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A STUDY

ON

“CUSTOMER SATISFACTION ON MOBILE POSTPAID CONNECTION”

AT

BHARTI AIRTEL LIMITED (PUNE)

A Project Report submitted to

INDIRA Institute of Management (AICTE)

In partial fulfillment of requirement for the award of

Post graduate program (degree) in marketing

for the 2009-11 session

Submitted By:

Akhilesh Tomey

Indira Institute of Management (AICTE)

Wakad Pune -

411037

CONTENTS

Chapter-I

Page No.

Introduction

7-10

Company profile

11-17

Product profile

18-20

Literature review

21-24

Chapter-II

Objectives of the study

26-27

Limitations of the study

28-29

Chapter-III

Research methodology

31-38

Chapter-IV

Data Analysis & Interpretation

40-47

Chapter-V

Findings

49-50

Recommendation

51-52

Annexure

53-57

Chapter-VI

Bibliography

59-60

CHAPTER-I

INTRODUCTION

INTRODUCTION

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China

and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947,all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in

1980s

when

the

private

sector

was

allowed

in

telecommunications

equipment manufacturing. In 1985, Department of Telecommunications

(DOT) was established.

It

was

an

exclusive

provider

of

domestic

and

long-

distance

service

that

would

be

its

own

regulator

(separate

from

the

postal

system). In 1986, two wholly government-owned companies were created:

the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In

telecommunications

1990s,

sector

benefited

from

general

the

opening

up

of

economy.

the

examples

Also,

telecom

of

revolution

in

many

other

countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy(NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

COMPANY

PROFILE

About Bharti Airtel Limited:

Bharti Airtel Limited, a group company of Bharti Enterprises, is India’s leading integrated telecom services provider with an aggregate of 62 million customers. Bharti Airtel has been rated among the best performing Companies in the world in the Business Week IT 100. Bharti Airtel is structured into three strategic business units – Mobile services, Broadband & Telephone (B&T) services and Enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 Telecom circles. The B&T business provides broadband & telephone Services in 94 cities. The Enterprise services provide end-to-end telecom Solutions to corporate customers and national & international long distance Services to carriers. All these services are provided under the Airtel brand.Airtel’s high- speed optic fiber network currently spans over 53,000 kms Covering all the major cities in the country. The company has two International landing stations in Chennai that connects two submarine cables Systems - i2i to Singapore and SEA-ME-WE-4 to Europe.

Vision:-

By 2010 Airtel will be the most admirable brand in India.

Loved by more customers

Targeted by top talent

Benchmarked by more businesses.

Bharti Airtel crosses the 62 million customer mark Becomes the

fastest private telecom milestone

company

in

the

world

to achieve this

Enters into the league of the world’s top telecom companies, moves towards top 5 global mobile companies

Adds last 25 Million in just 14 months, accelerates towards the 100 million customer mark.

Rapidly expands network, to roll out across all census towns and over 5, 00,000 villages – covering over 95% of the population.

Bharti Airtel has achieved the distinction of becoming the fastest private telecom company in world to achieve this landmark in a single country within 143 months of start of operations. The 50 million customer base covers mobile as well as broadband & telephone customers. Commenting on this major global landmark, Mr. Akhil Gupta, Joint Managing Director, Bharti Airtel said, “We are delighted to have achieved this major landmark, which puts Bharti Airtel amongst the top telecom companies in the world. It underlines the strength of our unique business model and our vision to provide affordable services like lifetime prepaid to customers across the length and breadth of the country. I would like to thank our partners for having shared our vision. This milestone highlights the emergence of India as one of the top telecom markets in the world and we are proud to have been at the forefront of this growth. Going forward, we believe this growth momentum will remain intact and we are gearing towards the 100 million customers mark.”

