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A

PROJECT REPORT
ON
Comparative analysis of Marketing Strategies of
Vodafone & Airtel
UNDER GUIDANCE
Prof. Bharat Bhushan
(Submitted in fulfillment of the requirement for the degree)
MASTER OF BUSINESS ADMINISTRATION

(Marketing)
2008-2010

SUBMITTED BY
Raman Kumar
MBA- 4th SEM.
Roll No.-80907317092

DR. IT BUSINESS SCHOOL


BANUR
1

ACKNOWLEDGEMENT

I Raman Kumar sincerely thankful to all those people who have


been giving me any kind of assistance in the making of this project
report.
I express my gratitude to Mr . Bhart Bhushan, w ho has through his vast
experience and knowledge has been able to guide me, both ably
and successfully towards the completion of the project..
I would hereby, make most of the opportunity by expressing my sincerest
thanks to all my faculties w hose teachings gave me conceptual
understanding and clarity of comprehension, which ultimately made
my job more easy. Cr edit also goes to all my friends whose
encouragement kept me in good stead. Their continuous support has
given me the strength and confidence to complete the project without any
difficulty .
Las t of all but not the least I would like to acknowledge my
gratitude to the respondents without whom this survey would have been
incomplete.
I am also thankful to authority of Airtel & Vodafone for providing me the
information.

(Raman kumar)

DECLARATION
I Raman Kumar, student of Dr. I.T.Businees school Banur hereby
solemnly and affirmly declare that the project of comparative study
between Airtel and Vodafone has been prepared by me. The findings and
analysis made in the project is exclusively the extensive study made in
the form of data collected and its systematic analysis to make the project
a comprehensive one. The data is not copied and will only be used for
academic purpose.

PREFACE
Education becomes more meaningful when its theoretical
aspects are combined with practical experience. These provide an
opportunity to the students to improve their understanding of the studies.
M.B.A. (Marketing) is a course, which combines both its theory
and application as its content of study in the field of Marketing and
commerce as a part of this course
This project is the result of my major project based on
strategies used by two company. Major project is an integral part of
Master of Business Administrator (MBA) course & it aims at providing a
first hand experience of the industry to the students. This practical
experience helps the students to view the real business world closely
which in turn widely influences their conceptions & perceptions.

CERTIFICATE
This is to certify that this project report titled
Comparison Between Airtel & Vodafone Based on their Strategic
Performs.
being submitted by Raman Kumar to Dr. IT Business School in
partial fulfillment of the degree of Master of Business Administrator
(MBA) is a bonafide piece of work on major project report by him under
my guidance & supervision. This report has not been submitted to any
other unit or institution for a degree and diploma. The assistant & help
received by the candidate during the course of investigation have been
acknowledging.

Mr. Bhart Bhushan


Lecturer
Dr. IT Business School
Banur

Dated

CONTENT

PAGE

1.NEED OF STUDY7
2. OBJECTIVE OF STUDY .......8
3. A BRIEF HISTORY OF TELE SECTOR IN INDIA . 9
4. INTRODUCTION OF TOPIC 19
5. SWOT ANALIYSIS ..34
6. COMPARISON OF MARKETING STRATEGIES BETWEEN
AIRTEL & VODAFONE..................................................................... 38
7. REASEARCH METHODOLOGY ......43
8. LIMITATION ........46
9. DATA ANALYSIS AND INTERPERTATION 48
10. CUSTEMOR RESPONSE TOWARDS QUESTIONNAIRE........55
11. CONCLUSION 60
12. SUGGESTION 61
13. BIBLOGRAPHY .62
14. QUESTIONNAIRE .63

NEED OF THE STUDY


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

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this


it is very essential for an organization to know about the view of
consumers and their competitive products. This survey research may be
also aimed as to estimate potential buyer for the product. The objective
of the study is as under:1. To identify the difference between market performance of Airtel
industry and Vodafone.
2. To study the market of Airtel Industry and Vodafone on big scale
telecommunication sector.
3. To compare various parameters of marketing strategies,
manufacturing process technology adopted production policy,
advertising, collaboration, export scenario, future prospect f or the tw o
companies and government policies.
4. To study customer buying behavior and
influence the purchase decision process.

factors

which

5. To know how the company has been successful in encountering the


aggressive marketing strategies of competitors.

A brief history of Tele sector in India


In the early 1990s, the Indian government adopted a new economic policy
aimed at improving Indias competitiveness in the global markets and the
rapid growth of exports. Key to achieving these goals was a world-class
telecom infrastructure.
In India, the telecom service areas are divided into four metros (New
Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly
correspond to the states in India. The circles are further classified under
"A," "B" and "C," with the "A" circle being the most attractive and "C"
being the least attractive. The regulatory body at that time the
Department of Telecommunications (DOT) allocated two cellular
licenses for each metro and circle. Thirty-four licenses for GSM900
cellular services were auctioned to 22 firms in 1995. The first cellular
service was provided by, Modi Telstra in Kolkata in August 1995. For the
auction, it was stipulated that no firm can win in more than one metro,
three circles or both. The circles of Jammu and Kashmir and Andaman
and Nicobar had no bidders, while West Bengal and Assam had only one
bidder each.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was
introduced in the Lok Sabha and the president officially announced the
TRAI ordinance on 25 January 1997. The government decided to set up
TRAI to separate regulatory functions from policy formulation, licensing
and telecom operations. Prior to the creation of TRAI, these functions
were the sole responsibility of the DOT.
High license fees and excessive bids for the cellular licenses put
tremendous financial burden on the operators, diverting funds away from
network development and enhancements. As a result, by1999 many
operators failed to pay their license fees and were in danger of having
their licenses withdrawn. In March 1999, a new telecom policy was put in
place (New Telecom Policy [NTP] 1999). Under this new policy, the old
fixed- licensing regime was to be replaced by a revenue- sharing scheme
whereby between 8-12 percent of cellular revenue were to be
paid to the government.

INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS


AND THEIR RESOLUTION
Indian Cellular market immediately after the first round of licensing
in 1994-96 was beset by several problems for 3 - 4 years till the New
9

Telecom Policy1999 was announced. Some of these roadblocks / current


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

10

Problems in Financial closures due to:


Licensing tenure of 10 years
Large upfront cash requirements from promoters due to heavy license fee
burden in initial stages of deployment Asset based financing approach by
Indian Financial Institutions.
Licensing tenure increased from 10 to 20 years
Large upfront cash requirements for license fee payments mitigated
with migration to sharing mode allowing promoters to deploy more
capital for capital expenditure; project financing being considered by
most financial institutions.
Foreign ownership / change of partner limitations
ownership norms clarified, and change of partners allowed as a matter of
routine allowin ease of entry / exit - paves the way for full control of
businesses by foreign companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber
growth, but with corrective measures taken, market / subscriber base
expected to zoom.
2.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY
The interconnection regime between cellular operators and fixed-line
operators is still biased against the former. Despite the recent gains of
the cellular industry, not everything is rosy. The cellular penetration rate
is still very low at 0.8 percent in a nation of over one billion people.
In recent years, many foreign companies had pulled out from their cellular
joint ventures in India due to the difficult operating environment and
bureaucracy. In 1999 alone, Swisscom pulled out from Sterling Cellular,
Telstra from Modi Telstra and both the Telecom Organization of Thailand
and Jasmine International from JT Mobile. In 2000, Telecom Malaysia
sold its stake in Usha Martin Telecom, and both Shinawatra of Thailand
and Bezeq exited from Fascel. In June 2001 British Telecom exited
from Bharti Cellular. Bell South International has also indicated
11

its intention to pull out from Skycell Communications, and Hong Kongbased Distacom is seeking to sell
its
stake
in
Spice
Communications. First Pacific's (based in Hong Kong) continued
commitment to Escotel is uncertain, and the former is reviewing various
options.
The string of sell-outs notwithstanding, there has been a merger and
acquisition wave sweeping across the Indian cellular industry in recent
years. Hong Kong-based Hutchison Whampoa, via Hutchison
Telecommunications (HK), acquired major stakes in Sterling
Cellular (December1999), Usha Martin Telecom (mid-2000) and
Fascel (September 2000). Through a partnership with local company,
Kotak Mahindra Finance, Hutchison Whampoa practically controls
Fascel and Usha Martin Telecom, thus circumventing the 49 percent limit
on foreign ownership in Indian cellular operators. Hutchison Whampoa
is also the controlling shareholder of Hutchison Max Telecom. Not to
be outdone, Bharti Enterprises another major cellular player
acquired Telecom. Not to be outdone, Bharti Enterprises another
major cellular player acquired.
Communications renamed Bharti Mobinet (August 2000). Bharti also
acquired the Punjab license of Essar and started operations, giving
competition to the lone operator there, Spice Communications.
Going forward, Bharti is likely to merge all its cellular companies
into one entity.
Five companies together bid Rs16.3 billion to bag the licenses for the
fourth operator slots in four metros and 13 circles. Bharti emerged as the
No. 1 bidder with eight new licenses, followed by Escotel with four,
Hutchison with three, and Vodafone and Idea cellular with one each.
Bharti and Hutchison have already commenced operations in all the
circles while Idea is set to launch in Delhi. Escotel and Vodafone have
not made any headway
BHARTI, the third cellular operator for Delhi and Mumbai, started
services in March 2001. BSNL as the third nationwide cellular operator,
launched services in Kolkatta and Bihar in January 2002. This was
followed by Tamil Nadu in July 2002. A nationwide launch was scheduled
for 2 October2002. However, this has been postponed until after mid
October. Once BSNL rolls out its service, most telecom circles will
have four cellular operators. There will be tremendous competitive
pressure, which will result in lower tariffs. Future rate cuts are expected,
which will drive demand together with falling handset prices and the
introduction of prepaid services.
12

In the midst of declining interest in technology stocks, Bharti came out


with its long-awaited initial public offering (IPO) in January 2002.
Leveraging on the success of its cellular service, the company got a
very good response from the primary market. The total size of the IPO
was 185 million shares at a floor price of R s10. The issue was
oversubscribed by more than 2.5 timesnetting Rs8.3 billion. This will be
used to fuel its investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial
general packet radio service(GPRS) in Mumbai. However, large-scale
uptake remains elusive. While both Bharti and Idea have GPRS-enabled
networks, there is caution on their part to launch the service. With hardly
any applications, the success of GPRS remains a question.
In 2005 Hutchison Essar an Indian and hongkong telecommunication
alliance was taken over by the United Kingdom based telecommunication
company name Vodafone telecomm services and comes with the name of
Vodafone essar.
Virgin mobile comes in Indian Territory with the alliance of TATA
telecommunication Maharashtra in 2008.
Mitsubishi a Japanese telecomm services (MTS) company comes in India
in 2009 and take over
Building visibility and awareness
Deviating from competing on the price platform, cellular operators are
actively promoting their brand and service portfolio through highvisibility advertising and promotional campaigns. Cellular operators
like Bharti, Orange and BPL Mobile have been advertising
aggressively on hoardings and kiosks. Public transport like the city rail
system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators
with the establishment of longstanding consumer benefit programs.
Orange in Mumbai offers "Orange Holidays" and"Orange Monsoon
Offers" at very attractive rates and added benefits like discounts on
airfare, food and beverages, among others. Others offer special privileges
in retail outlets, cinemas and music shops.

13

Enterprise mobile applications promising revenue stream


All along, customer acquisition and the top line have been the
focus. Few operators have concentrated on offering differentiated
services for businesses. However, as operators realize that offering basic
voice and Short Message Service (SMS) will get them the numbers but
not the margins, some are now seriously looking at the enterprise
segment for provisioning superior services.
Cost-centered solutions like closed user group (CUG), value-adds
like unified messaging and instant alerts are being offered.
A variety of mobile applications are finding takers among the enterprise
segment. Bharti is in the process of introducing a facility to fleet
management companies so that they can improve the efficiency of
trucks or buses by tracking movement and ensuring higher-use,
accurate route planning. Premium automakers are also installing a
global system for mobile communications inside a vehicle to help trace
lost vehicles and track down stolen cars.
Corporations can choose enhanced services like user-defined call routing
to prevent misuse. Calls can be barred, limiting access to select
numbers and diverting calls to one single number. Broadcasting
services are also quite popular, especially among fast food centers that
have a central number. Group SMS is quite popular, especially among
enterprises both in the service as well as number. Group SMS is quite
popular, especially among enterprises both in the service as well as
number. Group SMS is quite popular, especially among enterprises both in
the service as well as the fast-moving consumer goods (FMCG)
segment that have a large field force and need to provide regular
updates on inventory status, discount schemes and movement of
goods from warehouse to the retail outlet. Banks too find bulk
SMS service very useful to forward transactional alerts to their
customers.
2.3 FUTURE TRENDS AND DEVELOPMENT
There will be more competition, forcing operators to
constantly focus on differentiations to maintain their lead.
The implementation of enhanced networks like 2.5G will enable
operators to offer data services. This is an opportunity to
customize and differentiate better.

