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RESEARCH REPORT
ON
“AIRTEL BROADBAN”
In
By
SUBMITTED BY :
MADHU BATHAM
MBA IV SEM
SUBMITTED TO:
MR. DEEPESH KAVISHWAR
(Faculty Guide)
hereby declare that the project is my original piece of work and not the copy of
any such work undertaken by someone else, all the information , facts and figures
presented in the report are first hand in nature. They are actually based on my
Date:
Place : (Faculty Guide)
ACKNOWLEDGEMENT
The present work is dedicated to the persons who not only taught me, but
continue inspire me in knowing the clandestine facts of workmanship. I bow in
honor before these great teachers. The accomplishment of the present study
became possible by the invaluable assistance and guidance of my professional
guides to whom I may gratefully indebted. Firstly I would like to express my
sincere gratitude to my faculty guide without whose invaluable guidance, moral
support and encouragement my work would have ever assumed the present
shape, research. I were indebted to my parents and friends for their moral
support and possible efforts they made for me.
Bharti Tele-ventures
Vision
Bharti’s mission
Board of directors
Achievements
Airtel broadband
Promotional strategy
CHAPTER -2
Objective
Data sources
CHAPTER -3
Graph
CHAPTER -4
Conclusion
Recommendations
Bibliography
Questionnaire
Bharti Tele-Ventures
The businesses at Bharti Tele-Ventures have been structured into three individual
strategic units (SBU’s) –
1) mobile services
2) broadband and telephone services (B&T)
3) enterprise services
The Mobile services group provides GSM mobile services across India in 23
telecom circles, while B&T business group provides broadband & telephone
services in 94 cities. The Enterprise Services group has two sub-units –
carriers (long distance services) and services top corporates. All these services
are provided under the Airtel brand.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services. Established in
1976, Bharti has been a pioneering force in the telecom sector with many firsts
and innovations to its credit.
"What other operators have achieved in one to two years, Bharti has done in just over a
month. In July 2002, one out of every two people buying a mobile across India chose AirTel.
We are truly proud to be spearheading the mobile revolution in the country."
Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest
private integrated telecom conglomerate, Bharti Enterprises. A consortium of
giants in the telecommunication business. In it's six years of pursuit of greater
customer satisfaction, AirTel has redefined the business through marketing
innovations, continuous technological up gradation of the network, introduction
of new generation value added services and the highest standard of customer
care.
Bharti is the leading cellular service provider, with an all India footprint
covering all 23 telecom circles of the country. It has over 12 million satisfied
customers.
Cellular telephony was introduced in India during the early 1990s. At that time,
there were only two major private players, Bharti (Airtel) and Essar (Essar) and
both these companies offered only post-paid services. Initially, the cellular
services market registered limited growth.
Moreover, these services were mostly restricted to the metros. Other factors such
as lack of awareness among people, lack of infrastructural facilities, low standard
of living, and government regulations were also responsible for the slow growth
of cellular phone services in India.
Although the cellular services market in India grew during the late 1990s (as the
number of players increased and tariffs and handset prices came down
significantly) the growth was rather marginal. This was because the cellular
service providers offered only post-paid cellular services, which were still
perceived to be very costly as compared to landline communications.
Following this realization, the major cellular service providers in India, launched
pre-paid cellular services in the late 1990s. The main purpose of these services
was to target customers from all sections of society (unlike post-paid services,
which were targeted only at the premium segment).
Bharti’s Mission
We will meet global standards for telecom services that delight customers
through:
• Empowered Employees
• Cost Efficiency
The Board of Directors of the Company has an optimum mix of Executive and
Non-Executive Directors, which consists of three Executive and fifteen Non-
Executive Directors.
The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive
Director and the number of Independent Directors on the Board is 50% of the
total Board strength. The independence of a Director is determined on the basis
that such director does not have any material pecuniary relationship with the
Company, its promoters or its management, which may affect the independence
of the judgment of a Director.
The Board members possess requisite skills, experience and expertise required to
take decisions, which are in the best interest of the Company.
The composition of the Board is as under:
Sunil Bharti Mittal
Rajan Bharti Mittal
Akhil Gupta
Rakesh Bharti Mittal
Chua Sock Koong
N. Kumar
Kurt Hellstorm
Donald Cameron
Paul O’Sullivan
Professor V.S. Raju
Pulak Chandan Prasad
Bashir Abdullah Currimjee
Gavin Darby
Syeda Imam
Ajay Lal
York Chye Chang
Paul Donovan
Arun Bharat Ram
ACHIEVEMENTS
First to expand it's network with the installation for second mobile switching
center in April, 1997 and the first to introduce the Intelligent Network
Platform First to provide Roaming to its subscribers by forming an association
called World 1 Network.
First to provide roaming facility in USA. Enjoy the mobile roaming across 38
partner networks & above 700 cities Moreover roam across international
destinations in 119 countries including USA, Canada, UK etc with 284 partner
networks.
