Professional Documents
Culture Documents
INTRODUCTION
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COMPANY PROFILE
The company went through some amazing strategic planning. The goal was always larger than
life. Sunil Bharti Mittal rebranded all of his mobile telecom ventures under a single brand
named Airtel in 2003. The company has grown to be India’s largest mobile operator, with
consistent hard work and everyday innovation.
Airtel had always adopted various cutting edge strategies to be one step ahead of competition.
From acquiring regional operators in its early years, rebranding entire operations under one
umbrella to outsourcing activities to various corporations, Airtel always set standards in the
industry.
They are the only company who has every part of its operation excepts marketing, sales
and finance and building the 'minutes factory' model of low cost and high volumes,
outsourced. Their equipment partner is Ericsson, and Nokia and IT support is provided by
IBM.
Airtel built a smart “Minutes Factory” model aiming at low cost and high volume output. By
outsourcing daily operations and retaining core functions like finance, sales, marketing and
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management, the brand built sustainable business model that worked wonders over a period
of time for the company.
The CEO of the company right now is Gopal Vittal,and the Chairman and Managing Director
is Sunil Mittal, the man himself.
HISTORY
In 1984, Sunil Mittal started assembling push-button phones in India, which he earlier used to
import from a Taiwan company, Kingtel, replacing the old fashioned, bulky rotary phones
that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and
entered into a technical tie up with Siemens AG of Germany for manufacture of electronic
push button phones. By the early 1990s, Bharti was making fax machines, cordless phones
and other telecom gear. He named his first push-button phones as 'Mitbrau'.
In 1992, he successfully bid for one of the four mobile phone network licences auctioned in
India. One of the conditions for the Delhi cellular license was that the bidder have some
experience as a telecom operator. So, Mittal clinched a deal with the French telecom group
Vivendi. He was one of the first Indian entrepreneurs to identify the mobile telecom business
as a major growth area. His plans were finally approved by the Government in 1994 and he
launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was formed to offer
cellular services under the brand name AirTel. Within a few years Bharti became the first
telecom company to cross the 2-million mobile subscriber mark. Bharti also brought down the
STD/ISD cellular rates in India under brand name
'Indiaone'.
In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations
to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell
Communications, in Chennai. In 2001, the company acquired control of Spice Cell in
Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay
Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations
were re-branded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom
and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. This
expansion allowed it to offer voice services all across India.
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Airtel launched "Hello Tunes", a Caller ring back tone service (CRBT), in July 2004 becoming
to the first operator in India to do so. The Airtel theme song, composed by A.R. Rahman, was
the most popular tune on that year.
In May 2008, it emerged that Airtel was exploring the possibility of buying the MTN Group,
a South Africa-based telecommunications company with coverage in 21 countries in Africa
and the Middle East. The Financial Times reported that Bharti was considering offering US$45
billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by an
Indian firm. However, both sides emphasise the tentative nature of the talks, while The
Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has more
subscribers, higher revenues and broader geographic coverage. However, the talks fell apart
as MTN Group tried to reverse the negotiations by making Bharti almost a subsidiary of the
new company. In May 2009, Bharti Airtel again confirmed that it was in talks with MTN and
the companies agreed to discuss the potential transaction exclusively by 31 July 2009. Talks
eventually ended without agreement, some sources stating that this was due to opposition from
the South African government.
In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the network
infrastructure for the fixed line business. Later, Bharti Airtel awarded the three-year contract
to Alcatel-Lucent for setting up an Internet Protocol access network across the country. This
would help consumers access internet at faster speed and high quality internet browsing on
mobile handsets.
In 2009, Airtel launched its first international mobile network in Sri Lanka. In June 2010,
Bhartil acquired the African business of Zain Telecom for $10.7 billion making it the largest
ever acquisition by an Indian telecom firm. In 2012, Bharti tied up with Wal-Mart, the US
retail giant, to start a number of retail stores across India. In 2014, Bharti planned to acquire
Loop Mobile for ₹7 billion (US$100 million), but the deal was called off later.
Bharti Airtel Limited ("Airtel"), the world's third largest mobile operator with operations in 20
countries across Asia and Africa, today said that its Treasury division has been adjudged as a
highly commended winner of the Top Treasury Team (Asia) Awards at the Adam Smith Asia
Awards 2015.
4
AIRTEL’S MISSION, VISION AND VALUES THE WAY AHEAD
Mission
Vision
Their vision is to enrich the lives of our customers. Their obsession is to win customers for life
through an exceptional experience
Values
They aim to work towards our vision, driven by our values of AIR - Alive, Inclusive &
Respectful.
Alive
They are alive to the need of our customers. They act with passion, energy and a can-
do attitude to help our customers realise their dreams. Innovation and an
entrepreneurial spirit drive us-if it can”t be done, they will find a way.
Inclusive
Airtel is for everyone. They champion diversity, recognising the breadth and depth of
the communities we serve. They work with them, anticipating, adapting and delivering
solutions that enrich their lives. They do this by having an open mind and embracing
change.
Respectful
They live the same lives as our customers, sharing the same joys and the same pains.
They never forget that they are why they exist. They act eith due humility, always
open and honest, to achieve mutual respect
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OBJECTIVES
1. To do all such things which are incidental or ancillary to the attainment of main
business of the company.