Bharti Airtel crossed the 10 million customer mark in November 2004. In July last year, it crossed the 25 million customer mark. The company added the next 25 million customers in just 14 months. This is amongst the fastest rate of customer additions by any telecom company in the world. Mr. Manoj Kohli, President & CEO, Bharti Airtel added, “This is a very proud moment for us and I would like to thank our 50 million customers for believing in Airtel. It is a tribute to our commitment to provide best-in-class services to our customers and lead the market with exciting innovations. Weare committed to create a world-class organization and benchmark it with the best in the world. As the market gets ready for the next wave of growth, we are committed to expanding our telecom networks wider and deeper across the country and partner India’s growth story.” In the mobile business, Bharti Airtel plans to make considerable investments in Network expansion to establish presence in all census towns and over 500,000 villages across India by 2010, thereby covering 95% of the country’s total population. The company’s strategic focus will be on further strengthening the Airtel brand through best-in-class customer service, which is backed by wide national distribution. In the Enterprise business, Bharti Airtel will invest substantially in the long distance business to achieve the scale of a global carrier within next 2-3 years. It is also strengthening the corporate business towards becoming a preferred managed services partner for the top 2000 corporations. In Broadband & Telephone SBU, Bharti Airtel will initiate large-scale deployments of broadband network infrastructure in 94 towns, with a sharp focus on the home and SME segments. It is readying to offer triple play to its customers with the launch of its IPTV service. The company is also looking at commencing national DTH operations by the end of the current fiscal.

ORGANIZATION STRUCTURE

PRODUCT

PROFILE

Normal plan:

Airtel Advantage

– 199

Airtel Freedom 249 -Per second (N)

(Airtel/MH/GSM/21

Airtel Turbo 249 Plan

(Airtel/MH/GSM/22)

Corporate plan:

CUG-149 (For PG Student only) CUG-249 (R1) CUG- 249 AES CUG Gold- 299 CUG platinum- 399

Toppings Available

Local Mobile pack Local Airtel pack Local Landline pack Night pack STD pack Local SMS pack Local + National SMS pack International pack

LITERARATURE

REVIEW

Customer Satisfaction

The Value of Customer Satisfaction by “Andrew Mennie”, General Manager eGain Communications EMEA

What is the connection between customer satisfaction and the bottom line? Ever wondered how much customer satisfaction is worth? We all know and Accept that it is a strategic goal for all organizations involved in the delivery of customer service. Yet in all my experience as a professional in this arena,I have never come across a customer services director who could articulate the Financial value of customer satisfaction to their business. Conversely, I have Never met a customer service Director Who wasn’t measured on it. How Bizarre. Big business is happy to measure it but doesn’t know what its worth.One of the reasons for the difficulty in making the connections, is the Intangibility of customer churn. That is to say, how dissatisfied does a Customers have to be before they leave and sign with the competition? What Might be an intolerable experience for one customer may well exceed all Expectations of another. Then there’s competition. What if there isn’t any?Before deregulation how concerned were the large utility companies with Customer satisfaction or British Telecom comes to that. Interesting therefore That the telecoms sector is where war is being waged on customer Satisfaction Could it that be high customer satisfaction attracts new customers and helps retain existing ones? Sounds like that could be worth something. There is no question that customer satisfaction is difficult to measure, but why Is measurement so essential?

As a student I opened my first bank as an adult with a major high street Bank. They attracted me with their offer of a $ 10 deposit to the account. I Stayed with them through the four years of university, through the gradually increasing overdraft, the unintentional forays beyond the overdraft limit, the lost ATM cards, the replacement cheque books, the minimal deposits, the regular and very small withdrawals. Except for the penalty charges for the Overdraft excursions the bank made very little money out of me, and in fact Incurred untold cost in maintaining me as a student customer. All that effort, clearly with the goal of keeping me in my earning years and reaping back their investment. In fact I felt consciously loyal to them at that point and even recognize that it was my turn to pay them back. So why was their customer service so poor once I became a full-time employee? I stayed with them for several years using them for mortgage service, investment and insurances but eventually churned to one of the first telephone banks. I have been with them a few years now and every time I phone them they are aware of my recent communications with them, request that I have made and they don’t try to sell an unwanted insurance policy at the end of every call.

Ten Basic Rules for Customer Satisfaction

  • 1. Involve top management.

  • 2. Know the customers.

  • 3. Let the customers define what attributes are important.

