22463913 Consumer Behaviour of Airtel Geeta

8/17/2019 22463913 Consumer Behaviour of Airtel Geeta

http://slidepdf.com/reader/full/22463913-consumer-behaviour-of-airtel-geeta 1/87

A

PROJECT REPORTON

“CONSUMER BEHAVIOUR OF AIRTEL”FOR PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE

OF

BACHELOR OF BUSINESS ADMINISTRATION

(2014-2017)

SUBMITTED TO:SUBMITTED TO: SUBMITTED BY:SUBMITTED BY:

ALTAF QUIYAMALTAF QUIYAM GEETA DEVI GEETA DEVI

BBA IV SEM. BBA IV SEM.

ROLL NO.: 08049!ROLL NO.: 08049!

GREAT GANGES INSTITUTE OF TECHNOLOGYGREAT GANGES INSTITUTE OF TECHNOLOGY

(AFFILIATED TO CSJM UNIVERSITY, KANPUR

ACKNOWLEDGEMENT

I take this opportunity to convey our sincere thanks and gratitude to all

those who have directly or indirectly helped and contributed towards the completion of

this project .I would like to convey my sincere thanks to , has guided me and given his

valuable time & knowledge during my stayed the company.

1



I am deeply grateful to Mr. Sir my faculty guide, who provided valuable

insights and guidance at every stage of the project.

I also convey my sincere gratitude to my friends for their encouragement

and support etended to me during the course of my project.

!t the end I would not forget to thank other employees of Indian

"aboratories who treated me with respect and helped me to the best of their capacity.

"SHAILENDRA #UMAR BHARAD$AJ%

#



$



PREFACEPREFACE

I, Shailendra Kumar Bharadwaj, being a student of MBA, of

#IET& G'()*(+(,.

The project title “C-/123 B2'(*-3 -5 A*3627” is the analysis

of the big scale sector of communication. This project inoles

the big scale leel proided by Airtel to its customers. Thesurey was conducted so as to analy!e the big scale sector

preailing in the current industry and the improement that can

be made upon it.

Mar"et research study has been conducted in order to bring out

the picture of big scale sector that e#ists in this industry. The

differences in serice $uality that e#ists in the mar"et. %hat the

customer&s preferences are proided by the Airtel'

%



ENTS

AC#NO$LEDGEMENT 4

PREFACEPREFACE ! !

EECUTIVE SUMMARYEECUTIVE SUMMARY

OBJECTIVE OF THE STUDY 9

RESEARCH METHODOLOGY ;;

INTRODUCTION ;!

COMPANY PROFILE <0

FINDINGS AND ANALYSIS !8

SUGGESTIONS 8

S$OT ANALYSIS 0

RECOMMENDATION 4

LIMITATIONS

CONCLUSION 80

BIBLIOGRAPHY 8=



QUESTIONNAIRE 84

'



Executiv

e

Summar

y (



EECUTIVE SUMMARYEECUTIVE SUMMARY

The project is an e#tensie report on how the Airtel

company mar"ets its strategies and how the company has been

able in tac"ling the present tough competition and how it is

cooping up by the allegations of the $uality of its products. The

report begins with the history of the products and the

introduction of the Airtel company. This report also contains the

basic mar"eting strategies that are used by the Airtel company of

manufacturing process, technology, product ion policy,

adertising, collaboration, e#port scenario, future prospect and

goernment policies. The report includes some of the "ey salient

features of mar"et trend issues.

In today&s world of cutthroat fierce competition, it is ery

essential to not only e#ist but also to e#cel in the mar"et.

Today&s mar"et is enormously more comple#. (ence forth, to

surie in the mar"et, the company not only needs to ma#imi!e

its profit but also needs to satisfy its customers and should try to

build upon from there.

)



Objectiv

e of theStudy

*



)B*+TI-+ ) T(+ ST/01

1. To identify the difference in mar"et performance of Airtel industry.

2. To study the mar"et of Airtel Industry in big scale sector.

3. To compare arious parameters of manufacturing process,

technology, production policy, adertising, collaboration,

e#port scenario, future prospect and goernment policies.

1+



Research

Methodology

11



RESEARCH METHODOLOGY

Achieing accuracy in any research re$uires in depth study

regarding the subject. As the prime objectie of the project is to

compare Airtel with the e#isting competitors in the mar"et and the

impact of %22 on Airtel, the research methodology adopted is

basically based on primary data ia which the most recent and

accurate piece of first hand information could be collected.

Secondary data has been used to support primary data whereer

needed.

Primary data was collected using the following techniques

3uestionnaire Method

0irect Interiew Method and

)bseration Method

The main tool used was, the $uestionnaire method. urther direct

interiew method, where a face4to4face formal interiew was ta"en.

2astly obseration method has been continuous with the $uestionnaire

method, as one continuously obseres the surrounding enironment he

wor"s in.

Procedure of research methodology

> To conduct this research the target population was the mobile users,

%ho are using 5SM technology.

1#



> Target geographic area. Sample si!e of 677 was ta"en.

> To these 677 people a $uestionnaire was gien, the $uestionnaire

was a combination of both open ended and closed ended $uestions.

> The date during which $uestionnaires were filled.

> Some dealers were also interiewed to "now their prospectie.

Interiews with the managers of 5SM serice proiders were also

conducted.

8 inally the collected data and information was analy!ed and

compiled to arrie at the conclusion and recommendations gien.

Sources of secondary data

/sed to obtain information on, Bharti&s history, current issues, policies,

procedures etc, whereer re$uired.

