Professional Documents
Culture Documents
Final Project Report
Final Project Report
Final Project Report
Submitted to: Mr. Keshav Kumar Gupta (Asst. Professor) Mrs. Sakshi Vashisht (Asst. Professor)
IDEAL INSTITUTE OF MANAGEMENT AND TECHNOLOGY KARKARDOOMA, DELHI. (Approved By G.G.S. Indraprastha University, Delhi)
bharti
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CERTIFICATE
This is to certify that the project entitled Marketing of communication services of AIRTEL submitted by Riya Jain , Enrollment no. 07121001709, has been done under my guidance & supervision in partial fulfilment of the requirement for the award of degree of Bachelor of Business Administration. The work and analysis, mentioned in this project report have been undertaken by the candidate herself and necessary reference have been recognized and acknowledged in the text of the report.
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ACKNOWLEDGEMENT
I would like to convey my thanks to my teachers for their help and guidance in the completion of my project file. I would also like to thank most respectable Mr. Anil Prakash Sharma honourable Director and Principal of IIMT. Without their motivation and guidance this project might not be possible. It is only due to their efforts that my project could be completed successfully. This project is to be submitted as a part of practical examination including BBA curriculum of Guru Gobind Singh Indraprastha University.
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DECLARATION
This work has not previously been accepted in substance for any degree & is not being concurrently submitted in candidature for any degree/ diploma. This project is the result of my own independent work/investigation, except where otherwise stated. Other sources are acknowledged by giving explicit references. A bibliography is appended.
Signature Date:
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INDEX
PARTICULARS FRONT PAGE COMPANY CERTIFICATE GUIDE CERTIFICATE ACKNOWLEDGEMENT DECLARATION EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION MARKETING STRATEGIES OF AIRTEL PRODUCTS AND SERVICES OF AIRTEL ROLE OF MARKETING IN AIRTEL MARKETING RESEARCH COMPANY PROFILE:AN INSIGHT INTO THE WORLD OF AIRTEL ORGANISATION STRUCTURE 1 & 2 ANALYSIS OF TELECOM SECTOR GROWTH OF AIRTEL FUTURE PROSPECTS OF AIRTEL
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CORPORATE RESPONSIBILITY REASONS FOR SELECTING TOPIC CHAPTER 2 : OBJECTIVES OF THE PROJECT CHAPTER 3: RESEARCH METHODOLOGY RESEARCH DESIGN DATA COLLECTION METHODS OF COLLECTION CHAPTER 4 : LIMITATION DATA ANALYSIS CHAPTER 5: FINDINGS SUMMARY CONCLUSION AND RECOMMENDATIONS CHAPTER 6: APPENDIX QUESTIONNAIRE BIBLOGRAPHY / REFERENCES
51-52 53
55 57
58-59
60
62 63-73
75 76 77-78
80-83 84
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AIRTEL
Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel
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CHAPTER- 1 INTRODUCTION
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In late-2002, Airtel, India's largest cellular telephone company released a television commercial (TVC), which despite using the 'oft-repeated' celebrity endorsement route was unusual in terms of its celebrity selection. Instead of using the usual movie stars/sports celebrities, it chose one of the country's most successful music composers, A.R Rahman (Rahman) to promote its brad. The campaign attracted considerable media attention because this was the first time Rahman had agreed to do a television commercial and also because, Rahman had been paid Rs 10 million for the campaign, a sum usually unheard of, for celebrity endorsers in India. The campaign received brickbats as well as bouquets in the media, both for the selection of Rahman and the TVC's execution.
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However, Airtel claimed to have scored an ace in terms of getting Rahman to compose five exclusive symphonies downloadable as ring tones for Airtel users. The TVC was a part of the brand repositioning and restructuring efforts for Airtel, as part of which, Bharti changed the brand's tagline in early-2002 from 'Touch Tomorrow' to 'Live Every Moment.' The company also brand decided building to undertake for a the
program these
company and chose the slogan 'Unlimited Freedom' Commenting now have a on changes, and company sources said, "Airtel's brand identity and campaign new younger international look and feel that builds on the earlier positioning." Bharti's (Airtel) massive media expenditure plans were no surprise, considering the fact that it was the largest cellular telecom company in the country reaching over 600 million people in 16 (out of 29) states of India. The company posted revenues of Rs 8.48 billion and a net loss of Rs 1 billion in the financial year 2000-01. The Airtel brand (and the pre-paid card service brand, Magic) had top-of-the-mind recall amongst cellular phone users and enjoyed a leadership
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position primarily
in
most
markets. it to
Industry
observers brand
attributed
Bharti's
strong
The other brand ambassadors for Airtel are the Indian teams cricket sensation Sachin Tendulkar and superstar Shahrukh Khan.. Khan. Kohli said actor Shah Rukh Khan and music director A R Rehman would continue to be AirTel's brand ambassadors. He declined to comment on the fees paid to Tendulkar for being the brand ambassador. However, it is rumoured that the master blaster has signed the endorsement deal for a whopping Rs 10 crore (Rs 100 million). Through the 'Express Yourself' campaign, AirTel's vision is to make mobile communication a way of life in the country. The new campaign exhorts customers to freely express themselves anytime anywhere, Kohli said.