2. To enter into partnership in to any arrangement for sharing profits or losses or any
union of interest. Joint venture, reciprocal concession or co-operation, with any person or
persons of company or companies carrying on or engaged in any business or transaction which
the Company is authorised to carry on.
3. To acquire and take over either the whole or any part of the business, goodwill, trade,
patents and property, assets and liabilities of any person or persons, firm or corporation,
carrying on any business, which the Company is authorised to carry on.
4. To establish branches and agencies of the Company in India and elsewhere and to
discontinue the same whenever necessary.
5. To pay for any property or rights acquired by the Company either in cash, or fully or
partly paid shares or by the issue of the securities or partly in one mode or partly in another,
and generally, on such terms as may be determined.
6. To amalgamate with any other Company having objects altogether or in part, similar
to those of this Company.
7. To advance, deposit or lend money with or without securities, to such persons and on
such terms and as may be expedient and to discount, buy, sell and deal in bills, notes, warrants,
coupons and other negotiable or transferable securities or documents.
9. To exercise and enforce all rights and powers conferred by or incidental to the
ownership of any such shares, stocks, obligations, or other securities including without
prejudice to the generality of the foregoing, all such Powers to vote or control as may be
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conferred by Virtue of the holdings by the Company of some special proportions of the issued
or nominal amount thereof and to provide managerial and other executive, supervisory, and
consultancy services for or in relation to any company on such terms as may be thought fit.
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Airtel (Bharti Airtel Ltd.)
3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL
broadband, IPTV, DTH, enterprise services including national & international long distance
services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and
mobile commerce. Bharti Airtel had over 269 million customers across its operations at the
end of March 2013.
Airtel comes to us from Bharti Airtel Limited - a part of the biggest private integrated telecom
conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include
Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also
manufactures and exports telephone terminals and cordless phones. Apart from being the
largest manufacturer of telephone instruments in India, it is also the first company to export
its products to the USA. Bharti has also put its footsteps into Insurance and Retail segment
in collaboration with Multi- National giants. Bharti is the leading cellular service provider,
with a footprint in 23 states covering all four metros and more than 50 million satisfied
customers.
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SERVICES
Mobile Services
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises,
India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a
new way of life. With a host of great features, also simple to use, Airtel Prepaid makes
everything that you dreamt and believed, possible.
3G
Airtel 3G services are available in 200 cities through its network and in 500 cities through
intra-circle roaming arrangements with other operators. Airtel had about 5.4 million 3G
customers of which 4 million are 3G data customers as of September 2012
4G
Airtel launched 4G services using TD-LTE technology in Kolkata, becoming the first
company in India to offer 4G services. Airtel had 20,000 4G subscribers as of March 2013.
WiFi
Airtel has plans to launch WiFi services in India. It intends to start offering WiFi services in
Delhi NCR, Mumbai and Bangalore in initial phase. All plans will be on secure wireless
broadband internet with unlimited usage and will be session or time based. Users can use the
service by finding a hotspot, selecting airtel WiFi Zone', activating the voucher and then
login to start browsing. Airtel intends to partner with establishments to set up hotspots which
will be termed WiFi Hangout for an establishment owner and WiFi Partner for the cafe and
restaurant owners. Airtel WiFi Partners can offer services at zero investments and can earn
commission on every WiFi session sold.
Airtel Money
Airtel has started a new mCommerce platform called Airtel Money in collaboration with
Infosys and SmartTrust (now Giesecke & Devrient). The platform was launched on 5 April
2012, at Infosys' headquarters in Bangalore. Using Airtel Money, users can transfer money,
pay bills and perform other financial transactions directly on the mobile phone.
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Smart Drive
SmartDrive is navigation app exclusive to Airtel customers. The app features voice-based
turn by turn navigation, real time information update on traffic, approximate time of the
travel on the basis of the traffic situation on the various routes and also lets uers see their
location on the map and plan the journey accordingly. It also suggests the subscriber an
alternate route in case of traffic congestion on the normal route.
Systems and internet peering points from a single location. It will monitor all Airtel and
partner NOCs. In case of an emergency, the NEC will enable the operator to prioritize actions
to restore normalcy and reduce resolution time. iPhone
The iPhone 3G was rolled out in India in 2008 by Airtel. However, high prices and contract
bonds discouraged consumers and it was not as successful as the iPhone is in other markets
of the world. Airtel introduced the iPhone 4 on 27 May 2011 and the iPhone 5 on 2 November
2012.
Enjoy complete clarity when calling with Airtel‟s world-class technology and unbreakable
network coverage that spans over 23 circles across the country.
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are available at a number of outlets across your city. Simply follow the procedure mentioned
below, to recharge your phone.
Prepaid Roaming
Airtel Prepaid comes pre activated with 'National Roaming', so you stay connected no matter
wherever you are. You can also send or receive MMS, check your email and access other
GPRS services while roaming in India as you would in your own city. While traveling abroad
you can receive calls & send or receive
SMS.
Other Services Airtel brings you, a wide range of Services that will change the way you
communicate. Try them and discover a whole new world of fun and excitement.