Vodafone to invest approximately Rs. 6,700 crores (approx. USD 1.5 bn.)
to acquire around 10% in Bharti Tele-Ventures Ltd.
Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-Ventures
Ltd. to unassailable leadership position in India
The largest single foreign investment ever in the history of India
The largest investment in the Indian telecom sector
Bharti establishes its supremacy in the Indian telecom market, having
attracted Asia’s best – SingTel, and now world’s best – Vodafone.
Bharti set to gain global leadership in the telecom sector
Bharti Enterprises continues to hold shareholding and management
control in Bharti Tele-Ventures.
Bharti Televentures is the fixed line operator business of Airtel. In the recent
branding exercise, all the services have been offered under the Airtel brand. Data
is the next driver for growth. This is clear to the operators who have belatedly
realized the implications for having a pie in all the segments of
telecommunications. Hence Bharti ventured in the broadband market.
However, the main contention in the broadband market is the price offering
which includes the bandwidth costs as well as the cost of laying down the copper
wire. Typically, in the mentality of the profit making exercise, Airtel has so far
focused only in those areas where it perceives that a huge market is present.
However, I still hold that their thrust should be in smaller towns and cities where
BSNL would ultimately usurp their potential customer base. It seems that their
fancily paid MBAs haven’t really understood the success of BSNL who focused
on the B and C class cities where it has drawn unparalleled support despite the
lousy customer experiences. This is because of the absence of any other operator.
The current offerings by Airtel does not really enthuse a potential customer who
is looking at sustained data transfer. It is the classic case of having something
better than nothing.
Add to the lousy customer care that Airtel is slowly perfecting, it is staffed with
people who usually land up in their jobs with little idea of their job profile. The
so-called Tech engineers have often been unable to help a customer who is facing
issues with the connectivity. I have read first person accounts for the same.
AIRTEL’s ENTERPRISE SERVICES
Our Services:
Voice Services
Mobile Services
Satellite Services
Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata. VQE is a
revolutionary new system that spectrally reduces background noise. It eliminates
acoustic echo, adjusts speech levels in both directions and does away with low or
distorted speech so that every word of your's can be heard clearly, wherever you
may be speaking from.
The VQE technology has been sourced from Tellabs of USA, world leaders in
Voice Quality technology. Some of the prominent GSM operators using Tellabs
solution in the world are SingTel, Bell South, Telstra, BT Cell etc. The Tellabs
noise reduction technology removes high background noise from the wireless
side of the call thus delivering near wireline clear call quality
on mobile phones. The Tellabs 3000 series of voice-quality enhancement echo
technology also eliminates the complexity of acoustic echo generated by digital
mobiles and hands free kits.
So go ahead. Express yourself and feel the difference on Kolkata's only Non-Stop
2.5G Network
PREPAID POSTPAID
SERVICE TYPE OF
DESCRIPTION CHARGES CHARGES
NAME SERVICE
(Rs.) (Rs.)
Calling Line
Automatic Displays the callers
Identification
only for new number on your mobile Rs. 25
Presentation
acquisitions phone screen
(CLIP)
Users can call to get
certain information and
service. For instance,
Automatic
Dial 604 for Infotel, Dial Rs. 2.40 per
Dial-a-service only for new Rs. 2 per minute
131 for Railway info. minute
acquisitions
These call numbers are
available in the phone
book
Automatic download exclusive
Per content Per content
WAP only for new contents from Airtel's
download download
acquisitions WAP site
Access internet on the
Automatic GPRS Charges GPRS Charges -
move and download
GPRS & Masala only for new - Rs 600 per Rs 600 per
exclusive contents from
acquisitions month month
Airtel's WAP site
Users can call into this
Automatic voice recognition service
646 Calling Rs. 6 per Rs. 6 per
only for new and listen to jokes, movie
charges minutes minutes
acquisitions gossips, download
ringtones etc
Content offered by media
Automatic
VAS SMS companies like
only for new Rs. 3 per
Charges Indiatimes, Rediff, Yahoo
acquisitions
fall into this category
AIRTEL SERVVICES
AIRTEL NEWS
Bharti Airtel inks USD 400 million network expansion contract with NOKIA
.
Bharti Airtel limited: Q2 cash profit exceeds Rs. 1,600 crores, PBT crosses
Rs. 1,000 crores.
PROMOTIONAL STRATEGY
After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular
market witnessed a surge in cellular services. By 2005, there were a total of 12
players in the market with the five major players being Bharti Tele-Ventures
Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar
limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM)
(Refer Exhibit I).
All the players except RIM offered services based on the Global System for
Mobile (GSM) technology. RIM provided services based on Code Division
Multiple Access (CDMA) technology as well as GSM.
“We did expect the tune to catch up but this has really exceeded our
expectations,” admits Bharti Cellular’s chief marketing officer (western region)
Pratik Pota. Overall, he explains, it is a great advertising product for AirTel and
works like a “walking, talking brand ambassador.”