  • 4. Know the customer’s requirements, expectations, and wants.

  • 5. Know the relative importance of customer decision criteria.

  • 6. Gather and trust data.

  • 7. Benchmark the data against competitors, and identify competitive strength and

weakness.

  • 8. Develop cross-functional action plans that enhance strengths and

Correct weaknesses.

  • 9. Measure performance continually and spread the data throughout the organization.

10. Be committed to getting better and better and better.

CHAPTER – II

OBJECTIVE OF THE STUDY

OBJECTIVES OF THE STUDY

Creating an awareness to Airtel postpaid customers about the facilities in postpaid connections.

Analyzing the problem faced by postpaid customers.

Collecting the data bases of different age group of customers interested in different types of toppings offer.

Motivating the customers to take postpaid connections.

Analyzing which postpaid plan is more used by customers.

Analyzing which type of topping is more used by customers.

Analyzing the satisfaction level of customer towards postpaid connection.

Scope of the study:

The study is conducted on AIRTEL postpaid user at “AIRTEL RELATIONSHIP CENTER”. The study is confined to the area of Pune.

The size of the sample was: 300

LIMITATIONS

The present study is subjected to following LIMITATIONS.

  • 1. Method

of

data

collection

was

becomes a major limitation.

through

personal

interview

and

therefore

bias

  • 2. Due to the time constraints all the customers were not covered.

  • 3. The sample was restricted to 300 customers, which may restrict the scope and completion of study.

  • 4. The scope of study is restricted only to the twin cities of Pune

  • 5. Owing to their pre occupation some customers were unable to answer the complete questionnaire.

CHAPTER-III

RESEARCH METHODOLOGY

MARKETING RESEARCH

Definition of marketing research is approved by the board of the American Marketing Association (AMA) is: “Marketing research is the functions which links the customer and public To marketer through information used to identity and define marketing Opportunities and problems; generate define and evaluate, marketing Actions, monitor marketing performance, and improve understanding of Marketing as a process”. Simply, marketing research is the systematic design, collection, analysis and Reporting of the data findings relevant to a specific marketing situation facing the company. Careful planning through all stages of the research is a necessity. Objectivity in research is all- important. The heart of the scientific method is The objective gathering and analysis of the information. The function of marketing research within a company is to provide the information and analytical inputs necessary for effective.

*

Planning of future marketing activity.

*

Control of marketing operations in the present.

*

Evaluation of marketing results.

*

A research may undertake any of three types of research investigations depending upon the problem. These three types of research included. Basic research

*

Applied research

*

Designated fact gathering

BASIC RESEARCH

It is also known as the pure fundamental research which refers to those studies, sole purpose of which is the discovery of new information. It is conducted to extend the horizon in given area of knowledge with no immediate application to existing problem.

APPLIED RESEARCH

It is an attempt to apply the various marketing techniques, which have been developed as research, first and later on they become applied research techniques. It is an attempt to apply the basic principles and existing knowledge for the purpose of solving the operational problems.

DESIGNATED FACT GATHERING

It refers to a research where the investigator attempts nearly to gather some predetermined data

Marketing Research Process can be carried out through the following steps:

Define the problem and research objectives

Marketing Research Process can be carried out through the following steps: Define the problem and research

Develop the research plan

Marketing Research Process can be carried out through the following steps: Define the problem and research

Collect the information

Marketing Research Process can be carried out through the following steps: Define the problem and research

Analysis and interpretations

Marketing Research Process can be carried out through the following steps: Define the problem and research

Present the findings

DEFINE THE PROBLEM AND RESEARCH OBJECTIVES

In a very sense, this is the heart of the research process. This is the first step, which calls for the marketing manage and marketing research.

RESEARCH PLAN DEVELOPMENT

The second calls for developing the most efficient plan for gathering the needed information. Not to forget the cost or values of research the Marketing manager must estimate process its approval, Research plan calls for decision on

a) Data source

  • i. Primary data to be collected for a specific purpose.

ii.

Secondary data collected for another purpose.