14

The entry of state-run operators like BSNL and BHARTI means


that prices will no longer be controlled, thus there is less chance of
a cartel being formed.
Network coverage in terms of geographic spread and
quality of coverage is crucial especially for the business
subscriberThe bigger the service provider's national presence, the
better it is for businesses. On the roaming front, signing up with a
national operator is advantageou
Limited mobility wireless in local-loop services (by fixed network
service providers) will be a disadvantage for cellular operators in
the short term. Consequently, operators need to streamline their
customer relation activities and adopt
aggressive subscriber
acquisition and retention strategies
2.4 REGULATORY ISSUES
The operations of this sector are determined as under the Indian
Telegraph Act of 1885. A document buried in the sands of time. The
next major policy document, which was produced, was National Telecom
Policy of 1994, a consequence of the on going process of liberalization.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
1985 DOT was created
1986 Creation of BHARTI and VSNL
1991 Telecom equipment liberalized
1994 Licenses for paging
1994 Telecom policy announced

15

September 1994 Guidelines for private sector participation in basic


services
November 1994 Cellular licenses issued for metros
December 1994 Tenders for cellular licenses in 19 cities apart from 4
metros
January 1995 Tenders for 2nd operator in basic services apart from
DOT on circle basis
August 1995 VSNL launches Internet services
January 1996 TRAI formed
November 1998 Internet policy announced
The National Telecom Policy of 1994 document, which laid out broad
policy guidelines rather than a series of action points. Like other policies,
it sought to achieve the impossible in finite time like improve quality of
service and its availability, wide coverage (a phone in every village), at
reasonable rates, etc. The targets in quantifiable terms were installation of
9.5mn additional lines, telephone on demand by 1997, and a PCO pop of
500. The Eighth Plan had also allowed private operators in value added
services. To facilitate licensing, the nation was divided into 20 circles(akin
to a state) for basic and 21 circles for cellular telephony. Mumbai falls in
Maharashtra circle and Delhi in itself a circle.
The basic premise on which competition has been introduced is that every
circle will have one private operator apart from DoT/ BHARTI for basic
and two operators for cellular. DoT/ BHARTI have the option to become
the third cellular operator in future.
Government did not achieve most of its stated targets. The basic theme,
which was broadening the reach of telephony in India, has not been met.
Even liberalization policies were not implemented properly. The regulator
TRAI was set up after delays and confusion and even after its creation
DoT continued to fight with it in courts. It was also affected by the
resource crunch, and financing options like BOT, BOOT and BOLT was
not used at all. The major policy direction it showed was to allow private
sector entry in both basic and value added services. The intention, though
noble failed to achieve its goals because of improper implementation, the
economic costs are still borne by the end user.
16

The telecom sector has witnessed some fundamental structural and


institutional reforms in the past decade.
Telecom
equipment
manufacturing was completely deregulated in 1991. Value-added
services (including cellular services) were thrown open to private sector
participation in 1992. Basic services
were opened to private
participation in 1994 by dividing the country into 21 telecom
Circles and allowing one private operator per Circle to
compete with DOT. An independent telecom regulatory Authority of
India was set up in 1997. A new Policy for Internet Service Policy
Providers (ISPs) was announced in 1998 allowing independent service
providers to enter the sector ending the earlier monopoly of
VSNL. Reorganization of DOT, separating policymaking function and
service provision and corporatization of DOT's operational network are
two major institutional reforms, which need to be implemented.
Scope of the study
To conduct this research the target population was the mobile
users, Who are using GSM technology.
Targeted geographic area of Delhi/ NCR. Sample size of 50 persons
was taken.
To these 50 people a questionnaire was given, the questionnaire was
a combination of both open ended and closed ended questions.
The date during which questionnaires were filled.
Some dealers were also interviewed to know their prospective.
Interviews with the managers of GSM service providers were also
conducted.
Finally the collected data and information was analyzed and
compiled to arrive at the conclusion and recommendations given.
Sources of secondary data
# Internet
# Magazines
# Journals
# Bharti Circulars Store
# Vodafone Store
# Vodafone Ministore
17

SYNOPSIS
Telecom Sector In India
Than 125 million telephones network is one of
the largest
communication networks in world, which continues to grow at a
blistering pace.
The rapid growth in the telecom sector can be attributed to the various
pro-active and positive policy measures taken by the government
as well as the dynamic and entrepreneurial spirit of the various
telecom service providers both in private and public sector. The telecom
sector has shown impressive growth during the past decade.
Two striking features of this growth viz. increasing preference for
mobile phones and higher contribution of private sector in the
incremental growth have predominated the etlecom sector. The share
of mobile phones (including WLL mobile) has overtaken the share of
landlines with 62% in the total number of phones. The private sector's
contribution is
also increasing rapidly. Currently more than 30 lakh phones are being
added each month and it is targeted that by the end of 2008 the total
number of phones may reach a level of350 million taking the tele-density
to more than 30% which is currently at 24.63%.
Network Expansion:- The total number of telephone subscribers has
reached 281.62 million at the end of January 2008 as compared to 232.87
million in July 2007. The overall Teledensity has increased to 23.63% in
January 2008 as compared to 21.20% in August2007.
Wireless Service:- The wireless segment saw a surge of 8.77 million
subscribers last month compared to 8.17 million in December2007. This
pushed the total wireless subscribers base to 242.40 million by Jan 31
2008
Wire line Subscribers:- The wire line segment subscriber base stood at
39.73 million with a decrease of 0.16 million at the end of January 2008.
Teledensity:- The gross subscriber base reached 206.83 million at the end
of March 2007. The Teledensity is 24.63%at the end of January 2008 as

18

compared to 18.31% at the end of March 2007, registering an increase of


6%.
Increasing Role of Private Sector:- The private sector has played a
significant role in the growth of telecom sector. The share of private
sector has risen to 85 per cent in December2007 from 64.14 per cent in
November 2006
Tariff Rebalancing Measures:- There has been a dramatic fall in
the tariffs due to increased competition. The minimum effective
charges for local calls have fallen considerably in recent months
especially for cellular service. The long distance domestic as well as
international charges have also fallen considerably.
Telecom Regulatory Authority of India (TRAI): TR AI was
established under the Telecom Regulatory Authority of India Act, 1997
enacted on March 28,1997. The goals and objectives of TRAI are
focused towards providing a regulatory framework that facilitates
achievement of the objectives of New Technology Policy (NTP) 1999.
TRAI has endeavored to encourage greater corporation in the telecom
sector together with
better quality and affordable prices.

Introduction Of the Topic


The project is an extensive report on how the Airtel Company markets
its strategies and how the company has been able in tackling the present
tough competition and how it is scooping up by the allegations of the
quality of its products. The report begins with the history of the pr
oducts and the introduction of the Airtel Company. This report
also contains the basic marketing strategies that are used by the
Airtel Company of manufacturing process, technology, production
policy, advertising, collaboration, export scenario, future prospect and
government policies. The report includes some of the key salient
features of marketer end issues.
In today s world of cutthroat fierce competition, it is very essential to not
only exist but also to excel in the market. Todays market is enormously
more complex. Hence forth to s ur vive in the market, the company not

19

only needs to maximize its profit but also needs to satisfy its
customers and should try to build upon from there

AIRTEL
Company profile
AIRTEL is a brand of telecommunication services in India operated by
Bharti Airtel. Airtel is the largest cellular service provider in India in terms
of number subscribers. Bharti Airtel owns the Airtel brand and provides
the following sevices under the brand name Airtel: Mobile Services (using
GSM Technology), Broadband& Telephone Services (Fixed line, Internet
Connectivity(DSL) and Leased Line), Long Distance Services and
Enterprise Services (Telecommunications Consulting for corporates). It
has presence in all 23 circles of the country and covers 71% of the current
Focus on satisfying and retaining customers by ensuring high
level of customer satisfaction;
Leverage strengths of its strategic and financial partners; and
Emphasize on human resource development to achieve operational
efficiencies.
population (as of FY07.Leading international
companies such as Vodafone and SingTel held

telecommunication

partial stakes in Bharti Airte.


