A

A
Project Report
On
“MARKETING STRATEGIES OF
BHARTI
AIRTEL AND COMPARISON WITH
RELIANCE INFOCOMM.”
Submitted for the partial fulfillment of the
requirement
For the award
BACHELOR OF BUSINESS
ADMINISTRATION
SUBMITTED BY:-
SHIKHAR VERMA
BBA VI Sem
Roll No. 8240642
SUBMITTED TO
MISS. CHARU JOSHI
Lecturer

CONTENT
CONTENT
1.
Introduction
2.
Research Methodology
3.
Descriptive work on the sub topic of study
4.
Data Analysis and Interpretation
4.1. comparison
4.2
swot analysis
4.3 Suggestion & Conclusion
4.4 recommendations
6.
Bibliography
7.
Appendix
8.
Checklist


INTRODUCTION
INTRODUCTION
I, Shikhar Verma, being a student of BBA of Inderprastha
Engineering college.
The project title “ Marketing Strategies of Bharti AIRTEL
and
comparison with Reliance Infocomm.” is the analysis of the
big scale sector of communication. This project
involves the big scale level provided by Airtel to its
customers. The survey was conducted so as to
analyze the big scale sector prevailing in the current
industry and the improvement that can be made upon
it.
NEED OF THE STUDY
1. To identify the difference between market performance of
Airtel
industry and Reliance Infocomm.
2. To study the market of Airtel Industry and Reliance
Infocomm. on
big scale 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 &
Reliance
Info.
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
Reliance Infocomm.
BACK GROUND
BACK GROUND
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 cooping up by the
allegations of the quality of its products. The report
begins with the history of the products 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 market trend issues.
In today’s world of cutthroat fierce competition, it is
very
essential to not only exist but also to excel in the
market.
Today’s market is enormously more complex. Hence
forth, to
survive in the market, the company not only needs to
maximize its profit but also needs to satisfy its
customers and
should try to build upon from there.
RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep
study regarding the subject. As the prime objective of the
project is to compare Airtel with the existing
competitor(reliance infocomm.) 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.

TYPE OF RESEARCH METHODLOGY

TYPE OF RESEARCH METHODLOGY
EXPLORATORY:
EXPLORATORY:
TYPE OF RESEARCH CARRIED OUT WAS
EXPLORATORY
TYPE OF RESEARCH CARRIED OUT WAS
EXPLORATORY
IN NATURE; THE OBJECTIVE OF SUCH
RESEARCH IS TO
IN NATURE; THE OBJECTIVE OF SUCH
RESEARCH IS TO
DETERMINE THE APPROXIMATE AREA WHERE
THE
DETERMINE THE APPROXIMATE AREA WHERE
THE
DRAWBACK OF THE COMPANY LIES AND ALSO
TO
DRAWBACK OF THE COMPANY LIES AND ALSO
TO
IDENTIFY THE COURSE OF ACTION TO SOLVE
IT. FOR
IDENTIFY THE COURSE OF ACTION TO SOLVE
IT. FOR
THIS PURPOSE THE INFORMATION PROVED
USEFUL
THIS PURPOSE THE INFORMATION PROVED
USEFUL
FOR GIVING RIGHT SUGGESTION TO THE
COMPANY.
FOR GIVING RIGHT SUGGESTION TO THE
COMPANY.

