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Grand Project Report ON Bharti Airtel Limited: Submitted by
Grand Project Report ON Bharti Airtel Limited: Submitted by
ON
SUBMITTED BY;-
Piyush Gaur
CONTENTS
Executive Summary 3
Introduction 4-8
History
Change in Brand Logo & Taglines
Objectives 9
Mission
Company Overview
Subsidiary Company 10
Organisation Structure 10
Strategic Business Unit 12
Market Share of Airtel 12-14
Subscriber Trend & Growth
Competitors
Business Partners & Partners Role 14
Marketing Mix 16
Value Chain Strategy 19
Financial Analysis 20-25
Company's Revenue
Company's Working Capital Analysis
Company's Advertisement Expenditure
Revenue from Value Added services
Marketing Analysis 25-29
Porters generic Strategy
BCG Matrix
5-Force Model
SWOT Analysis
Awards & Recognitions 30
Research Methodology 30
EXECUTIVE SUMMARY
This report on Bharti Airtel is done to find out certain objective regarding the
strategic approach adopted by Airtel to stand strongly in the competitive Telecom
market. Airtel marketing strategy analysis is done using various models like
Porters generic Strategy, BCG Matrix, 5-Force Model & SWOT Analysis of Airtel
etc.
Also the detailed study of Financial Position of Company is done to find out its
position in Market. The study includes Revenue Analysis, Working Capital
Analysis, Asset turnover ratio of Airtel, & its expenditure on Advertisement as a
percentage of Sales in recent period.
The report gives information about how Airtel adjusted itself in changing market
conditions, what are the various strategies it takes to become India’s 1st company
by Subscriber & Revenue.
INTRODUCTION
Bharti Airtel Limited formerly known as Bharti Tele-Ventures LTD (BTVL) is an
Indian company offering telecommunication services in 19 countries. It is the
largest cellular service provider in India, with more than 141 million subscriptions
as of August 2010. Bharti Airtel is the world's third largest, single-country mobile
operator and fifth largest telecom operator in the world with a subscriber base of
over 180 million. It also offers fixed line services and broadband services. It offers
its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal.
Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold
Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous
standards for networking competency, service, support and customer satisfaction
set forth by Cisco. The company also provides land-line telephone services and
broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier
for national and international long distance communication services. The
company has a submarine cable landing station at Chennai, which connects the
submarine cable connecting Chennai and Singapore.
HISTORY OF AIRTEL
• Bharti Cellular launched cellular services 'AIRTEL‘ in Delhi in 1995,Himachal Pradesh in
1997, Karnataka and Andhra Pradesh circles in 1999
• In 1998, Bharti Telenet obtained a license for providing fixed-line services in Madhya
Pradesh circle and in the same year, Bharti Telecom and British Telecom formed a 51% :
49% joint venture
• In 1999, New York Life Insurance Fund acquired a 3% equity interest in Bharti Cellular.
• In 2001, Bharti Cellular entered into a joint venture, Bharti Aqua net, with SingTel for
establishing a submarine cable landing station at Chennai.
• In 2002, Bharti Cellular entered into license agreements to provide cellular services in
eight new circles.
• In 2002, Bharti Cellular Ties up with Secondary School Certification Board, Hyderabad,
where Bharti will announce SSC results to its customers on their mobile phones.
• In the same year, 2002, ICICI Bank ties up with Bharti for pre-paid mobile cards via
ATMs.
• In 2003, Bharti Group's cellular brand Airtel has unveiled free multimedia messaging
services (MMS) for its customers. The company has also rolled out pan-India GPRS
(General Packet Radio Services) for its corporate subscribers.
• In 2004, Bharti Cellular entered into license agreements to provide cellular services in 6
new circles including Uttar Pradesh (East), West Bengal & Andaman Nicobar, Orissa,
Bihar and Jammu & Kashmir.
TAGLINES OF BRAND
'Power to keep in Touch‘ (1995)
'Express yourself‘
(2003)
Following are the reasons for change in Tagline of Airtel
YEAR- 1995-1998
SIGNIFICANCE-
-- The tag line 'Power to keep in Touch' used in the brand promise was designed
to make the user feel 'in control…powerful'
-- Now, cellular service operators could drop their prices and target new customer
segments.
-- As the category developed with prices going down sharply, Airtel began talking
to a wider spectrum of potential users. This gives the birth to the new Tagline.
'Touch tomorrow‘
YEAR- 1999-2001
SIGNIFICANCE–
-- New look and the feel of the brand tagline indicated the core values of the
brand i.e. leadership, performance and dynamism.
YEAR– 2002-2003
SIGNIFICANCE—
-- This was the first time A R Rehman had agreed to work for any brand, anywhere
in the world. The music from the commercial became the most downloaded ring
tone in the history of telecommunications.
-- Tagline denotes that each and every person in India live every moment
(emotions, feelings etc.) of the life with Airtel.
'Express yourself‘
YEAR- 2003-2008…….
