An Assignment On

Comparison between any two Competitive Companies

Submitted in partial fulfilment of the requirement For the Award Master of Management Studies

Under the Guidance of Prof. Mona Sinha Submitted by:Vailankanni D’souza MMS SEM I Roll no. 12

INTRODUCTION
Why Airtel v/s Vodafone
The dominant players in India are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL but Vodafone drew my attention with its marketing strategy and Airtel with its Innovations and product development. To me both are striving hard to sustain the market pressure, playing their cards well & very good competition for each other.

Industry Profile
A midst all the talk of slowdown in the Global world, telecom is one sector that has had a fairly good year in terms of subscriber additions and revenue growth in 2009. However, even as this gives some reason to cheer for the telecom incumbents, there are a few trends in key metrics of the companies that suggest increasing pressure on margins. After the telecommunication policies were revised to allow private operators, companies such as Bharti Telecom, Tata Indicom, Reliance MTNL, Idea, Vodafone and BPL have entered the space as Major Operators in India.

COMPANY PROFILE

2009Audited) Rs. i (BSE) The National Stock Exchange of India Limited (NSE ) Approximately Rs 1. the name of the Company has been changed from Bharti Tele-Ventures Limited (‘BTVL’) to Bharti Airtel Limited. in addition to providing long distance connectivity both nationally and internationally. Provides GSM mobile services in all the 22 telecom circles in India. Bharti Airtel since its inception has been at the forefront of technology and has pioneered several innovations in the telecom sector. and was the first private operator to have an all India presence.796. as a Public Limited Company Rs. 0· Offers an integrated suite of telecom solutions to our enterprise customers. 2006.236 billion as on th Dec 30 Established Revenue: EBITDA: Shares in issue: Listings: Market capitalisation: . 2009 .Audited) 3. 0· The largest wireless service provider in the country. 1995. 2009. We also offer DTH and IPTV Services. 0· With effect from April 24. July 07. based on the number of customers as of September 30. Bharti Infratel owns 42% of Indus Towers Limited.678 million (year ended March 31.615 million (year ended March 31. 151.842. 2009 Exchange Mumba The Stock .330 as at Sept 30. one of Asia’s leading integrated telecom services providers with operations in India and Sri Lanka. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. 369.Airtel comes from Bharti Airtel Limited. Fact sheet Name Business Description Bharti Airtel Limited. 0· The company also deploys. Provides Telemedia services (fixed line and broadband services through DSL) in 95 cities in India.

416 2.2009 Customer base: 110. GSM mobile and .511.254 Sept .Telemedia Customers (status as on 30.928.

low & middle income group ᄋPeople age group of 20 to 28 Target market: 0· People living in cities and towns 0· Poor and middle income groups 0· Youngsters in big cities 0· Businessmen Positioning 0· Creating brands 0· Ads and promotion Marketing mix 0· Price-low price strategy 0· Place-maximum outlets and service centers 0· Product -varieties available for various group 0· Promotion -various schemes for prepaid and postpaid Marketing Strategy Airtel strategy is to be leader in:ᄋ ᄋ ᄋ Innovations Network Offers and Services Strategy of making customers educated about the services like: - .MARKETING STRATEGY AIRTEL: Market Airtel has targeted the bottom of the pyramid .C K Prahalad Concept Market segmentation: ᄋ Geographical segmentation – metropolitan & cities India ᄋ Demographic segmentation .

Charge cost. Price Distribution Build selective distribution Advertising Build awareness Build product and awareness among interest in the mass early adopters and market dealers.plus Offer value added services Price to penetrate market Build Intensive distribution.1. Sales Promotion Increase to encourage brand-switching. Kareena Kapoor. A R Rehman. Increase in number of value added services. Strategies Marketing objectives Introduction Create product awareness and trial Growth Maximise market share Maturity Maximise profits whole defending market share Product Offer a basic product/ service. Increase to build and maintain relationships with customers. Brand Ambassadors: ᄋ Famous celebrities: Shah Rukh Khan. 3. Saif Ali khan. Price to match or best competitors Build more intensive distribution. . Stress brand differences and benefits. 2. Sachin Tendulkar .  “ What is roaming?” “ What is coverage area?” How to make international “ calls?” Airtel adopted the product driven communication to make their products successful in the market and also emotional communication to target younger people. Use heavy sales promotion to entice people to subscribe.