Voice Mail
When your handset is switched off, or you‟re too busy to answer the phone, Airtel Voicemail
will answer your calls and record a message. The best part is that there's no extra monthly
cost for setting up Voicemail - you just pay for the phone call when you use the service.
Subscription Alerts Get regular alerts on news, jokes, business, health and films on your
Airtel mobile phone with Subscription Services. SMS <SUB NEWS> to 3333 for News,
<SUB JOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts &
<SUB VAASTU> for Vaastu tips.
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Jazz up your messages with pictures, images and video clippings, with MMS from Airtel!
To activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.
Airtel Live!
Make your mobile the most happening entertainment destination with Airtel Live! Airtel
brings you the latest in entertainment and information services, right on your phone!
Airtel Live! WAP Services: Download the latest ring tones, games, wallpapers, videos and
much more. You can also get news clips, watch live TV and download full songs on you
phone. To get Airtel Live! Settings on your phone, SMS 'Live' to
56465 and save the settings that you receive as your preferred connection. Airtel Live! Portal
can be accessed from you GPRS enabled phone, by sending a SMS 'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465, and name the service. For e.g. say ring tones
to download your favorite ring tones. You can also choose a variety of content options like
Live Cricket Commentary, latest National /
International News, Movie Reviews or Stock Market Updates.
Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket,
stocks, on your phone at the touch of a few buttons with Airtel Live! SIM based Services on
your SIM card menu. To download new services on your Airtel
SIM, choose the "What's new" option under the "Airtel services".
You can enjoy a host of services by sending a keyword as an SMS to 56465! Choose
Astrology / Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones. In case you
need assistance SMS, Help to 56465.
Hello Tunes
Tired of that boring old „tring tring‟ on your phone? Well now when a friend calls, you can
make them groove to the hottest new tracks burning up the music charts with Hello Tunes
from Airtel! You get a wide choice of songs in the Popular & New Arrivals categories that
are updated regularly. What's more you can directly call the number for your kind of music,
e.g. call 678005 for English New and
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678001 for Hindi New. This would directly take you to your favorite artist's Hello Tunes
listing.
Forget gifting chocolates, flowers and greeting cards. Say it with a song instead! Gift a Hello
Tune to that special someone. Just call 55055 and choose the song that you want to gift.
Follow the simple voice instructions and key in the 10- digit Airtel mobile number that you
want to gift the Hello Tune to. You will get an SMS notification upon successful receipt of
that gift.
Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative
yet simple new ways to communicate, just when you want to, not just through words but
ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special
people in your special way.
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Easy Billing
Enjoy a host of rich features only with Airtel e-bill. Register free on „My Airtel‟ section and
view your monthly bill with call details for last three months. Sort your calls between personal
and official or analyze your usage, at the click of a button. To change your tariff plan call our
IVR at 121 and leave a request.
Standing Instructions
You can give us standing instructions to debit your credit card account for your monthly
Airtel bills. All you have to do is fill the Standing Instruction
Airtel Services.
Credit limit
Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges
in control, keeps track of your usage and ensures that your mobile phone is not misused.
Should you exceed your credit limit, you will be informed via a voice or a non-voice message
to make an interim payment and reduce your account balance below your credit limit. You
may also choose to pay us an additional refundable deposit to enhance your credit limit or
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opt for our convenient payment method of Credit Card Standing instruction .You can also
make use of ECS facility.
Call long distance calls in India and Overseas with STD / ISD facility on your
Airtel phone.
Airtel's roaming service allows you to stay connected and use your mobile phone to make or
receive calls from almost anywhere in India and also over 160 countries, abroad.
GPRS - Roaming
Use Airtel Postpaid GPRS services, while roaming, to access the internet and office mails
(e.g. BlackBerry services), from almost anywhere in India and abroad.
Say it. In more than just words, with Services from Airtel
Airtel brings you a wide range of Services that will change the way you communicate. Try
them and discover a whole new world of fun and excitement.
Call waiting, call hold, call divert and Caller Line Identification Presentation, help you do
more with your Airtel Postpaid connection!
Conference call
You can hold a teleconference with 5 people simultaneously with Call Conferencing service
from Airtel. In fact, you can set up a conference even when the other five are using a landline
phone. To know more, call customer service at 121.
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Voice Mail
When your handset is switched off, or you‟re too busy to answer the phone, Airtel Voicemail
will answer your calls and record a message. The best part is that there's no extra monthly
cost for setting up Voicemail - you just pay for the phone call when you use the service.
Subscription Alerts
Get regular alerts on news, jokes, business, health and films on your Airtel mobile phone
with Subscription Services. SMS <SUB NEWS> for News, <SUB
JOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts
Jazz up your messages with pictures, images and video clippings, with MMS from Airtel!
To activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.
Airtel Live!
Make your mobile the most happening entertainment destination with Airtel Live! Airtel
brings you the latest in entertainment and information services, right on your phone!
Airtel Live! WAP Services: Download the latest ringtones, games, wallpapers, videos and
much more. You can also get news clips, watch live TV and download full songs on your
phone! To get Airtel Live! Settings on your phone SMS 'Live' to
56465 and save the settings that you receive as your preferred connection. Airtel Live! Portal
can be accessed from you GPRS enabled phone, by sending a SMS 'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465 and say the name of the service. For e.g. say
„Ring tones‟ to download your favorite ring tones. You can also choose a variety of content
options like Live Cricket Commentary, latest National / International News, Movie Reviews
or Stock Market Updates.