8 Internet

8 Maga!ines

8 9ewspapers

8 *ournals

8 Bharti irculars

8 Bharti 9ews 2etters

1$



1%



Introduction

1



I9T:)0/TI)9

In the early 6;;7s, the Indian goernment adopted a new economic

policy aimed at improing India<s competitieness in the global mar"ets

and the rapid growth of e#ports. Key to achieing these goals was a

world4class telecom infrastructure.

In India, the telecom serice areas are diided into four metros =9ew

0elhi, Mumbai, hennai and Kol"atta> and ?7 circles, which roughly

correspond to the states in India. The circles are further classified

under @A,@ @B@ and @,@ with the @A@ circle being the most attractie and

@@ being the least attractie. The regulatory body at that time the

0epartment of Telecommunications =0)T> allocated two cellular

licenses for each metro and circle. Thirty4four licenses for 5SM;77

cellular serices were auctioned to ?? firms in 6;;. The first cellular

serice was proided by, Modi Telstra in Kol"atta in August 6;;. or

the auction, it was stipulated that no firm can win in more than one

metro, three circles or both. The circles of *ammu and Kashmir and

Andaman and 9icobar had no bidders, while %est Bengal and Assam

had only one bidder each.

In 6;;C, the Telecom :egulatory Authority of India =T:AI> bill was

introduced in the 2o" Sabha, and the president officially announced the

1'



T:AI ordinance on ? *anuary 6;;D. The goernment decided to set

up T:AI to separate regulatory functions from policy formulation,

licensing and telecom operations. Erior to the creation of T:AI, these

functions were the sole responsibility of the 0)T.

(igh license fees and e#cessie bids for the cellular licenses put

tremendous financial burden on the operators, dierting funds away

from networ" deelopment and enhancements. As a result, by 6;;;

many operators failed to pay their license fees and were in danger of

haing their licenses withdrawn. In March 6;;;, a new telecom policy

was put in place =9ew Telecom Eolicy F9TEG 6;;;>. /nder this new

policy, the old fi#ed4licensing regime was to be replaced by a reenue4

sharing scheme whereby between H46? percent of cellular reenue

were to be paid to the goernment.

1.1 INDIAN CELLLA! "A!#E$ % EA!LIE! !&AD'L&C#S AND

$(EI! !ES&L$I&N

Indian ellular mar"et immediately after the first round of licensing in

6;;4;C was beset by seeral problems for J 4 years till the 9ew

Telecom Eolicy of 6;;; was announced. Some of these roadbloc"s

current position is tabulated belowL

1(



ROADBLOC#S

CURRENT POSITION

High license fees

Migration to reenue sharing mode in 6;;; mitigates high initial fund

re$uirements for payment of license fees.

Inade$uately funded businesses wea" and fragmented promoters

Businesses that hae since been ade$uately funded growing at oer

C7 per annum, while businesses with wea" promoters continuing to

languish 4 spate of ac$uisitions mergers, with major groups

emerging in the last onetwo years.

Regulatory authority not in place

Telecom :egulatory Authority of India =T:AI> firmly in place, and its

role being accepted by all operatorsN 0eptt of Telecommunications

=0)T> restructured, with operations and policy ma"ing roles ested in

different bodies.

Issues relating to unfaorable interconnect terms for priate operators,

pass through income, intra circle long distance, spectrum aailability

and allocation and the li"e remained unresoled for long periods.

1)



Interconnect terms since rationali!ed, ris"s on pass through income to

0)T B(A:TI =Mahanagar Telecom 9igam 2td.> resoled to the

satisfaction of all parties with changes in methodology reenue

sharing, intra circle long distance allowed, spectrum aailability cleared

with acation of fre$uencies for usage by 5SM operators.

Problems in Financial closures due to:

2icensing tenure of 67 years

2arge up front cash re$uirements from promoters due to heay

license fee burden in initial stages of deployment Asset based

financing approach by Indian inancial Institutions.

2icensing tenure increased from 67 to ?7 years

2arge up front cash re$uirements for license fee payments

mitigated with migration to reenue sharing mode allowing

promoters to deploy more capital for capital e#penditureN project

financing being considered by most financial institutions.

Foreign ownership / change of partner limitations

oreign ownership norms clarified, and change of partners allowed as

a matter of routine allowing ease of entry e#it 4 paes the way for full

control of businesses by foreign companies.

Inade$uate growth of mar"et subscribers

1*



:oadbloc"s spelt out earlier resulted in low mar"et subscriber growth,

but with correctie measures ta"en, mar"et subscriber base e#pected

to !oom

1.) DE*EL&P"EN$S IN $(E CELLLA! INDS$!+

The interconnection regime between cellular operators and fi#ed4line

operators is still biased against the former.

0espite the recent gains of the cellular industry, not eerything is rosy.

The cellular penetration rate is still ery low at 7.H percent in a nation

of oer one billion people.

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

cellular joint entures in India due to the difficult operating enironment

and bureaucracy. In 6;;; alone, Swisscom pulled out from Sterling

ellular, Telstra from Modi Telstra and both the Telecom )rgani!ation

of Thailand and *asmine International from *T Mobile. In ?777,

Telecom Malaysia sold its sta"e in /sha Martin Telecom, and both

Shinawatra of Thailand and Be!e$ e#ited from ascel. In *une ?776,

British Telecom e#ited from Bharti ellular. Bell South International has

also indicated its intention to pull out from S"ycell ommunications,

and (ong Kong4based 0istacom is see"ing to sell its sta"e in Spice

ommunications. irst Eacific<s =based in (ong Kong> continued

#+



commitment to +scotel is uncertain, and the former is reiewing

arious options.

