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Stpr (kush bajaj) 2019-22

Applied Mathematics II (Guru Gobind Singh Indraprastha University)

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PROJECT REPORT ON

Consumer behaviour of marketing strategies of Airtel

Submitted in partial Fulfillment of the Award of Degree of

Bachelor of Business Administration (b&i)

Session 2019 - 2022

UNDER THE GUIDANCE OF: SUBMITTED BY:

Ms. Mandeep Kaur KUSH BAJAJ

SGTBIMIT BBA(B&I) - 5rd Sem

Roll No. 01591101819

SHRI GURU TEGH BAHADUR INSTITUTE


OF MANAGEMENT AND
INFORMATION
TECHNOLOGY
Affiliated to GGSIPU (Guru Gobind Singh Indraprastha University

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DECLARATION

I KUSH BAJAJ student of SGTBIMIT, NEW DELHI hereby declare that the project report on

“Consumer behaviour of marketing strategies of Airtel” is an original and

authenticated work done by me based on my work carried during the course of my study under the

supervision and guidance of Ms. Mandeep Kaur.

I further declare that it has not been submitted elsewhere by any other person in any of the institutes

for the award of any degree and this project is true and original to the best of my knowledge

Kush Bajaj

Roll No. 01591101819

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ACKNOWLEDGEMENT

I would like to express my sincere thanks to Ms. Mandeep Kaur who helped, inspired and mentored

me and without their help this project report would not have taken its current shape. Under their

brilliant untiring guidance, I could complete the project being undertaken on the “Consumer

behaviour of marketing strategies of Airtel” successfully in time. Their meticulous

attention and invaluable suggestions have helped me in simplifying the problem involved in the

work. I would also like to thank the overwhelming support of all the people who gave me an

opportunity to learn and gain knowledge about the various aspects of the industry. I once again

express my heartfelt indebtedness to all-aforesaid. Any omission or error in acknowledgment is

inadvertent. For such oversights and lapses, I tender unconditional apology.

I would also like to thank the SGTBIMIT, NEW DELHI for giving me this opportunity to explore

the valuable information related to this project.

KUSH BAJAJ

Roll No. 01591101819

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TABLE OF CONTENTS

S.No. Heading

Ch 1 INTRODUCTION

Ch 2 OBJECTIVES OF THE STUDY

Ch 3 RESEARCH METHODOLOGY

Ch 4 ANALYSIS AND FINDINGS

Ch 5 SUGGESTIONS AND RECOMMENDATIONS

Ch 6 LIMITATIONS OF THE STUDY

Ch 7 CONCLUSION

Ch 8 BIBLIOGRAPHY

Ch 9 ANNEXURE - 1

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EXECUTIVE SUMMARY

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 coping up with

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 for technology, promotion policy, advertising,

collaboration, 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

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CHAPTER - 1

INTRODUCTION

1.1 TELECOMMUNICATION MARKET IN INDIA

The Indian telecommunications Network with 250m telephone connections is the fifth largest in

the world and is the second largest among the emerging economies of Asia. Today it is the fastest

growing market in the world and represents unique opportunities for UK companies in the stagnant

global scenario. Tele-density, which was languishing at 2% in 1999, has shown an impressive

jump to 9.5% in 2009 and 10.5% in 2010 and is set to increase to 20% in the next five years beating

the Govt. target by three years. Accordingly, India requires incremental investments of USD 25-

30 billion for the next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With

more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the

Indian telecom industry. Given the current growth trends, cellular connections in India will surpass

the fixed line by late 2011/early 2012. Intense competition between the four main private groups

- Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL and MTNL has

brought about a significant drop in tariffs.

There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges,

resulting in a boom time for the consumers. The Government has played a key enabling role by

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deregulating and liberalizing the industry, ushering in competition and paving the way for growth.

While there were regulatory irregularities earlier, resulting in litigation, these have all been

addressed now. Customs duties on hardware and mobile handsets have been reduced from 14

percent to 5 percent. The Indian government has merged the IT and Telecom Ministries to speed

up reforms and decisions on the Communication Convergence Bill to enable the common

regulation of the Internet, broadcasting and telecoms will be taken after the new Government

assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute

settlement body (TDSAT) is fully functional.

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 Kolkata) and 20 circles, which

roughly correspond to the states in India. The circles are further classified under "A," "B" and "C,"

with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body

at that time — the Department of Telecommunications (DOT) — allocated two cellular licenses

for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22

firms in 1995. The first cellular service was provided by Modi Telstra in Kolkata in August 1995.

For the auction, it was stipulated that no firm can win in more than one metro, three circles or both.

The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal

and Assam had only one bidder each.

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INDIAN CELLULAR MARKET

The Bharti Group, which operates in 23 circles, continues to be the country's largest cellular

operator, with 50 lakh subscribers. Vodafone, which operates in 22 circles, has a subscriber base

of 37 lakh subscribers. Thus, Vodafone stands second largest cellular operator in terms of

subscriber base at the end of the fiscal ending October 31, 2020, displacing BSNL from the second

position. BSNL, which operates in only eighteen circles, is the third largest operator with a

subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in

Mumbai and Delhi, BSNL, has been a very aggressive player in the market.

"Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not

take effective steps to counter it, till it was too late in the day," said a telecom analyst. Belying

fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a 9.72% growth,

the highest growth in any month so far, during October 2019. Year-on-year, the cellular subscriber

base in the country has almost doubled in October 2020, and is expanding at the rate of 25% per

year thereafter. The cellular subscriber club expanded by 21.31 lakh last month. This is much

higher than 5.9 lakh subscribers added in February 2020 and 2.13 lakh in January 2020.

Idea, which operates in seven circles, is the fourth largest operator with a subscriber base of 17.80

lakh, higher than BPL's 11.31 lakh subscribers across four circles. The subscriber numbers per

operator drop sharply with the sixth largest operator, Spice Communications, having a subscriber

base of 9.40 lakh, followed by Reliance Telecom's 8.9 lakh subscribers. MTNL is the ninth largest

operator, with a base of 8.32 lakh subscribers.