Vision
"As we spread wings to expand our capabilities and explore new horizons,
the fundamental focus remains unchanged: seek out the best technology
in the world and put it at the service of our ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire
plan of action.
Bharti Enterprises has been at the forefront of technology and
has revolutionized telecommunications with its world-class products and
services.
in 1985, Bharti has been a pioneering force in the telecom sector. With
many firsts and innovations to its credit, ranging from being the first
mobile service in Delhi, first private basic telephone service provider in
the country, first Indian company to provide comprehensive telecom
services outside India in Seychelles and first private sector service
20

provider to launch National Long Distance Services in India. Bharti had


approximately 3.21 million total customers nearly2.88 million mobile
and 334,000 fixed line customers. Its services sector businesses
include mobile operations in Andhra Pradesh, Chennai, Delhi,
Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata,
Madhya Pradesh circle Maharashtra circle, Mumbai, Punjab, Tamil
Nadu and Uttar Pradesh (West) circle. In addition, it also has fixed-line
operations in the states of Madhya Pradesh and Chhattisgarh, Haryana,
Delhi Karnataka and Tamil Nadu and nationwide broadband and long
distance networks.
Bharti has recently launched national long distance services by offering
data transmission services and voice transmission services for calls
originating and terminating on most of India's mobile networks.
The Company is also implementing a submarine cable project connecting
Chennai- Singapore for providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and
cordless phones. Apart from being the largest manufacturer of telephone
instruments, it is also the first telecom company to export its products to
the USA.
Bharti Tele-Ventures' strategic objective is to capitalize on the
growth opportunities that the Company believes are available in the
Indian telecommunications market and consolidate its position to be
the leading integrated telecommunications services provider in key
markets in India with a focus on providing mobile services.
The Company has developed the following strategies to achieve its
strategic objective
Focus on maximizing revenues and margins;
Capture maximum telecommunications revenue potential with
minimum geographical coverage;
Offer multiple telecommunications services to provide customers
with a "one- stop shop" solution;
Position itself to tap data transmission opportunities and
offer advanced mobile data services;
21

Focus on satisfying and retaining customers by ensuring


high level of customer; satisfaction;
Leverage strengths of its strategic and financial partners;
and.Emphasize on human resource development to achieve
operational efficiencies.
Businesses
Bharti Tele-Ventures current businesses include
Mobile services
Fixed-line
National and international long distance services
VSAT, Internet services and network solutions
Broadband services with DSL and Wi-Fi network
Competitive Strengths
Bharti Tele-Ventures believes that the following elements will contribute
to the Company's success as an integrated telecommunication services
provider in India and will provide the Company with a solid foundation to
execute its business strategy a solid foundation to execute its business
strategy
Nationwide Footprint - approximately 92% of India's total mobile
subscribers resided in the Company's fifteen mobile circles.
These 15 circles collectively accounted for approximately
56% of India's land mass.
Focus on telecommunications to enable the Company to better
anticipate industry trends and capitalize on new
telecommunications- related business opportunities.

22

The strong brand name recognition and a reputation for offering


high quality service to its customers;
Quality management team with vision and proven execution
skills; and
The Company's strong relationships with international strategic
and financial investors such as SingTel, Warburg Pincus,
International Finance Corporation, Asian Infrastructure Fund
Group and New York Life Insurance.
Brand Architecture:
Bharti is working on a complex to three-layered branding architecture

BHARTI AIRTEL
(Cellular

TOUCHTEL
(Basic Service

INDIA ONE
(National Long

Operations)
Distance)

Operations)

Airtel - The flagship brand for cellular operations all across the
Indian country.
Touchtel- The brand earmarked for basic service operations.
India One- The brand for national long distance (NLD) telephony
Though the costs of creating new brands are heavy but the group wants to
createdistinct independent brands to address different customers
and profiles.
Brand Strategy
To understand the brand strategy, lets first look at the brand building
exercise associated with Airtel a brand that had to be repositioned
23

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

24

The leadership series was okay when you were wooing the crme de la
crme of society. Once you reached them you had to expand the market so
there was need to address to new customers By that time, Bharti was
already the leading cellular subscriber in Delhi with a base of 3.77 lakh (it
now has 1.8 million customers). And with tariffs becoming more
affordable as cell companies tasrted cutting prices it was time to
expand the market.
How could Bharti leverage this leadership position down the value chain?
Surveys showed that the concept of leadership in the customers minds
was also changing. Leadership did not mean directing subordinates
to execute orders but to work along with a team to achieve
common objectives it was, again, a relationship game that needed to be
reflected in the Airtel brand.
Also, a survey showed that 50 per cent of the new customers choose a
mobile phone brand mostly word-of-mouth endorsements from friends,
family or colleagues. Thus, existing customers were an important tool
for market expansion and Bharti now focused on building
closer relationships with them.
That is precisely what the brand tried to achieve through its new
positioning under the AirtelTouch Tomorrow brand campaign. This set
of campaigns portrayed mobile users surrounded by caring family
members. Says Sachdev: The new campaign and positioning was
designed to highlight the relationship angle and make the brand softer and
more sensitive.
As it looks to expand its cellular services nationwide to eight new
circles apart from the seven in which it already operates Bharti is now
realizing that there are new compulsions to rework the Airtel brand, and
a new exercise is being launched to this effect. Right now, the
company is unwilling to discuss the new positioning in detail. But broadly,
the focus is on positioning Airtel as a power brand with numerous regional
sub-brands reflecting customer needs in various parts of the country.
If Airtel is becoming more humane and more sensitive as a brand, Bharti
has also understood that one common brand for all cellular operations
might not always work in urban markets that are now getting increasingly
saturated.