DATA COLLECTION
DATA COLLECTIONMETHOD
METHOD
THERE TWO TYPE OF METHOD OF DATA
COLLECTION
THERE TWO TYPE OF METHOD OF DATA
COLLECTION.
.
•
PRIMARY DATA
•
PRIMARY DATA
•
SECONDARY DATA
•
SECONDARY DATA
DATA USED FOR THE RESEARCH WORK WAS
PRIMARY
DATA USED FOR THE RESEARCH WORK WAS
PRIMARY
IN NATURE.
IN NATURE.
PRIMARY DATA
PRIMARY DATA:
:
PRIMARY DATA IS THAT WHICH IS THE
PRIMARY DATA IS THAT WHICH IS THE
COLLECTED FOR THE FIST TIME AND THUS
HAPPEN
COLLECTED FOR THE FIST TIME AND THUS
HAPPEN
TO BE ORIGINATED IN CHARACTER.
TO BE ORIGINATED IN CHARACTER.
•
•QUESTIONNAIRE SURVEY
QUESTIONNAIRE SURVEY:
:
IN THE STUDIES A QUESTIONNAIRE IS
PREPARED.
IN THE STUDIES A QUESTIONNAIRE IS
PREPARED.
THE QUESTIONNAIRE CONSISTS OF 20
QUESTIONS.
THE QUESTIONNAIRE CONSISTS OF 20
QUESTIONS.
SECONDARY DATA
SECONDARY DATA:
:
SECONDARY DATA REFER TO THE DATA
SECONDARY DATA REFER TO THE DATA
THAT HAS BEEN ALREADY COLLECTED .THE
THAT HAS BEEN ALREADY COLLECTED .THE

SECONDARY DATA, WHICH HAS BEEN USED TO

SECONDARY DATA, WHICH HAS BEEN USED TO
CARRY OUT THIS STUDY, ARE AS FOLLOW:
CARRY OUT THIS STUDY, ARE AS FOLLOW:
•
BOOKS, JOURNALS, MAGAZINES,
•

NEWSPAPERS
BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS
•
•INDUSTRY REPORTS
INDUSTRY REPORTS
•
COMPANY’S INTERNET SITE
•
COMPANY’S INTERNET SITE
•
•OTHER RELEVANT STUDIES MATERIAL AND
OTHER RELEVANT STUDIES MATERIAL AND
WEBSITES.
WEBSITES.
SAMPLE UNIT
SAMPLE UNIT: - NEW DELHI
: - NEW DELHI
THE RESEARCH PROCESS WAS DONE BY
INTERACTING
THE RESEARCH PROCESS WAS DONE BY
INTERACTING
WITH NUMBER OF CUSTOMERS DURING THE
WITH NUMBER OF CUSTOMERS DURING THE
ACTIVITIES
PERFORMED,
WHICH
INCLUDED,
ACTIVITIES
PERFORMED,
WHICH
INCLUDED,
MARKETS, COLD CALLING, CANOPIES, ETC.
SAMPLE
MARKETS, COLD CALLING, CANOPIES, ETC.
SAMPLE
DESIGN CONSISTS OF RANDOM SAMPLING.
DESIGN CONSISTS OF RANDOM SAMPLING.
SAMPLE SIZE
SAMPLE SIZE: - 50 PEOPLE
: - 50 PEOPLE

METHOD OF COLLECTION
METHOD OF COLLECTION: -
: -
FIELD PROCEDURE FOR GATHERING PRIMARY
DATA
FIELD PROCEDURE FOR GATHERING PRIMARY
DATA
INCLUDED OBSERVATION AND INTERVIEW
SCHEDULE
INCLUDED OBSERVATION AND INTERVIEW
SCHEDULE
IN WHICH THE QUESTIONNAIRES WERE FILED
BY THE
IN WHICH THE QUESTIONNAIRES WERE FILED
BY THE
INTERVIEWER.
INTERVIEWER.
PERSONAL
INTERVIEWS
THROUGH
SELF
PERSONAL
INTERVIEWS
THROUGH
SELF
ADMINISTERED SURVEY WAS DONE TO
COLLECT THE
ADMINISTERED SURVEY WAS DONE TO
COLLECT THE
DATA, MARKET RESEARCH WAS UNDERTAKEN,
THAT
DATA, MARKET RESEARCH WAS UNDERTAKEN,
THAT
WAS ACCOMPLISHED BY PERFORMING
VARIOUS
WAS ACCOMPLISHED BY PERFORMING
VARIOUS
ACTIVITIES DESIGNED.
ACTIVITIES DESIGNED.
RESEARCH INSTRUMENT
RESEARCH INSTRUMENT:
:
QUESTIONNAIRE
QUESTIONNAIRE
THE QUESTIONNAIRE WAS FORMULATED BY
KEEP
THE QUESTIONNAIRE WAS FORMULATED BY
KEEP
IN MIND THE FOLLOWING POINTS
IN MIND THE FOLLOWING POINTS: -
:-
•
GIVING
•
THE
RESPONDENTS
CLEAR
GIVING
THE
RESPONDENTS
CLEAR
COMPREHENSION OF THE QUESTION.
COMPREHENSION OF THE QUESTION.
•
•INDUCING THE RESPONDENTS TO CO-
OPERATE.
INDUCING THE RESPONDENTS TO CO-OPERATE.
•
•GIVING INSTRUCTIONS AS TO WHAT IS
NEEDED.
GIVING INSTRUCTIONS AS TO WHAT IS
NEEDED.
IDENTIFYING THE NEEDS TO BE KNOWN.
IDENTIFYING THE NEEDS TO BE KNOWN.