It is growing at the rate of 6 million subscribers per month.VODAFONE: Market Vodafone has targeted the bottom of the pyramid . now Vodafone 0· Ads and promotion Marketing mix: 0· Price-low price strategy 0· Place-maximum outlets and service centers 0· Product -varieties available for various group 0· Promotion -various schemes for prepaid and postpaid Marketing Objectives Vodafone says that they want to be the top mobile service provider of India by the end of the year 2010 . Geographical segmentation – metropolitan & cities India 0· Vodafone wants to expand into the Asian markets. Demographic segmentation: low & middle income group Target market: 0· Market from urban areas from middle and upper middle class families 0· Youngsters in big cities 0· Businessmen Positioning: 0· “Where you go the network follows you” by Hutch.C K Prahalad Concept Market segmentation: Vodafone is adopting a multi-segment approach. 0· India has 2nd largest market for mobile.

which offer customers more value in return for increased commitment – Accelerated £1 billion cost reduction programme.Can I call STD? 0. needed to educate consumers about cellular telephony: 0. too.What is airtime? 0· Vodafone also communicates regularly with its customers to keep them well informed of the benefits of all Vodafone products. iPhone and netbooks with builtin broadband – Revenue growth of 9% in Vodafone Global Enterprise – 1 million new fixed broadband customers.Marketing Strategy ᄋ Our strategic objective is Innovate and delivers on our customers’ total communications needs. closing base of 4. 0· Vodafone. expect to achieve 65% in 2010 – Expanded range of data devices with the BlackBerry Storm.6 million – Nationwide footprint in India – Commenced operations in Qatar since year end – Acquired Gateway in Africa to strengthen total communications portfolio Pursue growth opportunities in total communications – Mobile data – Enterprise – Broadband Execute in emerging markets – Delivery in existing markets – Selective expansion/ cautious approach – Shareholder – Returned over 87% of free cash flow Strengthen capital returns before discipline license and spectrum payments to shareholders in – Clear priorities for the 2009 financial year – In-market consolidation through merger surplus capital of .Can I use my phone in a lift? 0. Focus on free cash flow generation and execution – Value Drive operational enhancement performance – Cost reduction Progress – Launched new products in a number of markets.

Vodafone Australia with Hutchison 3G Australia .

honest and real manner. Zoozoo enters market 0· ZooZoo. Comparing the two rivals. Vodafone introduces Zoozoo. as a brand. round belly but extremely thin arms and legs. always tried to connect with consumers in a simple. has created a furor in the advertising industry.a younger and fun brand. small pseudo-animated character with big egg-shaped head. Airtel chose to use music.” and the actor Irfan Khan were retained for the brand promotions. While Vodafone . the new brand ambassador of Vodafone. 0· The “The Hutch pug. which is not nearly as effectively Airtel still uses the Celebrities and Music com paratively nowhere next to Zoozoo . a character making place in people’s heart efficiency. Competitive Analysis (positioning strategy) Airtel is focused on functionality Vodafone has veered towards and warmth and emotions Vodafone used the powerful visual imagery of a dog.Brand ambassadors: 0· Hutch. Zoozoos have been successful in giving Vodafone a makeover and establishing maximum brand presence.

0· Compensation (including salaries and salary adjustments. the ‘Mantra’ for employee delight focuses on 5 Ps – People. Pride. ᄋ From self-management workshops to aerobics sessions. gifts for anniversaries. Passion. yoga classes to provision of relaxation/meditation rooms. five day weeks. the company ensures that every employee keeps a check on . festival celebration with family. incentives/benefits bonuses. compulsory 10 days off. Processes and Performance. The key functions of the HR Committee include the followings: 0· Employees Development Strategies. 0· Other key issues / matters as may be referred by the Board or as may be necessary in view of Clause 49 of the Listing Agreement or any statutory provisions. These “care” policies and practices are applied across the organizational levels without any discrimination At Bharti Airtel. call center engagement programs etc. no official meetings on weekends. stock options) and performance targets for the Chairman and Managing Director (CMD) and Joint Managing Directors (JMDs) Executive Directors. 0· All Human Resources related issues 0· Attraction and Retention strategies for employees. Some Hr policies and practices include: ᄋ A family-day at office.HUMAN RESOURCE POLICIES AIRTEL: Human resource: Airtel values its human resources and its HR policies are aimed at targeting and retaining best talent in the industry. concierge services. half day leave for birthdays.

Tie-ups with leading health service organizations enable the employees to undertake periodical health check-ups depending upon their age. This facility is also .his/her fitness.

Set up a state-of-the-art learning centre HR steering committee (HRSC) Constant monitoring of employeesgiven individual targets Conducts an internal employee satisfaction survey (PACE) Formal job description documents issued Benefits Has helped the HR department to mould the young entrants to the company. eye check-up camps and stress management sessions. develop and re-certify the employees on a continuous basis To encourage learning within the organisation The committee meets once a week to discuss various initiatives and the plan of action on the same. the company has hired psychologists who undertake personal counseling sessions for employees. Performance indicators The inputs of which go into the company's annual strategy. 0· Performance Linked Incentive (PLI) schemes are linked with the variable component of our compensation structure. 0· The mechanisms like Performance Management System (PMS) and Talent Management Process (TMP) are the key sources of identifying the training needs of the employees and check to competency levels for promotion. Helped in communicating to each of the employees about our expectations from them. Steps Undertaken Young team policy-Average 26 years Invite criticism from the employees Employees decide their training needs Seeks to certify every employee on quality and IT. At many of the locations.extended to employee family members at discounted rates. and established role clarity . they regularly organize health check up camps. Apart from these specific engagements. the Employees have began to play a more pro-active role in team-building efforts Improve Skills and efficiency of the employees To train. The company provides Flexible Group Mediclaim insurance to all employees. covering all kinds of illnesses. This component is linked to both the individual performance against his/ her set KRAs (Key Result Areas) and the overall performance of the business entity that an employee belongs to. With better interaction with the senior managers. 0· Bharti Airtel offers a flexible compensation structure to its employees wherein the employees have the flexibility to structure their fixed component of their compensation according to their requirements within the ambit of legislation. accidents and hospital coverage for serious ailments.

