10% 20% 10% 60% FULLY DISSATISFIED PARTIALLY FULLY DISSATISFIED As the above graph clearly shows that customer services at Airtel seems poor. which is a very small amount. He can even switch over his brand. 10% of the people were fully dissatisfied with the customer services of Airtel. 20% of the people seemed partially satisfied with the customer services and only 10% seem to be fully satisfied with Airtel’s customer services. 60% of the people are dissatisfied with the customer services provided by Airtel.

Airtel should make sure that Magic is available in each and every nook and corner of the market. 15% of the people were having sim connections which is the regular bill. 85% of the total mobile users were having cash card connections. . This means that the cash cards should be easily and readily available in the local markets.Type Of Card Graph Cash cards seemed quite popular among the people interviewed.

. 64% people spend Monthly Expense 24% 12% Rs 600 Rs 450 Rs 200 64% this amount. they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles.Monthly expense graph People on an average spend RS 500 per month as their mobile phone expense. And the remaining 12% had an expense more than RS 1000. 24% people spend RS 300 per month as their monthly mobile expense.

So. 45% of the people were not at all aware of such a technology. 55% people knew what WLL is all about. .Awareness About WLL Graph WLL seemed to be a new word for many of the people. in order to get the answer for this question they were first explained the concept. Only.

of prepared cards than post paid cards.Awareness of WLL Players Graph 80% 70% 60% 50% 40% 30% 20% 10% 0% V odafone Airtel Vodafone was the brand which was popular amongst the interviewed people. Who are the young executives and other office goers? They spend a maximum of RS 500 as their mobile expense. Now when I compared Airtel with its competitor from the point of view of the consumer I found that on the basis of Tariff plan. On the basis of analysis of the questionnaire I have found that the maximum no. Tata was hardly a known brand in this new field. As Vodafone had done so much advertising and has it banners and hoarding spread all over Delhi. There is more no. Possibly. this could be one the reasons of its popularity. of people who use mobile phones is in the age group of 20 to 28. because of less promotions done by them as compared to Vodafone. value added services and billing accuracy Airtel is at par or ahead . The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. So.

Airtel has a hold in the market because it has the maximum no. As. People at this point of time are not interested to switch over from GSM to WLL .of its competitor but in the case of customer care and availability they lag behind there competitors. They only know more about Vodafone. As far as WLL is concerned people are aware about it but not many people are aware about Tata. of connections. so it must improve upon it customer services.

Customer Response towards Questionnaire .

Which Brand you. prefer most? Airtel Vodafone Reliance TATA Idea      .

How long you have been using this Product? 0-2 Years 2-5 Years 5-10 Years More than 10 years     Consumers response shown in chart for usage .

Are you using other product with Airtel? Yes No   33% Y ES NO 67% Here are the customer responses about the use of the Airtel product and other product rather than Airtel. in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown interest in other telecom products in urban areas. .

Do you collect any information search before making purchase? 70% 60% 50% 40% 30% 20% 10% 0% YES NO 34% information search 66% .

Exports of products will also have huge chances in the coming years. superior quality products and an enviable distribution network. which affects its margins. Distribution channel is not accurately categorized. • It has a clear and well-defined organization structure and limits of financial authority. No separate strategy for rural market. • • • There is a lot of scope of product and market diversification. Weakness: • • • • Little efforts over the Advertising of products. Opportunities: • The company's financial performance can receive a major boost from its cost reduction efforts.SWOT ANALYSIS Strengths • Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. . • • Increase in advertisement spends affect the company’s margins. Premium priced products. The company‘s bottom line falls victim to the bloated and highly paid workforce. • It has a strong brand name. Airtel’s business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth. hence can’t compete in low price segment.

.Threats • The slowdown in the economy has restricted topline growth of most FMCG majors and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario. Moreover. • Company’s major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company. inordinate hike in Broad Band Internet products would also increases company’s production and distribution cost.

During the study. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range. Some retailers/wholesalers gave biased or incomplete information regarding the study. Some retailers did not answer all the questions or do not have time to answer. Lack of time is the basic limitation in the project. 6. which was being studied. 5. 4. 2. . 7. Money played a vital factor in the whole project duration.LIMITATIONS No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. 8. The following points in this direction would add to our total deliberations:1. 3. Some retailers/whole sellers refuse to cooperate with the queries. on many occasions the respondent groups gave us a cold shoulder. Lack of proper information and experience due to short period of time.