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While the subscriber base-jumped by 3.38% to 44.39 lakh in the metros, subscriber base of

category A circles of Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped

by 10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab, Haryana, Uttar Pradesh

(West), Uttar Pradesh (East), Rajasthan, Madhya Pradesh and West Bengal recorded a jump of

10.69%, with a total base of 33.74 lakh subscribers. Circle C has reported 12.74 % growth with

subscriber numbers jumping to 5.08 lakh. Among the metros, while Mumbai added 1,63,180

subscribers, higher than the 1,58,646 added by Delhi, the Capital's cellular

subscriber base of over 80 lakh is still higher than Mumbai's 66.89 lakh. While the cellular industry

has been on roll for the first three quarters of the previous financial year with an average of 16.75

lakh monthly additions in the third quarter, the first two months of 2018 had seen the growth

slowing down.

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]

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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.

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.

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 have 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

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Telecom and both Shinawatra of Thailand and Bezel exited from Fascel. In June 2001, British

Telecom exited from Bharti Cellular. Bell South International has also indicated its intention to

pull out from Sky cell Communications, and Hong Kong-based Datacom is seeking to sell its stake

in Spice Communications. First Pacific's (based in Hong Kong) continued commitment to Ecotel

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.

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.

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Cellular operators like Bharti, Vodafone and Idea 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. Vodafone in Mumbai offers "Vodafone Holidays"

and "Vodafone 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-centred 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

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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 centres 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.

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 3G 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.

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•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.

India fastest growing GSM mart

India is expected to have 245 million GSM (global system for mobile communications) customers

by 2010-11 compared to 26 million subscribers as of March 2005, according to the Global Mobile

Suppliers Association. "For GSM, India is a success story. It is one of the fastest growing markets

with its subscriber base doubling in 2009. At this pace, the target of 500 million subscribers by

2011-2012 is definitely achievable," Alan Hadden, president of GSA, said at a news conference in

New Delhi. Globally, the GSM market reached 1 billion users in February 2005, he said, adding

GSM accounted for 80 per cent of the new subscriber growth in 2005."Almost every Latin

American operator has chosen GSM. In North America GSM growth is bigger than CDMA (code

division multiple access)," he said. Commenting on the raging debate over GSM versus CDMA in

the mobile services arena, Hadden said: "GSM is the world's most successful mobile standard with

over 1 billion users, and is an open mobile standard. It also supports automatic international

roaming, which is a major contributor to business plans."

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India’s GSM mobile firms’ revenue up 30 pct

India’s private telecoms firms offering GSM-based mobile services reported a 24 percent rise in

revenue in the year March 2010 but said future growth rates could slow because of heavy taxes on

the nascent industry. Although India’s mobile sector is the world’s fastest growing major wireless

market, it is amongst the highest taxed industries in the country. Mobile carriers pay as much as

25 percent of their revenue as licence fee, spectrum charges and other taxes. The Cellular Operators

Association of India (COAI) said revenue for fiscal 2010/11 stood at 283.08 billion rupees ($6.15

billion) compared with 64 billion rupees a year earlier. According to T.V. Ramachandran, director

general at COAI, “These revenue growth rates cannot be maintained unless there is a concerted

effort by the government to cut excessive levies and allow sharing of infrastructure” “But the

potential to do much better exists as there is still huge demand in the sector.”

Ramachandran said the sector was still losing money but declined to elaborate. Sales jumped

because of a doubling of the GSM (Global System of Mobile Communications) user base as more

people entered the flourishing market thanks to one of the lowest call rates in the world. But the

monthly average revenue per user, a key measure of profitability, declined 17.4 percent to 432

rupees in the fourth quarter compared with 523 rupees in the first quarter due to a cut in tariffs and

excessive competition among companies. Growth slowing, demand untapped: The association has

not included the financial performance and the GSM-user base of state-run firms Bharat Sanchar

Nigam Ltd, the second-ranked player, and Mahanagar Telephone Nigam Ltd, Ramachandran said.

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There are 150 million GSM customers and more than 96 million users of the rival CDMA-based

mobile services in the country.

THE CDMA CHALLENGE

CDMA players had launched their services with CDMA 2000 1Xbased networks, which can give

hi-speed, always-on connectivity to the Internet, and other data services. GSM operators, on the

other hand, have had to migrate from the frustrating experience of WAP (wireless application

protocol) to GPRS, which has not significantly improved the subscriber’s experience of surfing

the Net on/from mobile. The top brass of GSA, an organization comprising Nokia, Siemens,

Ericsson, Alcatel and Lucent Technologies - met on Tuesday in the capital to persuade the

operators to adopt EDGE (Enhanced Data rates for GSM Evolution) and leave GPRS behind as a

dream gone sour. Only Airtel, Vodafone, BPL Mobile and Idea Cellular had launched GPRS, but

the data transfer speeds of GPRS have been abysmal. The field trials gave a speed of around 54

kbps, but the actual speeds have not exceeded 14-18 kbps, a major reason why GPRS growth has

been so slow.

As against the total GSM cellular base of 5.61 crore, the country has between 2,80,000 lakh GPRS

users only. In comparison, the two CDMA operators have about 120 lakh connections. All these

sets are data compliant. Though no figures are available as to how many use these for data services,

the figure is believed to be respectable as a percentage ratio for CDMA.

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Bharti Is Almost There

But first, the EDGE! Bharti Cellular is close to commercially launching its EDGE service in Delhi

and Mumbai by end May or early June, sources said. The company was the first to conduct field

trials in November with its equipment supplier Ericsson. Idea too held EDGE field trials in

February this year with its vendor Nokia. Vodafone and BPL are yet to hold trials. The two

companies would eventually migrate to EDGE, but perhaps after seeing the response to Bharti’s

service. EDGE holds the promise of delivering data speeds of around 170- 180 kbps (as against

the theoretical speed of around 380 kbps) which, if achieved, promises the launch of many data

applications. The scalable cost of migrating from GPRS to EDGE is not too high and mainly

comprises software upgrades in case of a modern network such as Bharti and Hutch, claimed

chairman of GSA India chapter Rakesh Malik.

gung however the future of their technologies, boosted by the American firms Qualcomm and

Motorola, but Indian market could well throw up an interesting scenario that industry experts will

do well to watch. In the coming months, Reliance plans to offer its CDMA subscribers much more

than what GSM players intend to deliver through their EDGE for their subscribers. Who succeeds

in this battle for mobile customer’s eyeballs is most difficult to predict? Korea and Japan may not

be waiting to happen in India, but India will probably be more like the Chinese market with both

standards co-existing. For now, GSM rules!

