OBJECTIVE OFOBJECTIVE OF

THE STUDYTHE STUDY

1

OBJECTIVE OF THE STUDY

1. To identify the difference in market performance of Airtel industry.

2. To analyze the behavior of consumer towards Airtel.

3. To study the market of Airtel Industry in big scale sector.

4. To compare various parameters of manufacturing process, technology,

production policy, advertising, collaboration, export scenario, future

prospect and government policies.

5. To analyze and summarize the data collected so as to provide meaningful

relevant and important information to the company.

6. To gather relevant information regarding various aspects of the Airtel product.

7. To know customers satisfaction level

8. To find out the nearest competitors of the company.

9. To know the impact of all the advertisement and marketing on customers.

10.To know the airtel status in the market as compared to all ther brand in the

market.

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EXECUTIVEEXECUTIVE

SUMMARYSUMMARY

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

Now a day’s competition in the market is growing day by day, because of

globalization and liberalization. So it becomes difficult for all the organizations to

survive in the market. So to survive in the market it becomes important for all the

organizations to maintain healthy relations with their customers and also to understand

their behavior. This surely provides them an edge over the competitor.

Marketing management usually represents all managerial efforts and functions

to operate the marketing concept not only in letter but also in spirit. Marketing

concept demands customer oriented marketing plans, programs and policies; so that

the market can assured perfect positive correlations between the supply and demand

i.e. bundle of customer’s desires and expectations. The survival and growth of any

business depends not only upon profitability but also on customer satisfaction and

their behavior.

The report begins with the history of the products and the

introduction of the Airtel Company. This report also contains the basic

marketing strategies that are used by the Airtel Company of manufacturing

process, technology, production policy, advertising, future prospect and

government policies. This report also contains questionnaire related

consumer behavior towards Airtel.

This research work deals with surveying customers for knowing their

behavior towards Airtel. The sample size taken for this report is 50 in whole Delhi.

This is a descriptive research and the data collected in this research is first hand so it is

primary data. The data is collected through questionnaire method and the instrumental

used for data analysis is tabulation of data, bar chart and pie chart.

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CHAPTER-1

INTRODUCTION

TO THE TOPIC

5

INTRODUCTION

In the early 1990s, the Indian government adopted a new economic policy aimed at

improving India's competitiveness in the global markets and the rapid growth of

exports. Key to achieving these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,

Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India.

The circles are further classified under "A," "B" and "C," with the "A" circle being the

most attractive and "C" being the least attractive. The regulatory body at that time —

the Department of Telecommunications (DOT) — allocated two cellular licenses for

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

auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra

in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in

more than one metro, three circles or both. The circles of Jammu and Kashmir and

Andaman and Nicobar had no bidders, while West Bengal and Assam had only one

bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the

Lok Sabha, and the president officially announced the TRAI ordinance on 25 January

1997. The government decided to set up TRAI to separate regulatory functions from

policy formulation, licensing and telecom operations. Prior to the creation of TRAI,

these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial

burden on the operators, diverting funds away from network development and

enhancements. As a result, by 1999 many operators failed to pay their license fees and

were in danger of having their licenses withdrawn. In March 1999, a new telecom

policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the

old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby

between 8-12 percent of cellular revenue were to be paid to the government.

6

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR

RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was

beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was

announced. Some of these roadblocks / current position are tabulated below:

7

ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial fund requirements

for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum,

while businesses with weak promoters continuing to languish - spate of acquisitions /

mergers, with 4/5 major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being

accepted by all operators; Department of Telecommunications (DOT) restructured,

with operations and policy making roles vested in different bodies.

Issues relating to unfavorable interconnect terms for private operators, pass through

income, intra circle long distance, spectrum availability and allocation and the like

remained unresolved for long periods.

Interconnect terms since rationalized, risks on pass through income to DOT /

BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties

with changes in methodology / revenue sharing, intra circle long distance allowed,

spectrum availability cleared with vacation of frequencies for usage by GSM

operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large upfront cash requirements from promoters due to heavy license fee

burden in initial stages of deployment Asset based financing approach by

Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

8

Large upfront cash requirements for license fee payments mitigated with

migration to revenue sharing mode allowing promoters to deploy more capital

for capital expenditure; project financing being considered by most financial

institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of

routine allowing ease of entry / exit - paves the way for full control of businesses by

foreign companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with

corrective measures taken, market / subscriber base expected to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still

biased against the former.

Despite the recent gains of the cellular industry, not everything is rosy. The cellular

penetration rate is still very low at 0.8 percent in a nation of over one billion people.

In recent years, many foreign companies had pulled out from their cellular joint

ventures in India due to the difficult operating environment and bureaucracy. In 1999

alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both

the Telecom Organization of Thailand and Jasmine International from JT Mobile. In

2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra

of Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from

Bharti Cellular. Bell South International has also indicated its intention to pull out

from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its

stake in Spice Communications. First Pacific's (based in Hong Kong) continued

commitment to Escotel is uncertain, and the former is reviewing various options.

9

The string of sell-outs notwithstanding, there has been a merger and acquisition wave

sweeping across the Indian cellular industry in recent years. Hong Kong-based

Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major

stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and

Fascel (September 2000). Through a partnership with local company, Kodak

Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin

Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian

cellular operators. Hutchison Whampoa is also the controlling shareholder of

Hutchison Max Telecom. Not to be outdone, Bharti Enterprises — another major

cellular player — acquired control of JT Telecom, which was later renamed Bharti

Mobile (December 1999), and Skycell Communications renamed Bharti Mobinet

(August 2000). Bharti also acquired the Punjab license of Essar and started operations,

giving competition to the lone operator there, Spice Communications. Going forward,

Bharti is likely to merge all its cellular companies into one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator

slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new

licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea

cellular with one each. Bharti and Hutchison have already commenced operations in

all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made

any headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started services in March

2001. BSNL, as the third nationwide cellular operator, launched services in Kolkata

and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A

nationwide launch was scheduled for 2 October 2002. However, this has been

postponed until after mid October. Once BSNL rolls out its service, most telecom

circles will have four cellular operators. There will be tremendous competitive

pressure, which will result in lower tariffs. Future rate cuts are expected, which will

drive demand, together with falling handset prices and the introduction of prepaid

services.

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In the midst of declining interest in technology stocks, Bharti came out with its long-

awaited initial public offering (IPO) in January 2002. Leveraging on the success of its

cellular service, the company got a very good response from the primary market. The

total size of the IPO was 185 million shares at a floor price of Rs10. The issue was

oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel

its investment in long-distance, basic and cellular services.

