Organization Structure

As an outcome of a restructuring exercise conducted within the company; a new integrated

organizational structure has emerged; with realigned roles, responsibilities and reporting relationships
of Bharti’s key team players. With effect from March 01, 2006, this unified management structure of
'One Airtel' will enable continued improvement in the delivery of the Group’s strategic vision.

Areas of Operations
Delhi
Our Delhi network covers a license area that includes the state of Delhi and the neighbouring towns of
Faridabad and Gurgaon in the state of Haryana, and Ghaziabad and Noida in the state of Uttar Pradesh.
We have a 20-year license to provide cellular services in our Delhi circle, valid until November 2014,
and which is extendible by additional periods of 10 years. In addition to being India’s political capital,
Delhi has the highest per capita income, the highest installed fixed-line penetration rate, and the
highest population density among the 29 states of India. Delhi has a high concentration of service and
manufacturing industries and houses the Central Government, the head offices for many major public
sector enterprises, embassies and various government missions and development agencies. We believe
that these factors create high roaming revenue potential from cellular subscribers who roam into our
network from other circles. As of November 30, 2001, we had 465,278 customers in Delhi, giving us a
market share of approximately 56% in this circle.

Karnataka and Andhra Pradesh

Located in southern India, Karnataka is a major business centre and several information technology
companies are based in and around its capital, Bangalore. Andhra Pradesh is adjacent to Karnataka and
several information technology companies are based in and around its capital, Hyderabad. Information
technology companies are typically high-volume users of telecommunications services, particularly for
data transmission. We offer cellular services in these circles pursuant to 20-year license, valid until
2016 for Karnataka and until 2015 for Andhra Pradesh, each of which is extendible by additional
periods of 10 years. As of November 30, 2001, we had 177,810 and 195,054 customers in Karnataka and
Andhra Pradesh, respectively, giving us a market share of approximately 57% and 48%, respectively, in
these circles.

Chennai
We provide cellular services in Chennai (the capital city of the southern state of Tamil Nadu) and in the
adjoining areas of Mahabalipuram, Minjur and Maraimalai Nagar. Chennai is a major centre for
information technology companies and foreign multinational corporations. Our network is operated
pursuant to a 20-year license, valid until November 2014, and which is extendible by additional periods
of 10 years. As of November 30, 2001, we had 110,032 customers in Chennai, giving us a market share
of approximately 51% in this circle.
Himachal Pradesh
Located in northern India, Himachal Pradesh is one of India’s most mountainous states and is a popular
tourist destination, particularly for residents of Delhi and other north Indian states. Our network is
operated pursuant to a 20-year license, valid until November 2015, and which is extendible by
additional periods of 10 years. As of November 30, 2001, we had 12,462 customers in Himachal
Pradesh, giving us a market share of approximately 64% in this circle.
Kolkata
Kolkata is the capital city for the eastern state of West Bengal. Several domestic and multinational
companies are based in Kolkata and it is a major centre for trade and commerce in eastern India. Our
network is operated pursuant to a 20-year license, valid until November 2014, and which is extendible
by additional periods of 10 years. As of November 30, 2001, we had 87,570 customers in Kolkata, giving
us a market share of approximately 41% in this circle.
We have grown as a result of both organic growth and acquisitions of circles completed by us. The
following table sets forth the growth in the number of our cellular customers over the last three years.
In September 2001, we entered into license agreements with the DOT to provide cellular services in the
eight circles of Mumbai, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh (West), Tamil
Nadu and Kerala. All these licenses are for a period of 20 years, valid until August 2021, and are
extendible by additional period of 10 years. In September 2001, the DoT also restored the Punjab
license in our favour. The Punjab license is for a period of 20 years, valid until 2015, and is extendible
by additional periods of 10 years. We expect to commence providing cellular services in these nine
proposed circles by the middle of this year.
Mumbai
Mumbai is the financial and commercial capital of India and one of the largest cities in the world in
terms of population. Mumbai is among the highest per capita income cities in India. Several leading
financial institutions, regulatory agencies, multinational corporations, service organizations and leading
conglomerates are located in Mumbai. The concentration of commercial activity and service industry in
Mumbai has led to a strong demand for telecommunications services, both voice and data.
Maharashtra. Surrounded by Gujarat, Madhya Pradesh, Andhra Pradesh and Karnataka, Maharashtra is a
prominent state in Western India.
Maharashtra is one of the most industrialised states in India and several industries including sugar,
pharmaceuticals, petrochemicals, heavy chemicals, electronics, automobiles, engineering, food
processing and plastics are located in the state. Maharashtra has attracted high amount of investment
from Indian and foreign companies in the past. Among states, Maharashtra has among the higher
literacy rates and is a centre for learning and research in India.
Gujarat
Gujarat is located adjacent to Maharashtra and is also a prominent industrialised state in the country.
Several companies in the chemicals and petrochemicals, pharmaceuticals and textiles sectors are based
in Gujarat and the largest grass-root level petroleum refinery in India is located in the state. Gujarat
also has one of the busiest ports in India and handled a high proportion of India’s exports for the year
ended March 31, 2001.