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Experience total cost control, no rentals and easy billing with Airtels postpaid and prepaid services. Voice based services: Voice mail ,Call conference ,Dial a service Sms based services: Sms games , text messaging, information service, net 2 cell, mobile messenger, mobile chat, ringtones and logos, star peep, flash and blink sms, vernacular sms, traffic update. Call management services:
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Call line identification (CLI), call waiting / hold / divert Other services: Std / ISD , airtel roaming, airtel roaming lite, 32k sim card, easy roam east.
Home phones :
Airtel welcomes you to the world of telephony services for your home. Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. Whats more, calling is made more fun & convenient with services and entertainment on Airtel. With Airtel you get to experience superior voice clarity on our fiber-optic framework more than an ordinary telephone line. You can also get connected to the world of entertainment with a free dial-up connection. Charges are applicable as per the pulse rate. Choose any plan that suits your needs,
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have fun and keep in touch with friends and family with Airtel Landline.
Airtel Broadband Services, India's most preferred high-speed Internet service, redefines your Internet experience. It is fast, fun, convenient and cost effective BlackBerry :
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BlackBerry from Airtel is an 'always connected' wireless solution providing easy and secure access to your email and data.
Send emails and Receive emails instantly : All the emails you've read, deleted or moved to a folder will show on both your handset device and your desktop. It uses over-the air technology so there's no need to manually synchronise your message activity. You can see more of each individual email - with up to 32kb downloaded in one go.You can also create personal email 'distribution lists' and send emails to a predefined group of contacts.
Email services
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Want to access information on your mobile? Airtel brings you Email on the go. You can choose from BlackBerry and Windows Mobile 5.0 depending upon the usage patterns, requirement and suitability.
Calling cards :
Airtels calling card services connect you to the world from India and allow a better way to call back India.
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These services connect you to your friends and friends in India a cost effective and reliable manner. Choose from the options below and stay connected.
Calling
Cards
include
:Great
savings
on
calling anywhere in India or across the world.Even if your phone is not STD/ISD enabled, go ahead and talk to your loved ones. Wireless internet :
With Airtels Wireless Internet, you have the freedom to access the Internet anytime, anywhere across India. It enables Internet, Email, and Office applications with real-timesecure VPN access to corporate applications whilst on the move.
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MOBILE HOME PHONE BROADBAND INTERNET BLACKBERRY EMAIL CALLING CARDS WIRELESS INTERNET NUMBER PORTABILITY
CURRENT POSITION
BHARTI AIRTEL, Indias largest mobile operator with 156 million customers captures the maximum market share in telecom sector. Operating in 19 countries it has almost 360
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million subscribers in the world making it the 5th largest operator world wide.
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understanding of the marketplace order to develop a business strategy that will ensure success. The most successful businesses have undoubtedly started with a marketing plan. Marketing fulfills a vital function. A business owner must be familiar with the business's customer base, as well as the strengths and weaknesses of the business's competitors. These factors, and others, should be identified in a wellprepared marketing plan. A good plan will outline how a business can attract and retain results. customers, It should how it will compete against its competitors, and the budget needed to attain positive include market research, business location, the target customer group, competition, the product or service being sold, budget, and advertising and promotion.
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individual to respond than if you simply mail a survey. The main costs are the interviewer's fee, phone charges, and preparation of the questionnaire.
No matter what type of market research you do, your focus should be on gathering enough information to determine who your potential customers are, if there is a demand for your product or service, if there are competitors in your area .
Customer satisfaction can be achived by adopting proper marketing trategies and giving due consideration to the customers i.e. selling and marketing the products not just for the purpose of increasing earnings or profit maximization but, also for the satisfaction of customers.
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MARKETING MIX
PRODUCT: Airtel Pre-paid Airtel Post-paid Blackberry wireless handheld Value Added Services(VAS) The different value added services provided by airtel are Instant Balance Enquiry 24hrs recharge facility Caller line identification Call divert, call wait and call hold Multimedia messaging sevice(MMS) Airtel Live Portal SMS based Information Services Hello tunes and Ring Tones Voice mail service Easy Post-paid bill collection Gifting of Ring Tones and Hello tunes
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GPRS
PRICE
Customer based pricing strategies Flexible pricing mechanism
Controlled by TRAI.
PLACE
It has a wide and extensive presence even in the remotest Airtel Customer Care Touch Points Distributors like areas.