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COMMUNICATIONS IN INDIA

The Indian telecommunication industry is the world's fastest growing industry with 811.59

million mobile phone subscribers as of March 2011. It is also the second largest telecommunication

network in the world in terms of number of wireless connections after China. As the fastest

growing telecommunications industry in the world, it is projected that India will have 1.159 billion

mobile subscribers by 2013. Furthermore, projections by several leading global consultancies

indicate that the total number of subscribers in India will exceed the total subscriber count in China

by 2013. The industry is expected to reach a size of 344,921 crore (US$76.57 billion) by 2012 at

a growth rate of over 26 per cent, and generate employment opportunities for about 10 million

people during the same period. According to analysts, the sector would create direct employment

for 2.8 million people and for 7 million indirectly. In 2008-09 the overall telecom equipment

revenue in India stood at 136,833 crore (US$30.38 billion) during the fiscal, as against 115,382

crore (US$25.61 billion) a year before.

MODERN GROWTH

A large population, low telephony penetration levels, and a rise in consumer spending power has

helped make India the fastest-growing telecom market in the world. The market's first operator

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was the state-owned Bharat Sanchar Nigam Limited (BSNL), created by corporatization of the

Indian Telecommunication Service, a government unit formerly responsible for provision of

telephony services. Subsequently, after the telecommunication policies were revised to allow

private operators, companies such as Bharti Airtel, Reliance Communications, Tata Indicom, Idea

Cellular and Aircel have entered the market (Bharti Airtel currently being the largest telecom

company in India). In the fiscal year 2008-09, rural India outpaced urban India in mobile growth

rate.

The total number of telephones in the country stands at 846.32 million, while the overall tele-

density has increased to 70.89% as of Mar 31st, 2011. Mobile telephony experiences growths at

rates such as 20.21 million subscribers a month, which were added in March 2011.

INTRODUCTION OF THE TELEPHONE

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-

Indian Telephone Company Ltd. approached the Government of India to establish telephone

exchanges in India. The permission was refused on the grounds that the establishment of

telephones was a government monopoly and that the Government itself would undertake the work.

In 1881, the Government later reversed its earlier decision and a license was granted to the Oriental

Telephone Company Limited of England for opening telephone exchanges at Calcutta, Bombay,

Madras and Ahmedabad and the first formal telephone service was established in the country. On

the 28th January 1882, Major E. Baring, Member of the Governor General of India's Council

declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in

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Calcutta named the "Central Exchange", was opened at the third floor of the building at 7, Council

House Street, with a total of 93 subscribers. Later that year, Bombay also witnessed the opening

of a telephone exchange.

INDIAN TELECOM SECTORS: RECENT POLICIES

● A Communication Convergence Bill introduced in the Parliament on August 31, 2001 is

presently before the Standing Committee of Parliament on Telecom and IT.

● National Long-Distance Service (NLD) is open for unrestricted entry.

● The International Long-Distance Services (ILDS) have been opened to competition.

● The basic services are open to competition.

● In addition to the existing three, a fourth cellular operator, one each in four metros and

thirteen circles, has been permitted. Cellular operators have been permitted to provide all

types of mobile services including voice and non-voice messages, data services and PCOs

utilizing any type of network equipment, including circuit and/or package switches that

meet certain required standards.

● Wireless Local Loop (WLL) has been introduced to provide telephone connections in

urban, semi-urban and rural areas promptly.

● Two telecom PSUs, VSNL and HTL have been disinvested.

● Steps are being taken to fulfill Universal Service Obligation (USO), funding, and

administration.

● A decision to permit Community Phone Service has been announced.

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● Multiple Fixed Service Providers (FSPs) licensing guidelines were announced.

● Internet Service Providers (ISPs) have been allowed to set up International Internet

Gateways, both Satellite and Landing stations for submarine optical fiber cables.

● Two categories of infrastructure providers have been allowed to provide end-to-end

bandwidth and dark fiber, right of way, towers, duct space etc.

● Guidelines have been issued by the Government to open up Internet telephony (IP).

REVENUE AND GROWTH

The total revenue in the telecom service sector was 86,720 crore (US$19.3 billion) in 2005-06 as

against 71,674 crore (US$15.9 billion) in 2004-2005, registering a growth of 21%.estimated

revenue of FY'2011 is Rs.835 Bn (US$ 19 Bn Approx.).The total investment in the telecom

services sector reached 200,660 crore (US$44.5 billion) in 2005-06, up from 178,831 crore

(US$39.7 billion) in the previous fiscal. Telecommunication is the lifeline of the rapidly growing

Information Technology industry. Internet subscriber base has risen to more than a 100 million in

2010. Out of this 11.47 million were broadband connections. More than a billion people use the

internet globally. Under the Bharat Nirman Programme, the Government of India will ensure that

66,822 revenue villages in the country, which have not yet been provided with a Village Public

Telephone (VPT), will be connected. However, doubts have been raised about what it would mean

for the poor in the country.

It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of

the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in

December 2005 up from 2.3 million in December 2004.

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TELECOM TRAINING IN INDIA

The incumbent telecom operators (BSNL & MTNL) have maintained several telecom training

centers at regional, circle and district level. BSNL has three national level institutions, namely

Advanced Level Telecom Training Centre (ALTTC) at Ghaziabad, UP; Bharat Ratna Bhim Rao

Ambedkar Institute Of Telecom Training at Jabalpur, MP; and National Academy of Telecom

Finance and Management.

MTNL incorporated the Centre for Excellence in Telecom Technology and Management

(CETTM) in 2003-04. It is the largest telecom training center in India and one of the biggest in

Asia. It provides training in telecom switching, transmission, wireless communication, telecom

operations and management to corporates and students besides its own internal employees.

Other than the government operators some private players like Bharti (Bharti School of Telecom

Management part of IIT Delhi), Aegis School of Business and Telecommunication (Bangalore and

Mumbai) and Reliance have started their own training centers.