Haryana
Haryana is adjacent to Delhi and is surrounded by the states of Himachal Pradesh, Uttar Pradesh,
Rajasthan and Punjab. The city of Chandigarh, which is a union territory, is a joint capital city of the
states of Haryana and Punjab. Haryana is also an emerging centre in north India for IT enabled services
such as call centres, which are typically high-volume users of telecommunications services.
Punjab
Punjab is among the highest per capita income states in India. Punjab has emerged as a leading
producer of agricultural products in India and several multinational corporations have invested in
Punjab in agricultural-related businesses. Punjab is also emerging as a base for the production of
engineering goods, pharmaceuticals, leather goods, food products, textiles, electronic goods, sugar,
machine tools, hand tools, agricultural implements, sports goods, paper and paper packaging
materials.
Uttar Pradesh (West)
Uttar Pradesh (West) is a circle carved out of the north Indian state of Uttar Pradesh by the DoT and
has been classified as a Category B cellular license area. It is a popular tourist location in northern
India with several holy shrines and pilgrimage locations.
Madhya Pradesh
Located in central India, Madhya Pradesh has a total area of approximately 443,000 square kilometers
and has substantial mineral resources, making it a centre for the aluminum, chemical and iron and
steel industries. Several industries in the electronics, telecommunications, petro-chemicals, food
processing and automobiles sectors are also located in Madhya Pradesh.

Kerala
Located in south India, Kerala is rich in minerals, marine products and agricultural products. A large
section of the former population of Kerala lives outside India as non-resident Indians and has
contributed to a relatively high foreign exchange inflow in this state. The state has the highest density
of science and technology personnel and the highest literacy rate in India.
Tamil Nadu
Located in southern India, Tamil Nadu is surrounded by Andhra Pradesh, Karnataka and Kerala. Tamil
Nadu has several industrial undertakings engaged in cotton, sugar, leather, textiles, engineering and
petrochemicals sector. The state has a large number of professionals and has witnessed a rapid growth
in the software industry in the past few years.
In addition to entering into licenses with the DOT for our eight additional circles and the restoration of
our Punjab license, we have taken the following steps towards commencing operations in these circles
and the integration of the proposed circles with our existing circles:
completed network planning activities and implementing the same entered into rate contracts and, for
some circles, placed purchase orders with vendors, including Siemens, Motorola and Ericsson, for the
supply of telecommunications equipment and network design commenced recruitment activities and
internal transfer of employees for new areas of operations entered into agreements with the Escorts
group, a provider of cellular services in the Haryana, Kerala, Uttar Pradesh (West), Himachal Pradesh
and Punjab circles, to share cellular infrastructure in order to reduce costs and speed the launch date
for our services identified, and in some cases acquired, locations for the main switching centres and
cell sites. selected a common billing system, customer relationship and enterprise resource planning
packages and other office systems and controls for our existing and proposed cellular networks.
Airtel has also reorganized the management structure of its cellular business on a regional basis in an
effort to better capture revenue and cost synergies.

PRODUCT LINE-UP

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile
service provider in the country, based on the number of customers.

The group focuses on delivering telecommunications services as an integrated offering including

mobile, broadband & telephone, national and international long distance and data connectivity
services to corporate, small and medium scale enterprises.