As of October 2002, only BPL Mobile has launched commercial general packet radio

service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both

Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch

the service. With hardly any applications, the success of GPRS remains a question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively

promoting their brand and service portfolio through high-visibility advertising and

promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have

been advertising aggressively on hoardings and kiosks. Public transport like the city

rail system and cabs are used widely to carry the message of mobility.

Customer-focused activities are gaining traction among cellular operators with the

establishment of longstanding consumer benefit programs. Orange in Mumbai offers

"Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added

benefits like discounts on airfare, food and beverages, among others. Others offer

special privileges in retail outlets, cinemas and music shops.

Enterprise mobile applications — promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators

have concentrated on offering differentiated services for businesses. However, as

operators realize that offering basic voice and Short Message Service (SMS) will get

them the numbers but not the margins, some are now seriously looking at the

enterprise segment for provisioning superior services.

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Cost-centered solutions like closed user group (CUG), value-adds like unified

messaging and instant alerts are being offered.

A variety of mobile applications are finding takers among the enterprise segment.

Bharti is in the process of introducing a facility to fleet management companies so that

they can improve the efficiency of trucks or buses by tracking movement and ensuring

higher-use, accurate route planning. Premium automakers are also installing a global

system for mobile communications inside a vehicle to help trace lost vehicles and

track down stolen cars.

Corporations can choose enhanced services like user-defined call routing to prevent

misuse. Calls can be barred, limiting access to select numbers and diverting calls to

one single number. Broadcasting services are also quite popular, especially among fast

food centers that have a central number. Group SMS is quite popular, especially

among enterprises both in the service as well as the fast-moving consumer goods

(FMCG) segment that have a large field force and need to provide regular updates on

inventory status, discount schemes and movement of goods from warehouse to the

retail outlet. Banks too find bulk SMS service very useful to forward transactional

alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on

differentiations to maintain their lead.

The implementation of enhanced networks like 2.5G will enable operators to

offer data services. This is an opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI means that prices will

no longer be controlled, thus there is less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality of coverage is

crucial especially for the business subscriber.

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The bigger the service provider's national presence, the better it is for

businesses. On the roaming front, signing up with a national operator is

advantageous.

Limited mobility wireless in local-loop services (by fixed network service

providers) will be a disadvantage for cellular operators in the short term.

Consequently, operators need to streamline their customer relation activities

and adopt aggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of

1885. A document buried in the sands of time. The next major policy document,

which was produced, was the National Telecom Policy of 1994, a consequence of the

ongoing process of liberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DoT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized

1994 Licenses for paging

1994 Telecom policy announced

September 1994 Guidelines for private sector participation in basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995 Tenders for 2nd operator in basic services apart from DoT on

circle basis.

August 1995 VSNL launches Internet services

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January 1996 TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy

guidelines rather than a series of action points. Like other policies, it sought to achieve

the impossible in finite time like improve quality of service and its availability, wide

coverage (a phone in every village), at reasonable rates, etc. The targets in quantifiable

terms were installation of 9.5mn additional lines, telephone on demand by 1997, and a

PCO pop of 500. The Eighth Plan had also allowed private operators in value added

services. To facilitate licensing, the nation was divided into 20 circles (akin to a state)

for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and

Delhi in itself a circle.

The basic premise on which competition has been introduced is that every circle will

have one private operator apart from DoT/ BHARTI for basic and two operators for

cellular. DoT/ BHARTI have the option to become the third cellular operator in

future.

Government did not achieve most of its stated targets. The basic theme, which was

broadening the reach of telephony in India, has not been met. Even liberalization

policies were not implemented properly. The regulator TRAI was set up after delays

and confusion and even after its creation, DoT continued to fight with it in courts. It

was also affected by the resource crunch, and financing options like BOT, BOOT and

BOLT was not used at all. The major policy direction it showed was to allow private

sector entry in both basic and value added services. The intention, though noble failed

to achieve its goals because of improper implementation, the economic costs are still

borne by the end user.

The telecom sector has witnessed some fundamental structural and institutional

reforms in the past decade. telecom equipment manufacturing was completely

deregulated in 1991. Value-added services (including cellular services) were thrown

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open to private sector participation in 1992. Basic services were opened to private

participation in 1994 by dividing the country into 21 telecom Circles and allowing one

private operator per Circle to compete with DoT. An independent telecom regulatory

Authority of India was set up in 1997. A new Policy for Internet Service Policy

Providers (ISPs) was announced in 1998 allowing independent service providers to

enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT,

separating policymaking function and service provision and corporatization of DoT's

operational network are two major institutional reforms, which need to be

implemented.

 

15

COMPANY

PROFILE

16

COMPANY PROFILE

Airtel’s Background

Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of

telecommunications services. The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBU‘s) - mobile services, telemedia services

(ATS) & enterprise services. The mobile services group provides GSM mobile

services across India in 23 telecom circles, while the B&T business group provides

broadband & telephone services in 94 cities. The Enterprise services group has two

sub-units - carriers (long distance services) and services to corporate. All these

services are provided under the Airtel brand.

Fact sheet

Name Bharti Airtel Limited.

Business Description Provides mobile, telemedia services (fixed line) and enterprise services (carriers & services to corporates)

Established July 07, 1995, as a Public Limited Company

ProportionateRevenue

Rs. 184,202 millionRs. 117,255 millionAs per Indian GAAP Accounts

ProportionateEBITDA

Rs. 74,407 millionRs. 42,250 million)As per Indian GAAP Accounts

Shares in Issue 1,897,148,464

Listings The Stock Exchange, Mumbai (BSE)The National Stock Exchange of India Limited (NSE)

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Customer Base 64,370,434 GSM mobile and 2,319,509 telemedia customers

OperationalNetwork

Provides GSM mobile services in all the 23 telecom circles inIndia, and was the first private operator to have an all India presence.Provides telemedia services (fixed line) in 94 cities in India.

Registered Office Bharti Airtel Limited(A Bharti Enterprise)Qutab Ambience (at Qutab Minar), Mehrauli Road,New Delhi - 110 030

Bharti Airtel - Organization Structure

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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.

Established in 1985, Bharti has been a pioneering force in the telecom sector. With

many firsts and innovations to its credit, ranging from being the first mobile service in

Delhi, first private basic telephone service provider in the country, first Indian

company to provide comprehensive telecom services outside India in Seychelles and

first private sector service provider to launch National Long Distance Services in

India. Bharti had approximately 3.21 million total customers – nearly 2.88 million

mobile and 334,000 fixed line customers. 