25

To bring in new customers, the company decided that it needed to


segment the market. One such experiment, launched last year, is Youtopia,
a brand aimed at the youth in the 14 to 19 age bracket and for those who
are young at heart. With its earlier positioning, Airtel was perceived
as a brand for the well-heeled older customer; there was nothing for
younger people. With Youtopia Airtel hoped to reverse that In order to
deliver the concept, Airtel offered rock bottom tariff rates (25 paise for 30
seconds) at night to Youtopia customers a time when they make the
maximum number of calls. It also set up merchandising exercises around
the scheme like a special portal for young people to buy things or bid
for goods.
The company is now looking at offering other services at affordable
prices to this segment which include music downloads on the mobile
and bundling SMS rates with normal calls to make it cheaper for young
people to use. The other experiment that Bharti has worked on is to go in
for product segmentation through the Tango brand name. The brand was
created to offer mobile users Internet-interface services or what is known
as WAP (Wireless Application Protocol).
The idea was to bring Internet and mobile in perfect harmony. The
name was chosen from the popular movie title It Takes basically, you
need the two services to tango to offer customers a new choice, says
Sachdev.
This, however, had less to do with the branding exercise as with
inefficiency of service (accusingly slow download speeds) and the limited
utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated
that the branding exercise could be revived because Tango will be the
brand to offer GPRS services or permanent Internet.

26

The Magic
Perhaps the more ambitious experiment has been with the pre-paid card.
The idea was to make the brand affordable, accessible and, most
importantly, feasible as a means of expanding the market even faster.
PHASE I
Magic was aimed at bringing in infrequent users of a mobile phone into
the market and assure him that he would have to pay only if he made a
call. Such a customer used the phone sparingly- mostly for emergencies
and was not willing to pick up a normal mobile connection with its
relatively high rentals (pre-paid cards do not include rental charges).
To achieve its objectives Bharti did three things.
One, the product was made available at prices ranging from Rs 300
to Rs 3,000 with no strings attached and was simple to operate.
Two, the product was made accessible and distributed through
small stores, telephone booths and even kirana shops so that the
offering was well within arms reach.
Third, to make the product more approachable to the customer,
the company came with vernacular ad campaigns
LikeMagic Daalo Say Hello
This apart, the company roped in Karisma Kapoor and Shah Rukh Khan
for a major ad campaign all across Delhi, a ruse that saw the number of
subscribers go up from 5.47 lakh to 1.2 million today, overtaking Essars
branded pre-paid card Speed, which was launched much ahead of Magic,
which was launched much ahead of Magic. The company is now reworking its Magic strategy even further.
Earlier, the branding strategy was aimed at roping in only
interested customers - that is, customers who were already inclined
27

to opt for mobile services. But now, with basic service providers
having been allowed limited mobility at far cheaper rates, mobile service
providers could find themselves under threat again.
That is why the new exercise is aimed at co-opting non-adopters. While
the exact strategy is under wraps, insiders say the new branding strategy
would be aimed at offering them value which they had not perceived
would be available from using a pre-paid card.
PHASE II
Bharti used Airtel Magic to build a strong value proposition and
accelerate market expansion through Indias first national pre-paid card
TV brand campaign
First time ever in India - any pre-paid card brand goes on TV
A combination of the film genre exposed through the TV medium
designed to connect with the masses of Indi
Youth based - romance driven strategy platform makes the value
proposition of Airtel MagicMumkin Hai come alive
All elements - user imagery, context, tone & language created to
connect the category to the lives of the SEC B & SEC C segment
the middle class non-mobile user.
Airtel Magic positions itself on the platform of being excellent
for emergency situations increasing productivity as a part of
everyday life.
Sharukh Khan makes everything in life possible while
romancing pretty Kareena Kapoor with Airtel Magic, Indias
leading pre- paid mobile card.
Airtel today unveiled its strategy for market expansion with the
launch of its new Airtel Magic pre-paid card brand campaign
Magic hai to Mumkin hai. The strategy is targeted at the non user
segment defined as young adults, 15-30 years of age; in the Sec B &
C segment is aimed at acceler ating market expansion. The value
proposition is centered around a persons desire to make all his / her
dreams, ambitions & aspirations instantly possible. The new campaign
for Airtel Magic is all about empowering millions of Indians to be on top
of their lives.
28

The brand is positioned to be relevant to the mass-market who want to


make all their dreams hopes & desires come alive instantly. (At just
Rs.300/- per month Airtel Magic is so easy to.) Improving productivity,
letting you befriend the world and opening up new horizons.
It gives you the freedom to control your life in a way never possible
before. Indeed, anything that think is possible is possible with Airtel
Magic. The new brand slogan Magic hai to Mumkin Hai.
This strategy is designed to help us talk to this segment directly in the
tone, manner & language of the masses. The Mumkin hai value
proposition will help us expand the market and gain a higher percentage
of market shares in the process.
Brand ambassadors Shahrukh Khan and Kareena Kapoor embody this
can do or Mumkin
Hai spirit (infact that is the reason they were
selected as brand ambassadors). Sharukh rose from a TV actor to become
Indias top film star and national heartthrob. Kareenas success is due to
her attitude, talent, hard work and the sheer ability to make a mark in
such a short time. Both these stars have said Mumkin hai and made it
happen for themselves
The genre of this new strategy & campaign is Hindi cinema led. This
genre connects millions across India.
The spirit of romance,
dancing the Indian cinema, well known to most as Bollywood,
holds millions of Indians together as one.
The new TV campaign of Airtel Magic crafted in the Hindi film idiom,
magnifies the empowering optimism of Mumkin Hai, in the endearing
situation of a boy-girl romance. Where Sharukh Khan, sets his eyes
on Kareena Kapoor and wins her love with the help of Airtel
Magic(Poignantly conveying that special feeling we all get when a dream
is made possible and a victory of the heart is won).
The strategy & new brand campaign is targeted at the large untapped
base of intending mobile customers from Sec A, B & C. The estimated
addressable market of such customers in the next two years is around
25 million in Airtels 16 states. The new strategy aims at correcting
the perception that the mobile category is useful mainly for business or
work related scenarios.
The new strategy, brand positioning & brand slogan is an outcome of an
extensive nationwide research and is an integral part of Airtel Magics
new multi-media campaign. The campaign has been created by Percept
29

Advertising

PHASE III Bharti used Airtel Magic to build a strong value proposition and
accelerate market expansion through Indias first national pre-paid card
TV brand campaign.
First time ever in India - any pre-paid card brand gives such freedom to
recharge any value
A combination of the film genre exposed through the TV medium
designed to connect with the masses of India.
Youth based - romance driven strategy platform makes the value
proposition of Airtel Magic - Aisi azaadi aur kahan? come alive
Sharukh Khan Makes everything in life possible Airtel today unveiled its
strategy for market expansion with the launch of its new Airtel Magic prepaid card brand campaign Magic Hai to Mumkin Hai. . The value
proposition is centered on a persons desire to make all his / her dreams,
ambitions & aspirations instantly possible. The new campaign for Airtel
Magic is all about empowering millions of Indians to be on top of their
lives.
The brand is positioned to be relevant to the mass-market who want to
make all their dreams, hopes & desires come alive instantly .At a
amount of your choice you can recharge your account with available
validity time .Improving productivity, letting you befriend the world and
opening up new horizons. It gives you the freedom to control your life in
a way never possible before. Indeed, anything that you think is possible is
possible with Airtel Magic. The new brand sloganAisi azadi aur kahan
has been specially created to capture this effectively.
Other Brand Building Initiatives
The main idea is to stay ahead of competition for at least six
months. Working on the above game plan Bharti is constantly
coming up with newer product offerings for the customers.
The focus, of course, is to offer better quality of service.