The group offers high speed broadband internet with a best in class network. With Landline services in
94 cities we help you stay in touch with your friends & family and the world.

The Company compliments its mobile and broadband & telephone services with national and
international long distance services. It has over 35,016 route kilometers of optic fibre on its national
long distance network. For international connectivity to east, it has a submarine cable landing station
at. For international connectivity to the west, the Company is a member of the South East Asia-Middle
East-Western Europe – 4 (SEA-ME-WE-4) consortium.
Services
Broadband and internet services
Airtel brings you a host of exciting features ranging from facilities like Online tests, In touch and Video
Surveillance Solutions to trouble shooting devices like, Net Expert and Web Jockey.

Control your business, 24x7. Observe your office, warehouse, shop and staff from your PC, from
anywhere and all the time

Create and share your precious moments with your loved ones with In Touch. It’s a great way to reach
out to your loved ones who are far away.

Introducing NetXpert, India’s first ever automated Broadband care technology which provides
immediate solutions for Internet connectivity related problems.

Airtel Broadband Services and TCY Online offer you online competitive tests for GRE, GMAT, SAT and
MBA, from the comfort of your home.

Wifi is a wireless technology brand by the Wifi Alliance that gives you a host of fantastic advantages
ranging from reliability to security.

Calling cards
Our calling card services connect you to your friends and friends in India a cost effective and reliable
manner. Choose from the options below and stay connected.
Calling Cards include

Great savings on calling anywhere in India or across the world. Even if your phone is not STD/ISD
enabled, go ahead and talk to your loved ones.

Now call back India from USA at lowest cost of just 6c / min .

Traveling abroad? Save precious foreign exchange and up to 94% over international roaming charges.
Home Phones
Home Phones include

Airtel welcomes you to its world of telephony services, which offers you world class services with its
cutting edge technology.
Avail of the convenience of a mobile phone on a fixed line, without any cables disturbing the ambience
of your living room!
Mobile Footprint

The map below depicts the location of, and provides certain information for, Bharti Tele-Ventures'
existing mobile circles in India:

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).

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.

As competition in the telecom arena intensified, service providers took new initiatives to woo
customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons,
business solutions and talk time schemes. The most important consumer segments in the cellular
industry were the youth segment and the business class segment. The youth segment was the largest
and fastest growing segment and was therefore targeted most heavily by cellular service providers.

Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it
emerged the unprecedented leader commanding the largest market share in the cellular service
market. (Refer Exhibit II). Hutch implemented the celebrity endorsement strategy partially, relying
primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted
the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas,
and this helped it increase its subscriber base. Reliance was another player that cashed on its
innovative promotional strategies, which included celebrity endorsements and attractive talk time
schemes. Idea, relied heavily on its creative media advertising sans celebrities.

SWOT ANALYSIS

STRENGHTS

1. India has technically educated, motivated and intelligent workforce, who if given proper incentives
like quality living and benefits, can be retained in India .
2. India possesses cheap labours to attract foreign investments.
3. Telecom software, telecom professionals, telecom infrastructure and telecom services are the key
players in shaping today’s economy.
4. Revenue sharing strategies are leading to mergers and actuations, helping companies to enter new
business opportunities, and generate employments, boosting the country’s economy.
5. Privatization of VSNL, along with its partnership with Tata has benefited not only the two companies
but also the county at large.
6. Information technology growth can propel India into IT superpower.
7. Quality of life definitely improves when the infrastructure and economy improves.
8. India has huge project plans with foreign countries which can attract further mergers , investments
etc.
9. Foreign companies that are facing problem in home market have already identified India as a
potential markets for business and therefore they are heavily investing in India.
10. Government has already started relaxing rules for foreign participants.
11. Software exports from software technology parks are a huge potential business.
12. Though global telecom picture looks gloomy but India possesses the competitive advantage in terms
of its huge market size and many undeveloped areas.