.‘open house' conducted Family group meetings Departments and HR takes up individual grievances Where in issues other than those related to work are discussed.

The Policy 0· It is the policy of the Board of Vodafone Group Plc that the human resources teams will develop and maintain effective terms and conditions of employment and ensure that they are applied equitably and consistently and communicated effectively. potential and opportunities. initiatives and changing skill profiles throughout the Group. . training calendar and the house journal. Recruitment should also recognize the opportunities.HR interface Every member of the HR department has been assigned two departments each to discuss and sort out all HR. to have their concerns investigated promptly and objectively. 0· It is each Local Company Chief Executive Officer responsibility to implement procedures to enable employees who believe they have suffered unfair treatment at work. Recruitment and Managing our People Policy This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures with an interest of 50% or more. HR Intranet Provides information on HR policies. organisational structure. personnel and administration issues. 0· It is the responsibility of each local HR director to put measures and procedures in place and communicate them appropriately to ensure the above objectives are met.. The Policy ᄋ It is the policy of the Board of Vodafone Group Plc to ensure that all recruitment activities are fair and non-discriminatory and both identify and address individual development needs. VODAFONE: Human resource: Employee Rights Policy This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures with an interest of 50% or more.

due to growth in emerging markets and business acquisitions. Vodafone employed an average of around 79. the overall number of people working for Vodafone grew by 9%.ᄋ Each company will implement programmes to ensure employees will receive continuous training in respect of induction. Performance managementeach individual’s ᄋ 96% of employees completed performance to be reviewed with his or performance review. approximately 1. .000 people worldwide during the 2009 financial year. develop and retain the best people by providing a stimulating and safe working environment. 0· People whose jobs were affected by the organizational changes were treated in line with Vodafone policy and good practice on employee relations and consultation. offering attractive performance based incentives and rewarding career opportunities. ᄋ It is the responsibility of the Local Company Chief Executive Officer to put in place policies and procedures and communicate them appropriately to ensure the above objectives are met. Steps Benefits People engagement -Targets and actions Employee engagement increased by four have been identified to build upon and percentage points to 75% sustain the high level of engagement achieved.900 jobs were eliminated. leadership. more agile structure with clearer reporting lines and accountabilities across the Group. 0· Despite these reductions. professional and personal development on any existing or new role. Organisation changes Vodafone changed the shape and size of its organisation during the 2009 financial year to accommodate growth within the business as well as to create a leaner. 0· As a consequent of these changes. The Group aims to attract. People As a global organisation.

95% of employees agreed goals. ᄋ .her manager and career development goals to be set through a performance dialogue.

Vodafone provided an aggregate of 230. cultural and employment requirements. marital status.Training and development- In the 2009 financial year. safety and wellbeing Employment policies Introduction of group wide product safety and assurance policy. . People with disabilities are assured of full Modifications to workplaces are made to and fair consideration for all vacancies provide access and therefore Job opportunities for the disabled. a development Inspire has a total of 70 delegates from across 17 countries on the programme. 13% of senior employees and Equal opportunities and diversity . Launched Inspire. A variety of share plans are offered to incentivise and retain employees. an average of three days per employee. Via job design and the provision of Every effort is made to continue the additional employment of people who become disabled facilities and appropriate training. management bands.offers ᄋ three equal opportunities for all aspects of operating company CEOs are female. ᄋ Increasing importance placed on integration into operating companies in developing markets. ᄋ Policies are developed to reflect local legal. Reward and recognition ᄋ Extension of reward differentiation based on individual performance. disability or religious or political belief. age.000 days of training. 23 nationalities are represented in employment and advancement regardless of ᄋ top race. with a programme for the leaders of tomorrow further intake planned in the 2009 calendar year. nationality. sex. ᄋ ᄋ Vodafone aims to be recognised as an employer of choice. ᄋ Health. Improvement in employee ᄋ wellbeing initiatives.

Comparison of the two rivals Hr policies. .

0· Bharti Airtel concentrates more on Innovation and Product Development e. 0· Vodafone sets a perfect example of a well-laid out marketing strategy. IPTV Services where as Vodafone is known for its Customer Service. It is always updated with the latest data and is highly competent.g. People eagerly waited for breaks between matches to see more stories about Zoozoo.Both Vodafone and Airtel are giving their best towards the Employee Development but Airtel excels with the steps undertaken and even won “Company with the Most Innovative HR Practices in the Asia Pacific Region” at the Asia Pacific HRD conclave held in Mumbai. CONCLUSION 0· Bharti Airtel speedy activity is one of its best attributes that has made it gain an international status across the world. Zoozoo captured attention of nearly two billion people during the IPL. Quality remains the prime concern and is maintained strictly by the team. .

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