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A PROJECT REPORT ON

MARKETING OF AIRTEL DTH


(Advertising & Sales promotion)

BBA(6TH SEM) (Session : 2010-11)

SUBMITTED TO:Mr.Sachin Sinha

SUBMITTED BY:Pratham Srivastava Roll No. -9102580 Section B

ACKNOWLEDGEMENT

I am thankful and highly grateful to my teachers for their continuous support, guidance and help they have extended to me for the completion of my project.

(Pratham Srivastava)

CERTIFICATE

This is to certify that Pratham Srivastava is a bonafide student of B.B.A.-IIIrd semester, IPEM, C.C.S. University of batch 2010-11. He has undertaken and completed this project named Marketing of Airtel DTH includes advertising & sales promotion under my guidance. This is to certify that project work & the contents contained herein are a result of the diligent work conducted by him, originally.

(Mr. Sachin Sinha)

INTRODUCTION

Bharti Airtel

Brief history
Bharti Airtel was established as Bharti Tele-Ventures Limited in 1985. This telecommunication company is a joint stock holding enterprise headquartered in New Delhi. Bharti Airtel, commonly called 'Airtel' is among largest mobile service operator with a subscriber base of nearly 75 million. Airtel has a submarine cable landing station in Chennai connecting this South Indian city to Singapore.

Today, Airtel is the largest cellular service provider in India and fifth largest in the world. Bharti airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. bharti airtel has been ranked among the six best performing technology companies in the world by BusinessWeek. Bharti airtel had 200 million customers across its operations.

Business Divisions
Mobile Division:Experience total cost control, no rentals and easy billing with our postpaid and prepaid services. Explore the world with our roaming services and get absolutely cool offers with airtel live. Bharti airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. Airtel telemedia Services:-

The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with Indias best direct to home (DTH) service digital TV in more than 150 cities Airtel Digital Services:Discover the magical experience of digital enterainment with airtel. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best on-demand content on airtel Live, your TV viewing experience change forever with digital TV from Airtel!

Financials Bharti Airtel till March 2008 had assets worth US $6.61 billion. During period between April 2007 March 2008, it achieved sales amounting to US $6.61 billion and profits of US $0.94 billion. Awards and recognition Bharti Airtel was adjudged 'Best Carrier India' at 2008 Telecom Asia. It was recognized as 'Best Cellular Service Provider' and 'Best Broadband Service Provider' at V&D 100 awards for 2008. In 2007, Bharti Airtel won 'Business Leadership Award' from NDTV Profit.

ORGANISATION STRUCTURE

Corporate Structure of Bharti Airtel

LATEST UPDATES OF BHARTI AIRTEL

Airtel Digital TV records the fastest 5 mn customers


The 5th entrant leads industry net additions with over 2.8 mn customers already in FY 2010-11 Reaches the milestone in 21 months of national operations Fastest by any operator Strengthens leadership in key markets, leading net additions in 10 of the 19 state clusters Expands reach to cover over 21,000 of the 27,000 pin codes across the country - Now has over 70% customers coming in from Tier-3 towns Airtel digital TV The DTH service from Bharti airtel has over 5.1 million customers and is one of the leading national level DTH service in the country which offers its customers MPEG 4 with DVBS 2 currently the most advanced digital broadcasting technologies available in the world after HD broadcasting. Additionally, airtel digital TV was the first to bring many firsts to the DTH segment in India including a Universal Remote which operates both the Set Top Box and TV set as well as several unique Interactive Applications. airtel digital TV recorder was the first to offer the capability to record live television, anytime, anywhere and recently added HD services to its portfolio. Users can also update themselves on the latest stock news. All this is backed by 24x7 customer care. airtel digital TV launched its services in October 2008.

VISION OF AIRTEL

Vision 2010
By 2010 Airtel will be the most admired brand in India Loved by more customers Targeted by top talent Benchmarked by more businesses

Vision 2020
To build Indias finest business conglomerate by 2020 Supporting education of underprivileged children through Bharti Foundation Strategic Intent To create a conglomerate of the future by bringing about Big Transformations through Brave Actions

MISSION OF AIRTEL
Customer service focus Empowered employees Innovative services Cost efficiency

We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more.