The ringtone which is also the jingle for AirTel’s TV commercial, is proving to be
a potent advertising tool for the company. It is not very clear what this means for
the other cellular operators. Cellular users have been “forwarding” the tune to
one another, which according to Mr Pota, has given AirTel a chance to enter the
“mind of the user” irrespective of which service he opts for.
“It gives the user a chance to go back to the AirTel product and acts as a strong
reminder medium,” he explains. Marketing professionals like Samsika Marketing
Consultants’ managing director Jagdeep Kapoor point to the usage of an “audio
celebrity” as something that is significant.
“The normal practice is to opt for film stars and sportsmen rather than an audio
personality” he says.
Rivals, though seemingly unfazed by the phenomenon, seem to be doing their
own homework on this brand of advertising. While none of them commented on
AirTel’s strategy and its impact on their own subscriber base, one advertising
professional working with a rival service provider opines that the tune is
“transient” and not likely to have any long term impact as a brand building tool.
Being the latest entrant in the Mumbai circle, AirTel has had to find ways of
cutting through the clutter.
Says Mr Kapoor,” AirTel will have try to find ways to attract new customers and
convert the existing ones.” Explaining that the usage of an audio celebrity was
more “strategic than tactical”, he adds that non-AirTel users will have the AirTel
“brand experience” inspite of not using the service.
While Mr Pota highlights the fact that the usage of the tune by other operators
means “free advertising” for AirTel and the users having a positive disposition
towards the product, the nature of reaction from competition remains unclear.
“Competition will not do well to adopt a knee jerk reaction and will have to come
out with advertising that is well thought out” explains Mr Kapoor. He anticipates
a situation where the new entrant (AirTel) will continue to be more aggressive.
Both Tendulkar and King Khan already share the frame for soft drinks major
PepsiCo India. Tendulkar is not the first cricketer to endorse Bharti’s Airtel
brand. Indian captain Saurav Ganguly had done so when Airtel launched its
service in the eastern metropolis of Kolkata in 2001.
Though company executives were mum on the value of the Tendulkar deal, those
in the advertising fraternity peg the signing rate for the three-year deal anywhere
between Rs 8 crore and Rs 10 crore.
Both Sachin and Shah Rukh are two of the most sought after celeb endorsers in
the country, with the former edging out the latter in the celeb endorsement race.
The Master Blaster’s portfolio includes brands like Colgate Pamolive, ESPN-
STAR Sports, Pepsi, MRF, Boost, TVS, Palio, Visa, Adiddas and Britannia. The
leading brands endorsed by Khan include Hyundai, Pepsi, Airtel, Tag Huer,
Clinic All Clear, Bagpiper and Videocon, among others.
According to company executives, the idea of roping in Tendulkar is in line with
the group’s strategy to connect to the mass market through celeb endorsers from
movies, cricket and music. “For mass connect, Shah Rukh and Sachin are the best
bet as brand endorsers,” says a senior company executive. Bharti plans to launch
a multimedia campaign targetting its service at the mass market.
OBJECTIVE
going to use mobile service in future. In other words, my aim is to study the
DATA SOURCES
Data is collected from both the Primary sources i.e. questionnaire and also from
Secondary sources.
Primary sources:
Secondary sources :
The secondary sources includes online sites, newspapers and templates from
AIRTEL distributions centers and AIRTEL Customer Care.
1. People know about AIRTEL cellular service through
35%Goodwill
3. People’s first choice of cellular service when they want to use mobile
phone
AIRTEL 45% HUTCH 30% IDEA 8%
YES : 85%
NO : 13%
CAN’T SAY : 2%
9. People like most in AIRTEL is
YES : 72%
NO : 28%
12.Type of recharge cards liked by people
Both : 62%
Yes : 95%
No : 5%
CONCLUSION
The conclusion of my study is that AIRTEL’s Advertising has a major impact its
users. People like its schemes very much .AIRTEL had created a very good
image on the mind of the new users of cellular service. AIRTEL has adopted a
very good strategy by providing a new connection with NOKIA who is market
leader in mobile set, many new users buy Nokia sets and they get a free
connection of AIRTEL. AIRTEL is successful in capturing the highest market
share by adopting Celebrity Endorsement Strategy. A.R. Rehmaan’s tune for
AIRTEL worked as free advertising for AIRTEL as another service user uses it
too. Other celebrities like Shahrukh Khan (bollywood) and Sachin Tendulkar
(Cricket) has also contributed very much in AIRTEL.
RECOMMENDATIONS
By virtue of its connectivity and advertising strategy AIRTEL is successful in
grabbing the highest market share in India, but there are still some
recommendations from my study point of view is that AIRTEL needs to make its
network service more stronger than other service providers to dominate the
AIRTEL should introduce cheaper recharge cards than the other because its
BIBLIOGRAPHY
ON-LINE WEBSITE :
.
o WWW.GOOGLE.CO.IN
o WWW.AIRTEL.COM
NEWSPAPERS:
BOOKS:
Goodwill
3. Which was your first choice of cellular service when you want to use
mobile phone?
AIRTEL HUTCH IDEA