PROMOTION
Large scale print and video advertising. Big celebrities like SRK and Sachin are roped in
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Vision
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer." These are the premise on which Bharti Enterprises has based its entire plan of action. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and innovations to its credit, ranging from being the first mobile service in Jaipur, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti had approximately 3.21 million total customers nearly 2.88 million mobile and 334,000 fixed line customers. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Jaipur, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Jaipur, Karnataka and Tamil Nadu and nationwide broadband and long distance networks. Bharti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India's mobile networks. The Company is also implementing a submarine cable project connecting Chennai-Singapore for providing international bandwidth.
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Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA. Bharti Tele-Ventures' strategic objective is to capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services.
The Company has developed the following strategies to achieve its strategic objective:
Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage;
Offer multiple telecommunications services to provide customers with a "one-stop shop" solution;
Position itself to tap data transmission opportunities and offer advanced mobile data services;
Focus on satisfying and retaining customers by ensuring high level of customer satisfaction;
Leverage strengths of its strategic and financial partners; and Emphasize on human resource development to achieve operational efficiencies.
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In 1992, Bharti entered the cellular market by launching services in Delhi. Over the next few years, it also entered other telecom circles. In the early 2000s, Bharti invested heavily in the acquisitions and alliances to expand its cellular market in India. As a part of this, Bharti acquired JT Mobile (Andhra Pradesh and Karnataka), SkyCell(Chennai) and Spice Cell (Kolkata). It even announced plans to acquire Usha Martin, the leading cellular service in Kolkata. It also entered into collaborative agreements with BPL to gain seamless access in Mumbai, Maharashtra, Chennai, Delhi, Kerala, Tamil Nadu, Andhra Pradesh and Karnataka.
Bharti launched Airtel as a post paid cellular service in Delhi in November 1995. Over the next few years, the company redefined the way cellular services were being marketed in the country. This was made possible due to its innovative marketing strategies, continuous technological upgradations, new value added service offerings and efficient customer service. Initially confined only to the Delhi circle, Airtels services were soon extended to many other places.
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Through the Airtel brand, Bharti set many benchmarks for the Indian cellular industry. It was the first cellular operator to set up cellular showrooms. The company opened its first showroom Airtel Connect in Delhi, in late-1995. Airtel Connect was a one stop cellular shop where customers could purchase handsets, get new connections, subscribe to various value-added services and pay their mobile bills. Bharti was also the first cellular company to install a second mobile switching center in April 1997. The company was the first to provide roaming cellular services and other value-added services such as Smart mail, Fax, Call hold, Call waiting and Information services . Bharti was the first company to launch an online e-commerce portal that enabled customers to make online payments. It also provided them with information regarding cellular services and the features of handsets manufactured by various companies, along with their price. On account of such initiatives, during the late-1990s, Airtel was named the Best Cellular Service in the country, and won the Techies award for four consecutive years (1997-2000).
However, it was not very easy for the company to build Airtel brand. The tariff rates charged by the government were quite high. Cellular players has little choice but to impose high call charges on their customers.
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Airtime rates were as high as Rs 16 per minute as against Rs 1.20 for landline communication. Thus, all players targeted the premium sector, which could afford the rates. Airtel was also positioned in the premium category, aimed at the elite class of the society. Though industry observers felt that this limited its market and that Bharti could have focused on increasing customer awareness (by explaining to them the various advantages of cellular phones), Bharti thought otherwise. As per a company source, the strategy might not have worked as the value delivered by cellular phones during that phase did not match the cost. Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the B&T business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the . Airtel brand.
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Bharti Telenet needs no introduction. With brands like 'Airtel' and 'Magic' in the cellular space, Bharti has been one of the most prominent companies in telecom with interests in cellular, fixed line, and Internet access. It has over 2,673,000 customersnearly 2,293,700 mobile, 261,000 fixed line and 119,000 Internet customers. Bharti Airtel was recently ranked amongst the top 10 best performing companies in the world in the Business Week IT 100 list. Bharti Teletech is the countrys largest manufacturer and exporter of telephone terminals. Bharti has a joint venture with ELRo Holdings India Ltd. FieldFresh Foods Pvt. Ltd - for global distribution of fresh fruits and vegetables. Bharti also has a joint venture - Bharti AXA Life Insurance Company Ltd. - with AXA, world leader in financial protection and wealth management. Bharti has recently forayed into the retail business under a company called Bharti Retail Pvt. Ltd. It also has an MoU with Wal-Mart for the cash & carry business.
Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector.