Its services sector businesses include mobile operations in Andhra Pradesh, Chennai,

Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya

Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh

(West) circle. In addition, it also has a fixed-line operations in the states of Madhya

Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide

broadband and long distance networks.

Bharti has recently launched national long distance services by offering data

transmission services and voice transmission services for calls originating and

terminating on most of India's mobile networks.

The Company is also implementing a submarine cable project connecting Chennai-

Singapore for providing international bandwidth. Bharti Enterprises also manufactures

and exports telephone terminals and cordless phones. Apart from being the largest

manufacturer of telephone instruments, it is also the first telecom company to export

its products to the USA.

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Bharti Tele-Ventures' strategic objective is “to capitalise on the growth opportunities

that the Company believes are available in the Indian telecommunications market and

consolidate its position to be the leading integrated telecommunications services

provider in key markets in India, with a focus on providing mobile services”.

The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum

geographical coverage;

Offer multiple telecommunications services to provide customers with a "one-

stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced mobile

data services;

Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational efficiencies.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's

largest Telecom Business operator with more than 75 million subscribers It also offers

fixed line services and broadband services. It offers its TELECOM services under the

Airtel brand and is headed by Sunil Mittal. The company also provides telephone

services and Internet access over DSL in 14 circles. The company complements its

mobile, broadband & telephone services with national and international long distance

services. The company also has a submarine cable landing station at Chennai, which

connects the submarine cable connecting Chennai and Singapore. The company

provides end-to-end data and enterprise services to the corporate customers through its

nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile

circles, VSATs, ISP and international bandwidth access through the gateways and

landing station.

20

Airtel’s Preformance

21

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 .In April 2006 Bharti Global Limited was awarded a

telecommunications licence in Jersey in the Channel Islands by the local

telecommunications regulator the JCRA. In September 2006 the Office of Utility

Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications

licence. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a

relationship with Vodafone for Island mobile subscribers. In July 2007, Bharti Airtel

signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile

and fixed network. In March 2008, Bharti Airtel rolled out third generation services in

Sri Lanka in association with Singtel. This is because Singapore-based Asian telecom

major Singtel, which owns a little over 30% in Bharti Airtel, is a major player in the

3G space as it has already third generation networks in several markets across Asia.

Businesses

Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line 

National and international long distance services

VSAT, Internet services and network solutions 

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Competitive Strengths

Bharti Tele-Ventures believes that the following elements will contribute to the

Company's success as an integrated telecommunication services provider in India and

will provide the Company with a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's total mobile subscribers

resided in the Company's fifteen mobile circles. These 15 circles collectively

accounted for approximately 56% of India's land mass; 

Focus on telecommunications to enable the Company to better anticipate

industry trends and capitalize on new telecommunications-related business

opportunities;

The strong brand name recognition and a reputation for offering high quality

service to its customers;

Quality management team with vision and proven execution skills; and 

The Company's strong relationships with international strategic and financial

investors such as SingTel, Warburg Pincus, International Finance Corporation,

Asian Infrastructure Fund Group and New York Life Insurance.

Brand Strategy

To understand the brand strategy, let’s first look at the brand building exercise

associated with AirTel — a brand that had to be repositioned recently to address new

needs in the market.

When the brand was launched seven years ago, cellular telephony wasn’t a mass

market by any means. For the average consumer, owning a cellular phone was

expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep —

sometimes as much as buying a second-hand car.

23

Bharti could have addressed the customer by rationally explaining to him the

economic advantage of using a mobile phone. But Sachdev says that such a strategy

would not have worked for the simple reason that the value from using the phone at

the time was not commensurate with the cost.

“Instead of the value-proposition model, we decided to address the sensory benefit it

gave to the customer as the main selling tack. The idea was to become a badge value

brand,” he explains.

So the AirTel “leadership series” campaign was launched showing successful men

with their laptops and in their deluxe cars using the mobile phone. In simple terms, it

meant AirTel was positioned as an aspirational brand that was meant for leaders, for

customers who stood out in a crowd.

Did it work? Repeated surveys following the launch showed that there were three core

benefits that were clearly associated with the brand — leadership, dynamism and

performance.

These were valuable qualities, but they only took AirTel far enough to establish its

presence in the market. As tariffs started dropping, it became necessary for AirTel to

appeal to a wider audience. And the various brand-tracking exercises showed that

despite all these good things, there was no emotional dimension to the brand — it was

perceived as cold, distant and efficient.

Sachdev and his team realized that in a business in which customer relationships were

the core this could be a major weakness. The reason? With tariffs identical to

competitor Essar and roughly the same level of service and schemes, it had now

become important for Bharti to “humanize” AirTel and use that relationship as a major

differentiation.

The brand had become something like Lufthansa — cold and efficient. What they

needed was to become Singapore Airlines, efficient but also human. A change in tack

was important because this was a time when the cellular market was changing.

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The leadership series was okay when you were wooing the crème de la crème of

society. Once you reached them you had to expand the market so there was need to

address to new customers.

By that time, Bharti was already the leading cellular subscriber in Delhi with a base of

3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more

affordable — as cell companies started cutting prices — it was time to expand the

market.

How could Bharti leverage this leadership position down the value chain? Surveys

showed that the concept of leadership in the customer’s minds was also changing.

Leadership did not mean directing subordinates to execute orders but to work along

with a team to achieve common objectives — it was, again, a relationship game that

needed to be reflected in the AirTel brand.

Also, a survey showed that 50 per cent of the new customers choose a mobile phone

brand mostly through word-of-mouth endorsements from friends, family or

colleagues. Thus, existing customers were an important tool for market expansion and

Bharti now focused on building closer relationships with them.

That is precisely what the brand tried to achieve through its new positioning under the

AirTel “Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile

users surrounded by caring family members. Says Sachdev: “The new campaign and

positioning was designed to highlight the relationship angle and make the brand softer

and more sensitive.”

As it looks to expand its cellular services nationwide —to eight new circles apart from

the seven in which it already operates — Bharti is now realizing that there are new

compulsions to rework the AirTel brand, and a new exercise is being launched to this

effect. Right now, the company is unwilling to discuss the new positioning in detail.

But broadly, the focus is on positioning AirTel as a power brand with numerous

regional sub-brands reflecting customer needs in various parts of the country.