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1.2 INTRODUCTION TO BHARTI AIRTEL

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in

telecommunications services. Its subsidiaries operate telecom services across India. Bharti Airtel

is India's leading private sector provider of telecommunications services based on a strong

customer base consisting of 50 million total customers, which constitute 44.6 million mobile and

5.4 million fixed line customers, as of March 31, 2007. Bharti Airtel limited is a leading global

telecommunications company with operations in 19 countries across Asia and Africa. The

company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH,

turnkey telecom solutions for enterprises and national & international long distance services to

carriers. Bharti Airtel has been ranked among the six best performing technology companies in the

world by business week. Bharti Airtel had 200 million customers across its operations. Airtel

comes to us from Bharti Airtel Limited - a part of the biggest private integrated telecom

conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which Bharti Airtel

Limited was incorporated on July 7, 1995 for promoting investments in telecommunications

services.

Its subsidiaries operate telecom services across India. Bharti Airtel is India's leading private sector

provider of telecommunications services based on a strong customer base consisting of 50 million

total customers, which constitute 44.6 million mobile and 5.4 million fixed line customers, as of

March 31, 2007. Airtel comes to us from Bharti Airtel Limited - a part of the biggest private

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integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services,

which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti

also manufactures and exports telephone terminals and cordless phones.

Apart from being the largest manufacturer of telephone instruments in India, it is also the first

company to export its products to the USA. Bharti has also put its footsteps into the Insurance and

Retail segment in collaboration with multi-National giants. Bharti is the leading cellular service

provider, with a footprint in 23 states covering all four metros and more than 50 million satisfied

customers.

Airtel rolls out 3G services in the cyber city of Bangalore

● Reaches a milestone of 2 million customers on Airtel 3G

● Launches High-Definition gaming for Airtel 3G customers across India

● Offers special B2B programme for Airtel 3G enterprise customers

Leading telecommunications company, Bharti Airtel today started the roll out of 3G

services in Andhra Pradesh with launch of the service in the cyber city of Bangalore.

With this, Bangaloreans can now join the 2-million-strong base of mobile customers in

India that are already leveraging the Airtel 3G advantage to experience a host of exciting

capabilities including Mobile TV, video calls, live streaming of videos and on the go

social networking - all at speeds never experienced before. Airtel today also announced

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the launch of High Definition (HD) gaming for its 3G customers. With 3G powered HD

games such as NFS Shift Super, FIFA11 and EACricket10 - gaming lovers across

Airtel’s network in India can enjoy a console-like experience on their mobile handsets.

On the B2B front, Airtel announced that it now offers special programmes catering to

the 3G needs of enterprise customers.

Speaking on the occasion, Mr. Atul Bindal, President - Mobile Services, Bharti

Airtel said, "We are humbled by the trust of over 16.5 million customers in Karnataka

who have made us the market leader. In keeping with our commitment to bring the best

to our customer, we today bring the Airtel 3G advantage to the tech savvy and youthful

city of Bangalore. Over the next few weeks, we will be extending Airtel 3G services to

other key locations such as Mysore cities and towns of this state. Our customers here

can now join the 2 million 3G enabled customers in India. We welcome you all to

experience Airtel 3G services and join 2 million of our customers that are already

enjoying this part of this all-new world of possibilities."

"Today we also announce the national launch of High-Definition gaming for all the 3G

customers on our network. Now avid gamers will be able to enjoy an enhanced console

like gaming experience on the go. And for our B2B customers we bring customized 3G

programmes that will aid and enhance their business capabilities." he added.

High-Definition gaming on Airtel 3G speeds will allow customers to use their HD

enabled mobile handsets to benefit from various exciting features such as touch

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interface, motion sensors, enhanced 3D graphics and quality music special effects - in

effect, bringing alive the ultimate console like gaming experience on to the mobile

device. Airtel currently offers over 25 HD games for its mobile customers in India.

Customers can now subscribe to Airtel 3G services to enjoy fast access to data services

and experience innovative applications like Mobile TV and video calls. For faster

internet accessibility, Airtel 3G dongles are also available for laptop users. Aimed at

addressing the 3G requirements of enterprise customers, B2B packages have now been

launched by Airtel.

All these services can be enjoyed seamlessly without a 'bill shock' as Airtel provides its

customers with timely updates and alerts on their data usage and helps them control their

expenditure. The company has also introduced a first of its kind ‘internet usage

calculator’ available online to help customers monitor and analyse their current internet

data usage and choose an Airtel 3G plan accordingly.

SERVICES

Airtel Prepaid

Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, India's

leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life.

With a host of great features, also simple to use, Airtel Prepaid makes everything that you dreamt

and believed, possible.

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Voice Mail

When your handset is switched off, or you’re too busy to answer the phone, Airtel Voicemail will

answer your calls and record a message. The best part is that there's no extra monthly cost for

setting up Voicemail - you just pay for the phone call when you use the service.

SMS (Short Messaging Service)

Send messages quickly and easily using text, if it's too noisy to talk or you don't have much time.

It's the way to share those interesting one-liners, important reminders and rib-tickling jokes, with

anyone, anytime, anywhere in the world.

Subscription Alerts

Get regular alerts on news, jokes, business, health and films on your Airtel mobile phone with

Subscription Services. SMS <SUB NEWS> to 3333 for News, <SUB JOKE> for Jokes, <SUB

BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastu tips.

MMS (Multimedia Messaging Service):

Jazz up your messages with pictures, images and video clippings, with MMS from Airtel! To

activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.

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Get the tune you want, all you have to do is call 55055 and follow the simple voice instructions to

copy your favourite Hello Tunes. Once inside the copy feature, just key in the 10-digit Airtel

mobile number you want to copy the Hello Tune from and you get the same Hello Tune assigned

to your number.

Airtel Postpaid

Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet

simple new ways to communicate, just when you want to, not just through words but ideas,

emotions and feelings. To give you the unlimited freedom to reach out to your special people in

your special way.

Easy Billing

Enjoy a host of rich features only with Airtel e-bill. Register free on ‘My Airtel’ section and view

your monthly bill with call details for the last three months. Sort your calls between personal and

official or analyze your usage, at the click of a button. To change your tariff plan call our IVR at

121 and leave a request.