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Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket,
stocks, on your phone at the touch of a few buttons with Airtel Live! SIM based Services
on your SIM card menu. To download new services on your Airtel SIM, choose the "What's
new" option under the "Airtel services" menu.
Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword as an
SMS to 56465! Choose Astrology / Horoscope , Cricket,
Bollywood / Hollywood / Indi Pop Ring tones. In case you need assistance SMS „Help‟ to
56465.
GPRS (General Packet Radio Services)Log on to the internet, with GPRS that allows data
transmission at a higher speed. Access e-mails and internet across Airtel's pan-India presence
using 'Mobile Office' with your phone or a phone and laptop both.
TV, enhanced WAP experience and Airtel Data Cards on our high speed network.
Hello Tunes
Tired of that boring old „tring tring‟ on your phone? Well now when a friend calls, you can
make them groove to the hottest new tracks burning up the music charts with Hello Tunes
from Airtel! You get a wide choice of songs in the Popular & New Arrivals categories that
are updated regularly. What's more, you can directly call the number for your kind of music,
e.g. call 678005 for „English New‟ and
678001 for „Hindi New‟. This would directly take you to your favorite artist's Hello Tunes
listing.
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Follow the simple voice instructions and key in the 10digit Airtel mobile number that you
want to gift the Hello Tune to. You will get an SMS notification upon successful receipt of
that gift.
In case you need assistance, dial '121' - our toll-free number, accessible from anywhere
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MARKET SEGMENTATION
In evaluating different market segments the company looks at two factors The overall
attractiveness of the segments and the company's objectives & resources The present market
for Cellular phones, pagers and conventional phones is as follows
Cellular Phones X X X - - -
Pager X X X X - -
Conventional X X X X X -
Phones
X Market Segment Targeted
Airtel has targeted the premium and upper middle class. The rationale behind it is that only
those segments should be targeted who value time and have the paying capacity. It Is also
planning to target the business tourists during their stay in the capital
About 60% of the clientele are top executives of corporate houses. About 15% are foreign
organisations and the rest are professionals and small businessmen.
During the introduction stage there was intense pressure to get consumers across to hook up
with their brand, because getting them to switch brand loyalty later would be hard
So far Airtel marketers have been concentrating totally on the business executive class but
now that the basic viable volumes has beer) built up and prices have declined to a certain
extent they are planning to venture further a field.
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POSITIONING
The product is sought to be positioned as a business efficiency tool. a lifestyle revolution and
a status symbol The emphasis is to remove misconception that the cell phone is an expensive
means of communication and drive home the point that the cell phone is actually a day-to-
day utility
The basic product promise by Airtel is mobility. Airtel's main marketing strategy is to be a
first mover all the time. It has recognized the significance of making the first move-- because
in the field of Communication & Information Technology changes occur at a tremendous
pace.
Effective product segmentation has to be carried on continuously because basic services can
be and will be copied and in time become expected component of the product. Airtel seeks
to carry out this segmentation through provision of new information services and making
new facilities available. The product policy and planning depends on the stage of the product
life cycle. At present the cellular phone market has reached the maturity stage. Since, the
premium segment is nearing saturation the company targeting the upper middle and middle-
middle class. In order to do so Airtel is trying to optimize the price performance package by
offering suitable "product bundling".
This involves the selection of the suitable hardware (handset) and its software (its services.)
with reasonable price in order to deliver maximum price performance to its customers. In
addition, it offers free Airtime services and other concessions to make the prices and thus the
product more attractive. It has also opened a 24 hours customer service.
Only price doesn't serve as an effective differentiator, value added services become the
effective differentiator.
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The "Value Added Services" provided from Airtel are:-
This system is similar to the answering machine - if the user is not able to answer a call for
some reason the caller can leave messages in the voice mail box which can be later retrieved
by the user Short Message Service The short message service is like a two-way pager. It
gives an option of sending and receiving text messages directly from one mobile phone to
another without the intervention of an operator.
This service helps the subscriber to send and receive Faxes, access E-mail, download
computer files from other systems and remotely log on to another computer and surf the
Internet.
Cash Card
The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time in
advance. All it requires is the payment of an initial amount. This is a useful service for
people who travel to Delhi often and those who want to control the expenses on their calls.
Caller ID
To prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude one
or several countries or any geographical region, to permit only local calls, or to limit the
outgoing calls to a listed number.
Besides these some other services provided by Airtel are - Call conferencing, Call broadcast
et cetera.
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It is in the operators -Interest that they not only get many subscribers but also get them to use
the mobile facility frequently. In the early stages getting increases to subscribe may be easier
than getting them to talk since they will find it costlier to use the mobile phone as compared
to a conventional phone [if is believed that initially cell phones would be used by]
Roaming facility is available while the subscriber is travelling. The billing is done in the
home network (Delhi). Roaming facility is available manually* as well as semi-
automatically. Once a subscriber is In any other city or country, where a GSM network is
available, simply insert the SIM card of the local operator Into your handset and start talking.