Scope of the study

# To conduct this research the target population was the
mobile
users, Who are using GSM technology.
# Target geographic area. Sample size of 50 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
Used to obtain information on, Bharti’s history, current issues,
policies, procedures etc, wherever required.
# Internet
# Magazines
# Newspapers
 # Journals # Bharti Circulars # Bharti News Letters
LIMITATIONS:
LIMITATIONS:
The following were the limitations that were there during the
course of the
study:
1. Limited time period.
2. Less number of respondents.
Biasness of the respondents.
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.
A brief history of tele sector in India
In the early 1990s, the Indian government adopted a
new economic policy aimed at improving India's
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 Kolkatta) 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 Kolkatta 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, by 1999
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.
1.1 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 Telecom Policy of 1999 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.
Problems in Financial closures due to:
 Licensing tenure of 10 years
 Large up front 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 up front cash requirements for license fee
payments
mitigated with migration to revenue 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
Foreign ownership norms clarified, and change of
partners allowed as a matter of routine allowing 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
1.2 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 its intention to pull out from Skycell
Communications, and Hong Kong-based 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
(December 1999), 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
control of JT Telecom, which was later renamed Bharti
Mobile (December 1999), and Skycell 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 Reliance 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 Reliance 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 October 2002. 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.
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 Rs10.
The issue was oversubscribed by more than 2.5 times,
netting 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.
Building visibility and awareness
Deviating from competing on the price platform, cellular
operators are actively promoting their brand and service
portfolio through high-visibility 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.
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 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.
1.3 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.

• 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 subscriber.
• The bigger the service provider's national presence, the
better
it is for businesses. On the roaming front, signing up with a
national operator is advantageous.
• 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.
1.4 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 the 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
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.
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.
COMPANY PROFILE OF BHARTI
AIRTEL
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.
Established 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 provider to launch National Long
Distance Services in India. Bharti had approximately
3.21 million total customers – nearly 2.88 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 a fixed-line operations in the states of Madhya
Pradesh and Chattisgarh, 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 capitalise 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;
•
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

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:
•

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;
•

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 three-layered branding
architecture — to:

• Create specific brands for each service,

• Build sub-brands within each of these services and

• Use Bharti as the mother brand providing the group its

corporate identity as well as defining its goal to become a
national builder of telecoms infrastructure.

AirTel - The flagship brand for cellular operations all across

the 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 create “distinct independent brands to
address different customers and profiles”.

Brand Strategy:
To understand the brand strategy, let’s first look at the
brand building exercise associated with AirTel — a brand
that had to be repositioned recently to address new
needs in the market.
When the brand was launched seven years ago, cellular
telephony wasn’t 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
aspirational 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 brand-
tracking 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 Reliance Infocomm. and roughly the same
level of service and schemes, it had now become
important for Bharti to “humanize” 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.