PLACE * The brands must be made available easily in. Its demand should be increased. 2. in terms of quality. *Free samples should be distributed among the prospects. contests and coupons must be given to retailers as well as customers and prospects. 1. 4. PRICE * Price should be as competitive as other company maintains * Distribution of new connection should be in reach of customer pocket . PCO & general stores.SUGGESTIONS Following are the few suggestions to AIRTEL for improving the market share and image of the products concerned. Sales promotion tools like gifts. * Catalogues should be distributed among customers. PROMOTION *Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. 3. PRODUCT *Modification must be brought about in AIRTEL.

As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. With aggressive marketing strategies Airtel has to target rural India as 70% of population of India lives in these areas. Maximum no. promotion. of people who use the mobile is in the age group of 20 to 28. It is the time not only to survive but to sustain in the market for a long time. of people spends RS 500 on their connections. As we know that now Airtel has already launched its product with logo “’ Aisi azaadi aur kahan”’ has already became popular in market. marketing. Very seriously and update its own strategies from time to time and when the need arises. RECOMMENDATIONS . From the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti Airtel has to more work in every field of communication business. The maximum no. Cash cards are the most popular type of mobile connections. The other segment may be costumers of all age groups.etc. brand image. as they are consumer friendly and recharging the connection is not a problem. For this Airtel has to work on its all marketing strategies. Airtel has to take Vodafone.CONCLUSION After analyzing the findings of the research. it tries its best to understand the need of its important customers. So we can say that in spite of so many competitors in the market Airtel is having a good position just because every time. I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned.

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

2004.BIBLIOGRAPHY In this project report.Vodafone. com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming. Mumbai. Books : Principles of Marketing –Philip Kotler & Kevin keller edi.R.blonnet. Missed Call.com/2004/06/26/stories/2004062602180700.india. Sharma Research Methodology – C. at http://www.htm. June 25.com www. Kothari Websites: www. Magazines/Journals and Web Sites have been referred.com www.in http://www.domainb . All the material detailed below provides effective help and a guiding layout while designing this text report. while finalizing and for analyzing quality problem in details the following Books. 12 Market Research – D.google.com www.D.htm. 4 November 2003 Domain.Airtelworld.

Magazines: Airtel (2 July to 10 July 2004) Airtel India page of HT paper (Thursday 1December 2004) Cowards India (26 December to 4 Jan. 2004) .

2 which mobile company services you are using now a days?      Airtel Vodafone Reliance TATA Idea Q.1 Name those companies which provide telecom services now a days?      Airtel Vodafone Reliance TATA Idea Q. Faridabad. 3 Among them. I am doing my project on “Comparative analysis of marketing strategy of Vodafone and Airtel”. Please give your precious time for filling these details. student of MBA of Bhawani Shankar Anangpuria institute of technology & management.QUESTIONNAIRE Dear Sir/Madam. prefer most? Airtel Vodafone Reliance TATA Idea      Q. which Brand you.2 How long you have been using this Product? . Q. I Umesh Garg.

3 Are you using other product instead of Airtel? Yes No   Q.    0-2 Years 2-5 Years 5-10 Years More than 10 years Q.5 how would you rate the experience with Brand? Excellent    Good Average Below Average Airtel Vodafone Reliance .

6. network Value for money Vehicle performance Add on features or ergonomics of design       .least) Brand credibility Price and Discount After sales services and parts.Q.6 Do you collect any information search before making purchase? Yes No   Q. which sources are used? Magazines Dealers Sales Executives Operators reference Pamphlets and catalogue Reference from friends and relatives Any other        Q.8 What are the features you look for in a product before making purchase decision? Give preferences (1-Highest.7 If yes.

11 Are you aware of various promotional activities being run by Airtel.9. Which of these marketing / sales schemes attracts you while purchasing any connection? Good Network Discount scheme Service package Any other     Q. which Brand will you go for and why? _________________________________________________ _________________________________________________ _________________________________________________ Q.Q.10 If you have to purchase a new connection or product in near future. if yes then how? Are you satisfied with these promotional activities? Very Satisfied     Satisfied Somewhat Not Satisfied satisfied Customer Care By Ad Films By Camp 24 hrs call center services .

12 How would you rate Airtel performance as your expectation on 5 points scale (5 Highest?) 1    2 3 4 5 After Sale service Maintenance Product as per expectation Q. service availability and parts availability? _______________________________________________________________________________ _______________________________________________________________________________ ______________________________________ .13 What are you suggestions for improving the product quality.Q.