Marketing Value
Matching demand to supply Just in Time Marketing Consumer win win approach Customer first thinking Market creation Trust & empathy

Marketing Process & Communication


Point of need communitcation Personalisation Interactive Conversations

Market Analysis
Customer delight Measuring customer satisfaction, channel satisfaction, walk in feedback score Marketing performance Brand performance

Consumer Approach
Anticipates customer needs Transparent in dealing with customers Attending the problems of the customer before ones own Creates energy & excitement at work Goes beyond tasks to attend the emotional needs of people

Market Segmentation & Positioning Bases of Segmentation


Geographical Segmantation Demographic Segmentation Behavioural Segmentation

Positioning of Airtel (Express Yourself)


A decade ago, Airtel positioned itself as an aspirational & lifestyle brand

The target customer was clearly defined: upmarket, professionals & entrepreneurs Airtels power trip logo was black with tagline power to keep in touch Airtel brand then aimed at leadership, be it innovation, network offering or service Tagline indicated it: Airtel celebrates the spirit of leadership & the first choice of corporate leaders In 1999, communication changed to power to touch tomorrow In 2002-03, it was changed to Live Every Moment In 2003, Airtel adopted the Express Yourself positioning which is also its current tagline

Brand Image
Aggressive Market Expansion

Functionality & Efficiency Physical presence Peoples emotions

Brand Management
Unlock consumer scarcities One to One, One to Many relationships Need for a trusted partner Consumer outsource

New Product Development


Towering strength Meet requirement Developing applications

Marketing Environment
Aim to create, capture and deliver value They introduce cutting edge marketing management Emphasize market leader Cross cultural negotiation

Pricing Policy
Dynamic Pricing

Multiple pricing points Value addition to customer Freedom of choice

Marketing Reserve System


Process organization Mass Customization Sector Destruction Integrated Solutions Integrated business design Consumer Spaces Social Responsibility

Product Range

Integrated Telecom Company


Wireless Services
2G/3G Rural Market

Enterprise Services
Carrier Corporate

Telemedia Services

Fixed Line Broadband DTH

Passive Infrastructure
Bharti Infratel Indus Tower

Introduction of Airtel DTH services


Airtel telemedia Services
The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with Indias best direct to home (DTH) service digital TV in more than 150 cities

Discover the magical experience of digital enterainment with airtel. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best ondemand content on airtel Live, your TV viewing experience change forever with digital TV from airtel!

Latest Updates of Airtel DTH


Airtel digital TV records the fastest 5mn customers
The 5th entrant leads industry net additions with over 2.8 mn customers already in FY 2010-11 Reaches the milestone in 21 months of national operations Fastest by any operator Strengthens leadership in key markets, leading net additions in 10 of the 19 state clusters

Expands reach to cover over 21,000 of the 27,000 pin codes across the country - Now has over 70% customers coming in from Tier-3 towns airtel digital TV - The DTH service from Bharti airtel has over 5.1 million customers and is one of the leading national level DTH service in the country which offers its customers MPEG 4 with DVBS 2 - currently the most advanced digital broadcasting technologies available in the world after HD broadcasting. Additionally, airtel digital TV was the first to bring many firsts to the DTH segment in India including a Universal Remote which operates both the Set Top Box and TV set as well as several unique Interactive Applications. airtel digital TV recorder was the first to offer the capability to record live television, anytime, anywhere and recently added HD services to its portfolio. Users can also update themselves on the latest stock news. All this is backed by 24x7 customer care. airtel digital TV launched its services in October 2008.