The leadership series was okay when you were wooing

the crème de la crème 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
1.2 million customers). And with tariffs becoming more
affordable — as cell companies started 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 customer’s 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 through
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 AirTel “Touch 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.
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 Two
To
Tango: 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 connectivity on the mobile
phone — which AirTel is expected to launch soon.
The Magic:
Perhaps the more ambitious experiment has been withMagic
— 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
like “Magic Daalo Se Hello” which appealed to local
sensibilities.
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 12 lakh today, overtaking Essar’s
branded pre-paid cardSpeed, which was launched much
ahead of Magic. The company is now re-working its
Magic strategy even further.
Earlier, the branding strategy was aimed at roping in only
interested customers — that is, customers who were
already inclined 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
India’s 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 India
•

Youth based - romance driven strategy platform makes the

value
proposition of AirTel Magic - ‘Mumkin 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,
India’s 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 accelerating market
expansion. The value proposition is centered around a
person’s 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 just Rs.300/- per month AirTel
Magic is so easy to buy.) 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
slogan ‘Magic hai to Mumkin hai’ has been specially
created to capture this effectively.
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.
The 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
India’s top film star and national heartthrob. Kareena’s
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 AirTel’s 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 Magic’s new multi-media

campaign. The campaign has been created by Percept Advertising.

PHASE III -
Bharti used AirTel Magic to build a strong value
proposition and accelerate market expansion through
India’s 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 it’s new AirTel Magic pre-paid card brand
campaign – ‘Magic hai to Mumkin hai’. . The value
proposition is centered around a person’s 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 slogan ‘Aisi
azadi aur kahanhas 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.
• 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 don’t 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 don’t
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
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 post- paid, one need not pay security deposits for
picking up a pre- paid card. It is often available even with
paanwalas. As befits a fast-moving 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 pre-paid 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 high-value, 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 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.
Bharti’s View on its Branding strategy:-
First, brand building efforts in today’s 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 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.
Comparison of marketing strategies between
Bharti Airtel and Reliance Infocomm.
The sub main purpose of this report is to compare the
marketing
Strategies adopted by Bharti Airtel and its rival Reliance
Infocomm.
The comparison shows how both of the companies have
been
Challenging each other to gain market shares.
Why comparison with Reliance Infocomm?

■Bharti Airtel is the leader in telecommunication sector.

■Bharti Airtel holds the lion share of market of

communication sector.

■However, Reliance has been giving tough competition to

Bharti Airtel.

■Reliance Infocomm is the second largest player and

share holder in
Communication sector.
■Since its launch Reliance info. has been adopting aggressive
marketing
Strategies.
■The comparison shows how reliance info. Captured 22%
market share in
One month of its first launch of postpaid subscription in
2002.AD.
■With a different technology cdma Reliance creates it own
market.
■Reliance Info. today deals in every business of communication
sector.
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 living cities and towns.
Poor and middle income groups.
Youngsters in big cities.
Businessmen
Positioning
Creating brands (Sharukh khan & Sachin Tendulker)
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

MAR KETING STRATEGIES OF RELIANCE INDIA

MOBILE.(RIM)
Rim target the rural India
The main targeted customers of Rim are from rural India.
By offering cheap and light mobile sets Rim attracts most of the customers
Of small villages and towns.
Offering cheap handsets
Rim offers cheap and free connections to all costumers.
The cost for Rs-700\set and onward.
Free support and services
In every district and big towns rim opens its service centers to provide
better support and services.
Strong logistics and supply chain
Rim has a strong logistict and supply all over India.
In every small town the potential costumers can easily purchase the rim
sets.
Targeting youngsters in metropolitans
Rim attracts youngsters by offering colorful handset at
very low prices.