The string of sell4outs notwithstanding, there has been a merger and

ac$uisition wae sweeping across the Indian cellular industry in recent

years. (ong Kong4based (utchison %hampoa, ia (utchison

Telecommunications =(K>, ac$uired major sta"es in Sterling ellular

=0ecember 6;;;>, /sha Martin Telecom =mid4?777> and ascel

=September ?777>. Through a partnership with local company, Kota"

Mahindra inance, (utchison %hampoa practically controls ascel

and /sha Martin Telecom, thus circumenting the ; percent limit on

foreign ownership in Indian cellular operators. (utchison %hampoa is

also the controlling shareholder of (utchison Ma# Telecom. 9ot to be

outdone, Bharti +nterprises another major cellular player

ac$uired control of *T Telecom, which was later renamed Bharti Mobile

=0ecember 6;;;>, and S"ycell ommunications renamed Bharti

Mobinet =August ?777>. Bharti also ac$uired the Eunjab license of

+ssar and started operations, giing competition to the lone operator

there, Spice ommunications. 5oing forward, Bharti is li"ely to merge

all its cellular companies into one entity.

ie companies together bid :s6C.J billion to bag the licenses for the

fourth operator slots in four metros and 6J circles. Bharti emerged as

#1



the 9o. 6 bidder with eight new licenses, followed by +scotel with four,

(utchison with three, and :eliance and Idea cellular with one each.

Bharti and (utchison hae already commenced operations in all the

circles while Idea is set to launch in 0elhi. +scotel and :eliance hae

not made any headway.

B(A:TI, the third cellular operator for 0elhi and Mumbai, started

serices in March ?776. BS92, as the third nationwide cellular

operator, launched serices in Kol"atta and Bihar in *anuary ?77?.

This was followed by Tamil 9adu in *uly ?77?. A nationwide launch

was scheduled for ? )ctober ?77?. (oweer, this has been postponed

until after mid )ctober. )nce BS92 rolls out its serice, most telecom

circles will hae four cellular operators. There will be tremendous

competitie pressure, which will result in lower tariffs. uture rate cuts

are e#pected, which will drie demand, together with falling handset

prices and the introduction of prepaid serices.

In the midst of declining interest in technology stoc"s, Bharti came out

with its long4awaited initial public offering =IE)> in *anuary ?77?.

2eeraging on the success of its cellular serice, the company got a

ery good response from the primary mar"et. The total si!e of the IE)

was 6H million shares at a floor price of :s67. The issue was

oersubscribed by more than ?. times, netting :sH.J billion. This will

##



be used to fuel its inestment in long4distance, basic and cellular

serices.

As of )ctober ?77?, only BE2 Mobile has launched commercial

general pac"et radio serice =5E:S> in Mumbai. (oweer, large4scale

upta"e remains elusie. %hile both Bharti and Idea hae 5E:S4

enabled networ"s, there is caution on their part to launch the serice.

%ith hardly any applications, the success of 5E:S remains a

$uestion.

'uilding ,isi-ility and awareness

0eiating from competing on the price platform, cellular operators are

actiely promoting their brand and serice portfolio through high4

isibility adertising and promotional campaigns. ellular operators li"e

Bharti, )range and BE2 Mobile hae been adertising aggressiely on

hoardings and "ios"s. Eublic transport li"e the city rail system and

cabs are used widely to carry the message of mobility.

ustomer4focused actiities are gaining traction among cellular

operators with the establishment of longstanding consumer benefit

programs. )range in Mumbai offers @)range (olidays@ and @)range

Monsoon )ffers@ at ery attractie rates and added benefits li"e

discounts on airfare, food and beerages, among others. )thers offer

special priileges in retail outlets, cinemas and music shops.

#$



Enterrise mo-ile alications / romising re,enue stream

All along, customer ac$uisition and the top line hae been the focus.

ew operators hae concentrated on offering differentiated serices for

businesses. (oweer, as operators reali!e that offering basic oice

and Short Message Serice =SMS> will get them the numbers but not

the margins, some are now seriously loo"ing at the enterprise segment

for proisioning superior serices.

ost4centered solutions li"e closed user group =/5>, alue4adds li"e

unified messaging and instant alerts are being offered.

A ariety of mobile applications are finding ta"ers among the enterprise

segment. Bharti is in the process of introducing a facility to fleet

management companies so that they can improe the efficiency of

truc"s or buses by trac"ing moement and ensuring higher4use,

accurate route planning. Eremium automa"ers are also installing a

global system for mobile communications inside a ehicle to help trace

lost ehicles and trac" down stolen cars.

orporations can choose enhanced serices li"e user4defined call

routing to preent misuse. alls can be barred, limiting access to

select numbers and dierting calls to one single number. Broadcasting

serices are also $uite popular, especially among fast food centers that

hae a central number. 5roup SMS is $uite popular, especially among

#%



enterprises both in the serice as well as the fast4moing consumer

goods =M5> segment that hae a large field force and need to

proide regular updates on inentory status, discount schemes and

moement of goods from warehouse to the retail outlet. Ban"s too find

bul" SMS serice ery useful to forward transactional alerts to their

customers.

1.0 $!E $!ENDS AND DE*EL&P"EN$

There will be more competition, forcing operators to constantly focus

on differentiations to maintain their lead.

•

The implementation of enhanced networ"s li"e ?.5 will enable

operators to offer data serices. This is an opportunity to

customi!e and differentiate better.

• The entry of state4run operators li"e BS92 and B(A:TI means

that prices will no longer be controlled, thus there is less chance

of a cartel being formed.

• 9etwor" coerage in terms of geographic spread and $uality of

coerage is crucial especially for the business subscriber.

• The bigger the serice proider<s national presence, the better it

is for businesses. )n the roaming front, signing up with a

national operator is adantageous.

#



• 2imited mobility wireless in local4loop serices =by fi#ed networ"

serice proiders> will be a disadantage for cellular operators in

the short term. onse$uently, operators need to streamline their

customer relation actiities and adopt aggressie subscriber

ac$uisition and retention strategies.