Easy Payment Options. Anytime Anywhere

You can choose from a host of convenient payment options only with Airtel. Walk into any Airtel

relationship center and make your payments by cash or credit card. Drop a cheque at any of the

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drop boxes for making payments or simply log on to My Airtel section and pay instantly through

your credit card. You can also opt for easy payment options like :

Electronic Clearing System

Fill an ECS form and mail, fax it to us or drop it at any of our relationship centres to directly debit

your bank account for your monthly Airtel bill.

Missed call alert

A missed call alert is an SMS that you will receive for all the calls that you missed. The SMS will

detail the CLI and the time when the call was made. To activate, dial *135*2# then press the call

button and wait for the request to be completed.

Get the EDGE

Browse the internet on your mobile phone with Airtel's EDGE services. Enjoy live TV, enhanced

WAP experience and Airtel Data Cards on our high-speed network.

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PROMOTIONAL STRATEGY

Airtel to “Touch Tomorrow” with a new brand vision

The Bharti Mobile promoted Airtel cellular service will go in for repositioning of its brand image.

The new brand ethos is portrayed in two distinct fashions - the tagline "Touch Tomorrow", which

underscores the leading theme for the new brand vision, followed by "The Good Life", which

underscores a more caring, more customer centric organization. Aimed at reengineering its image

as just simply a cellular service provider to an all out information communications services

provider, Touch Tomorrow is meant to embrace the new generation of mobile communication

services and the changing scope of customer needs and aspirations that come along with it The

new communication is about a new dimension in the cellular

category that goes beyond the Internet, SMS, roaming, IVRS, etc but which engulfs the whole

gamut of wireless digital broadband services that will constitute tomorrow's cellular services. The

new campaign is in two phases - the first of which will communicate overall brand philosophy and

the second products and services. According to Mr. Jagdish Kini, Chief Operating Officer, Bharti

Mobile Limited, Karnataka “We are adopting a new brand- platform - Touch Tomorrow - not only

to reflect our corporate ethos but also business strategy”. The new identity will have the logo in

Red, Black and White colours along with lowercase typography to convey warmth. Airtel will

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incorporate the latest branding in all of its communication and will soon be going in for an

enhanced promotional drive to establish the brand's presence.

LIFE TIME PLAN

PREPAID card users need not worry anymore about recharging their coupons every month.

Company has launched a plan that allows users to take a prepaid connection with lifetime validity

for a one time payment of Rs. 999. Subscribers availing themselves of this scheme will also get

full talk time for the recharge coupon they purchase and also have the option to buy Taiwanese

manufactured Bird mobile handsets for as low as Rs. 1,399. The move is aimed at stopping the

churn in the prepaid subscriber base. Once a subscriber takes this plan, he will always be an Airtel

subscriber whether the mobile is being used or not.

MARKET SITUATION

At the time of launch

The first mover in the market was Airtel which launched its services in Delhi in Aug 1995

(Informal launch). Vodafone cell phone followed by launching its services informally in Oct 1995.

At this point of time, the market was at a nascent stage, awareness level was low and both operators

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independently tried to spread awareness and educate the people Once the networks were

commercially launched, it became a number game with a multitude of schemes being offered to

woo customers Initially the cell phone was perceived as a status symbol and utility took a back

seat The target segment in Delhi were corporate and the high-income group. The average capacity

installed was for 1.5 lakh subscribers. This coupled with the steep license fee paid to DOT put

pressure on the operators to break-even by rapidly expanding their markets. In the first two years,

this led to a number of schemes being offered and prices crashing.

SALES DEPARTMENT AND STRATEGY

A. Major Accounts (Direct Channel)

● Handles corporate (named and famed) accounts

● Forecasting of sales

● Mapping the accounts

● Providing after sales support to the subscribers.

● Maintaining call reports for records.

● Providing Feedback to the marketing department regarding the requirement of the market.

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MARKETING STRATEGY ADOPTED BY BHARTI

Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besides

print advertising, the company had put up large no of hoardings and kiosks in and around

Bangalore. The objective behind designing a promotion campaign for the ‘Airtel’ services is to

promote the brand awareness and to build brand preferences. It is trying to set up a thematic

campaign to build a stronger brand equity for Airtel. Since the cellular phone category itself is too

restricted, also the fact that a Cellular phone is a high involvement product, price doesn't qualify

as an effective differentiator.

The image of the service provider counts a great deal. Given the Cell phone category, it is the

network efficiency and the quality of service that becomes important. What now the buyer is

looking at is to get the optimum price-performance package. This also serves as an effective

differentiator brand awareness is spread through the' campaigns and brand preference through

brand stature. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the

city, bearing just the company's name and without explaining what Airtel was.

In the next phase the campaign associated Airtel with Cellular only thereafter was the Bharti

Cellular connection brought up. Vans with Airtel logos roamed the city, handing out brochures

about the company and its services to all consumers. About 50,000 direct callers were sent out.

When the name was well entrenched in the Bangaloreans’ mind, the Airtel campaign began to

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focus on the utility of cell phones. In the first four months alone Airtel's advertisement expenses

exceeded Rs. 4 crores.

DISTRIBUTION

The company whose operations are concentrated in and around Bangalore has 27 Franchisees and

15 Distributors. They also have 8 'instant access cash card counters, each franchisee or distributor

can have any number of dealers under him as long as the person is approved by the Airtel authority.

Each franchise has to invest Rupees Ten lakhs to obtain a franchise and should employ an officer

recruited by Airtel. This person acts as a liaison between the company and the franchises. The

franchises can have any number of dealers as long as their territories do not overlap.

But unfortunately, Airtel has not been very successful in controlling territorial overlaps of dealers.

The franchises can carry out his or her own promotional strategy. For this the company contributes

75% of the money and the franchise contributes 25% of the money. The dealers under the

franchisee receive the same commission. The franchises and the dealer obtain the feedback from

the customers and they are sent through the liaison officer on a day-to-day basis to Airtel.

The dealer has to invest rupees one lakh as an initial investment. The dealer of Airtel is not allowed

to provide any other operators' service. Target set for distributors and the dealers is 100 -150

activations per month. Hence the dealers can also go for their own promotions like banners and

discounts on festivals etc. The dealer provides service promptly. The consumer providing the bill

of purchase for the handset and proof of residence has only to wait an hour before getting

connected. The staff of the dealers and the franchisees are provided training by the Airtel

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personnel. The complaints encountered by the franchisees and dealers are either handset being

non-functional or the SIM Card not getting activated. Anything more complicated is referred to

the main Airtel office in Delhi.