25

If AirTel is becoming more humane and more sensitive as a brand, Bharti has also

understood that one common brand for all cellular operations might not always work

in urban markets that are now getting increasingly saturated.

To bring in new customers, the company decided that it needed to segment the market.

One such experiment, launched last year, is Youtopia, a brand aimed at the youth in

the 14 to 19 age bracket and for those who are “young at heart”. With its earlier

positioning, AirTel was perceived as a brand for the well-heeled older customer; there

was nothing for younger people. With Youtopia, AirTel hoped to reverse that.

In order to deliver the concept, AirTel offered rock bottom tariff rates (25 paise for 30

seconds) at night to Youtopia customers — a time when they make the maximum

number of calls. It also set up merchandising exercises around the scheme — like a

special portal for young people to buy things or bid for goods.

The company is now looking at offering other services at affordable prices to this

segment which include music downloads on the mobile and bundling SMS rates with

normal calls to make it cheaper for young people to use.

The other experiment that Bharti has worked on is to go in for product segmentation

through the Tango brand name. The brand was created to offer mobile users Internet-

interface services or what is known as WAP (Wireless Application Protocol).

The idea was to bring Internet and mobile in perfect harmony. “The name was chosen

from the popular movie title It Takes Two To Tango: basically, you need the two

services to tango to offer customers a new choice”, says Sachdev.

This, however, had less to do with the branding exercise as with inefficiency of

service (accusingly slow download speeds) and the limited utility of WAP services.

Subsequently, the ads were withdrawn, but the company re-iterated that the branding

exercise could be revived because Tango will be the brand to offer GPRS services —

or permanent Internet connectivity on the mobile phone — which AirTel is expected

to launch soon.

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O ther Brand Building Initiatives:-

The main idea is to stay ahead of competition for at least six months. Working on the

above game plan Bharti is constantly coming up with newer product offerings for the

customers.

The focus, of course, is to offer better quality of service.

To make the service simpler for customers using roaming facilities, Airtel has

devised common numbers for subscribers across the country for services like

customer care, food services and cinema amongst others.

It will also launch a unified billing system across circles so, customers moving

from one place to another do not have to close and then again open new

accounts at another place.

To assist customer care personnel to deal with subscriber queries, a storehouse

of 40,000 frequently asked questions and their answers have been stored on the

computers.

Bharti expects that most of its new customers (one estimate is that it would be

60 to 70 per cent of the total new subscriber base) would come from the pre-

paid card segment. So, they must be given value-added products and services

which competitors don’t provide.

Bharti, for the first time for a cellular operator, has decided to offer roaming

services even to its pre-paid customers, but the facility would be limited to the

region in which they buy the card. To ensure that customers don’t migrate to

other competing services (which is known as churn and ranges from 10 to 15

per cent of the customer base every month), the company is also working on a

loyalty program. This will offer subscribers tangible cash benefits depending

upon their usage of the phone.

The loyalty program will not be only for a ‘badge value’, it will provide real

benefits to customers. The idea is to create an Airtel community.

27

Another key area which Bharti is concentrating its attention upon is a new

roaming service launched in Delhi under which calls of a roaming subscriber

who is visiting the city will be routed directly to his mobile instead of traveling

via his home network.

The company also offers multi-media messaging systems under which

customers having a specialized phone with a in-built camera can take pictures

and e-mail it to friends or store it in the phone. The cost per picture is between

Rs 5 to Rs 7.

Bharti is also aware that it has to make owning a ready-to-use cellular service

much easier than it is today. A key area is to increase the number of activation

centers. Earlier Bharti had 250 Airtel Connect stores which were exclusive

outlets (for its services) and about 250 Airtel Points which were kiosks in larger

shops. Now activation can be done by all of them, and not only by Connect

outlets, all within 15 to 20 minutes. In comparison, the competition takes two to

four hours.

Pre- paid cards are really catching up with the mobile phone users and it is

actually helping the market to increase. First, they are easier to obtain and

convenient to use. Unlike post-paid, one need not pay security deposits for

picking up a pre-paid card. It is often available even with paanwalas. As befits a

fast-moving consumer service, the game is now moving beyond price to

expanding distribution reach and servicing a well-spread-out clientele with

technology and strategic alliances. Bharti is focusing on two factors to make

pre-paid cards more attractive. Keeping the entry cost low for consumers and

making recharging more convenience.

Bharti is in the process of launching a new system in alliance with Mumbai-

based company Venture Infotech which will enable a pre-paid card user to

renew his subscription by just swiping a card. The system will not only save

users the hassle of going out and buying a card every time it expires but also

enable mobile companies to reduce the cost of printing and distributing cards.

28

Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering

food at home, to reach its Magic pre-paid cards to subscribers' doorsteps. The

company is also joining hands with local grocery shops which will enable users

to recharge their cards by just making a phone call to the shop. Apart from

improving the convenience of recharging, mobile operators are beefing up their

distribution channels. The company is constantly innovating to enhance the

value proposition for its pre-paid service. They are leveraging technology to

expand their distribution network and deliver round-the-clock recharge options

to its MOTS (Mobile On the Spot) subscribers.

Bharti Cellular has also launched a special service, CareTouch, for high-value,

corporate customers, providing them with instant, single-point access for any

assistance they require. Customers can dial 777 and enjoy a slew of services,

which includes easier payment of bills, service on priority basis, and value-

added services without any additional paper work. Bharti Cellular is offering a

range of services without going through an interactive voice recorder ensuring

that they save time. Dedicated ‘CareTouch’ executives are expected to assist

customers with any service on priority basis. Besides the regular proactive

reminder calls for bill payment, customers can also call CareTouch for bill

payments at free of cost.

Airtel presented MTV Inbox; the first ‘on-air’ SMS based interactive music

dedication show exclusively for AirTel and AirTel Magic customers. Highly

interactive VJ based show with real-time feedback mechanism. Both brands

joined hands to target the high growth youth segment.

Stakeholder engagement and material issues

Airtel’s approach to responsible business activities is through regular engagement

with its internal and external stakeholders to confirm issues of importance. This is

then aligned with its governance framework and management approach. Airtel

engages with its stakeholders i.e. employees, customers, suppliers, business partners,

29

the community, investors and regulatory bodies on an ongoing basis to help crystallise

the range of significant or material issues. The stakeholder engagement process is

reviewed and the materiality assessment is performed once in every two years,

depending upon the requirements. During 2012, the stakeholders put forth the

following areas as focus areas for Airtel – better levels of customer service and

increased customer satisfaction, digital inclusion to catalyze social inclusion and

economic parity, fuel consumption and alternate cleaner energy sources, employee

engagement, climate change and waste management.