1.2 !E3LA$&!+ ISSES The operations of this sector are determined as under the Indian

Telegraph Act of 6HH. A document buried in the sands of time. The

ne#t major policy document, which was produced, was the 9ational

Telecom Eolicy of 6;;, a conse$uence of the on going process of

liberali!ation.

1ear +ent

6H6 irst telephones in India

6;J 9ationali!ation of telephone companies

6;H 0oT was created

6;HC reation of B(A:TI and -S92

6;;6 Telecom e$uipment liberali!ed

6;; 2icenses for paging

6;; Telecom policy announced

September 6;; 5uidelines for priate sector participation in

basic serices

#'



9oember 6;; ellular licenses issued for metros

0ecember 6;; Tenders for cellular licenses in 6; cities apart

from metros

*anuary 6;; Tenders for ?nd operator in basic serices

apart from 0oT on circle basis.

August 6;; -S92 launches Internet serices

*anuary 6;;C T:AI formed

9oember 6;;H Internet policy announced

The 9ational Telecom Eolicy of 6;; document, which laid out broad

policy guidelines rather than a series of action points. 2i"e other

policies, it sought to achiee the impossible in finite time li"e improe

$uality of serice and its aailability, wide coerage =a phone in eery

illage>, at reasonable rates, etc. The targets in $uantifiable terms were

installation of ;.mn additional lines, telephone on demand by 6;;D,

and a E) pop of 77. The +ighth Elan had also allowed priate

operators in alue added serices. To facilitate licensing, the nation

was diided into ?7 circles =a"in to a state> for basic and ?6 circles for

cellular telephony. Mumbai falls in Maharashtra circle and 0elhi in itself

a circle.

The basic premise on which competition has been introduced is that

eery circle will hae one priate operator apart from 0oT B(A:TI for

#(



basic and two operators for cellular. 0oT B(A:TI hae the option to

become the third cellular operator in future.

5oernment did not achiee most of its stated targets. The basic

theme, which was broadening the reach of telephony in India, has not

been met. +en liberali!ation policies were not implemented properly.

The regulator T:AI was set up after delays and confusion and een

after its creation, 0oT continued to fight with it in courts. It was also

affected by the resource crunch, and financing options li"e B)T, B))T

and B)2T was not used at all. The major policy direction it showed

was to allow priate sector entry in both basic and alue added

serices. The intention, though noble failed to achiee 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 e$uipment

manufacturing was completely deregulated in 6;;6. -alue4added

serices =including cellular serices> were thrown open to priate

sector participation in 6;;?. Basic serices were opened to priate

participation in 6;; by diiding the country into ?6 telecom ircles

and allowing one priate operator per ircle to compete with 0oT. An

independent telecom regulatory Authority of India was set up in 6;;D.

#)



A new Eolicy for Internet Serice Eolicy Eroiders =ISEs> was

announced in 6;;H allowing independent serice proiders to enter the

sector ending the earlier monopoly of -S92. :eorgani!ation of 0oT,

separating policyma"ing function and serice proision and

corporati!ation of 0oT<s operational networ" are two major institutional

reforms, which need to be implemented.

#*



Compan

y Prole

$+



)MEA91 E:)I2+

V*/*-

?A/ @2 /32(, @*/ 6- 2(, -3 ((+*7*6*2/ (, 27-32 2@

'-3*)-/& 6'2 5,(126(7 5-/ 321(*/ '(2,: /22 -6

6'2 +2/6 62'-7- * 6'2 @-37, (, 6 *6 (6 6'2 /23*2 -5 -3

76*1(62 /23: -3 /6-123.?

T'2/2 (32 6'2 321*/2 - @'*' B'(36* E6233*/2/ '(/ +(/2, *6/

26*32 7( -5 (6*-.

Bharti +nterprises has been at the forefront of technology and has

reolutioni!ed telecommunications with its world4class products and

serices.

+stablished in 6;H, Bharti has been a pioneering force in the telecom

sector. %ith many firsts and innoations to its credit, ranging from

being the first mobile serice in 0elhi, first priate basic telephone

serice proider in the country, first Indian company to proide

comprehensie telecom serices outside India in Seychelles and first

priate sector serice proider to launch 9ational 2ong 0istance

Serices in India. Bharti had appro#imately J.?6 million total customers

O nearly ?.HH million mobile and JJ,777 fi#ed line customers.

$1



Its serices sector businesses include mobile operations in Andhra

Eradesh, hennai, 0elhi, 5ujarat, (aryana, (imachal Eradesh,

Karnata"a, Kerala, Kol"ata, Madhya Eradesh circle, Maharashtra

circle, Mumbai, Eunjab, Tamil 9adu and /ttar Eradesh =%est> circle. In

addition, it also has a fi#ed4line operations in the states of Madhya

Eradesh and hattisgarh, (aryana, 0elhi, Karnata"a and Tamil 9adu

and nationwide broadband and long distance networ"s.

Bharti has recently launched national long distance serices by offering

data transmission serices and oice transmission serices for calls

originating and terminating on most of India<s mobile networ"s.

The ompany is also implementing a submarine cable project

connecting hennai4Singapore for proiding international bandwidth.

Bharti +nterprises also manufactures and e#ports telephone terminals

and cordless phones. Apart from being the largest manufacturer of

telephone instruments, it is also the first telecom company to e#port its

products to the /SA.

Bharti Tele4-entures< strategic objectie is

Pto capitalise on the growth opportunities that the ompany beliees

are aailable in the Indian telecommunications mar"et and consolidate

its position to be the leading integrated telecommunications serices

$#



proider in "ey mar"ets in India, with a focus on proiding mobile

sericesQ.