1. Research Approaches: Primary data can be collected in four ways:

1. Observational research

  • 2. Focus group research

  • 3. Survey research

  • 4. Experimental research

  • 2. Research Instruments: Marketing researchers can use questionnaires in collecting of primary data, because of its flexibility, questionnaires is by for the most common

instrument used to collect primary data.

  • 3. Sampling Plan: This plan calls for the three aspects:-

    • a) Define the sampling unit.

    • b) Decide the sample size.

    • c) Decide the sampling procedure whether to use probability or non-probability

sampling methods.

  • 4. Contract method: once the sampling plan has been determined, this has to decide how the subject should be contacted. The choices are mail, telephone or research interviews.

COLLECTION OF INFORMATION

Data collection phase is generally the most expensive and the most phase to error. Carry out the field work, collect data using the instruments, adjust the Problem of not at homes, replaced, refusal to co-operate, biased or dishonest answers.

ANALYSIS AND INTERPRETATIONS

The next to last step is to extract pertinent findings from the collected data.

The researcher edits, code, tabulate the collected data.

PRESENTATION OF FINDINGS

As the last step in marketing research the researchers present the findings. The researchers have to arrange the researched result according to an approved reporting format, get the report typed and bound, present the copies of the report to the concerned authorities.

RESEARCH METHODOLOGY/ DESIGN

The methodology adopted for eliciting the data required for the study was survey method. It is the overall pattern or framework of the project that will dictate as to what information is to be collected, from which sources and by what procedures.

RESEARCH METHOD

Research methodology must be classified on the basis of the major purpose of the investigation. In this problem, description studies have been under- taken, as the objective of the project is to conduct the market share study to determine the share of the market received by both the company and it’ competitors.

DATA COLLECTION

The information needed to further proceed in the project had been collected through primary data and secondary data.

PRIMARY DATA

Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and all the retail outlets sellers using different brands and their competitors were contacted. Survey research is the approach best suited gathering description.

SECONDARY DATA

The secondary data consists of information that already exists somewhere, Having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data includes the information available with the company. It may be the findings of research previously done in the field. Secondary data can also be collected from magazines, newspapers, other surveys conducted by known research agencies etc.

RESEARCH METHODOLOGY

The respondents are the mobile postpaid connection holder with Airtel’s toppings facilities. The survey was carried in city of Pune with the sample size of 300. The survey was carried out with the help of a structured questionnaire, which helps in accomplishing the research objectives. The respondents by means of personal interview administer this

structured ended questionnaire.

CHAPTER-IV

DATA ANALYSIS & INTERPRETATION

PLAN TAKEN BY CUSTOMER Series 1 Others 249 225 199 150 100 50 0
PLAN TAKEN BY CUSTOMER
Series 1
Others
249
225
199
150
100
50
0

In my study I found that most of the customers (40%) having Normal – 199 plan. My plan 149 - (20%), 249 - (10%) & others (30%) It is shown in the above bar diagram

Mode of Payment

Cash Credit Cheque Internet Card Banking Series 1 150 100 50 0
Cash
Credit
Cheque
Internet
Card
Banking
Series 1
150
100
50
0

In my survey I observed that most of the customers paid their bill through cash (45%) & credit cards (35%) respectively. And the rest cheque (18%) & Internet banking (2%).

Toppings taken by customers

Sales 50% 35% 15%
Sales
50%
35%
15%

In my survey I found that most of the customers have taken CUG (50%). It is shown in the above pie diagram.

CUSTOMER'S PROBLEM TOWARDS POSTPAID CONNECTION

Never get 100 150 200 250 Time Time Bill on Charged Bill on Payment 60 Wrongly
Never get
100
150
200
250
Time
Time
Bill on
Charged
Bill on
Payment
60
Wrongly
Never get
Bill
10
20
Series 1
210
0
50

In my survey I found that most of the customers (70%) have faced their problems towards bill payment in counter. 20%, 7% & 3% are those who never receive bill on time, wrongly charged & never get the bill.