The four material issues that Airtel focuses on emerged basis those that were most

important to stakeholders, best aligned with the businessand on which Airtel

operations had significant impact. In order to address these issues through its

governance structure, Airtel has formulated policies and management approaches

around each issue. Every material issue is governed by a member of the company’s

Management Board.

These 4 material issues are –

• Customer service and satisfaction: This parameter is the raison d’etre of our

business existence; therefore, we continuously measure and work to enhance customer

satisfaction and engagement levels.

• Digital inclusion to catalyze social inclusion and economic parity: At Airtel,

it is our endeavour that our robust network and far-reaching distribution helps bring

millions into digi presence, making a positive impact on the community at large.

• Energy and climate change: Airtel is committed to minimizing the negative

impact of its services on the environment. Reducing the carbon footprint, working

towards a sustained decline in our infrastructure GHG emissions, reliance on alternate

30

green sources of energy and increasing resource efficiency are other ways that Airtel

is addressing this issue.

• Waste management and resource optimisation: Airtel’s effort is to minimize

waste that is generated by its operations and to ensure end-to-end traceability and

recycling of both physical waste and e-waste.

These material issues are critical to being able to stay true to the organizational vision

of “enriching lives.” They are, therefore, reviewed and assessed every two years. The

entire process of stakeholder engagement and deriving material issues is due to

be undertaken again next year as part of the two year review process.

Bharti’s View on its Branding strategy:-

First, brand building efforts in today’s context have to be seen in a more holistic

manner. Delivering value on a sustained basis is perhaps the most potent key to build a

brand that lasts.

Unflinching orientation to customer needs is the second key success factor. Customers

(be it for industrial products or consumer goods and services) across the world are

more informed and, at the same time, becoming more individualistic in their needs and

far more demanding with the passage of time.

Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging

customer needs, and then reacting in “real-time” are essential to attract and retain

customer loyalty — a key element of creating brand equity in the present situation.

Customizing the product (and communication of its benefit) to meet the specific needs

of various consumer/customer sub-segments is the third element in creating brand

appreciation.

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As far as allocation of time and financial resources are concerned, too many

companies mistakenly allocate a disproportionate amount on mere advertising and

promotion. This is not to say that advertising and promotion are less relevant. On the

contrary, with more choices and higher media clutter, businesses need to budget for an

increasingly higher spend on their brand promotion but this has to be undertaken in

tandem with enterprise-wide “reengineering” of the business philosophy and core

design, production, and delivery operations for the product itself.

The positive spin to this argument is that by first addressing the fundamentals, the

enterprise itself becomes more competitive. This can be the beginning of a virtuous

cycle wherein brand equity continues to increase as the enterprise sustains delivery of

an appropriate product or service at an ever increasing value.

It is, however, crucial to note that in the years to come, not only will the cost of

building a regional or a national (or an international) brand will continue to rise but

also the time taken to do so will be longer and will need sustained and focused efforts.

Airtel money - Leading the transformation

Airtel Money is India’s first mobile wallet service by a mobile operator. It can run on

any Airtel GSM, through a simple, non-internet based menu on anybasic phone, or

through a powerful smartphone app on all leading mobile platforms. An alternative to

other payment options including cash, customers can use Airtel Money for an

extensive range of services across merchants to pay for remote transactions like

instant money transfers, booking railway and movie tickets, paying for utility bills,

insurance premiums, recharging phones, DTH and for physical transactions like

shopping.

Registration is simple and can be done throughdialing *400# online, dialing the

customer awarenesshelpline or by visiting the nearest airtel retailer.

32

While getting a bank account can be intimidating for the uninitiated and finding a

bank branch might be challenging in rural areas, registering for an airtel money

account on the phone is easy. With the evolution to airtel money, other financial

products and services like micro-insurance and micro-investments will provide greater

value for the people.

To provide savings as a proposition among the masses, Airtel Money offers Super

Account, its Axis Bank partnered product in UP, Bihar, Delhi and Mumbai. Super

Account provides the facility of withdrawing cash and helps people earn interest on

their deposits.

Airtel Money has also partnered with MFIs like Swadhaar for furthering its financial

inclusion agenda. Micro Savings are promoted through the Small Savings Bank a/c of

Axis bank that makes transacting convenient through a simplified, mobile-based

platform at the nearest airtel outlet, which becomes the teller the at customers'

doorstep metaphorically. Airtel Money thus brings with it the scope for product and

delivery innovation, extending "Micro Pensions/Insurance" using economies of

scale, and takes cash management out of the MFI's domain, thus saving on cost and

time which can be utilized in further business and product development. It is foreseen

that these customers, especially women, will inculcate a habit of savings

without fear of loss or theft and should feel empowered by way of this powerful

digital tool. In addition, Airtel is looking to partner with Government bodies to

provide efficiency and transparency to Government to Customer (G2C) payments like

PDS, LPG, pensions, scholarships, health payments, SHG loans, etc.

Airtel Money can help support these public service initiatives by allowing the

Government to seamlessly send money to the pre-registered Airtel Money has made it

easy for the common man to get access to a secure and convenient payment channel. It

has provided empowerment and helped create a difference in people’s lives.

Airtel Money has commenced the journey of financial inclusion in India and has the

potential to bring about a sweeping change in the nation's socio-economic landscape.

33

It can shift the focus from cash-to-mobile as a swift and convenient mode of payment

and diminish the distance between banks and customers, creating a

revolution in the lives of many.

Airtel customer care principles:

• Self service for better standards of customer care

• Innovative services for individuals and enterprise

• Safeguarding customer privacy and interests and data-security

• Enhancing customer satisfaction

My Airtel My Offer (MAMO)

My Airtel My Offer (MAMO) is an innovative and highly personalized product that

enables Customers anywhere to choose from a variety of online offers and services. It

offers the customer a choice of local, STD, ISD, SMS and data packs and is easily

accessible through multiple channels. MAMO offers the consumer convenience,

round the clock accessibility and renewability.

34

CHAPTER-2

RESEARCH

METHODOLOGY

35

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. In it we

study the various steps that are generally adopted by a researcher in studying his

research problems along with the logic behind them. It is necessary for the researcher

to know not only the research methods. Researchers not only need to know how to

develop certain indices or tests, how to calculate the mean, the mode, the median or

the standard deviation or chi square, how to apply particular research techniques, but

they also need to know which of these methods or techniques are relevant.

