Professional Documents
Culture Documents
Lubhani
Lubhani
PROJECT REPORT ON
DECLARATION
I KUSH BAJAJ student of SGTBIMIT, NEW DELHI hereby declare that the project report on
authenticated work done by me based on my work carried during the course of my study under the
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
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
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
I would also like to thank the SGTBIMIT, NEW DELHI for giving me this opportunity to explore
KUSH BAJAJ
TABLE OF CONTENTS
S.No. Heading
Ch 1 INTRODUCTION
Ch 3 RESEARCH METHODOLOGY
Ch 7 CONCLUSION
Ch 8 BIBLIOGRAPHY
Ch 9 ANNEXURE - 1
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
CHAPTER - 1
INTRODUCTION
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-
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
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
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
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
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
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.
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
The interconnection regime between cellular operators and fixed-line operators is still biased
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
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
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.
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
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
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
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.
•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
•Network coverage in terms of geographic spread and quality of coverage is crucial especially for
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•The bigger the service provider's national presence, the better it is for businesses. On the roaming
•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 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
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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
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,
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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
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
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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
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
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
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.
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.
● 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
● Wireless Local Loop (WLL) has been introduced to provide telephone connections in
● Steps are being taken to fulfill Universal Service Obligation (USO), funding, and
administration.
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● Internet Service Providers (ISPs) have been allowed to set up International Internet
Gateways, both Satellite and Landing stations for submarine optical fiber cables.
bandwidth and dark fiber, right of way, towers, duct space etc.
● Guidelines have been issued by the Government to open up Internet telephony (IP).
The total revenue in the telecom service sector was 86,720 crore (US$19.3 billion) in 2005-06 as
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
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
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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
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
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
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Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in
telecommunications services. Its subsidiaries operate telecom services across India. Bharti Airtel
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
services.
Its subsidiaries operate telecom services across India. Bharti Airtel is India's leading private sector
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
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.
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
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
"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.
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
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
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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.
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
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.
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
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
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 :
Fill an ECS form and mail, fax it to us or drop it at any of our relationship centres to directly debit
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
Browse the internet on your mobile phone with Airtel's EDGE services. Enjoy live TV, enhanced
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PROMOTIONAL STRATEGY
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
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
31
incorporate the latest branding in all of its communication and will soon be going in for an
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
MARKET SITUATION
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
32
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,
● Forecasting of sales
● Providing Feedback to the marketing department regarding the requirement of the market.
33
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
34
focus on the utility of cell phones. In the first four months alone Airtel's advertisement expenses
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
35
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 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
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
36
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
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
● 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 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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● telecommunication sector.
● To study competitive marketing strategies adopted by Airtel and its rival firms.
38
CHAPTER - 3
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
39
research may be also aimed as to estimate potential buyers for the product. The objective of the
study is as under:-
scenario.
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CHAPTER - 4
RESEARCH METHODOLOGY
guidelines on what is to be done to realize those objectives. It is, in other words, a master plan for
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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.
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
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
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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
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
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
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
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
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).
45
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
46
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
GRAPH-5.1
2. Which service provider do you believe that is potentially one of the most exciting mobile
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
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
GRAPH- 5.3
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TABLE- 5.4
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
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GRAPH- 5.4
TABLE- 5.5
Service Number
52
Free Ringtones 35
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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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
GRAPH- 5.6
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TABLE- 5.7
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
55
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
Weakness
● To prove credibility
● Price pressures
● Awareness
Opportunities
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Threats
● Foreign investment
● 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.
● 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.
● 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
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CHAPTER - 6
60
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
● 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.
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4. Price
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
● 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
● 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
● 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
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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
● Few outlets are unaware about schemes so proper communication is necessary between
● 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
● 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
● Company should motivate its sales staff so they will pay more concentration in sales and
● 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
2. Area Restrictions
3. Limited Time
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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
65
person concerned. Also Airtel is providing free text messaging service and free voicemail service.
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
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
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
66
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
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
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
Publications – 2008
4. Business World
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
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
b) More Validity
c) Both (Postpaid)
b) Free Ringtones
c) Free Hellotunes
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a) Sachin
B) Shahrukh
c) Kareena
d) A R Rahman
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
d) Add on features
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a) Magazine Dealers
b) Sales Executives
c) Operator’s Reference
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
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) 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
16. Do you believe that your service provider has a genuine commitment to creating a
a) Airtel
b) Vodafone
c) Idea
d) MTNL
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