30

To make the service simpler for customers using roaming


facilities, Airtel has devised common numbers for subscribers
across the country for services like customer care, food services
and cinema amongst others.
It will also launch a unified billing system across circles so,
customers moving from one place to another do not have to close
and then again open new accounts at another place.
To assist customer care personnel to deal with subscriber queries,
a storehouse of 40,000 frequently asked questions and their
answers have been stored on the computers.
Bharti expects that most of its new customers (one estimate is that
it would be 60 to 70 per cent of the total new subscriber base)
would come from the pre-paid card segment. So, they must be
given value-added products and services which competitors dont
provide.
Bharti, for the first time for a cellular operator, has decided to offer
roaming services even to its pre-paid customers, but the facility
would be limited to the region in which they buy the card. To
ensure that customers dont migrate to other competing services
(which is known as churn and ranges from 10 to 15 per cent of the
customer base every month), the company is also working on a
loyalty program. This will offer subscribers tangible cash benefits
depending upon their usage of the phone.
The loyalty program will not be only for a badge value, it will
provide real benefits to customers. The idea is to create an Airtel
community.
Another key area which Bharti is concentrating its attention upon is
a new roaming service launched in Delhi under which calls of a
roaming subscriber who is visiting the city will be routed directly
to his mobile instead of traveling via his home network.
The company also offers multi-media messaging systems under
which customers having a specialized phone with a in-built camera
can take pictures and e-mail it to friends or store it in the phone.
The cost per picture is between Rs 5 to Rs 7.
Bharti is also aware that it has to make owning a ready-to- use
31

cellular service much easier than it is today. A key area is to


increase the number of activation centers. Earlier Bharti had 250
Airtel Connect stores which were exclusive outlets (for its services)
and about 250 Airtel Points which were kiosks in larger shops. Now
activation can be done by all of them, and not only by Connect
outlets, all within 15 to 20 minutes. In comparison, the competition
takes two to four hours.
Pre- paid cards are really catching up with the mobile phone users
and it is actually helping the market to increase.
First, they are easier to obtain and convenient to use. Unlike postpaid, one need not pay security deposits for picking up a pre-paid
card. It is often available even with paanwalas. As befits a fastmoving consumer service, the game is now moving beyond price to
expanding distribution reach and servicing a well-spread-out
clientele with technology and strategic alliances. Bharti is
focusing on two factors to make pre-paid cards more attractive
Keeping the entry cost low for consumers and making recharging more
convenience.
Bharti is in the process of launching a new system in alliance
with Mumbai-based Company Venture InfoTech which will enable a prepaid card user to renew his subscription by just swiping a card. The
system will not only save users the hassle of going out and buying a card
every time it expires but also enable mobile companies to
reduce the cost of printing and distributing cards.
Bharti Televentures has tied up with 'Waiter on wheels,' a company
delivering food at home, to reach its Magic pre-paid cards to subscribers'
doorsteps. The company is also joining hands with local grocery shops
which will enable users to recharge their cards by just making a phone
call to the shop. Apart from improving the convenience of recharging,
mobile operators are beefing up their distribution channels. The company
is constantly innovating to enhance the value proposition for its pre-paid
service. They are leveraging technology to expand their distribution
network and deliver round-the-clock recharge options to its
MOTS (Mobile on the Spot) subscribers.
Bharti Cellular has also launched a special service, CareTouch, for highvalue, corporate customers, providing them with instant, single-point
access for any assistance they require. Customers can dial 777 and
enjoy a slew of services, which includes easier payment of bills
service on priority basis, and value-added services without any
32

additional paper work. Bharti Cellular is offering a range of


services without going through an interactive voice recorder
ensuring that they save time. Dedicated CareTouch executives are
expected to assist customers with any service on priority basis. Besides
the regular proactive reminder calls for bill payment customers can also
call CareTouch for bill payments at free of cost.
Airtel presented MTV Inbox the first on-air SMS based interactive
music dedication show exclusively for Airtel and Airtel Magic
customers. Highly interactive VJ based show with real-time feedback
mechanism. Both brands joined hands to target the high growth youth
segment.
Bhartis View on its Branding strategy:First, brand building efforts in todays context have to be seen
in a more holistic manner. Delivering value on a sustained basis is
perhaps the most potent key to build a brand that lasts. Unflinching
orientation to customer needs is the second key success factor. Customers
(be it for industrial products or consumer goods and services) across the
world are more informed and, at the same time, becoming more
individualistic in their needs and far more demanding with the passage of
time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined
or emerging customer needs, and then reacting in real-time are essential
to attract and retain customer loyalty a key element of creating brand
equity in the present situation.
Customizing the product (and communication of its benefit) to meet the
specific needs of various consumer/customer sub-segments is the third
element in creating brand appreciation.
As far as allocation of time and financial resources are concerned, too
many companies mistakenly allocate a disproportionate amount on mere
advertising and promotion. This is not to say that advertising and
promotion are less relevant. On the contrary, with more choices and higher
media clutter, businesses need to budget for an increasingly higher spend
on their brand promotion but this has to be undertaken in tandem
with enterprise-wide reengineering of the business philosophy
and core design, production, and delivery operations for the product itself.
The positive spin to this argument is that by first addressing the
33

fundamentals, the enterprise itself becomes more competitive. This can be


the beginning of a virtuous cycle wherein brand equity continues to
increase as the enterprise sustains delivery of an appropriate product or
service at an ever increasing value.
It is, however, crucial to note that in the years to come, not only will the
cost of building a regional or a national (or an international) brand will
continue to rise but also the time taken to do so will be longer and will
need sustained and focused efforts.

SWOT ANALYSIS
Strengths
Being one of the largest companies in India the company has
achieved a degree of focus in its core business of its products
It has a strong brand name, super ior quality products and an
enviable distribution network.
It has a clear and well-defined organization structure and
limits of financial authority.
Increase in advertisement spends affect the company s margins .
The companys bottom line f alls victim to the bloated and
highly paid workforce, which affects its mar gins.
Weakness
Little efforts over the Advertising of products.
Distribution channel is not accurately categorized.
Premium priced products, hence cant compete in low price
segment.
No separate strategy for rural market.
Opportunities
The company's financial performance can receive a major
34

boost from There is a lot of scope of product and market


diversification.
Exports of products will also have huge chances in the coming
years
Airtels business has ample scope for gaining market share
from the unorganized sector . Rural penetration too holds vas t
potential to bring about growth.
Threats
The slowdown in the economy has restricted top line growth of most
FMCG major s and for Airtel also it will be difficult to maintain
historical growth rates in such a depressed scenario.
Companys major raw materials are influenced by government
policies / controls as well as vagaries of the monsoons.
Fluctuations in the prices of raw materials would have significant
impact on costs and mar gins of the company.
Moreover , inordinate hike in Broad B and Internet
products would also increases companys production and
distribution cost.