INTRODUCTION TO THE TOPIC

The Indian communications scenario has transformed into a multiplayer, multi product market

with varied market size and segments. Within the basic phone service the value chain has split into

domestic/local calls, long distance players, and international long distance players. Apart from

having to cope with the change in structure and culture (government to corporate), Airtel has had

to gear itself to meet competition in various segments – basic services, long distance(LD),

International Long Distance (ILD), and Internet Service Provision (ISP).It has forayed into mobile

service provision as well.

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 coping up with the

allegations of the quality of its products. The report begins with the history of the products and the

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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.

1.3 INTRODUCTION TO TOPIC OF THE STUDY

● To identify the difference between market performance of Airtel industry and its rival

firms.

● To study the market of the Airtel Industry and its rival firms on a big scale sector.

● 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.

● To study the level of customer satisfaction in Airtel and its rival firms.

● To study customer buying behaviour and factors which influence the purchase decision

process.

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● To study consumer preferences.

● To study the consumer trend in

● telecommunication sector.

● To study competitive marketing strategies adopted by Airtel and its rival firms.

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CHAPTER - 3

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY

Every organization has to achieve its organization goals. For this it is very essential for an

organization to know about the view of consumers and their competitive products. This survey

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research may be also aimed as to estimate potential buyers for the product. The objective of the

study is as under:-

The main objectives are:

⮚ To study the importance and development of the telecommunication industry in today’s

scenario.

● To study the consumer buying behaviour towards Airtel

● To study the various factors affecting consumer behaviour

● To suggest the steps for the sales promotion of the product

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CHAPTER - 4

RESEARCH METHODOLOGY

4.1 Research Design


A research design is a broad plan that states objectives of a research project and provides the

guidelines on what is to be done to realize those objectives. It is, in other words, a master plan for

executing a research project.

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The word ‘design’ has various meanings. But, in relation to the subject concern, it is a pattern or

an outline of a research project’s workings. It is the statement of essential elements of a study that

provides basic guidelines of conducting the project. It is the same as the blueprint of an architect's

work.

The research design is similar to a broad plan or model that states how the entire research project

would be conducted. It is desirable that it must be in written form and must be simple and clearly

stated. The real project is carried out as per the research design laid down in advance.

4.2 Sample Design


a) Sample Size

The sample size consists of 100 respondents from Noida and Greater Noida regions for knowing

the satisfaction level of customers. The sample of 100 respondents was taken to know the

satisfaction level towards Services offered by Airtel.

a) Sample Area

b) Areas covered

Greater Noida :

1. Alpha 1

2. Alpha 2

Noida :

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1. Sec 15

2. Sec 14

3. Sec 19

a) Sampling Technique

Convenience sampling is defined as a method adopted by researchers where they collect market

research data from a conveniently available pool of respondents. It is the most commonly used

sampling technique as it’s incredibly prompt, uncomplicated, and economical. In many cases,

members are readily approachable to be a part of the sample. Convenience sampling is applied by

brands and organizations to measure their perception of their image in the market. Data is collected

from potential customers to understand specific issues or manage opinions of a newly launched

product. In some cases, it is the only available option. For example, a university student working

on a project and wants to understand the average consumption of soda on campus on a Friday night

will most possibly call his/her classmates and friends and ask how many cans of soda they

consume. Or may go to a party nearby and conduct an easy survey. There is always a chance that

the randomly selected population may not accurately represent the population of interest, thus

increasing the chances of bias.

4.3 Data Collection

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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 competitors in the market and the

impact of WLL on Airtel, The research methodology adopted is basically based on primary data

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.

The methodology adopted for this project is exploratory in nature since there is no hypothesis that

has to be tested. The conclusions have been drawn by exploratory research work. There have been

two sources of information collected :

a) Primary Sources

I have met retailers of the Airtel Company and have been able to get first hand information

regarding the product, its features and the buying patterns of the product. Their input has been

valuable.

● Observation method

● Experiment

● Questionnaire Method

● Direct Interview Method

The main tool used was the questionnaire method. Further direct interview method, where a face-

to-face formal interview was taken. Lastly, the observation method has been continuous with the

questionnaire method, as one continuously observes the surrounding environment he works in.

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b) Secondary Sources

Secondary sources have played a vital role in this report. A good amount of data has been collected

from various published articles and reports found in magazines and journals. Another vital source

has been the Internet and particularly the company's own website.

● Internet

● Newspaper

● Magazines

4.4 Data Analysis


a) Tabulation

Tabulating is a way of processing information or data by putting it on a table. This doesn’t mean

the kind of table you eat off of, though. It refers to a table, or chart, with rows and columns. When

tabulating, you might have to make calculations. Someone who enjoys tabulating financial

information might make a good accountant.

b) Usage of Bar Charts

Bar charts show multiple price bars over time. Each bar shows how prices moved over a specified

time period. A daily bar chart shows a price bar for each day. Each bar typically shows open, high,

low and closing (OHLC) prices. This may be adjusted to show only the high, low, and close (HLC).

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Technical Analysts use bar charts—or other chart types such as candlestick or line charts—to

monitor price action, which aids in trading decisions. Bar charts allow traders to analyze trends,

spot potential trend reversals and monitor volatility and price movements.

CHAPTER - 5

ANALYSIS AND FINDINGS

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ANALYSIS

1. For how long have you been using or using AIRTEL Product?

TABLE- 5.1

YEARS NUMBER

0-2 45

2-5 32

5-10 20

MORE THAN 10 23

Airtel was incorporated in the year 1995. Hence the customers who have been using the service

for more than 10 years are actually the customers the company managed to acquire in the initial

years of its operations. The number is not very high because airtel did not use a penetration strategy

to grab more market share. Now, owing to complexities in the market Airtel has

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had to reiterate its marketing strategies by introducing new services and revising

its pricing decisions to attract more customers.

GRAPH-5.1

2. Which service provider do you believe that is potentially one of the most exciting mobile

service providers in the world?