The ompany has deeloped the following strategies to achiee its

strategic objectieL

• ocus on ma#imi!ing reenues and marginsN

• apture ma#imum telecommunications reenue potential with

minimum geographical coerageN

• )ffer multiple telecommunications serices to proide customers

with a @one4stop shop@ solutionN

•

Eosition itself to tap data transmission opportunities and offer

adanced mobile data sericesN

• ocus on satisfying and retaining customers by ensuring high

leel of customer satisfactionN

• 2eerage strengths of its strategic and financial partnersN and

• +mphasi!e on human resource deelopment to achiee

operational efficiencies.

B/*2//2/

Bharti Tele4-entures current businesses include 4

• Mobile serices

$$



• i#ed4line

• 9ational and international long distance serices

• -SAT, Internet serices and networ" solutions

C-126*6*2 S6326'/

Bharti Tele4-entures beliees that the following elements will contribute

to the ompany<s success as an integrated telecommunication

serices proider in India and will proide the ompany with a solid

foundation to e#ecute its business strategyL

• 9ationwide ootprint 4 appro#imately ;? of India<s total mobile

subscribers resided in the ompany<s fifteen mobile circles.

These 6 circles collectiely accounted for appro#imately C of

India<s land massN

• ocus on telecommunications to enable the ompany to better

anticipate industry trends and capitali!e on new

telecommunications4related business opportunitiesN

• The strong brand name recognition and a reputation for offering

high $uality serice to its customersN

• 3uality management team with ision and proen e#ecution

s"illsN and

$%



• The ompany<s strong relationships with international strategic

and financial inestors such as SingTel, %arburg Eincus,

International inance orporation, Asian Infrastructure und

5roup and 9ew 1or" 2ife Insurance.

B3(, A3'*62632:

Bharti is wor"ing on a comple# three%layered -randing

architecture toL

• reate specific brands for each serice,

• Build sub4brands within each of these serices and

• /se Bharti as the mother brand proiding the group its

corporate identity as well as defining its goal to become a

national builder of telecoms infrastructure.

Error: Reference source not found

$



Air$el % The flagship brand for cellular operations all across the

country.

$ouchtel 4 The brand earmar"ed for basic serice operations.

India &ne 4 The brand for national long distance =920>

telephony

Though the costs of creating new brands are heay but the

group wants to create 4distinct indeendent -rands to

address different customers and rofiles5.

'rand Strategy6

To understand the brand strategy, let&s first loo" at the brand building

e#ercise associated with AirTel a brand that had to be repositioned

recently to address new needs in the mar"et.

%hen the brand was launched seen years ago, cellular telephony

wasn&t a mass mar"et by any means. or the aerage consumer,

owning a cellular phone was e#pensie as tariff rates =at :s H a

minute> as well as instrument prices were steep sometimes as much

as buying a second4hand car.

Bharti could hae addressed the customer by rationally e#plaining to

him the economic adantage of using a mobile phone. But Sachde

says that such a strategy would not hae wor"ed for the simple reason

$'



that the alue from using the phone at the time was not commensurate

with the cost.

PInstead of the alue4proposition model, we decided to address the

sensory benefit it gae to the customer as the main selling tac". The

idea was to become a badge alue brand,Q he e#plains.

So the AirTel Pleadership seriesQ campaign was launched showing

successful men with their laptops and in their delu#e 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.

0id it wor"' :epeated sureys following the launch showed that there

were three core benefits that were clearly associated with the brand

leadership, dynamism and performance.

These were aluable $ualities, but they only too" AirTel far enough to

establish its presence in the mar"et. As tariffs started dropping, it

became necessary for AirTel to appeal to a wider audience. And the

arious brand4trac"ing e#ercises showed that despite all these good

things, there was no emotional dimension to the brand it was

perceied as cold, distant and efficient.

$(



Sachde and his team reali!ed that in a business in which customer

relationships were the core this could be a major wea"ness. The

reason' %ith tariffs identical to competitor +ssar and roughly the

same leel of serice and schemes, it had now become important for

Bharti to Phumani!eQ AirTel and use that relationship as a major

differentiation.

The brand had become something li"e 2ufthansa cold and efficient.

%hat they needed was to become Singapore Airlines, efficient but also

human. A change in tac" was important because this was a time when

the cellular mar"et was changing.

The leadership series was o"ay when you were wooing the crRme de

la crRme of society. )nce you reached them you had to e#pand the

mar"et so there was need to address to new customers.

By that time, Bharti was already the leading cellular subscriber in 0elhi

with a base of J.DD la"h =it now has 6.? million customers>. And with

tariffs becoming more affordable as cell companies started cutting

prices it was time to e#pand the mar"et.

(ow could Bharti leerage this leadership position down the alue

chain' Sureys showed that the concept of leadership in the

customer&s minds was also changing. 2eadership did not mean

directing subordinates to e#ecute orders but to wor" along with a team$)



to achiee common objecties it was, again, a relationship game

that needed to be reflected in the AirTel brand.

Also, a surey showed that 7 per cent of the new customers choose a

mobile phone brand mostly through word4of4mouth endorsements from

friends, family or colleagues. Thus, e#isting customers were an

important tool for mar"et e#pansion and Bharti now focused on building

closer relationships with them.

That is precisely what the brand tried to achiee through its new

positioning under the AirTel 4$ouch $omorrow5 brand campaign. This

set of campaigns portrayed mobile users surrounded by caring family

members. Says SachdeL PThe new campaign and positioning was

designed to highlight the relationship angle and ma"e the brand softer

and more sensitie.Q

As it loo"s to e#pand its cellular serices nationwide to eight new

circles apart from the seen in which it already operates Bharti is

now reali!ing that there are new compulsions to rewor" the AirTel

brand, and a new e#ercise is being launched to this effect. :ight 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 sub4brands reflecting customer needs in arious

parts of the country.