SIGNIFICANCE—
-- ‘Express yourself' was successfully launched taking the ownership of the entire
space of communication and strengthening the emotional bond Airtel enjoys with
its customers
-- The masterminds behind the 'Express Yourself' campaign are the joint vice-
presidents: Mr. Prashant Godbole and Zarwan Patel.
-- Airtel is a market leader in the cellular network and they wanted a very fresh
and contemporary idea to build a brand image which their customers could
identify".
Mission-To provides Error free & cost effective service delivery with Innovative
products & Services to the customers.
Values- We will always put our customers first. We will always trust and respect
each other. We will respect our associates as we respect each other. We will work
together through a process of continuous improvement.
COMPANY OVERVIEW
• India’s First Telecom Company that provides telecom services in all the
circles.
• The company also has a submarine cable landing station at Chennai, which
connects the submarine cable connecting Chennai and Singapore.
SUBSIDIARY COMPANIES
• Bharti Hexacom
• Bharti Comtel
• Bharti Aquanet
• Bharti Broadband
• Bharti Infratel
• Bharti Telemedia
ORGANISATION STRUCTURE
CMD’s (Founder) Profile:-
• Age: 49 years
• Today, at 49, he heads a successful enterprise, amongst the top 5 in India,
with a market capitalization of over US$ 40 billion and employing over
30,000 people.
• He has been conferred one of the highest civilian award – Padma Bhushan.
• Total Wireless subscribers in India In June 09 & July 09 are 102,367,881 &
1, 05,177,635 respectively.
• Total Wire line subscribers in India In June 09 & July 09 are 2,827,882 &
2,861,822 respectively.
BUSINESS PARTNERS
Nortel
Partners Role
IBM Daksh
Call center operations
Mphasis
Hinduja TMT
Tele tech
Telemedia & Enterprise Siemens Equipments suppliers
services
Nortel
IT requirements IBM Group wide technology
requirements
OTHER ALLIANCE
In 2007, Bharti Airtel has entered into following major agreements and alliances:
• With Microsoft to offer software and services for the Small and Medium
Business (SMB) market in India.
• As part of the agreement, Airtel will bring Google search to the Airtel Live
mobile WAP portal. Google will also incorporate advertising through its
Mobile Ads product on the Airtel Live mobile portal;
• A three-year contract with Nokia at an estimated value of US$ 400 mn
to expand its managed GSM/ GPRS/EDGE networks in eight Airtel circles
and deploy a pan India WAP solution across its networks;
• The company has a strategic alliance with SingTel. The investment made by
SingTel is one of the largest investments made in the world outside
Singapore, in the company.
MARKETING MIX
PRODUCTS
• Airtel I Phones
• Airtel Digital TV
* On 9 October 2008, Airtel joined the DTH bandwagon in India with Airtel
Digital TV, a Direct-to-Home Television service
SUBSCRIBER BASE
Delhi - 4,671,177
Mumbai - 2,791,963
Gujarat - 3,981,660
Karnataka - 9,820,812
PRICE
Controlled by TRAI.
PLACE
Distributors like
Big celebrities like SRK and Sachin are roped in to endorse the product
because it .
In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune
is the most downloaded tune in India.
PHYSICAL ENVIRONMENT
INNOVATION
VALUE CHAIN PROCESS
Telecom process Detail
Customer Importance- First they find the customer requirements.
Start- Decide which service we are going to provide using which technology,
who is our customers, Vendors & partners.
CORPORATE CUSTOMERS
EFD Corporation -
Raymond
Bajaj Allianz
Mphasis
Wipro
IBM Daksh
• Assets - $ 12 billion
Source-IMRB Reserch
AIRTEL REVENUE TELECOM SECTOR 2007-08
MARKETING ANALYSIS
TARGET CUSTOMERS
• Up market professionals
• Youth
BROADBAND
MARKET GROWTH LOW COW- MOBILE SERVICES DOGS- FIXED LINE
SERVICES
MARKET SHARE HIGH MARKET SHARE LOW
5-FORCE MODEL
2.Customer Bargaining Power
LOW
4. Threat of Substitutes.
Landline
DIMINISHING MARKET
CDMA HIGH
Video Conferencing
BROADBAND
SERVICES
VOIP - Skype, Gtalk, Yahoo Messenger
e-Mail & Social Networking Websites
GROUP 7 60
5. Threat of New Entrant.
LOW
GROUP 7 61
Strength Weakness
• Outsourcing of core system
• Market Leader
• Network Coverage
• Recognized Globally
• Strong Brand Image
• Strong New Business Development team
• Strong Financials
• Largest Telecom Player 22.6%
Opportunities Threats
• Low Broadband Penetration, Rural • Intense Competition & Shortage of
• Bharti Infratel – Cutting Down cost in Bandwidth
Rural area • New Players coming in India
• Current Tele-Density – 30.6 is still low • Uncertain Economic Condition
among developing countries
Bibliography
• www.trai.gov.in
• www.airtel.in
• www.wikipedia.com/airtel/
• www.airtel-broadband.com
• www.google.com