* Manual Roaming means a separate SIM card is provided for each city
** Semi automatic roaming means one card has the facility for different cities.
Since this is a high-involvement expensive product, the service provider has to fully take
care of the customers.
a) They take personal responsibility to "get" the answer for any problem faced by the
customer
b) They anticipate customers' problems and take pro-active steps to prevent them
c) They give answers to the questions & requests, quickly & efficiently.
d) They have a positive tone & manner while interacting with customers.
30 seconds count.
Airtel realizes that attracting people 'Is easy but converting them into loyal customers is hard,
hence emphasis is on maintaining a 'Smiling and a Friendly
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PRICE AND PRICING POLICY
AIRTEL has realized that the Indian market is price sensitive. Therefore it care of the has
come up with various innovative tariff schemes to take needs of different category of
customers- Generally, the cellular services are more expensive than the land line based
telephone services.
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MARKETING STRATEGY ADOPTED BY BHARTI AIRTEL
Bharti has spent a considerable amount on advertising its mobile phone service, Airtel.
Besides print advertising, the company had put up large no of hoardings and kiosks in and
around Delhi.
The objective behind designing a promotion campaign for the „Airtel‟ services is to promote
the brand awareness and to build brand preferences.
It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. Since
the cellular phone category itself is too restricted, also the fact that a Cellular phone is a high
involvement product, price doesn't qualify as an effective differentiator. The image of the
service provider counts a great deal. Given the Cell phone category, it is the network
efficiency and the quality of service that becomes important. What now the buyer is looking
at is to get the optimum price-performance package. This also serves as an effective
differentiator
Brand awareness is spread through the' campaigns and brand preference through brand
stature. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the
city,' bearing just the company's name and without explaining what Airtel was. In the next
phase the campaign associated Airtel with Cellular only thereafter was the Bharti Cellular
connection brought up. Vans with Airtel logos roamed the city, handing out brochures about
the company and its services to all consumers. About 50,000 direct callers were sent out.
When the name was well entrenched in the Delhiites‟s mind, the Airtel campaign began to
focus on the utility of Cell phone. In the first four months alone Airtel's advertisement spend
exceeded Rs. 4 crores.
As of today the awareness level is 60% unaided. This implies that if potential or
knowledgeable consumers are asked to name a Cellular phone service provider that is on the
top of his/her mind 60% of them would name Airtel. As for aided it -is 100% (by giving
clues and hints etc.).
Brand strength of a product or the health of a brand is measured by the percentage score of
the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy
and a thriving brand.
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Every company has a goal, which might comprise a sales target and a game plan with due
regard to its competitor. Airtel‟s campaign strategy is designed keeping in mind its
marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey
the image of a market leader in terms of its market share.
It tries to portray the image of being a "first mover every time" and that of a "market leader".
The status of the product in terms of its life cycle has just reached the maturity stage in India.
It is still on the rising part of the product life cycle curve in the maturity stage.
The diagram on the left hand side shows the percentage of the users classified into heavy,
medium and low categories. The right hand side shows the revenue share earned from the
three types of users.
Airtel, keeping in mind the importance of the customer retention, values its heavy users the
most and constantly indulges in service innovation. But, since heavy users comprise only 15
- 20% of the population the other segment cannot be neglected.
The population which has just realized the importance of cellular phones has to be roped in.
It is for this reason that the service provider offers a plethora of incentives and discounts.
Concerts like the "Freedom concert" are being organized by Airtel in order to promote sales.
The media channel is chosen with economy in mind. The target segment is not very concrete
but, there is an attempt to focus on those who can afford. The print advertisements and
hoarding are placed in those strategic areas which most likely to catch the attention of those
who need a cellular phone. The product promise (which might cost different 1 higher) is an
important variable in determining the target audience.
Besides this, other promotional strategies that Airtel has adopted are .
(i) People who have booked Airtel services have been treated to exclusive premiers of
blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles
on the German airlines frequent flier's programs.
(ii) There have been educational campaigns, image campaigns, pre launch
advertisements, launch advertisements, congratulatory advertisements, promotional
advertise--ments, attacking advertisements and tactical advertisements.
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DISTRIBUTION
The- company whose operations are concentrated in and around Delhi. It 27 Franchisees
and 15 Distributors- They also have 8 'instant access cash card counters- Each franchises or
distributor can have any number of dealers under him as long as the person is approved by
the Airtel authority. Each franchise has to invest Rupees Ten Lakhs. To obtain a franchise
and should employ an officer recruited by Airtel. This person acts as a liaison between the
company and the franchises. The franchises can it any number of dealers as long as their
territories do not overlap. But unfortunately Airtel has not been very successful in
controlling territorial overlaps of dealers. The franchises can carry out his/her own
promotional strategy. For this the. company contributes
75% of the money and the franchises contributes 25% of the money. The dealers under the
franchisee receive the same commission. The franchises and the dealer obtain the feedback
from the customers and they are sent through the liaison officer on a day-to-day basis to
Airtel. The dealer has to invest Rupees. One Lakh as an initial investment. The dealer of
Airtel are not allowed to provide any other operators' service.