$*



If AirTel is becoming more humane and more sensitie as a brand,

Bharti has also understood that one common brand for all cellular

operations might not always wor" in urban mar"ets that are now

getting increasingly saturated.

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

segment the mar"et. )ne such e#periment, launched last year, is

1outopia, a brand aimed at the youth in the 6 to 6; age brac"et and

for those who are Pyoung at heartQ. %ith its earlier positioning, AirTel

was perceied as a brand for the well4heeled older customerN there

was nothing for younger people. %ith 1outopia, AirTel hoped to reerse

that.

In order to delier the concept, AirTel offered roc" bottom tariff rates =?

paise for J7 seconds> at night to 1outopia customers a time when

they ma"e the ma#imum number of calls. It also set up merchandising

e#ercises around the scheme li"e a special portal for young people

to buy things or bid for goods.

The company is now loo"ing at offering other serices at affordable

prices to this segment which include music downloads on the mobile

and bundling SMS rates with normal calls to ma"e it cheaper for young

people to use.

%+



The other e#periment that Bharti has wor"ed on is to go in for product

segmentation through the Tango brand name. The brand was created

to offer mobile users Internet4interface serices or what is "nown as

%AE =%ireless Application Erotocol>.

The idea was to bring Internet and mobile in perfect harmony. PThe

name was chosen from the popular moie title It $a7es $wo $o

$angoL basically, you need the two serices to tango to offer customers

a new choiceQ, says Sachde.

This, howeer, had less to do with the branding e#ercise as with

inefficiency of serice =accusingly slow download speeds> and the

limited utility of %AE serices.

Subse$uently, the ads were withdrawn, but the company re4iterated

that the branding e#ercise could be reied because Tango will be the

brand to offer 5E:S serices or permanent Internet connectiity on

the mobile phone which AirTel is e#pected to launch soon.

T'2 M(*:

Eerhaps the more ambitious e#periment has been with "agic the

pre4paid card. The idea was to ma"e the brand affordable, accessible

and, most importantly, feasible as a means of e#panding the mar"et

een faster.

%1



P(ASE I 8

Magic was aimed at bringing in infre$uent users of a mobile phone into

the mar"et and assure him that he would hae to pay only if he made a

call. Such a customer used the phone sparingly mostly for

emergencies and was not willing to pic" up a normal mobile

connection with its relatiely high rentals =pre4paid cards do not include

rental charges>.

To achiee its objecties Bharti did three things.

• )ne, the product was made aailable at prices ranging from :s

J77 to :s J,777 with no strings attached and was simple to

operate.

• Two, the product was made accessible and distributed through

small stores, telephone booths and een "irana shops so that the

offering was well within arm&s reach.

• Third, to ma"e the product more PapproachableQ to the customer,

the company came with ernacular ad campaigns li"e 4"agic

Daalo Se (ello5 which appealed to local sensibilities.

%#



This apart, the company roped in Karisma Kapoor and Shah :u"h

Khan for a major ad campaign all across 0elhi, a ruse that saw the

number of subscribers go up from .D la"h to 6? la"h today,

oerta"ing +ssar&s branded pre4paid card Seed , which was launched

much ahead of Magic. The company is now re4wor"ing its Magic

strategy een further.

+arlier, the branding strategy was aimed at roping in only interested

customers that is, customers who were already inclined to opt for

mobile serices. But now, with basic serice proiders haing been

allowed limited mobility at far cheaper rates, mobile serice proiders

could find themseles under threat again.

That is why the new e#ercise is aimed at co4opting non4adopters.

%hile the e#act strategy is under wraps, insiders say the new branding

strategy would be aimed at offering them alue which they had not

perceied would be aailable from using a pre4paid card.

PHASE II

Bharti used AirTel Magic to build a strong alue proposition and

accelerate mar"et e#pansion through India&s first national pre4paid card

T- brand campaign

• irst time eer in India 4 any pre4paid card brand goes on T-

%$



• A combination of the film genre e#posed through the T- medium

designed to connect with the masses of India

• 1outh based 4 romance drien strategy platform ma"es the alue

proposition of AirTel Magic 4 Mum"in (ai& come alie

• All elements 4 user imagery, conte#t, tone language created to

connect the category to the lies of the S+ B S+ segment O

the middle class non4mobile user.

• AirTel Magic positions itself on the platform of being e#cellent for

emergency situations 4 increasing productiity as a part of eeryday

life.

• Sharu"h Khan ma"es eerything in life possible& while romancing

pretty Kareena Kapoor with AirTel Magic, India&s leading pre4paid

mobile card.

AirTel today uneiled its strategy for mar"et e#pansion with the launch

of it&s new AirTel Magic pre4paid card brand campaign O Magic hai to

Mum"in hai&. The strategy is targeted at the non4user segment defined

as young adults, 64J7 years of ageN in the Sec B segment is

aimed at accelerating mar"et e#pansion. The alue proposition is

centered around a person&s desire to ma"e all his her dreams,

ambitions aspirations instantly possible. The new campaign for

%%



AirTel Magic is all about empowering millions of Indians to be on top of

their lies.

The brand is positioned to be releant to the mass4mar"et who want to

ma"e all their dreams, hopes desires come alieU instantly. =At just

:s.J774 per month AirTel Magic is so easy to buy.> Improing

productiity, letting you befriend the world and opening up new

hori!ons. It gies you the freedom to control your life in a way neer

possible before. Indeed, anything that you thin" is possible is possible

with AirTel Magic. The new brand slogan Magic hai to Mum"in hai&

has been specially created to capture this effectiely.