WEAKNESSES

1. Bureaucracy and politics tremendously affects the business policies.

2. Slow reform process and slow liberalization affect the changes and makes the progress slow.
3. Foreign companies wanting to invest in India are put off due to continuously changing rules and lax
policies.
4. Telco’s though united, provide some services that bring them in close competition and therefore
lose not only profits but also consumer confidence.
5. Compared to the global structure, India is still concentrating on universal service in some parts of
the country.
6. Since 1994 reform process, telecom density has only gone up to 3 as compared to the global average
of 14.
7. Though cellular is the most attractive business today, but still the overall number of cellular
subscribers is very low and this market really needs to be tapped.
8. Embracing change and understanding the technology takes a lot of time making the changes very
slowly.

OPPORTUNITIES
1. Lot of new entrants in telecom is bringing investment opportunities.
2. Economic liberalization is bringing a significant amount of progress.
3. Telecom educational institutes are coming up to keep the professionals at par with the changing
technology.
4. New opportunities are generating more employment and creating a knowledge based economy
5. Privatization of services in telecom sector has led to keen competition, as a result of which prices
are reduced and more business opportunities are created.
6. Increased availability of bandwidth has opened doors to new schemes making efficient usage
/providing value added services and generating profits.
7. For cellular operators providing long distance is a lucrative business opportunity and they can also
concentrate on providing many value added services.
8. Provision of not only basic services /but also, internet, cellular, medical transcription, call center.

THREATS

1. Regulatory and tariff changes especially in the cellular operations are constant threats.
2. China’s early liberalization and the fast growing economy may prove to be a hindrance for India.
3. Economic protectionism and continuous political changes plays against plays against everybody’s
favors and affects the good intentions of players even like reliance / Tatas etc.
4. Price regulations based on pre set rate of return hinder the growth.
5. Young hard working and intelligent work force want to leave the country due to poor economic
conditions and exploitation.
6. Indian businesses take time or can’t survive due to the constantly changing technology and fast-
paced nature of telecom business.

CHAPTER-IIII
RESEARCH OBJECTIVE

RESEARCH OBJECTIVE

The objective of my project report is to study the advertising strategy of AIRTEL Cellular service and its
effect on mobile users existing and who are going to use mobile service in future. In other words, my
aim is to study the

Advertising Effectiveness of AIRTEL Cellular service.

? To learn the practical knowledge and how academic knowledge convertible in practical way.

? To find out the success rate of the airtel cellular.

? To find out how much organization is involved in the mind of consumer.

? To measure the customer’s satisfaction of airtel who are using airtel services and products.

? To develop a new strategy for the improvement of existing Airtel services and to find new ways of
increasing Market share.

CHAPTER-V
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the subject. As the prime
objective of the project is to study advertising strategy of 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.

Procedure of research methodology

# Target geographic area was East Delhi.
# To these geographical area questionnaire was given, the questionnaire was a combination of both
open ended and closed ended questions.
# The date during which questionnaires were filled was between six week.
# Some dealers were also interviewed to know their prospective. Interviews with the honour of retailer
of Airtel 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, Airtel and its competitor history, current issues, policies, procedures
etc, wherever required.
# Internet
# Magazines
# Newspapers

CHAPTER-VI
LIMITATIONS OF STUDY

LIMITATIONS OF STUDY

The researcher has to face certain difficulties while he carries out the research work. He knows the
limitations before hand. Some of them are uncontrollable and some others are controllable. Some
important limitations, which were faced, are as follows:

1. Limitation of Time: I have completed the research in limited time. In spite of all the difficulties if
the time is short it is quite possible that one cannot collect the sufficient data and have to depend
upon other source of data.

2. Limitation of funds: Availability of funds was another limitation owning to shortage of money.

3. Limitation of skills: the research needs a lot of statistical work involving collection and tabulation of
data, interpretation of data and drawing out the necessary results. It requires an able, efficient and
experienced research works.

4. Limitation of human behaviors:

(a) Some of the respondent was not honest and genuine in their approach.
(b) Some of the respondents could not understand certain queries.

CHAPTER-VII
CONCLUSION

CONCLUSION

The conclusion of my study is that AIRTEL’s Advertising has a major impact on 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 sets, 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.
AIRTEL has influenced mass customer by its wide network base in India and is popular among business
man and professionals but in students it isn’t a popular one because there isn’t much attracting
schemes and offers for the youth.