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Bharti's partners in Airtel are Emtel, the premier GSM operator in Mauritius, some private investors. Registered as Telecom Seychelles Limited and operating under the brand name of Airtel, the company is licensed to offer comprehensive telecom services including GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming, connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and International Collect and Credit Card calling. Dominating the market with its service and customer commitment - Airtel has always been at the forefront of innovation and change in the Telecom sector in Seychelles. During the late-1990s, many international players such as Orange announced plans to enter the Indian market. The global telecom market was getting saturated and these companies were searching for countries with untapped potentials to increase their markets. India being one of the fast developing nations with a vast population base was being seen as a high potential market.
Apart from international players, many domestic players also entered the segment. This increased the competition in the sector. In the light of these
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changes, Bharti realized the need for repositioning Airtel to increase its market share. Rather than focusing on the value (delivered by the services), the company chose to address the visual benefits delivered to the customers. In the words of Hemant Sachdev, Director (Marketing), Bharti Group, Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand.
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Organisation Structure 1
As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of Bhartis key team players. With effect from March 01, 2010, this unified management structure of 'One Airtel' will enable continued improvement in the delivery of the Groups strategic vision.
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Organization Structure - 2
Introduction:
What is telecom? Systems used in transmitting messages over a distance electronically or the branch of electrical engineering concerned with the technology of electronic communication at a distance. The telecom services have been recognized the world-over as an important tool for socioeconomic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently reemphasized and carried forward under NTP 1999.
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COMPANY NAME BHARTI AIRTEL VODAFONE ESSAR RELIANCE COMMUNICATION BSNL(STATE OWNED) IDEA CELLULAR TATA TELECOM LTD AIRCEL
MARKET CAP IN MILLION 156 MILLION 127.36 MILLION 100.2 MILLION 84.5 MILLION 83.6 MILLION 60.01 MILLION 51.8 MILLION
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GOVERNMENT POLICIES
The government of India has adopted a new economic policy for the telecommunication market in India. This policy has been effective from 1994 and the Govt. of India with the aim to accelerate India's growth in export production and international market formulated it. The national telecom policy as has been designed by the government of India also ensures foreign direct investment and exhilarating domestic investiture. This national economic policy of telecom department demands superior quality telecommunication services and therefore the development of telecom services are to be given the utmost importance to attain the peak of success. The national telecom policy covers the following objectives: Telephone should be made available everywhere which will be in need of it. All the villages should be entitled to universal telecom services, that is, all the people should be able to enjoy the telecom services at low-priced range. The telecom services should be of global standard and all the grievances from consumers, disputations and public interface should be taken care of at the earliest possible time. India being one of the largest Country should encompass a major manufacturing unit as well as exporter of the telecom products across the globe.
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The telecom department is also responsible for the security issues of the country Policy Initiatives by Govt. of India in the Telecommunication Sector also include the new telecom policy which was formulated by the government of India in 1999 has been designed by the government of India with the aim to create an ambiance that will attract foreign direct investment and will also permit infrastructure for communication purposes by making investments on technological development. The following sectors in the telecommunication department should be licensed.
All the telecommunication or telegraphed services should be licensed that might cover any geographical region by using any kind of technology:
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Growth of Airtel
Bharti Telenet needs no introduction. With brands like 'Airtel' and 'Magic' in the cellular space, Bharti has been one of the most prominent companies in telecom with interests in cellular, fixed line, and Internet access. It has over 2,673,000 customersnearly 2,293,700 mobile, 261,000 fixed line and 119,000 Internet customers. Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. With more than 140 million subscriptions as of January 2011, the company is one of the world's fastest growing telecom companies. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal, India's sixth richest man with a total worth of US$10 billion. The company is the only GSM operator to provide mobile services in all the 23 circles in India. The company also provides telephone services and Internet access over DSL in 14 circles Although Bharti Airtel is the largest mobile service provider, BSNL, the state run mobile and wireline service provider is the market leader as of 31 December 2006 customer's base. Bharti was the first company to launch an online e-commerce portal that enabled customers to make online payments. It also provided them with information regarding cellular services and the features of handsets manufactured by various companies, along with their price. On account of such initiatives, during the late-1990s, Airtel was named the Best Cellular Service in the country, and won the Techies award for four consecutive years (1997-2000). However, it was not very easy for the company to build Airtel brand. The tariff rates charged by the government were quite high. Cellular players has little
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choice but to impose high call charges on their customers. Airtime rates were as high as Rs 16 per minute as against Rs 1.20 for landline communication.
The campaign was reportedly successful and resulted in a marginal improvement in Airtels performance. By 1999, Bharti had become the leading cellular player in Delhi (its major market) with a subscriber base of over 0.38 million. However, the growth was still much below the companys expectations. In early-2000, in its attempt to understand the customers psyche, Airtel conducted many brand tracking exercises. These exercises revealed that though the Leadership campaign had been effective, it failed to attract more customers, as it had failed to add an emotional dimension to the brand. Analysts perceived the brand to be distant, efficient and cold. In words of Preet Bedi, Director, Lowe India, The brand had become something like Lufthansa cold and efficient. What they needed was to become Singapore Airlines, efficient but also human.