TOPPINGS SOLD IN THE MONTHS OF 2010 50 41 40 30 30 20 10 Series 1
TOPPINGS SOLD IN THE MONTHS OF 2010
50
41
40
30
30
20
10
Series 1
March
June
April
May
28
50
0

The interesting observation of this survey is the sales of the toppings were increasing regularly. It reveals that popularity of toppings were increasing through sales. These are the data of only one AIRTEL RELATIONSHIP CENTER.

CHAPTER-V

FINDINGS

  • 1. Customers are satisfied with various plans.

  • 2. It was observed that most of the customers expressed their unhappiness over

billing services. Either they were wrongly charged or they never received bills on time.

  • 3. Senior citizens are very particular about rentals.

    • 4. Through my survey, I came to know that most of the customers are satisfied with our plans and toppings.

  • 4. Through my survey I observed that most of the customers are using STD pack.

    • 6. I observed that most of the customers are using Per second-239 plan.

    • 7. I observed that most of the customers like Airtel advertisement and punch-line

SUGGETIONS

  • 1. To ensure better customer satisfaction & maintain higher level of Customer

relationship management, the billing department has to be more effective & efficient.

  • 2. To

retain

existing

customers

means

offering

the

best

scheme. This could

automatically attract new customers. Airtel need not spend on advertisement to attract

new customers.

  • 3. Airtel should continue to offer the best toppings to stay at the top.

4. There should be no compromise in quality and the network facility

ANNEXURES

QUESTIONNAIRE

  • 1. Customer Satisfaction on Airtel Mobile postpaid & Toppings offer

    • (A) Customer Name

    • (B) Age

    • (C) Mobile No.

    • (D) Occupation

Self Employed

[

]

Government Employee

[

]

Non Government Employee

[

]

Student

[

]

Others

[

]

  • (E) Income per month

Less than Rs 5,000

[

]

Rs 5001 to 10,000

[

]

Rs 10,001 to Rs 20,000

[

]

Above Rs 20,000

[

]

  • 2. Which plan you are using?

  • a. My plan-149

  • b. 249 Delight

  • c. Supersaver-399

d

Others

  • 3. What do you think before taking the connections?

    • a. Rental

    • b. Brand Value

    • c. Network coverage

    • d. All of these

  • 4. How long have you been using Airtel postpaid connection?

    • a. Less than 6 Months

    • b. 6 months to 1 year

    • c. 1 to 2 years

    • d. More than 2 years

    • 5. How you pay your bill?

      • a. By Cash

      • b. By Cheque

      • c. By Credit card

      • d. By Internet Banking

    • 6. Mostly where do you pay your bill?

      • a. Airtel Relationship Center

      • b. E-seva

      • c. Drop Box

    • 7. Which type of problem you are facing in postpaid connection?

      • a. Bill payment

      • b. Never get bill on time

      • c. Wrongly charged

      • d. Never get bill

    • 8. Are you satisfied with Airtel call center executives?

    • a. Excellent

    • b. Good

    • c. Satisfied

    d.

    Unsatisfied

    • 9. Which company’s advertisement and punch lines you like most?

      • a. Airtel [Barriers break when people talk~ Express yourself]

      • b. BSNL [BSNL, Best hai Mere liye]

      • c. Idea [An Idea can change your life]

      • d. Reliance [One nation one tariff]

      • e. Tata Indicom [ Do more live more]

    10. Overall Satisfaction on postpaid connection

    • a. Excellent

    • b. Good

    • c. Satisfied

    • d. Unsatisfied

    • 11. Would you like to give your suggestions to improve the satisfaction level of customer?

      • a. Yes

      • b. No

    If yes specify your suggestions

    10. Overall Satisfaction on postpaid connection a. Excellent b. Good c. Satisfied d. Unsatisfied 11. Would

    CHAPTER-VI

    BIBLIOGRAPHY

    TEXT BOOKS

    Principles of Marketing – Philip Kotler and Gery Armstrong

    Marketing Research – D.D. Sharma

    Marketing Research – Green & Tull

    Websites:

    WWW. BHARTIAIRTEL.IN

    WWW. AIRTEL.IN

    WWW. GOOGLE.COM