TABLE- 5.2

Company Yes No

AIRTEL 31

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Vodafone 22

Idea 24 8

MTNL 11 4

The above table shows that it is a mixed opinion received from people. However, the number of

people who are of the opinion that Airtel is the most exciting service provider in the world is the

highest. There is evidently scope for airtel to gain more customer satisfaction. This can be done by

closely observing what the competitors in the industry are doing to satisfy their customers. Once

this has been recognized Airtel can formulate a strategy to leverage better services with cost

effectiveness of providing such services.

GRAPH- 5.2

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3. On which of the following service providers do you find that the government’s telecom

policy has had the most radical impact on the development of mobile service providers?

TABLE- 5.3

Company Yes No

AIRTEL 20 10

Vodafone 21 12

Idea 15 8

MTNL 14 2

According to the above table 70 (70%) out of the total 100 interviewed people in all the above four

specified Indian mobile service providers find that the government’s telecom policy has had the

most radical impact on the development of mobile service providers, whereas 30 (30%) of them

deny this. The general opinion received for this question has been formed on the basis of the scams

that have been appearing in the newspapers of late. It has to be noted that nothing has been against

airtel and has been the early bird to acquire 3G licenses. Airtel has managed fairly well despite the

more stringent rules introduced in the telecom policy.

GRAPH- 5.3

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4. Which type of recharge plan do you like the most?

TABLE- 5.4

Recharge Plan Number

More Talktime 33

More Validity 34

Both(Postpaid) 33

Here we see that the number of people asking for more talk time and talktime with validity is equal

in number. While there is an insignificant increase in people asking for more validity only. Airtel

may try to come up with a combo plan for its prepaid users that will ensure talktime as well as a

reasonable validity period or even provide this separately for those who require more validity than

talktime and vice versa.

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GRAPH- 5.4

5. Which service do you like the most in AIRTEL?

TABLE- 5.5

Service Number

AIRTEL Missed You Service 23

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Free Ringtones 35

Free Hello Tunes 42

Here we see that people preferring Airtel Missed You Service is very less(just 23%) while people

asking for free ringtones is very high while the highest is free hello tunes(42%). The Missed You

Service may be provided to just a few niche customers. And if this service is not proving to be

profitable to the company, Airtel may decide to withdraw this service and employ funds in the

more popular services like free ringtones and free hello tunes.

GRAPH- 5.5

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6. Which celebrity do you like very much in AIRTEL?

TABLE- 5.6

Celebrity Number

Sachin 30

Sharukh 30

Kareena 27

A R Rehman 13

Here we can see that Sachin and Sharukh have both been equally effective and accepted as brand

ambassadors of AIRTEL. Kareena too has been a close competitor while number opting for A R

Rehman has been very less. A R Rehman’s popularity grew after he won the Oscar. This popularity

spread to Airtel when they hired him as their brand ambassadors. However fame for Airtel soon

faded and Airtel had to take a call on hiring celebrities who were constantly in the limelight and

who would better appeal to its customers in all age groups. Keeping in mind people’s likes and

dislikes, airtel drew a contract with Sachin Tendulkar and Sharukh Khan for promoting its service

all over the country.

GRAPH- 5.6

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7. Are you satisfied with these promotional activities of AIRTEL?

TABLE- 5.7

Service Very Satisfied Satisfied Acceptable Not Satisfied

Customer Care 30 32 23 15

Ad Films 32 30 22 16

Camps 22 24 26 28

Call Centre 12 24 32 32

Here we can see that customer care has been pretty accepted by people while ad films have been

a hit among the public. Major concern for AIRTEL has been its camps and call centre. Hence airtel

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has to ensure that this division of the company adds value to the net worth. Training that enhances

the knowledge and improves efficiency may be given to the employees working in these

departments.

GRAPH- 5.7

SWOT ANALYSIS

Strengths

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● Cost advantage

● Current leaders in quality service

● Largest distribution network

● Ability to constantly innovate

● Highly skilled workforce

● Airtel’s increased equity and market cap.

Weakness

● To prove credibility

● Price pressures

● Need for Government support

● Awareness

● Sales and Marketing

Opportunities

● To sustain passion and commitment

● Airtel’s market share is increasing at other service provider expenses. Thus it is an

opportunity to wipe others out.

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● Attain higher value services

● Collaborative business needs to be explored

● Vertical, repeatable solutions.

● Low penetration level in rural markets.

Threats

● Foreign investment

● Global trends moving from GPS to WALL.

● Lack of global parity in telecom tariff

● Other competition

FINDINGS

● Airtel holds number one position in India with 30.86% market share.

● Same as in Bangalore zone Airtel is on 1st position with 34.5% market share.

● In Bangalore zone Airtel having 20 distributors

● Airtel launches every month a new FRC scheme.

● Earlier Airtel provided SIM cards at very low price or free. But this method was not so

effective because consumers started making it use and throw kind of stuff. By this way the

company was being unable to make such stable and long lasting consumers.

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● Now Airtel launches some FRC schemes. So the customer has to pay an amount for new

sim activation. By this way now consumer age has started being long.

● Vodafone is the biggest competitor of Airtel in the telecom industry.

● The distributor gives different schemes to different shopkeepers.

● Mostly retailers are satisfied with Airtel service.

● Some retailers reported that they do not get time to time Airtel products.

● Some retailers are not satisfied with the margin policy of Airtel.

● Earlier the FRC plan 61 launched that time some light retailers were facing problems to

convince the customers. Because competitors were providing the same plan at low cost.

● Some outlet owners are very angry with the company’s performance because they did well

in the Airtel mobile connection but they were not appreciated by the company.

● Some retailers are facing problems in the ID verification policy of Airtel because the

company has made this procedure very strict.

● Many customers are diverted to other networks due to strictness in id verification.

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CHAPTER - 6

SUGGESTIONS AND RECOMMENDATIONS

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SUGGESTIONS

Following are the few suggestions to AIRTEL for improving the market share and image of the

products concerned.

1. Product

● Modification must be brought about in AIRTEL, in terms of quality. Its demand should be

increased.

2. Place

● The brands must be made available easily in PCO & general stores.

3. Promotion

● Companies must undertake extensive promotional activities like advertisements must be

released in different Mediums 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.

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4. Price

● Price should be as competitive as other company maintains

● Distribution of new connection should be in reach of customer pocket

RECOMMENDATIONS

I have made following recommendation to the company after doing the research 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 emphasize more on the quality of Pharmaceuticals. It was mostly

claimed by the exporters that their receipts from the company don't match with the sample’s

quality shown before giving orders.