Brand positioning by Rim

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 centres
Product : varities available for various groups
Promotion:various schemes for pre-paid and post-paid

Schemes started by RIM

-
Smart Office - Call charges
Effective Rate/Min - 24 hrs)
Plan name
Plan
1000
Plan
1500
Plan
2000
Monthly Plan Charge (Rs.)
1000
1500
2000
Free Calls Worth (Rs.)
1000
1500
2000
Rate per Call Unit# (Rs./Pulse)
1.00
0.90
0.85
Refundable Deposit for ILD
(Rs.)
1000
1000
1000
Call Rates to Satellite Phones by RIM
INMARSAT CALL RATES:
Internet Usage Rates
Depicted for
Plan 1000
ISP
Charges
(Rs./Min.)
Call Charges
Call
Unit
length
(Pulse)
(Sec.)
Rate /
Call Unit
(Rs.)
Effective
Rate /
Min
(Rs.)
Total
Charges
Rs/ Hr.
Peak Hour
Rates on all
days
(06:30 - 22:30)
0.10
450
1.00
0.13
14
Off-Peak Hour
Rates on all
days
(22:30 - 06:30)
0.10
900
1.00
0.07
10
Schemes and plans by Bharti Airtel
Region
Call Unit
Length (Pulse) (Sec.)
Rate (Rs.)
Atlantic Ocean - East
1
5.83
Pacific Ocean
1
5.83
Indian Ocean
1
5.83

Services provided by Bharti Airtel

•
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 Reliance Infocomm.
●mobile services with CDMA technology
●fixed-line telephone services
●Universal Internetworking
●VoIP (Voice over Internet Protocol)
●Interactive Television
●Visual Communication
●Broadband Portal
●Telecommuting

05
10
15
20
25
30
35
40
RFS
Area
Reliance
Airtel
Tata
BSNL

Time to provide
service in days
Reliance Take more
time in comparison to
Airtel & Tata that’s
why company
loosing their
customer, and
market position
FINDINGS AND ANALYSIS
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 are
15% of the total interviewed people.
the next age group is the youngest generation who are
15-21 years old. They are school and college going
students and carry mobile phones to flaunt. They are
15% of the total interviewed people.
Occupation Graph
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
OCCUPATION 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

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
The above graph shows a slice of 50%. These are the
total no. of people who are using Airtel. It seems that
people are more aware of Airtel than any other brand.
The next popular brand is Hutch. 305 of the people
interviewed had Hutch connections. The next popular
brand was Idea. 15% people had Idea connections. As it
came very late in the market when Airtel had established
it self very well. So, that could be one of the reasons of
such a low percentage. The remaining 5% had trump
connections.

the people interviewed had Hutch connections. The next

popular brand was Idea. 15% people had Idea
connections. As it came very late in the market when
Airtel had established it self very well. So, that could be
one of the reasons of such a low percentage. The
remaining 5% had trump connections.
Customer Service At Airtel Graph
As the above graph clearly shows that customer services
at Airtel seems poor. 60% of the people are dissatisfied
with the customer services provided by Airtel. They are
the ones who have the maximum share in the market but
they are lagging behind in the customer services. 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 10% seem to be fully
satisfied with Airtel’s customer services, which is a very
small amount.

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 10% seem to be
fully satisfied with Airtel’s customer services, which is a
very small 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

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,
55% people knew what WLL is all about.

Awareness of WLL Players Graph

Reliance was the brand which was popular amongst the
interviewed people. As Reliance 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 Reliance. 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 Reliance. People at this point of time are not
interested to switch over from GSM to WLL.

SUGGESTIONS
Following are the few suggestions toAIRTEL 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 stores.
3. PROMOTION
*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
customers.

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, superior 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 company‘s bottom line falls victim to the bloated
and
highly paid workforce, which affects its margins.
Weakness:

• Little efforts over the Advertising of products.

• Distribution channel is not accurately categorized.