DTH v/s IPTV v/s Cable

Figure given above showing ARPU(Average Revenue Per User) Customer preference influences ARPU(Average Revenue Per User) Direct-to-home, or DTH, television service providers have quadrupled their share of the market in two years, but lag far behind cable operators in reaching Indian households, according to a study by Hong Kong-based media research and consulting firm Ltd. The share of DTH operators has risen to 17% from 4% in 2007 while that of cable operators declined to 83% from 96%, showed the study. Deep-pocketed companies such as Tata group, Bharti Airtel Ltd and Reliance Communications Ltd have followed Zee Entertainment Enterprises Ltd into the DTH space in India, where they are faced with a high cost of acquiring subscribers and tough competition from cable operators. According to data shared by Media Partners Asia, the acquisition cost for

each subscriber is as high as Rs4,600 and the return on this investment still ranges between Rs85 and Rs200 in terms of monthly average revenue per user (Arpu). The set-top box (STB), or device that connects the television set to the external signal source, is the biggest cost for a DTH company at about Rs2,800, followed by Rs1,000 for the satellite dish. Other costs include installation charges, marketing expenditure and licence fees at Rs500, Rs250 and Rs50, respectively, per subscriber. Tata Sky remains the top Arpu grosser with an average Rs200 a month while Sun Direct, which launched in the northern part of the country a few months ago, has an Arpu level of Rs85, according to Media Partners Asia. With aggressive marketing by DTH operators and the government trying to promote digitization of the Indian cable industry, the research firm predicts that in the next four years, DTH will garner a market share of about 28%. At present, the country has around 15 million DTH subscribers and the industry has a turnover

of nearly Rs2,800 crore. The Delhi Commonwealth Games, scheduled for October 2010, is expected to be a major catalyst for the growth of the DTH market in India, according to Media Partners Asia. The requirement to broadcast Commonwealth Games in high-definition format would provide an impetus to go digital and DTH services are likely to benefit, provided there is subsidization of STB and related equipment, the study says.

Competitors of Bharti Airtel in DTH Services

Unmatched Service & Unmatched Quality of Airtel DTH

Airtel versus other DTH operators


Unmatched Service
Larger dish antenna in high rainfall areas Auto Level Control enabled satellite Multiple recharge options Paper Internet Call Center 24 x 7 customer care support in multiple languages Professionally trained service engineers

Unbelievable Interactive Applications


Entertainment your way 8 screen customized news as per demand More information of cricket and sports Fun way to learn for kids Book cinema tickets to movie shows

Daily forecasts Browse and book travel packages Shop on TV for your favourite brands Get city information Track stock market & sports without moving away form the program you are watching

Exciting world of Airtel Live


Movies on demand - 3 Hindi Movies - 2 English Movies - 4 Regional Movies Loads of short variety programs Exciting games refreshed periodically Amazing interactive applications Watch 6 channels on a single screen with Quick View Radio on TV

Airtel versus other DTH operators


A smart simpler easy to use EPG (Electronic Programme Guide)

Easy & simple to navigate English & Hindi language option

Account balance indicator Customise favorite channel into 4 lists Parental control basis rating & channel

Tomorrows features today

Airtel digital TV provides: Single remote for TV & STB Latest MPEG4 Set Top Box(STB) Great design and sleek looks

Higher in built STB memory, more interactive applications HD ready Low battery indicator

Benefits of DTH over Cable


EPG
Provides a scrolling menu that lists the channels and the programmes currently showing across the channels With Airtels EPG customers can create 4 different lists of his/her favourite channels Airtels EPG provides access to exclusive content on Airtel Live Parental Lock can be activated to block channels that parents dont want their children to

Cable

Customer has to surf and locate the channels and program he/she wants to view Customer has to surf and locate his/her channel one by one Exclusive content is not available to the customer Channels cannot be blocked

Benefits of DTH over Cable


Value Added Services Airtel Digital TV provides a host of Value Added Services like - Movies on Demand - Interactive TV applications - Full program listings of channels for next 7 days - Alarms to remind you of your favorite programs - Parental lock - Special content for your kids - List of favorite channels for easy viewing

Your Cable Operator decides choice of channels and you pay for all channels carried With Airtel digital TV you decide the channel and pay only for what you choose Your Cable Operator doesnt provide service during power cut & has little technical knowledge With digital TV from Airtel you get service assistance in multiple languages 24 hrs x 7 days by trained professionals at our Call Center

Picture & Audio quality


- Your existing cable provides grainy and snowy images & uneven signal strength across channels - With digital TV from Airtel, you get DVD quality picture & uniform high quality signal strength across all channels