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In August 2000, Bharti launched its new Touch Tomorrow, which aimed at strengthening its relationship with its customers. Bhartis advertisement expenditure for the year amounted to Rs 450 million. The advertisements spanning the print, electronic and outdoor media (for these campaign) featured cellular users surrounded by caring family members. Commenting on the rationale behind the new campaign, Sachdev said, The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive.
Recently Sunil Bharti's Airtel launched its calling card in America specially for the NRI (Non-resident Indians) and people calling from America to India at a cheaper rate as compared to the tariff offered by other providers. On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US $1.6 billion; and purchased a controlling stake in rival Hutchison Essar. In its monthly press release, following statistics have been presented for end of April 2007. Bharti Airtel added the highest ever net addition of 53 lakh customers in a single quarter (Q4-FY0607) and also the highest ever net addition of 1.8 crore total subscribers in 2006-07 The company will invest up to $3.5 billion this fiscal (07-08) n network expansion. It has an installed base of 40,000 cellsites and 59% population coverage.
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After the proposed network expansion, an additional 30,000 towers will result in the company achieving 70% population coverage.
Bharti has over 39 million users as on March 31, 2007 It has set a target of 125 million subscribers by 2010 Prepaid customers account for 88.5% of Bhartis total subscriber base, an increase from 82.7% a year ago ARPU has dropped to Rs 406 Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of the previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes Has completed 100% verification of its subscribers and in the process disconnected three lakh subscribers . Market Capitalisation (as on July 13, 2007)Approx. Rs. 1,670 billion Closing BSE share price = Rs. 880.75
Sales : 02.62 Billion $ Profits : 00.46 Billion $ Assets : 04.46 Billion $ Market Value : 41 Billion $
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The campaign was first rolled out in the states of Karnataka, Madhya Pradesh, Himachal Pradesh and Chennai. As a part of this campaign, Airtel also shifted its focus from SEC, audiences to SEC B audiences. The company also increased its Touch Point network.
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While the Touch Tomorrow campaign was still running, Bharti announced a major brand restructuring exercise at the corporate level. This was done in order to facilitate its entry into new areas of the telecom sector and establish itself as a global telecom brand.
Plans to invest USD 200 million in the next five years World class 2G and 3G services are launched. Mobile services to be launched under Airtel brand
The customers in Sri Lanka can look forward to a host of innovative products and services at affordable prices from Airtels vast portfolio. Bharti Airtel Lanka Private Limited, a subsidiary of Bharti Airtel Limited, one of Asias leading integrated telecom services companies, today announced its plans launched world class 2G and 3G services in Sri Lanka by the end of the current financial year (2010-11). The company also announced its plans to invest approximately USD 200 million in the Sri Lankan market. The mobile services from Bharti Airtel will be launched under the Airtel brand in the Island nation.
According to Mr. Sanjay Kapoor, President, Mobile Services, Bharti Airtel : We are committed to offering world-class and affordable 2G and 3G services to customers in Sri Lanka. With mobile penetration of around 30% and growing at a rate of approximately 2 million mobile users per annum, we are excited about our entry into this market. Our plans for Sri Lanka clearly demonstrate our commitment to the market
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and also our confidence in the potential that this market holds in Airtels overseas expansion journey.
Bharti Enterprises and Wal-Mart join hands in wholesale cashand-carry to serve small retailers, manufacturers and farmers Business-to-business wholesale cash-and-carry joint venture to set up world-class modern supply chain and back-end logistics infrastructure. Driving efficiencies across the supply chain will help minimize wastage and provide small retailers quality merchandise at competitive wholesale prices.
New Delhi, August 6, 2008: Bharti Enterprises and Wal2008 Mart Stores, Inc. today announced that they have signed an agreement to establish Bharti Wal-Mart Private Limited, a joint venture for wholesale cash-and-carry and back-end supply chain management operations in India, in line with Government of India guidelines. Under the agreement, Bharti and Wal-Mart will hold a 50:50 stake in Bharti WalMart Private Limited. The first wholesale cash-and-carry facility is targeted to open by the end of next year. Over the next seven years, the venture is expected to open 10 to 15 wholesale cashand-carry facilities and employ approximately 5,000. A typical facility will stand between 50,000 and 100,000 square feet and sell a wide range of fruits and vegetables, groceries and staples, stationery, footwear, clothing, consumer durables and other general merchandise items.