● The company should make its marketing strategy flexible enough in order to face

competition.

● The company should keep an eye on the proper delivery of the goods to the 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 a

company offers a lower price to a new customer then he may continue to buy the goods

and can be a permanent customer for the company.

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● The company should offer such a rate in the market so that it may be able to catch a bigger

market share and it should be able to compete with the local traders and commission agents

while having a brand name.

● Few outlets are unaware about schemes so proper communication is necessary between

distributor and retailers.

● Number of hoardings should be increased.

● Companies should be lenient in ID verification procedures.

● To increase the consumer as on network, a company should make changes in its FRC plan

for example the talk value should be divided into two parts.

● 50% of talk value should be provided at the time of activation and rest T.T. provide after a

gap of some days.

● Company should make its retailers aware of the benefits of consumers as on network.

● Company should give extra return and other bonus, gifts to its retailers so they put their full

efforts to increase the Airtel sales.

● Company should motivate its sales staff so they will pay more concentration in sales and

activation of new connections.

● Company should make some necessary changes in its FRC plan. For example companies

should divide the talk time into two times {50% at the time of activation 50% after 15

days.}

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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 supply conditions?

CHAPTER - 7

LIMITATIONS OF THE STUDY

1. Limited Sample Size

2. Area Restrictions

3. Limited Time

4. Lack of previous studies in the research area

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CHAPTER - 8

CONCLUSION

From above the details I conclude that 70% Airtel users preferred to remain with Airtel. Also a

good number of users who were willing to switch from their respective subscribers showed interest

in Airtel. Hence, these statistics imply a bright future for the company. Also the company is now

providing more services like the door to door services which allow you dial the Airtel customer

care and would like to send someone flowers. The Airtel Company delivers those flowers to the

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person concerned. Also Airtel is providing free text messaging service and free voicemail service.

Call conferencing is also another feature Airtel provides.

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 number 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 it must seriously look into the loopholes of the existing

customer service department.

As we know that now Airtel has already launched its product with logo “’ Aisi azadi aur kahan”’

has already become popular in the market. So we can say that in spite of so many competitors in

the market, Airtel is having a good position just because every time, it tries its best to understand

the needs of its important customers.

From the comparison and deep analysis of every aspect of business of all the companies we can

conclude that Bharti Airtel has to work more 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

it's all marketing strategies, promotion, and brand image.etc. Airtel has to take its competitors.

Very seriously and update its own strategies from time to time and when the need arises.

With aggressive marketing strategies Airtel has to target rural India as 70% of population of India

lives in these areas. The other segment may be consumers of all age groups. Everything in this

world is made to utilize properly but it should be reached at the proper person or to the proper

utilized areas. Otherwise the value added to those things became in vain. Thus promotion plays a

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very important role in achieving the objectives of a company. Undoubtedly, value utility is created

by the manufacture of product or service but time and place utilities are created by marketing roles.

The various finding and befitting recommendations have been made to increase the market share

of each product (postpaid, prepaid) of Airtel thereby increasing the market share of Airtel as a

whole. Various facts and data have been enclosed for better perusal and various graphs have been

provided for better comprehension. Sales Promotion techniques yield results that many other

marketing communication elements cannot achieve.

Sales promotion that is used in with the overall long-turn communication strategy of the brand is

said to use strategically. A promotion should not be used for the sole purpose of altering sales in

the short run .Sales promotion is used as a very strategic tool to introduce a new product. Although

advertising plays a large role towards creating awareness and attitude information, sales promotion

used to make new product launches easier and more effective.

CHAPTER - 9

BIBLIOGRAPHY

Internet Sources

1. www.google.com

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2. www.airtel.in

3. Wikipedia.com

Books Referred

1. Kotler Philip “Marketing Management” 10th Ed. Prentice Hall: NJ. 2004

2. F Buttle &quot;Customer Relationship Management &quot; 2nd Ed. Francis Buttle

Publications – 2008

3. V Kumar &quot;Customer Relationship Management &quot; Published Online: 15 DEC

2010 Wiley Online Library

4. Business World

5. The Times Of India , &quot;News by Industry &quot;, 21 October 2010

CHAPTER - 10

ANNEXURE - 1

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Questionnaire

Name

Place

Contact info

Age

Gender

1. For how long have you been using or using AIRTEL Product?

a) 0-2

b) 2-5

c) 5-10

d) more than 10

2. Which service provider do you believe that is potentially one of the most exciting mobile

service providers in the world?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

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3. On which of the following service providers do you find that the government’s telecom

policy has had the most radical impact on the development of mobile service providers?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

4. Which type of recharge plan do you like the most?

a) More Talk time

b) More Validity

c) Both (Postpaid)

5. Which service do you like the most in AIRTEL?

a) AIRTEL Missed You Service

b) Free Ringtones

c) Free Hellotunes

6. Which celebrity do you like very much in AIRTEL?

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a) Sachin

B) Shahrukh

c) Kareena

d) A R Rahman

7. Are you satisfied with these promotional activities of AIRTEL?

a) Customer Care

b) Add Films

c) Camps

d) Call Center

8. What are the features you look for in your service provider before making purchase

decision?

a) Brand Credibility

b) Price & Discount

c) After Sales Service

d) Add on features

9. Which source do you use to collect information?

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a) Magazine Dealers

b) Sales Executives

c) Operator’s Reference

d) Pamphlets and Catalogues

e) Other Sources

10. How would you rate the experience with your brand?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

11. Do you believe that one of the challenges facing mobile operators in India is the diversity

of the coverage regions?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

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12. Do you find that mobile service providers in India have met with International Standards

of service providing?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

13. Do you believe that mobile service providers come close to fulfilling the requirements for

a personal communication system?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

14. Which of the following mobile service providers you find as the most satisfying mobile

standard?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

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15. According to you is AIRTEL is #1 in India? If no, does it have the potential to become

#1?

a) Yes it is #1

b) No it is not #1

c) Yes it has the potential to be #1

d) No it doesn't has the potential to be #1

16. Do you believe that your service provider has a genuine commitment to creating a

modern and efficient communications?

a) Airtel

b) Vodafone

c) Idea

d) MTNL

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