This strategy is designed to help us tal" to this segment directly in the

tone, manner language of the masses. The PMum"in haiQ alue

proposition will help us e#pand the mar"et and gain a higher

percentage of mar"et share in the process.

The brand ambassadors Sharu"h Khan and Kareena Kapoor embody

this can do& or PMum"in (aiQ spirit =infact that is the reason they were

selected as brand ambassadors>. Sharu"h rose from a T- actor to

become India&s top film star and national heartthrob. Kareena&s

success is due to her attitude&, talent, hard wor" and the sheer ability

to ma"e a mar" in such a short time. Both these stars hae said

Mum"in hai& and made it happen for themseles.

%



The genre of this new strategy campaign is (indi cinema led. This

genre connects millions across India. The spirit of romance, dancingU

the Indian cinema, well "nown to most as Bollywood, holds millions of

Indians together as one.

The new T- campaign of AirTel Magic crafted in the (indi film idiom,

magnifies the empowering optimism of PMum"in (aiQ, in the endearing

situation of a boy4girl romance. %here Sharu"h Khan, sets his eyes

on Kareena Kapoor and wins her loe with the help of AirTel Magic.

=Eoignantly coneying that special feeling we all get when a dream is

made possible and a ictory of the heart is won>.

The strategy new brand campaign is targeted at the large untapped

base of intending mobile customers from Sec A, B . The estimated

addressable mar"et of such customers in the ne#t two years is around

? million in AirTel&s 6C states. The new strategy aims at correcting the

perception that the mobile category is useful mainly for business& or

wor"& related scenarios.

The new strategy, brand positioning brand slogan is an outcome of

an e#tensie nationwide research and is an integral part of AirTel

Magic&s new multi4media campaign. The campaign has been created

by Eercept Adertising.

%'



PHASE III

Bharti used AirTel Magic to build a strong alue proposition and

accelerate mar"et e#pansion through India&s first national pre4paid card

T- brand campaign

• irst time eer in India 4 any pre4paid card brand gies such

freedom to recharge any alue

• A combination of the film genre e#posed through the T- medium

designed to connect with the masses of India

• 1outh based 4 romance drien strategy platform ma"es the alue

proposition of AirTel Magic 4 Aisi a!aadi aur "ahan'Q come alie

• Sharu"h Khan ma"es eerything in life possible& AirTel today

uneiled its strategy for mar"et e#pansion with the launch of it&s new

AirTel Magic pre4paid card brand campaign O Magic hai to Mum"in

hai&. . The alue proposition is centered around a person&s desire

to ma"e all his her dreams, ambitions aspirations instantly

possible. The new campaign for AirTel Magic is all about

empowering millions of Indians to be on top of their lies.

The brand is positioned to be releant to the mass4mar"et who want to

ma"e all their dreams, hopes desires come alieU instantly .At a

%(



amount of your choice you can recharge your account with aailable

alidity time .Improing productiity, letting you befriend the world and

opening up new hori!ons. It gies you the freedom to control your life

in a way neer possible before. Indeed, anything that you thin" is

possible is possible with AirTel Magic. The new brand slogan Aisi

a!adi aur "ahanhas been specially created to capture this effectiely.

A1-6 S23*2 P3-2//*

T(7

T*12

V(7*,*6

"R/.%

T(

"8% F22/"R/.% "R/.% "D(/%!4 4 =! =! !0 4.44 =! <0.! !

! !.! =! 44.44 !;00 .4; =! .!9 !;=! 9.= !0 !.4 ;0;!0 ;;.;; !0 88.89 ;0;! ;=.9 !0 ;;=.04 ;0=00 ;4.8; !0 ;<!.;9 ;0=; ; 8! ;;! =0==! ;. 8! ;=<.<< =0=!0 ;8.!= 8! ;4.48 =0

=! =0.< 8! ;9.< =0<00 ==.== 8! ;8<.8 =0

A1-6 S23*2 P3-2//*

T(7

T*12

V(7*,*6

"R/.%

T(

"8% F22/"R/.% "R/.% "D(/%<=4 =4 ;!0 ;!0 <0<!0 =!.9< ;!0 ;4.0 <0<0 =. ;!0 ;8<.<< <0

%)



<! =.8 ;!0 ;9.== <0400 =9.< ;!0 ==0.< <0

4=! <;.48 ;!0 =4<.!= <04! <!.;9 ;!0 =89.8; <0!00 <.04 ;!0 <;=.9 <0!=! <8.89 ;!0 <<.;; <0!40 40 ;!0 <!0 <000 44.44 ;!0 40!.! <0!0 48.;! ;!0 4!;.! <000 !;.8! ;!0 498.;! <0! !.4; ;!0 !.!9 <0

800 !0.< ;!0 !80.4 <0

" R/.%

T(

"8% F22/"R/.% "R/.% "D(/%8!0 =.9 ;!0 <.04 0900 . ;!0 8<.<< 0

;000 4.0 ;!0 !.9< 0;080 80 ;!0 8!0 0;=00 88.89 ;!0 9;.;; 0;<00 9.< ;!0 ;0!<. 0;400 ;0<. ;!0 ;;4.< 0;!00 ;;;.;; ;!0 ;=<8.89 0;800 ;<<.<< ;!0 ;!;. 0=000 ;48.;! ;!0 ;0;.8! 0=;0 ;0 ;!0 ;8!0 0<000 ===.== ;!0 ==.8 0!000 <0.< <00 4<=9.< <000 444.44 <00 !=!!.! <

000 !;8.!= <00 ;8;.48 <8000 !9=.!9 <00 ;0.4; <9000 . <00 80<<.<< <9999 40. <00 89!8.<< <

YOUR TAL# TIME MRP PROCESSING FEE

SERVICE TA

&ther 'rand 'uilding Initiati,es6%

%*



The main idea is to stay ahead of competition for at least si# months.