Typical Issues with Cable


Inconsistent viewing experience
- Picture quality is often hazy, has snowy effects, freezes - Audio quality varies channel to channel - Frequent power cuts at cable operators end - Frequent cable breakages

Inconsistent customer service

- Poor or no customer service - No uniformity of prices within a locality, same apartment block - Behavioural issues with local cable operator - No freedom to choose set of channels which interests you - No value added services

Growth of DTH service in India

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Figure shown above reprents growth of digital satellite tv in India

Subscibers of DTH and Cable TV services

Figure shown above represents growth of cable tv households and dth subscribers in India

Data Analysis of Airtel

SWOT Analysis

Strengths Largest Telecom Player in India - ~80Mn, 22.6% Strategic Alliance with other stakeholders in Bharti Airtel include SonyEricsson, Nokia - and Sing Tel Pan India Presence Strong Financials

Weakness Outsourcing of Core Systems Lack of emerging market investment opportunity

Opportunities

Threats

Bharti Infratel Cutting Down cost in Rural area Match Box Strategy Scale of Penetration Current Tele-Density 30.6 is still low among developing countries Low Broadband Penetration, Rural Telephoney

India centric Major revenues from India Falling ARPU & AMOU Intense Competition & Shortage of Bandwidth

BCG Matrix

H I GH

Mobile Services DTH & IPTV Broad Band

LOW

HIGH

LOW

GE Matrix of Airtel

High High 5.00 Low

Low

Attractive
3.67

Moderate Attractive2.33 Unattractive

5.00 1.00 2.33 3.67

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Business Strengths
Mobile Airtel Enterprise s

TeleMedi a

Porters Five Forces Model

Environmental Analysis

Demand for VAS & Broadband services Among Youth

Classification of Indian Population


21% 38% Seekers & Strivers 41% Global Indians Aspires

28 % Urban Population Rapid Urbanization Rising Income level

Competitors Analysis

Figure given above represents market share of DTH operators

Core Values

Empowering PeopleTo do their best Being flexibleTo adopt to the changing environment and evolving customers needs

Making it happenBy striving to change the status quo, innovate and energize new ideas with a strong passion and entrepreneurial spirit Openness & TransparencyWith an innate desire to do good Creating Positive ImpactWith a desire to create a meaningful difference in society

Objectives/Goals
To undertake transformational projects that have a positive impact on the society and contribute to the nation building process To Diversify into new businesses in agriculture, financial services and retail businesses with world- class partners To lay the foundation for building a conglomerate of future

Limitations of Airtel

Customer Bargaining Power

Lack of differentiation among DTH service providers Cut throat competition Low switching costs Lack of scarce resources and increasing customer demand

Threats of substitutes
Due to threat of new entrants in the existing market Due to introduction of lower and attractive tariffs offered by the substitutes Due to emergence of new substitutes, cover up the whole existing market and reduce competition ultimately Rapidly changing technology, due to which it becomes difficult for existing competitors to compete in market Due to high infrastructure cost

Advantages of Airtel

Business Strength

Current market share Brand Image Brand Equity Production Capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness

Strategy
Airtel partnered with leading players in telecommunication players across the globe It has managed to work with the best of domain specialists globally and emerge as a world class entity Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants

Operational Strategies

Higher emphasis on ARPU/min- stark contrast with other operators who concentrate on ARPU only Aim to become one stop shop for all DTH services under the Bharti umbrella Exploring opportunities in international markets Hived off tower infrastructure into a separate entity

Performance till date


Bharti Airtel has enjoyed an excellent run ever since the telecom sector opened It has managed to hold on to its leadership position inspite of the presence of other players with deep pockets- Ambanis, Tatas Birlas and Vodafone Has coped well with regulatory changes Continues to attract and delight customers

Future Strategies

Translate its expertise in Indian markets to other emerging economies This could call for acquisitions globally Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland must be exploited

REFERENCES
Bharti Airtel, Annual Report - 2010 Investors Presentation, Bharti Airtel Limited, November,2010 Next Big Spenders Indian Middle Class,Businessweek Business Studies Prof. C.B. Gupta BEST PRACTICES (Building business with Customer focused solutions) Arthur Andersen

THANK YOU!!