RESEARCH PROCESS

Research process consists of series of steps necessary to effectively carry out research

and he desired sequencing of these steps. However it should be kept in mind that these

research steps are mutually neither exclusive nor they are separate and distinct.

The following order concerning various steps provides a useful procedural guideline regarding the research process.

1. Identify and formulate the problem.

2. Choose the research design.

3. Determine the information needs.

4. Design data collection forms.

5. Determine sample design and sample size.

6. Organize and conduct field survey.

7. Analyze and interpret the collected data.

8. Prepare the research report.

36

RESEARCH DESIGN

A research design is simply a plan or framework for a study that is used in collecting

and analyzing the data. This framework is to ensure that relevant information is

collected and that too depending upon the objectives of the study.

According to Green & Tull, “A research design is the specification of methods and

procedures for acquiring the information needed. It is the overall operational pattern

or framework of the project that stipulates what information is to be collected from

which sources by what procedures.”

The research design can be classified into three categories – Exploratory, descriptive,

and casual:

Exploratory Research

It seeks to discover new relationships, emphasis on discovery of ideas. This research

is used when very little is known about the problem being examined. Exploratory

research studies are also termed as formulative research studies as its main purpose is

to formulate a problem. Exploratory research is used here is flexible and the areas

where this type of research used are to know the:

Brand preference

Attitude of the customers

Market potential

Buyer's behavior

Consumer's awareness.

The purpose of this type of research is to gain insight into problem. The research

design used for the project at hand is of exploratory in nature. Exploratory research

is always based on small non-representative samples and data obtained are

subjected to qualitative analysis.

37

Exploratory research helps to gather information about practical problems in

carrying out the research and to provide insight into, and an understanding of, the

problem confronting the researcher.

DESCRIPTIVE RESEARCH

It attempts to determine the frequency with something occurs or the relationship

between two phenomenon's. It is a type of conclusive research that has its major

objective of describing something like market characteristics or functions.

Descriptive research gives a clear statement of the problem, specifies hypothesis,

and detailed information needs. It is conducted for the for the reasons like to

describe characteristics of relevant group are associated and to make specific

predictions, to estimate the percentage of units in a specified population exhibiting

a certain behavior, to determine the perceptions of product characteristics, to

determine the degree to which marketing variables. A descriptive design requires a

clear specification of who, what, when, where, why, and way of research.

Descriptive research used the following methods:-

Observation

Questionnaires

Interviews

Examination of records

Some of the examples are:

Market studies

Market share studies

Sales analysis studies

Image studies.

CAUSAL RESEARCH

38

These designs often adopted in order to discover and determine the cause and effect

relationship. It is also experimental research as its major objective is to obtain

evidence regarding cause and effect relationship. It requires a planned and structured

design. The main method of experiment research is experimentation and hypotheses

are specific. Experimental research is useful in cases where variables are manipulated

in a relatively controlled environment.

SOURCE OF COLLECTING DATA

PRIMARY DATA

Primary data are those which are collected afresh and for the first time and thus

happen to be original in nature. The methods of primary data collection are through.

Observation

Interview method

Questionnaire

Schedules.

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 had been

continuously observes the surrounding environment.

SECONDARY DATA

Secondary data has been used to support primary data wherever needed.

39

It is used to obtain information on, Airtel and its competitor history, current

issues, policies, procedures etc, wherever required.

SOURCES OF SECONDARY DATA

Websites

Magazines

Newspapers, etc.

TYPE OF RESEARCH

This is descriptive research as this research includes surveys and fact finding inquires

of different kinds. So descriptive research help in knowing about particular item or

group of items in other words it describes the state as it exist at present.

SAMPLE SIZE

The sample size taken for this research is 50.

DATA COLLECTION

The data collected in this research is first hand so it is primary data. It is collected

directly from the respondent through questionnaire and through visualization.

DATA COLLECTON METHOD

40

The data was collected through research questionnaire method and through

visualization for franchise analysis. A questionnaire was framed then data collected by

making it fill by different respondent.

SAMPLE TECHNIQUES

Sampling techniques used in judgment sampling. As the selection of sample was done

according to the researcher's own discretion and all effort were made to keep the

research objective.

DATA ANALYSIS TECHNIQUES

Analysis of data is done through quantitative method that is numerical figures

expressed in percentage.

DATA ANALYSIS INSTRUMENT

Instrument used for data analysis is tabulation of data, Bar chart and pie chart.

41

DATA

ANALYSIS

42

Age group of consumers towards mobile phone:

SR.NO AGE GROUP PERCENTAGE (%)

1 Below 20 30

2 20-30 38

3 30-40 22

4 Above 40 10

Interpretation:As we can see from the above chart, the people who are in the age group of 20-30

years are the ones who are the maximum users of mobile phones. This segment is the

one which gives maximum business to the mobile operators. This segment constitutes

the students and office going people. They are 38% of the total people who were

interviewed. The next age group is the youngest generation who are below 20 years

old. They are school and college going students. They are 30% of the total interviewed

people. The next age groups are the people who are 30-40 years old. They are 22% of

the total. The next age groups are above 40.

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Percentage of male and female consumer:

SR NO. OPTIONS PERCENTAGE (%)

1 Male 54

2 Female 46

Interpretation:

As we can see from the above chart, males are the maximum user of cellular phone.They are the 54% of the total people who are interviewed. The next group are of females they are 46% of total.

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Occupation of consumer:

SR.NO OCCUPATION PERCENTAGE (%)

1 Student 42

2 Service 30

3 Self-employed 10

4 Unemployed 18

Interpretation:

As the above chart shows that 42% of the total people interviewed are students. So, these people are the ones who are the maximum users of mobile phones. The next group are those who are doing service, they are 30% of total. They are the young executives, office going, managers, Tele - callers etc. who require mobile for their official purposes. The next group is of unemployed people, they are 18% of total people interviewed. These are those who are searching for job, housewife and retired people. The next group is of self-employed people these are 10% of total people interviewed.

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Which cellular service provider is used by all?