Target set for distributors and the dealers is 100 -150 activations per month. Hence the
dealers can also go for their own promotions like banners and discounts on festivals etc.
The dealer provides service promptly. The consumer on providing the bill of purchase for
26
the handset and proof of residence has only to wait an hour before getting connected. The
staff of the dealers and the franchisees are provided training by the Airtel personnel.
The complaints encountered by the franchisees and dealers are either handset being non-
functional or the SIM Card not getting activated. Anything more complicated is referred to
the main Airtel office in Delhi.
With Airtel, the subscriber wouldn't just get a personal phone that lets him/her be in touch,
always, but also gets a host of benefits that let him/her manage his/her time like never
before.
An Airtel subscriber is provided with a Subscriber Identity Module Card (SIM card) - that
is the key to operating his/her cellular phone. His card activates Airtel cellular services and
contains a complete micro-computer chip with memory to enable one to enjoy one's
cellular phone thoroughly. Each SIM card contains a PIN code (Personal Identity Number)
which may be entered by one.
Just plug your SIM card into your cellular phone, enter the PIN code and it becomes 'your'
personal phone'.
Life Cycle is concerned. Indians are at the beginning of the maturity stage.
27
Introduction Growth Maturity
MARKETING OBJECTIVES
Strategies
28
Advertising Build product Build awareness and Stress brand
awareness among interest in the mass differences and
early adopters and market benefits.
dealers.
29
CHAPTER 2
RESEARCH
METHODOLGY
30
2.1 OBJECTIVES OF THE STUDY
• To understand the various Marketing Strategies which Airtel has adopted to survive
in highly competitive cell phone industry.
• To know the specialisation in query resolving cell of the company
• What marketing strategies the Airtel is implementing to defend and increase the
market share
Research as a scientific and systematic search for pertinent information on a specific topic. Research
Methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically. In it we study the various steps that are
generally adopted by a researcher to know not only the research methods or techniques but also the
methodology. We not only talk of the research methods but also consider the logic behind the
methods we use in the context of our research study and explain why we are using a particular
method or evaluated either by the researcher himself or by others.
31
2.4 Types of Research Design
There are different types of research design depend on the nature of the problem and objectives of
the study. Following are the four types of research design:-
Once the groundwork is established, the newly explored field needs more information. The
next step is descriptive research, defined as attempts to explore and explain while providing
additional information about a topic. This is where research is trying to describe what is
happening in more detail, filling in the missing parts and expanding our understanding. This is
also where as much information is collected as possible instead of making guesses or elaborate
models to predict the future - the 'what' and 'how,' rather than the why?
Explanatory research is conducted in order to identify the extent and nature of cause-and-
effect relationships. Causal research can be conducted in order to assess impacts of specific
changes on existing norms, various processes etc. Causal studies focus on an analysis of a
situation or a specific problem to explain the patterns of relationships between variables.
Experiments are the most popular primary data collection methods in studies with causal
research design.
32
2.5 Data collection
Data collection is the process of gathering and measuring information on targeted variables in
an established system, which then enables one to answer relevant questions and evaluate
outcomes. Data collection is a component of research in all fields of study including physical
and social sciences, humanities, and business. While methods vary by discipline, the emphasis
on ensuring accurate and honest collection remains the same. The goal for all data collection
is to capture quality evidence that allows analysis to lead to the formulation of convincing and
credible answers to the questions that have been posed
o Primary data
o Secondary data
• Primary Data: The primary source of data collection is through questionnaire. The
questionnaires are distributed among 65 peoples and the there view is recorded and used in
analyzing the data Secondary sources. Primary source is a term used in a number of
disciplines to describe source material that is closest to the person, information, period, or
idea being studied. In the study of history as an academic discipline, a primary source (also
called original source or evidence) is an arti fact, a document, a recording, or other source
of information that was created at the time under study. If created by a human source, then
a source with direct personal knowledge of the events being described. It serves as an
original source of information about the topic. Similar definitions are used in library science,
and other areas of scholarship. In journalism, a primary source can be a person with direct
knowledge of a situation, or a document created by such a person.Primary sources are
distinguished from secondary sources, which cite, comment on, or build upon primary
sources, though the distinction is not a sharp one. "Primary" and "secondary" are relative
terms, with sources judged primary or secondary according to specific historical contexts
and what is being studied.
33
• Secondary Data :
Target population:- The Target population under this survey are the consumers of mobile
network providers.
SAMPLE SIZE : - The sample size is 65 related people in various different location in Delhi.
Data Collection is an important aspect of any type of research study. Inaccurate data collection
can impact the results of a study and ultimately lead to invalid results. For the above objectives,
quantitative methods were used. Interviews were studied for the employees and structured
Questionnaires were given to them. Then the data was analyzed and interpreted in the form of
tabulation and charts.
34
There are two types of data collection methods used:
Primary data is the data in which the researcher collects data through various methods like
interviews, surveys, questionnaires etc., to support the secondary data.
Primary data collected in this project is using the interview and questionnaire.
Secondary data is data collected by someone other than the user. Common sources of secondary
data for surveys, organizational records and data collected through qualitative methodologies
or qualitative research.