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The wholesale cash-and-carry venture will invest in setting up an efficient supply chain. This will link farmers and small manufacturers directly to retailers, thereby maximizing value for farmers and manufacturers on the one end and retailers, and in turn, consumers on the other. The venture will support farmers and small manufacturers who have limited infrastructure and distribution strength, and the supply chain will enable minimum wastage, particularly of fresh foods and vegetables. Wholesale cash-and-carry operations provide small retailers and business owners a wide range of quality products at competitive wholesale prices that help them enhance their businesses and profitability. The Bharti Wal-Mart business-to-business (B2B) wholesale cash-and-carry joint venture will serve kirana stores, fruit and vegetable resellers, restaurants and other business owners. It also will serve other retailers such as Bharti Retail, which is setting up a chain of stores in India that are 100 percent owned and operated by Bharti.
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Corporate
Responsibility
at
Bharti (Airtel)
At Airtel, CSR is a way of life. Each department and employee strives to be sensitive to the stakeholders and environment within their work context. Bharti encourages employees to take decisions and design business-linked processes that are sensitive to communities and environment. Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach programs. It is an integral part of the way Bharti conducts its business. The essence of Bhartis commitment to Corporate Social Responsibility is embedded in the Corporate Values, which stem from its deepest held beliefs. These Values are:
To be responsive to the needs of our customers To trust and respect our employees To continuously improve our services innovatively and expeditiously To be transparent and sensitive in our dealings with all stakeholders
Airtel encourage their employees to take decisions and design business processes, keeping in mind the following:
Ethics, fairness and being correct Meeting and going beyond compliances and legal requirements Showing respect and sensitivity towards stakeholders and communities, and Nurturing the environment
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Airtel practice their CSR beliefs and commitments through a three-pronged approach:
Undertaking programs for our employees, community and environment Bharti Airtel sensitizes its employees towards CSR issues at various forums. We feel that it is important that each employee should understand the importance of environmental, social and economical aspects while taking business decisions. At Airtel, each employee is sensitized towards CSR issues and thus operations at the ground level are influenced. Such sensitization exercises have resulted in many socially and environmentally sensitive decisions on the ground. For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above.
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Reasons for selecting the topic topic:Life without communication is almost impossible and Airtel has become a leading name in the field of communication. And connectivity. Airtel has been providing its services to all sections of the society Since 1985 and has created a huge customer base. This Airtel chairman, Sunil Mittal was awarded Asias Businessman Of The Year. This year Bharti enterprises entered into a joint venture with retail giant Wal-Mart This astonishing growth of Airtel , inspite of innumerable competitors such as Reliance communications ( Rcom), Tata Tele services ltd. ( Tata indicom) has encouraged and in a way compelled me to select it as a topic for study. The growing client base and also the growing mergers and acquisitions of Bharti has created a curiosity in me to know the reasons for such growth and customer satisfaction.
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Bharti Airtel
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CHAPTER- 3 RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep study regarding the subject. The prime objective of the project is to analysis the marketing of communication services of Airtel. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed. Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. SAMPLE SIZE- 1OO
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TYPE
OF
RESEARCH
CARRIED
OUT
WAS
EXPLORATORY IN NATURE. THE OBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA WHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE COURSE OF ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVED USEFUL FOR GIVING RIGHT SUGGESTION TO THE COMPANY.
THERE TWO TYPE OF METHOD OF DATA COLLECTION . PRIMARY DATA SECONDARY DATA
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Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in.
DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE: PRIMARY DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER.
QUESTIONNAIRE SURVEY: IN THE STUDIES A QUESTIONNAIRE IS PREPARED. THE QUESTIONNAIRE CONSISTS OF 15 QUESTIONS.
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SECONDARY DATA: SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY COLLECTED .THE SECONDARY DATA WHICH HAS BEEN USED TO CARRY OUT THIS STUDY ARE AS FOLLOW:
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METHOD OF COLLECTION: FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATION AND INTERVIEW SCHEDULE IN WHICH THE QUESTIONNAIRES WERE FILED BY THE INTERVIEWER. PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS DONE TO COLLECT THE DATA, MARKET RESEARCH WAS UNDERTAKEN, THAT WAS ACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES DESIGNED.
RESEARCH INSTRUMENT: QUESTIONNAIRE THE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE FOLLOWING POINTS: POINTS:
1) GIVING THE RESPONDENTS. CLEAR COMPREHENSION OF THE QUESTION. 2) INDUCING THE RESPONDENTS TO CO-OPERATE. 3) GIVING INSTRUCTIONS AS TO WHAT IS NEEDED. 4) IDENTIFYING THE NEEDS TO BE KNOWN.
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CHAPTER- 4
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LIMITATIONS
No project is complete without its limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:1. During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/whole sellers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience due to short period of time. 8. Some retailers did not answer all the questions or do not have time to answer.
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Q1. MOST
MOBILE: 50% HOME PHONES: 8% CALL CARD: 5% BROADBAND: 20% WIRELESS INTERNET:15% EMAIL SERVICES: 2%
Mobile
Home phones
Call card
Broadband
Wireless network
Email services
The research study shows that almost people give priority to Mobile (50%), Home Phones(8%), Call card (5%), Broadband(20%) ,Wireless network(15%), E-mail services(2%) because of the flexibility and attractive plans for this market segment.