SR.NO Cellular service provider PERCENTAGE (%)

1 Airtel 38

2 Vodafone 36

3 Idea 10

4 Reliance 8

5 Tata Docomo 0

6 BSNL/MTNL 2

7 Any Other 6

Interpretation

The above chart shows that 38% of total people those who are using Airtel. It seems that people are more prefer to have Airtel than any other brand. The next popular brand is Vadafone. 36% of the people interviewed have Vodafone connections. The next popular brand is Idea. 10% people have Idea connections.As it came very late in the market when Airtel had established it self very well. So, that could be one of the reasons of such a low percentage.The next brand is

46

reliance, 8% of the total people have reliance connection.The next popular brand is Aircel. 6% of total people have Aircel connection. The next brand is BSNL/MTNL, 2% of people have BSNL/MTNL connection. Its seems that people have low preference to have Tata Docomo. No one or 0% have this connection.

Which type of connection is used by all?

SR.NO Options PERCENTAGE(%)

1 Pre-paid connection 72

2 Post-paid connection 28

Interpretation

Pre-paid connection seemed quite popular among the people interviewed. 72% of the total mobile users were having pre-paid connections. This means that the pre-piad should be easily and readily available in the local markets.28% of the people were having a post-paid connection which is the regular bill.

47

Expenditure (monthly) spends on mobile usage:

SR.NO Monthly Expenditure PERCENTAGE (%)

1 Below 100 16

2 100-500 48

3 500-1000 30

4 Above 1000 6

Interpretation

48% people spends Rs. 100-500 per month as their mobile phone expense.30% of total people interviewed spends Rs. 500-100 per month as their mobile phone expense.16% people spend below Rs. 100 per month as their monthly mobile expense. And the remaining 6% had an expense more than Rs. 1000, they could the ones having post-paid connections or having pre-paid connection and having a lot of business calls on their mobiles.

48

Do customers collect any information before making purchases?

SR.NO Options PERCENTAGE (%)

1 Yes 84

2 No 16

Interpretation

The above chart shows that 84% of total people interviewed collect information before making any purchases related mobile phone connection. And 16% people don’t collect information before making purchases.

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If yes, which sources are used?

SR.NO SOURCE PERCENTAGE (%)

1 Magazines 4

2 Dealers 26

3 Sales Executives 13

4 Operators Reference 13

5 Pamphlets and Catalogue 11

6 Reference from friends and relatives 28

7 Any Other 4

Interpretation

The total people who collect information, out of which 28% people collect information from reference from friend and relative. The next maximum people collect information from dealers. These are 26% of total people. The people who collect information from sales executive and operators reference are 13% of total people. The people who collect information from pamphlets and catalogues are 11% of total people. And 4% people collect information from magazine and from other source.

50

Which marketing/ sales schemes attracts customer while purchasing any connection?

SR.NO Marketing/Sales Schemes PERCENTAGE (%)

1 Good Network 38

2 Discount scheme 28

3 Service package 30

4 Any Other 4

Interpretation

As shown in above chart, 38% people purchase connection by seeing good network of that brand. 30% of total people consider service package while purchasing any connection.28% people see discount scheme while purchasing any connection. And 4% people are those who consider any other marketing/ sales schemes while purchasing any connection.

Customers rating on Airtel performance on 5 points scale

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(5 Highest)

After Sales Service

SR.NO RATING PERCENTAGE (%)

1 1 2

2 2 8

3 3 38

4 4 46

5 5 6

Interpretation

The above chart shows that 46% of people give rating of 4 to the after sales service of Airtel. 38% of people give rating of 3 to the after sales service of Airtel. 8% of people give rating of 2. 6% of people give rating of 5 to the after sales service of Airtel. And 2% of people give rating of 1 to the after sales service of Airtel. This means that mostly people are satisfied with Airtel’s after sales service.

52

Maintenance

SR.NO RATING PERCENTAGE (%)

1 1 4

2 2 4

3 3 38

4 4 46

5 5 8

Interpretation The above chart shows that 46% of people give rating of 4 to the after maintenance of Airtel. 38% of people give rating of 3 to the maintenance of Airtel. 8% of people give rating of 5. 4% of people give rating of 1and 2 to the maintenance of Airtel. This means that mostly people are satisfied with Airtel’s maintenance.

53

Product as per expectation

SR.NO RATING PERCENTAGE (%)

1 1 2

2 2 6

3 3 30

4 4 52

5 5 10

Interpretation The above chart shows that 52% of people give rating of 4 to the Product as per expectation of Airtel. 30% of people give rating of 3 to the Product as per expectation of Airtel. 10% of people give rating of 5. 6% of people give rating of 2 to the Product as per expectation of Airtel. And 2% of people give rating of 1 to the Product as per expectation of Airtel. This means that mostly people are satisfied with Airtel’s Product as per expectation

54

Customer’s satisfaction towards Airtel’s promotional activities

Customer Care

SR.NO OPTION PERCENTAGE (%)

1 Very Satisfied 16

2 Satisfied 70

3 Somewhat Satisfied 14

4 Not Satisfied 0

Interpretation

It seems that 70% people are satisfied with customer care service of Airtel.16% of total people interviewed are very satisfied. And 14% people are somewhat satisfied with customer care service of Airtel. Hence, mostly interviewed people are satisfied with customer care service of Airtel.

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Ad Films

SR.NO OPTION PERCENTAGE (%)

1 Very Satisfied 24

2 Satisfied 48

3 Somewhat Satisfied 28

4 Not Satisfied 0

Interpretation

The above chart shows that 48% people are satisfied with Ad films of Airtel.28% of total people interviewed are somewhat satisfied. And 24% people are very satisfied with Ad films of Airtel. Hence, mostly interviewed people are satisfied with Ad films of Airtel.

56

Camp:

SR.NO OPTION PERCENTAGE (%)

1 Very Satisfied 4

2 Satisfied 42

3 Somewhat Satisfied 52

4 Not Satisfied 2

Interpretation

It seems that 52% people are somewhat satisfied with camp conducted by Airtel.42% of total people interviewed are satisfied. 4% people are very satisfied with camp conducted by Airtel. And 2% people are not satisfied. Airtel should find some way to satisfied customer.

57

24 hours call center services

SR.NO OPTION PERCENTAGE (%)

1 Very Satisfied 34

2 Satisfied 50

3 Somewhat Satisfied 16

4 Not Satisfied 0

Interpretation

It seems that 50% people are satisfied with 24 hours call center service of Airtel. 34% of total people interviewed are very satisfied. And 16% people are somewhat satisfied 24 hours call center service of Airtel. Hence, mostly interviewed people are satisfied with 24 hours call center service of Airtel.

58

Customers rating on Airtel in terms of connectivity and area of network coverage?