Secondary data used in this project is records of Human Resource Department for the service
file of the separating staffs, various HR Journals, projects and research papers of different
scholars both national and international.
A questionnaire consisting of 18 questions was prepared which consisted of questions like the
working of various welfare committees of the organization and the development systems,
canteen and rest room facilities etc. So, keeping in view all the aspects of research and it
consisted of following types of questions-
35
respondent should decide to rate the situation in along the scale continuum, similar to
Likert questions.
36
CHAPTER 3
Analysis & Data
Interpretation
37
Q1). AGE GROUP
15-21 29
21-28 56
28-35 15
Table 3.1
Age Group
10
6 15-21
4 8.2 21-28
2 28-35
3.2
1.4
0
15-21 21-28 28-35
Chart3.1
Interpretation
As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who
are the maximum users of mobile phones. This segment is the one which give maximum business to the
mobile operators. This segment constitutes the young executives and other office going people. They are
65% of the total people who were interviewed. The next age group are the people who are 28-35 years old.
They are 20% of the total. 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. They are school and college going students
and carry mobile phones to flaunt. They are 15% of the total interviewed people.
38
Q2.) What is your occupation?
Occupation Users
Student 15
Executive 55
Household 20
Other 10
Table 3.2
60
50
40 Others
Households
30
55 Executives
20
Student
10 20
15
10
0
Chart 3.2
Interpretation
Above graph shows that 55% of the total people interviewed are working. So, these people are the
ones who are the maximum users of mobile phones. They are the young executives, managers etc.
who require mobile for their official purposes. The next category is the households 20 %, who are
either housewife, small units which operate from their homes etc. The next segment is the students.
They are 15%of the whole. And 10% of the whole is categories who are the professionals.
39
Q3).What is your satisfaction level with Airtel?
Table 3.3
Satisfied Users
Fully dissatisfied 10
Fully Satisfied 20
Dissatisfied 60
Partially 10
Satisfaction
70
60
60
50
40
30
20
20
10 10
10
Chart 3.3
Interpretation
As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people
are dissatisfied with the customer services provided by Airtel. 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
40
Q4). Which feature of AIRTEL convinced you to use Airtel
Advertisement 23
Scheme 8
Connectivity 58
Goodwill 19
Table 3.4
Satisfaction
80
60
60
40
20
20 10 10
Chart 3.4
Interpretation
The above data shows that the connectivity of the Airtel is its backbone and it is the main reason
that the consumers are using it and the network is still is in usage and goodwill of the company is
at risk and falling at a huge rate.
Usage of Airtel
41
Q5).Which service do you use of Airtel
Usage Users
DTH 10
Internet 25
Mobile Service 64
Others 8
Table 3.5
Sales
80
60
40
64
20
25
0 10 8
Mobile service Internet DTH Others
Chart 3.5
Interpretation
It can be seen from the data represented above that most the customers use Airtel because of its
Mobile service’s rather than any other requirement as it provides them the best service in Airtel in
the service Department.
42
Q6).How much is your monthly expenses?
Expenses Users
500-1000 24
1000-2000 64
Table 3.6
Expenses
80
60
500-1000
40
64 1000-2000
20
24 12 2000 & Above
0
500-1000 1000-2000 2000 & Above
Chart 3.6
Interpretation
People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the
remaining 12% had an expense more than RS 1000, they could the ones having sim connections or
having cash cards and having a lot of business calls on their mobiles.
43
Q7).What makes Airtel different from others?
Factors Users
Connectivity 72
New schemes 14
Tariff plans 32
Other 12
Table 3.7
Influence
10
5
8.2
3.2 1.4
0 1.2
connectivity Tariff Scheme others
Chart 3.7
Interpretation
The above figure shows that connectivity is the favored influencer of Airtel and it persuades consumer to
use the network and later on tariff and schemes play there role in the company.
44
Q8).What type of Airtel service you use?
1.postpaid 2.prepaid
Card Users
Prepaid 46
Postpaid 54
Table 3.8
Cards
56
54
54
52
50
48
46
46
44
42
Prepaid Postpaid
Users
Chart 3.8
Interpretation
The above data shows that earlier prepaid was the favorite of consumers but with the flow of time the time
this preference has shifted towards the postpaid side and now they are in demand as earlier only network
was used for call’s only and now it provides number of facilities like internet etc.
45
Q9).Which was your first choice of cellular service when you want to use mobile phone?
Networks Users
Vodafone 25
Idea 5
Airtel 35
Reliance 15
Others 20
Table 3.9
Users
40
30
20
35
10 25
20
15
0 5
Vodafone Idea Airtel Reliance Others
Users
Chart 3.9
Interpretation
The above graph shows a slice of 50%. These are the total no. of people who are using Airtel. It
seems that people are more aware of Airtel than any other brand. The next popular brand is Hutch.
305 of the people interviewed had Hutch connections. The next popular brand was Idea. 15% people
had Idea connections. As it came very late in the market when Airtel had established it self very
well.
46
Q10). Is your queries resolved by specialists when connected ?
Opinion Users
Yes 87
No 13
Table 3.10
Opinion
100
90
80
70
60
50
87
40
30
20
10
13
0
Yes No
Users
Chart 3.10
Interpretation
The above graph shows the result of the survey that how many people think Airtel is best in its
services. According to the survey done, 95% of the people think that queries resolved by specialists
Airtel only 5% of the people thinks queries doesn’t resolves by specialists.