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prepaid postpaid
The research study shows that almost people give priority to Pre-paid connection 80% rather than post-paid connection 20%, because of the flexibility and attractive plans for this market segment.
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SERVICES YES NO
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The research study shows that almost people give priority to customer care services i.e yes (85%) and no (15%),because of the flexibility and attractive plans for this market segment.
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The research study shows that almost people give priority to customer care executive co-operation towards the customers yes (92%) and no (8%) because of the flexibility and attractive plans for this market segment.
Q5. WHAT
CUSTOMER-CARE
SERVICES
hello tunes Special rates Recharge your card Account balance and validity Activation and deactivation of services
The research study shows that almost people give priority to Hello tunes(50%) , Special rates(10%) , Recharge your prepaid(10%) , Account Balance and Validity(25%), Activation/ Deactivation of services(5%) because of the flexibility and attractive plans for this market segment.
Q6.
REASONS
OF
SATISFACTION
DISSATISFACTION OF CUSTOMERS:
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The research study shows that almost people give priority to satisfaction and dissatisfaction to customers , yes (85 %) and no (15 %) because of the flexibility and attractive plans for this market segment.
Q7. WHICH SCHEME IS MOST PREFERED BY YOU ? 1) VALUE ADDED SERVICES (12%)
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The research study shows that almost people give priority to offer the schemes by the airtel ie value added services12% , other services 21% and roaming services 67% because of the flexibility and attractive plans for this market segment.
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Q8. HOW DO YOU FIND THE SPEED OF INTERNET SEVICES AIRTEL ? FAST ( 79%) ( 8% ) ( 13% ) PROVIDED BY
SLOW AVERAGE
The research study shows that almost people give priority to know the speed of the internet is fast 79% , slow 8% and average 13% because of the flexibility and attractive plans for this market segment.
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Airtel (42%) Vodafone (28%) Reliance (8%) TATA (6%) Idea (16%)
The research study shows that almost people give priority to prefer the other connection like Airtel 42%, Vodafone28% , reliance8% , tata6% ,
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idea 16% because of the flexibility and attractive plans for this market segment.
Q10. DURATION OF YOUR ASSOCIATION/ USAGE WITH AIRTEL ? I. LESS THAN 6 MONTHS II. 6 MONTHS 1 YEAR III. 1 YEAR OR MORE (12%) (32%) (56%)
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The research study shows that almost people give priority in usage of the airtel connection, less than 6months (12%) , 6months- 1year (32%) , 1year and more (56%) because of the flexibility and attractive plans for this market segment.
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CHAPTER- 5
FINDINGS
The survey conducted using questionnaire and through statistical data depicts that : The customer base of Airtel is growing tremendously and airtel has customers from all sections of society but majority of customers of Airtel consist of the youth while the lower middle-class and higher middle-class to consume a considerable part of the customer base.
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Most of the customers of Airtel are satisfied with Airtel and its services provided but Airtel too has few dissatisfied customers. The number of pre-paid customers at Airtel is more than number of post-paid customers. Airtel provides many services such as BlackBerry, internet and mobile service, but the mobile service provided by Airtel is indeed most popular.
SUMMARY
From the research done on the Airtel customers, it has been inferred that major influences in choice comes from friends and relatives. In both prepaid and postpaid connections , Airtel needs to concentrate its selling strategies with more focus on advertisement and selling companies etc.Company should focus on Cross selling and underselling through providing extra sops as friends and acquaintances are major influencing factors on prepaid and postpaid connections. So they feel comforted and the company in term becomes successful in their venture of goodwill hunting.
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The company should try to remove the dissatisfaction among customers by improving customer service by focusing on reducing the call rates. By reducing the activation time is that promoting quick activation of postpaid connections, it should also give its clients preactivated roaming and preactivated ISD, STD facilities as given in the case of prepaid services Value added services should be the key area focus of Airtel Service as it is not just one day dimension of communication which enthralls the customer but the other dimensions such as data transfer, voice mail, teleconferencing etc are of the importance for customers.
Thus in case of prepaid connection, the unique selling preposition lies in easy documentation and easy activation. These should further be strengthened as well as the key focus of increasing and retaining the customers should be kept in mind through its various points of sale by strengthening the distribution network. It has also been felt that giving lucrative discounts such as full value recharges play an important role for a customer . Therefore the company should focus in providing the customers more discounts and more lucrative schemes. Further research has shown that customer care activities are important for customer and they play important role in cultivating the brand loyalty. The strength of the company lies in loyalty which it has cultivated among customers. In turn ,
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company should focus to strengthen various activities such as Value Added services ,Customer Care Activities etc. So more concern should be given on these aspects.