• Premium priced products, hence can’t compete in low

price
segment.
• No separate strategy for rural market.
Opportunities:
•

The company's financial performance can receive a major

boost from its cost reduction efforts.
• There is a lot of scope of product and market
diversification.
• Exports of products will also have huge chances in
the
coming years.
• Airtel’s business has ample scope for gaining market
share
from the unorganized sector. Rural penetration too holds
vast potential to bring about growth.
Threats
• The slowdown in the economy has restricted topline
growth
of most FMCG majors and for Airtel also it will be
difficult to maintain historical growth rates in such a
depressed scenario.
• Company’s 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
margins of the company. Moreover, inordinate hike in
Broad Band Internet products would also increases
company’s production and distribution cost.
RECOMMENDATIONS
I have made following recommendation to the
company
after do ing the summer training there:
• The company should modify its credit policy as

they
only target the cash paying customers who are not
easy to trace.
• The company should emphasis more on the quality

of
Pharmaceuticals Products it was mostly claimed
by
the exporters that their receipts from company
doesn’t
matches with the sample’s quality shown before
giving orders.
• The company should makes its marketing strategy

flexible enough in order to face competition.

• The company should keep an eye on the proper

delivery of the goods to exporter on time, as it

has
been recommended by exporters to make the
delivery
on time.
• The company rate policy must be flexible enough

to
catch new customers because if company offers
lower
price to a new customer then he may continue
buy the
goods and can be a permanent customer for the
company.
• The company should offers such rate in the market
so
that it may able to catch a biger market share and it
should be able to compete with the local traders and
commission agents while having a brand
name.
The company should take the opinion of
exporters from
time to time to know what problems they are
facing from
the company’s side? And if any change they
require in
present supplying condition?

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 refuses to
cooperate with
the queries.
5. Some retailers/wholesellers 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 answer all the
questions or do not
have time to answer.
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 competitor 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 Reliance info. 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 live in these areas.
The other segment may be costumers of all age groups.

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.google.com
www.india.com
http://www.blonnet.com/2004/06/26/stories/2004062602180700.htm, Mumbai,
June
25, 2004.
com/companies/companies_r/reliance_infocom/20031104_stop-roaming.htm, 4
November 2003
DomainB, Missed Call, At http://www.domainb

Magazines:
Airtel (2 July to 10 July 2004)
Airtel India page of HT paper (Thursday 1December

QUESTIONNAIRE
Dear Sir/Madam,
 I ,Mohd Jamil Qureshi, student of MBA of
Academy of Business and Engineering Science doing
my summer training project on consumer behavior from
Airtel. Please give your precious time for filling these
details.
Q.1 For how long you have been using Airtel Product?
 0-2 Years
 2-5 Years
 5-10 Years
 More than 10 years
Q.2 Are you using other product instead of Airtel?
 Ye s
 No
Q.3 Among them, which Brand you, prefer most?
 Reliance
 Hutch
 Airtel
Q. 4 How would you rate the experience with Brand?
 Reliance
 Hutch
 Airtel
Q.5 Do you collect any information search before making
purchase?
Ye s
 No.
Excellent
Good Average
Below
Average
Q.6 If yes, which sources are used?
 Magazines
 Dealers
 Sales Executives
 Operators reference
 Pamphlets and catalogue
 Reference from friends and relatives
 Any other
Q.7 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.8. Which of these marketing / sales schemes attracts you
while
purchasing any connection?
 Good Network
 Discount scheme
 Service package
 Any other
Q.9 If you have to purchase a new connection or product in
near
future, which Brand will you go for and why?
_____________________________________________
____
_____________________________________________
____
_____________________________________________
____
Q.10 Are you aware of various promotional activities being
run by
Airtel,
if yes then how? Are you satisfied with these
promotional activities?
 Customer Care
 By Ad Films
 By Camp
 24 hrs call center
services
Q.11How would you rate Airtel performance as your
expectation on 5 points scale (5 Highest)
1
2
3
4 5
 After Sale service
 Maintenance
 Product as per expectation
Q.12 What are you suggestions for improving the product
quality,
service availability and parts availability?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Very
Satisfied
Satisfied Somewhat
Satisfied
Not
satisfied

DECLARATION
I hereby declare that I have carried out Summer Training
Project on
the topic entitled “Marketing strategies Bharti Airtel AND
comparison with Reliance Infocomm. from New Delhi”
I further declare that this project work is based on my
original work and no part of this project has been
published or submitted to anybody.
SHIKHAR VERMA