47
Q11).Type of advertisement you most like in AIRTEL
Advertisement Users
Audio 20
Audio Visual 58
Print 22
Table 3.12
Advertisement
9
8
7
6
5
4 8.2
3
2
3.2
1
1.4
0
Audio Visual Print Audio
Chart 3.12
Interpretation
It can be seen from the above data that audio visual advertisements are still the best mode of reaching the
consumers and influence them
48
FINDINGS
• Airtel is a very successful brand in India as it covers a wide network and is still one of the
best still in network coverage and stands one of the best network in the world and has covers
major of the population coverage.
• There is still scope of improvement as some of the rural and remote areas are not till covered
by any service provider and the company is shifting its focus towards them as well to reach
a wide area and generate loyal customers.
• Business houses are the major users of Airtel as it is better than all other network’s in
broadband coverage and plans are better than any.
• Airtel focuses on its customer’s satisfaction but it can provide some more relaxation to its
users and provide some more incentives for its dealers so that they can be more loyal towards
the company and market it better.
• Company is undertaking extensive promotional activities like advertisements released in
different Medias to create brand awareness in target pulling areas like campuses etc. Free
samples should be distributed among the prospects like free recharge or sims & sales
promotion tools like gifts, contests and coupons must be given to retailers as well as
customers and prospects. Catalogues should be distributed among customers.
• The company is focusing more on the Youth & the untapped areas of the country like rural
areas to hold a strong position in the country and prosper further.
• Company has shifted to its concern to one of the most influential target market i.e. YOUTH
as population concern more on the youth as they consist majority of the population in the
country and are most spenders in today’s age.
• Airtel provides value added packs for its heavy users as to retain them as postpaid
connections are on the rise as compared to prepaid.
• It is used mainly for its mobile network coverage across the globe as it covers a huge area
so its connectivity is high and the goodwill factor comes into play.
49
LIMITATIONS
Every attempt will be taken to obtain the error free and meaningful result but as nothing in
this world is 100% perfect I believe that there will still the chance for error on account of
following limitations-
(2) Time pressure and fatigue on the part of respondents and interviewer.
50
SUGGESTIONS
• Following are the few suggestions to AIRTEL for improving the market share and image
of the products concerned.
• Modification must be brought about in AIRTEL, in terms of quality. Its demand should be
increased and provides its consumer with value added services as to retain them.
• In today’s age the brand must focus on other areas to market it like Malls, theatre and crowed
area to get attention and market it and gather audience interest.
• Most of the respondents are satisfies with the services provided by Airtel to mobile user
steps to be taken to make customers more satisfied but many are still not aware of phone
plus facility and steps are to be taken to popularize it.
• Many of the respondents are not satisfied with the features provided to prepaid users as
compared to Landline users.
51
Conclusion
Activities contributing to company success include identifying emerging trends and integrate
them into operations, respond quickly to technology changes, provide high-quality services,
continue to invest time and money in marketing and advertising, continue to expand into
specialty markets, and stay ahead of the "technology curve‖. The marketing strategies of
cellular service providers are highly dependent upon measuring resources they need in order to
execute their plans and be competitive. Their method includes qualitative and/or quantitative
measurements of competition and by estimating their own company growth, sales, and cash
flows. Their resources are also measured in terms of people, equipment, financial, and critique
to see if the resources fit are adequate for the situation. Resources are available as needed to
meet the technology curve. In general their strengths include business management, accounting
and finance, knowledge of the wireless communications services industry, and experience in
running successful businesses in the past. Therefore, the cellular service providers pride
themselves on their high-quality customer service. Although excellent customer service is
expected, not all provide this. Cellular service providers are available at all times for customer
orders and inquiries.
52
BIBLIOGRAPHY
Robert G. Winch. Telecommunication Transmission Systems. McGraw-Hill New York,
1993.
Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE
Communications Magazine. April 1993.
Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal
Communication Services. IEEE Personal Communications. 1(1), 1994.
C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors,
Cellular Radio Systems, Artech House, Boston, 1993.
www.financialexpress.com
www.wikipedia.com
www.cleartax.com
53
ANNEXURE
❖ QUESTIONNAIRE
➢ NAME:
➢ ADDRESS:
➢ OCCUPATION:
• 15-21 years
• 21-28 years
• 28-35 years
• Student
• Household
• Professional
• Other
• Yes
• No
4. Do you think that Airtel tariff plans are better than others?
• Yes
• No
• Mobile service
• Internet
54
• DTH
• Other
• Friends
• Advertisements
• Relatives
• Other Sources
• Advertisements
• Connectivity
• Schemes
• Goodwill
• Advertisements
• Connectivity
• Schemes
• Audio Visual
• Print
• Audio
• Postpaid
• Prepaid
55
11. How did you come to know about Airtel?
• Friend
• Dealer
• Advertisement
• Other
• Connectivity
• Tariff plans
• New schemes
• Other
• Fully
• Partially
• Distassified
• Fully distassisfied
• 500 - 1000
• 1000 – 2000
56