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friends and relatives. Hence they are effective modes of dispersing information and also agents of indirect selling. It has been learnt from the research that majority of respondents are satisfied with their connection type. It is safe to conclude that service provider is doing exceptionally well in providing the service to their respective clients but still there is need for few of dissatisfied customers to be taken care of .It is the prime duty of service provider to provide flawless service as to guarantee the satisfaction to customer. It has also been observed that only few of the respondents were willing to shift if same facilities were available to them by same service provider ,which is a strong indicator of customer loyalty within the customers. This brand loyalty is important consolation for the company and it should work towards cultivating it among the customers.
It has further been learnt from the research that the key benefits influencing the purchase was the easy bill payment facility , activated ISD ,roaming facilities in case of prepaid connection. These all together combine to form strong base of the company as far as satisfaction of their customer with their value added services is concerned ,88% of the customers were satisfied by the value provided to them by their service provided. The satisfaction level of customers are indicative of strong value added services package provided to its customers.Further the research,the key influencing factor which made its customers stick with prepaid schemes of airtel were the easy documentation for activation is that customers could easily own prepaid connections and start using instantly after giving pre-requisite documents to sales point and hence he would prefer that. Majority of the respondents of both prepaid and post
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paid connection didn't raise any problem in terms of connectivity .An efficient connectivity assures a service provider a loyal client . Airtel has quite range of evenly distributed towers which help to provide uninterrupted connectivity. This is also a unique selling preposition which gives it a competitive advantage over the rest. In further evaluating the full value recharge and other discounts given to its customers were able to hold its clientele and were thus lucrative enough. Airtel should further enhance of these scopes. Most of the customers didn't find any problem in deactivating their connections .Large no. of clients were satisfied with as far as deactivation of connection was concerned.
Key benefits perceived by postpaid connection builders came from MMS, GPRS,SMS followed by roaming, these are also the key elements which hold postpaid connection holders into its network. On the other hand, activated ISD and STD facilities were the major attraction for prepaid customers. Majority of respondents were satisfied with customer care service. To conclude ,it can be safely said that Airtel has done a commendable job in not only providing an uninterrupted service for connecting one person with another but also providing value added services such as GPRS,MMS etc. For prompt to customer care to hold its customers into its networking circle. Airtel has established itself as a brand which gives uninterrupted service to its users. It has thus also established itself as a company giving a right kind of customer care to its clients. It has cultivated brand loyalty amongst its clients. Airtel needs to simplify documentation, procedures.
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Airtel has also seen a growing number of prepaid users. This transition from postpaid to prepaid is also reflective. Easy documentation & easy activation are needed. If Airtel wants to improve its sale of postpaid connections, then it needs to improve upon two major lacunas which mar postpaid connections.
CHAPTER- 5
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APPENDIX
QUESTIONNAIRE Q1. NAME OF THE CUSTOMER : Q2. ADDRESS : Q3. AGE: Q4. INCOME GROUP: Q5. MOST PREFERED SERVICES BY YOU :
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MOBILE: HOME PHONES: CALL CARD: BROADBAND: WIRELESS INTERNET: EMAIL SERVICES: : Q6. WHICH USING ? PRE PAID POST PAID ( CONNECTION YOU ARE ( ) )
Q7. DOES AIRTEL PROVIDE CUSTOMERCARE SERVICES ? YES / NO Q8. ARE THE CUSTOMER-CARE EXECUTIVE COPERATIVE ? C
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YES / NO Q9. WHAT CUSTOMER-CARE SERVICES DOES AIRTEL PROVIDE ? __________________________________________ __________________________________________ _______________________________________ _
OF OF
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Q11. WHY DO YOU PREFER AIRTEL OVER OTHER CONNECTIONS ? __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________
Q12. DURATION OF YOUR ASSOCIATION/ USAGE WITH AIRTEL ? 1)LESS THAN 6 MONTHS 1) 2)6 MONTHS 1 YEAR 2) 3)1 YEAR OR MORE 3) ( ( ( ) ) )
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SLOW
Q14. ARE YOU SATISFIED WITH THE SERVICES PROVIDED BY THE COMPANY ? YES/NO Q15. CHANGES YOU WOULD LIKE TO SEE IN AIRTEL ?
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BIBLIOGRAPHY
BOOKS Marketing Management by Philip Kotler 9th Edition Research Methods for management by Dr. S. Shajahan 2nd Edition Principal & Practice of Management by L.M. Prasad, 4th Edition. REFRENCES
AIRTELs reports Books & magazine on mobile communication WEBSITES & SEARCH ENGINE www.airtelworld.com www.bhartiteleventures.com www.researchandmarket.com www.info-shop.com www.smartmobs.com www.yahoosearch.com
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www.trai.com www.coai.com
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