35

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

36

Comparison of
marketing
strategies
Between
37

Bharti Airtel and


Vodafone
Purpose of comparison
The sub main purpose of this report is to compare the
Strategies adopted by Bharti Airtel and its rival Vodafone

marketing

The comparison shows how both of the companies have been challenging
each other to gain market shares.
Why comparison with vodafone
Bharti Airtel is the leader in telecommunication sector
Bharti Airtel holds the lion share of market of communication sector.
However, Vodafone has been giving tough competition to Bharti Airtel.
Vodafone is the second largest player and share holder in Communication
sector.
Since its launch Vodafone has been adopting aggressive marketing
strategies.
The comparison shows how Hutchison Essar Telecom. Captured 22%
market share in one month of its first launch of postpaid subscription in
2002.
With a different technology Vodafone creates its own market
Vodafone today deals in every business of communication sector.
38

Vodafone making and changing the strategies to capture the market shares

Brand positioning by Bharti Airtel


Market segmentation
Geographical segment (metropolitans & cities India)
Demographic segment - middle income groups
People age group of 20 to 28 year
Target marketing
People who living in cities and towns.
Poor or middle income group people.
Youngsters in big cities.
Businessmen
Positioning
Creating brands (Sharukh khan & Sachin Tendulker)
Ads and promotions.
Promotion for study of poor childrens.
Marketing mix

39

Price:

low price strategy

Place:

maximum outlets and service centers

Product:

verities available for various groups

Promotion:

various schemes for pre-paid and post-paid

Marketing strategies of VODAFONE


Vodafone target the rural India
The main targeted customers of Vodafone are from rural India.
By offering cheap and light mobile sets Vodafone attracts most of the
customers of small villages and towns.
Offering cheap handsets
Vodafone offers cheap and free connections to all customers.
The cost for these sets was Rs-799-849-1099\set and onward
Free support and services
In every district and big towns Vodafone opens its service centers to
provide better support and services.
Strong logistics and supply chain
Vodafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the
Vodafone SIM & Sets.
Targeting youngsters in metropolitans
Vodafone attracts youngsters by offering colorful handset at very low
prices.
40

Brand positioning by VODAFONE


Market segmentation
Geographical segment (rural India)
Demographic segment - middle income groups

Target marketing
People living in small towns and villages.
Poor and middle income groups.
Youngsters in big cities.
Businessmen
Positioning
Creating brands
Ads and promotions
Marketing mix
Price : low price strategy
Place : maximum outlets and service centers
Product : verities available for various groups
Promotion: various schemes for pre-paid and post-paid
Services provided by Bharti AirteI

41

Mobile services with GSM technology


Fixed-line connections
National and international long distance services
VSAT, Internet services and network solutions
Broadband services

Services provided by Vodafone


mobile services with GSM technology
fixed- line telephone services
Universal Internetworking
VoIP (Voice over Internet Protocol)
Interactive Television
Visual Communication
Broadband Portal

42

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

43

DATA COLLECTION METHOD


There two type of method of data collection
PRIMARY DATA
SECONDARY DATA

PRIMARY DATA
Data used for the research work was primary in nature.
Primary data is that which is the collected for the first time and thus
happen to be originated in character.
QUESTIONNAIRE SURVEY
In the studies a questionnaire is prepared. the questionnaire
consists of 15 questions.
SECONDARY DATA
Secondary data refer to the data that has been
already collected .the secondary data, which has been used to carry out
this study, are as follow
BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS
INDUSTRY REPORTS
COMPANYS INTERNET SITE
SOMEOTHER
WEBSITES

RELEVANT

STUDY

MATERIAL

AND

SAMPLE UNIT
44

The research process was done by interacting with


number of customers during the activities performed, which included,
markets cold calling, canopies, etc.
sample design consists of
random sampling.
SAMPLE SIZE: 200 PEOPLE

METHOD OF COLLECTION
Field procedure for gathering primary data included observation
and interview schedule in which the
questionnaires were filed by the personal interviews through self
administered survey was done to collect the data, market research
was
undertaken,
that
was accomplished by performing various
activities designed.
RESEARCH INSTRUMENT
Questionnaire
The questionnaire was formulated by keep in mind the following
points.
Giving the respondents clear comprehension of the question.
Identifying the needs to be known.

45

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

46

Data analysis
And
Interpretation
47

MARKET PLAYERS IN TELE COMMUNICATION


Operator Market share
Aug''05

Market share
Aug''09

Bharti Airtel

19.06

22.49

Vodafone

21.81

16.96

Reliance info

17.03

16.01

Idea Cellular

10.45

8.49

Market share Aug''05 Market share Aug''09

From above the graph it show that in 2005 Vodafone has highest market
share but in 2009 Airtel gets highest share market comperesion to other
company.
FINDINGS AND ANALYSIS

48

Age Group Graph

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 gives 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 are15% of the total interviewed people.
Occupation Graph
OCCUPATION

STUDENTS EXECUTIVES HOUSEHOLDS OTHER

49

As the 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, Tele callers etc. who require mobile for their official purposes. The next
category is the households, who are either housewife, small units which
operate from their homes etc. They are 20% of the whole. The next
segment is the students. They are 15% of the whole. And 10% of the
whole is categories who are the professionals.

Service Provider Graph

These are the total market share of mobile user or people


captured by the mobile provider company. There two major company
in mobile phone service sector Vodafone and Airtel who respectively
hold the market share with other company as 17% and 20% of total
market user segment of mobile customer.
Customer Service At Airtel Graph
CUSTOMER SATISFACTION LEVEL

50

As the above graph clearly shows that customer services at Airtel seems
good. 60% of the people are satisfied 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. 10% of the
people were fully dissatisfied with the customer services of Airtel. This
could leave an impact on the mind of the consumer. He can even switch
over his brand. 20% of the people seemed partially satisfied with the
customer services and only 60% seem to be fully satisfied with Airtels
customer services, which is a very large amount.
Type Of Card Graph

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

51

Monthly expense graph


Monthly Expense

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 mobile.
Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the people
were not at all aware of such a technology. So, in order to get the answer
for this question they were first explained the concept .Only 65% people
knew WLL is all about.
Awareness of WLL Players Graph

52

Vodafone was the brand which was popular amongst the interviewed
people. As Vodafone had done so much advertising and has it banners and
hoarding spread all over Delhi. So, this could be one the reasons of its
popularity. Tata was hardly a known brand in this new field. Possibly
because of less promotions done by them as compared to Vodafone On the
basis of analysis of the questionnaire I have found that the maximum no.
of people who use mobile phones is in the age group of 20 to 28. Who are
the young executives and other office goers?
They spend a maximum of RS 500 as their mobile expense.
There is more no. of prepared cards than post paid cards. The mobile
users want to spend money side by side than to spend money at the end of
the month on a big bill.
Now when I compared Airtel with its competitor from the point of view
of the consumer I found that on the basis of Tariff plan, value added
services and billing accuracy Airtel is at par or ahead of its competitor
but in the case of customer care and availability they lag
behind there competitors. As, Airtel has a hold in the market because it
has the maximum no. of connections, so it must improve upon it customer
services. As far as WLL is concerned people are aware about it but not
many people are aware about Tata. They only know more about Vodafone.