SR.NO Option PERCENTAGE (%)

1 Excellent 30

2 Good 58

3 Fair 12

4 Poor 0

5 Very poor 0

Interpretation

The above chart shows that 58% of total people interviewed rate Good to the

Airtel’s connectivity and area of network coverage. 30% people rate Excellent.

And 12% of total people rate Fair to the Airtel’s connectivity and area of

network coverage. This means mostly people are satisfied with Airtel

connectivity and area of network coverage

59

CHAPTER-4

Findings and

Interpretation

60

Finding and Interpretation

IIn this survey the findings are given below:

The people who are in the age group of 20-30 years are the ones who are the

maximum users of mobile phones. This segment is the one which gives

maximum business to the mobile operators.

38% people purchase connection by seeing good network of that brand. While

30% of total people consider service package while purchasing any connection.

And 28% people see discount scheme while purchasing any connection.

38% of total people who are interviewed are those who are using Airtel. It

seems that people are more prefer to have Airtel than any other brand.

The next popular brand is Vadafone. 36% of the people interviewed have

Vodafone connections.

48% people spend Rs. 100-500 per month as their mobile phone expense. And

30% of total people interviewed spend Rs. 500-100 per month as their mobile

phone expense.

The total people who collect information, out of which 28% people collect

information from reference from friend and relative. The next maximum people

collect information from dealers. These are 26% of total people.

58% of total people interviewed rate Good to the Airtel’s connectivity

and area of network coverage. 30% people rate Excellent. And 12% of

total people rate Fair to the Airtel’s connectivity and area of network

coverage.

50% of total people are satisfied with 24 hours call center service of

Airtel.

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It seems that 52% people are somewhat satisfied with camp conducted by

Airtel.42% of total people interviewed are satisfied. 4% people are very

satisfied with camp conducted by Airtel. And 2% people are not satisfied.

It seems that 70% people are satisfied with customer care service of

Airtel.16% of total people interviewed are very satisfied. And 14%

people are somewhat satisfied with customer care service of Airtel.

62

SWOT ANALYSIS

63

SWOT ANALYSIS

Strengths

Being one of the largest companies in India the company has achieved a

degree of focus in its core business of its products.

It has a strong brand name, superior quality products and an enviable

distribution network.

It has a clear and well-defined organization structure and limits of

financial authority.

Increase in advertisement spends affect the company’s margins.

The company‘s bottom line falls victim to the bloated and highly paid

workforce, which affects its margins .

Weakness

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence can’t compete in low price segment.

No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major boost from its

cost reduction efforts.

There is a lot of scope of product and market diversification.

Exports of products will also have huge chances in the coming years.

Airtel’s business has ample scope for gaining market share from the

unorganized sector. Rural penetration too holds vast potential to bring

about growth.

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Threats

The slowdown in the economy has restricted topline growth of most

FMCG majors and for Airtel also it will be difficult to maintain historical

growth rates in such a depressed scenario.

Company’s major raw materials are influenced by government

policies / controls as well as vagaries of the monsoons. Fluctuations in

the prices of raw materials would have significant impact on costs and

margins of the company.

Moreover, inordinate hike in Broad Band Internet products would also

increases company’s production and distribution cost .

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CHAPTER-5

SUGGESTION

66

Suggestions

The company should modify its credit policy as they only target the cash

paying customers who are not easy to trace.

The company should emphasis more on the quality of Pharmaceuticals

Products it was mostly claimed by the exporters that their receipts from

company doesn’t matches with the sample’s quality shown before giving

orders.

The company should 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

exporter on time, as it has been recommended by exporters to make the

delivery on time.

The company rate policy must be flexible enough to catch new customers

because if company offers lower price to a new customer then he may continue

buy the goods and can be a permanent customer for the company.

The company should offers such rate in the market so that it may able to catch

a bigger market share and it should be able to compete with the local traders

and commission agents while having a brand name.

The company should take the opinion of exporters from time to time to know what

problems they are facing from the company’s side. And if any change they require in

present supplying condition.

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CHAPTER-5

LIMITATIONS

68

LIMITATIONS

No project is without limitations and it becomes essential to figure out the various

constraints that we underwent during the study. The following points in this direction

would add to our total deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold

shoulder.

2. The respondents from whom primary data was gathered any times displayed

complete ignorance about the complete branded range, which was being

studied.

3. Lack of time is the basic limitation in the project.

4. Some customers refuse to cooperate with the queries.

5. Some customers 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 also because hurdle for me.

8. Some retailers did not answer all the questions or say they do not have time to

answer.

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ANNEXURE

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QUESTIONNAIRE

Customer Name:

Phone no. :

Email id :

1. Age: a) < 20 b) 20-30 c) 30-40 d) >40

2. Gender:

a) Male b) Female

3. Occupation:a) Student b) service c) self- employed d) unemployed

4. Which is your cellular service provider?a) Airtelb) Vodafonec) Idead) Reliancee) Tata docomof) BSNL/MTNLg) Other ……………………….

5. What type of connection are you using?a) Pre-paid b) post-paid

6. What is your monthly expenditure in terms of your mobile usage?a) < 100 b) 100 – 500 c) 500 – 1000 d) > 1000

7. Do you collect any information before making purchase?

a) Yes b) No

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8. If yes, which sources are used?

a) Magazines

b) Dealers

c) Sales Executives

d) Operators reference

e) Pamphlets and catalogue

f) Reference from friends and relatives

g) Any other

9. Which of these marketing / sales schemes attracts you while purchasing any connection?

a) Good Networkb) Discount schemec) Service packaged) Any other

10. How would you rate Airtel performance as your expectation on 5 points scale (5 Highest)

1 2 3 4 5

After Sale service

Maintenance

Product as per expectation

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11. Are you aware of various promotional activities being run by Airtel, if yes then how? Are you satisfied with these promotional activities?

Customer Care

By Ad Films

By Camp

24 hrs call center services

12. How do you rate Airtel in terms of connectivity and area of network coverage?

a) Excellentb) Goodc) Faird) Poore) Very poor

Very

Satisfied

Satisfied Somewhat

Satisfied

Not

satisfied

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BIBLIOGRAPHY

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BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the

following Books, Magazines/Journals and Web Sites have been referred. All the material

detailed below provides effective help and a guiding layout while designing this text report.

Websites:

www.airtel.in

www.google.com

www.india.com

www.wikipedia.com

Magazines:

Airtel (2 July to 10 July 2012)

Airtel India page of HT paper (Thursday 1December 2012)

Cowards India (26 December to 4 Jan. 2013)

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