53

Customer Response
Towards
Questionnaire
54

Q.1 Name those companies which provide telecom services now a days?

Airtel
Vodafone
Reliance
Tata Docomo
Idea

Q.2 which mobile company services you are using now a days?
Airtel
Vodafone
Others

55

The graph clearly show that there is 50% people who are using Airtel and
Vodafone has only 30% customer in the market other is remaining 20
%which include all other company. The graph suggest that Airtel
providing better service in present time.

Q.3 Which Brand you, prefer most?


Airtel
Vodafone
Reliance
Tata Docomo
Idea
Customer preference using telecom service

56

Most of the customer like to use Airtel because it provide better service
and networking. In this graph Airtel customer is about 40% and Vodafone
has 28% and other are not in large no. so Airtel has maximum customer
compare to other.
Q.4 How long you have been using this Product?
0-2 Years
2-5 Years
5-10 Years
More than 10 years

This graph show that customer change their brand according to new
schemes launch by the different company. In this graph there are 65%
customers which are loyal for only 0-2 years. And 20% people they used
the product at least 2-5 .There are some people who used the product at
least 5-10 years due to their satisfaction of the brand and 5% people who
used the product for long time. Most of time businessmen dont change
their product due to their business .
Q.5 Are you using other product with Airtel?
57

Yes
No

Here are the customer responses about the use of the Airtel product and
other product rather than Airtel
in this segment of survey 60 % of customer are aspire with Airtel and 40
% shown interest in other telecom products in urban areas.
Q.6 Do you collect any information search before decision making
purchase?

In this graph it represent that every customers before purchase they gather
the information .85% people search information before purchasing and
15%people they do not want to search any information . They purchase
which they like to want. The graph show that people are more aware to
purchase any product.

58

Q.7 how would you rate the experience with Brand?


Excellent

Good

Average

Below

Average
Airtel
Vodafone
Reliance
Tata

The above graph show that Airtel is more excellent brand compare to
Vodafone, Reliance Tata Indicom. Vodafone is also good but not enough
to Airtel. Reliance is quiet average by the rate of experience by the
customer according to brand name.Tata is below average due low markets
and less awareness of the people. So Airtel is a strong brand in the market
due to their better services.

59

CONCLUSION
After analyzing the findings of the research, I can conclude that
Airtel lagged behind its competitors as far as customer service and
availability is concerned.
The maximum no. of people who use the mobile is
in the age group of 20 to 28. Cash cards are the most popular type of
mobile connections, as they are consumer friendly and recharging the
connection is not a problem. Maximum no. of people spends RS 500 on
their connections. As Airtel is the only company having the maximum no
of mobile connections so it must seriously look into the loop holes of the
existing customer service department.
As we know that now Airtel has already launched its product with logo
Aisi azaadi aur kahan has already became popular in market. So we can
say that in spite of so many competitors in the market Airtel is having a
good position just because every time, it tries its best to understand the
need of its important customers. From the comparison and deep analysis
of every aspect of business of both the companies we can conclude that
bharti Airtel has to more work in every field of communication business.
It is the time not only to survive but to sustain in the market for a long
time.
For this Airtel has to work on its all marketing strategies, marketing,
promotion, brand image etc.
Airtel has to take Vodafone. Very seriously and update its own strategies
from time to time and when the need arises.
With aggressive marketing strategies Airtel has to target rural India as
70% of population of India lives in these areas.
60

The other segment may be costumers of all age groups.

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

61

* Price should be as competitive as other company maintains.


* Distribution of new connection should be in reach of customer pocket.

BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in
details the following
Books, Magazines/Journals and Web Sites have been referred. All the
material detailed below provides effective help and a guiding layout while
designing this text report.
Books :
Principles of Marketing Philip Kotler & Kevin keller edi. 12
Market Research D.D. Sharma
Research Methodology C.R. Kothari
Websites:
www. Airtelworld.com
www.india.com
www.Vodafone.in
62

QUESTIONNAIRE
Dear Sir;
I Raman kumar, student of MBA of Dr. I.T Business school I
am doing my project on Comparative analysis of marketing strategy
of Vodafone and Airtel Please give your precious time for filling these
detail.
.
Q.1 Name those companies which provide telecom services now a days?
Airtel
Vodafone
Reliance
Tata Indicom
Idea

Q.2 which mobile company services you are using now a days?
Airtel
Vodafone
Reliance
63

Tata Indicom
Idea
Q. 3 Among them, which Brand you, prefer most?
Airtel
Vodafone
Reliance
Tata Indicom
Idea
Q.4 How long you have been using this Product?
0-2 Years
2-5 Years
5-10 Years
More than 10 years
Q.5 Are you using other product instead of Airtel?
Yes
No
Q.6 how would you rate the experience with Brand?
Excellent

Good

Average

Below Average

Airtel
Vodafone
Reliance
Tata Indicom

64

Q.7 Do you collect any information search before making purchase?


Yes
No
Q.8 If yes, which sources are used?
Magazines
Dealers
Sales Executives
Any others
Q.9 What are the features you look for in a product before making
purchase decision? Give preferences (1-Highest, 6- least)
Brand credibility
Price and Discount
After sales services and parts, network
Value for money
Vehicle performance
Add on features or ergonomics of design
Q.10. Which of these marketing / sales schemes attracts you while
purchasing any connection?
Good Network
Discount scheme
Service package
Any other
Q.11 If you have to purchase a new connection or product in near future,

65

which Brand will you go for and why?


_________________________________________________
_________________________________________________

Q.12 Are you aware of various promotional activities being run by Airtel,
if yes then how? Are you satisfied with these promotional activities?
Very satisfied
somewhat satisfied

Not satisfied

Customer Care
By Ad Films
By Camp
24 hrs call center services
Q.13 How would you r ate Airtel performance as your expectation on
5 points scale (5 Highest?)

4 5

After Sale service


Maintenance
Product as per expectation
Q.14 What are you suggestions for improving the product quality,
service availability and parts availability?
66

___________________________________________________________
____________________
___________________________________________________________
__________________________________________________________

67

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