%or"ing on the aboe game plan Bharti is constantly coming up with

newer product offerings for the customers.

The focus, of course, is to offer better $uality of serice.

• To ma"e the serice simpler for customers using roaming

facilities, Airtel has deised common numbers for subscribers

across the country for serices li"e customer care, food serices

and cinema amongst others.

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

customers moing from one place to another do not hae to

close and then again open new accounts at another place.

• To assist customer care personnel to deal with subscriber

$ueries, a storehouse of 7,777 fre$uently as"ed $uestions and

their answers hae been stored on the computers.

• Bharti e#pects that most of its new customers =one estimate is

that it would be C7 to D7 per cent of the total new subscriber

base> would come from the pre4paid card segment. So, they

must be gien alue4added products and serices which

competitors don&t proide.

+



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

offer roaming serices een to its pre4paid 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

serices =which is "nown as churn and ranges from 67 to 6 per

cent of the customer base eery month>, the company is also

wor"ing 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 alue&, it will

proide real benefits to customers. The idea is to create an Airtel

community.

• Another "ey area which Bharti is concentrating its attention upon

is a new roaming serice launched in 0elhi under which calls of a

roaming subscriber who is isiting the city will be routed directly

to his mobile instead of traeling ia his home networ".

• The company also offers multi4media messaging systems under

which customers haing a speciali!ed phone with a in4built

camera can ta"e pictures and e4mail it to friends or store it in the

phone. The cost per picture is between :s to :s D.

• Bharti is also aware that it has to ma"e owning a ready4to4use

cellular serice much easier than it is today. A "ey area is to1



increase the number of actiation centers. +arlier Bharti had ?7

Airtel onnect stores which were e#clusie outlets =for its

serices> and about ?7 Airtel Eoints which were "ios"s in larger

shops. 9ow actiation can be done by all of them, and not only

by onnect outlets, all within 6 to ?7 minutes. In comparison,

the competition ta"es two to four hours.

• Ere4 paid cards are really catching up with the mobile phone

users and it is actually helping the mar"et to increase. irst, they

are easier to obtain and conenient to use. /nli"e post4paid, one

need not pay security deposits for pic"ing up a pre4paid card. It is

often aailable een with paanwalas. As befits a fast4moing

consumer serice, the game is now moing beyond price to

e#panding distribution reach and sericing a well4spread4out

clientele with technology and strategic alliances. Bharti is

focusing on two factors to ma"e pre4paid cards more attractie.

Keeping the entry cost low for consumers and ma"ing recharging

more conenience.

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

Mumbai4based company -enture Infotech which will enable a

pre4paid card user to renew his subscription by just swiping a

card. The system will not only sae users the hassle of going out

#



and buying a card eery time it e#pires but also enable mobile

companies to reduce the cost of printing and distributing cards.

• Bharti Teleentures has tied up with <%aiter on wheels,< a

company deliering food at home, to reach its Magic pre4paid

cards to subscribers< doorsteps. The company is also joining

hands with local grocery shops which will enable users to

recharge their cards by just ma"ing a phone call to the shop.

Apart from improing the conenience of recharging, mobile

operators are beefing up their distribution channels. The

company is constantly innoating to enhance the alue

proposition for its pre4paid serice. They are leeraging

technology to e#pand their distribution networ" and delier round4

the4cloc" recharge options to its M)TS =Mobile )n the Spot>

subscribers.

• Bharti ellular has also launched a special serice, areTouch,

for high4alue, corporate customers, proiding them with instant,

single4point access for any assistance they re$uire. ustomers

can dial DDD and enjoy a slew of serices, which includes easier

payment of bills, serice on priority basis, and alue4added

serices without any additional paper wor". Bharti ellular is

offering a range of serices without going through an interactie

$



oice recorder ensuring that they sae time. 0edicated

areTouch& e#ecuties are e#pected to assist customers with

any serice on priority basis. Besides the regular proactie

reminder calls for bill payment, customers can also call

areTouch for bill payments at free of cost.

• AirTel presented "$* In-o9: the first on4air& SMS based

interactie music dedication show e#clusiely for AirTel and AirTel

Magic customers. (ighly interactie -* based show with real4

time feedbac" mechanism. Both brands joined hands to target

the high growth youth segment.

%



Bharti’s View on its Branding strategy:-

irst, brand building efforts in today&s conte#t hae to be seen in a

more holistic manner. 0eliering alue on a sustained basis is perhaps

the most potent "ey to build a brand that lasts.

/nflinching orientation to customer needs is the second "ey success

factor. ustomers =be it for industrial products or consumer goods and

serices> across the world are more informed and, at the same time,

becoming more indiidualistic in their needs and far more demanding

with the passage of time.

Ero4actie trac"ing of shifts in consumer behaior, anticipating

redefined or emerging customer needs, and then reacting in Preal4timeQ

are essential to attract and retain customer loyalty a "ey element of

creating brand e$uity in the present situation.

ustomi!ing the product =and communication of its benefit> to meet the

specific needs of arious consumercustomer sub4segments is the third

element in creating brand appreciation.

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

many companies mista"enly allocate a disproportionate amount on

mere adertising and promotion. This is not to say that adertising and

promotion are less releant. )n 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 underta"en in

tandem with enterprise4wide PreengineeringQ of the business

philosophy and core design, production, and deliery operations for the

product itself.

The positie spin to this argument is that by first addressing the

fundamentals, the enterprise itself becomes more competitie. This can

be the beginning of a irtuous cycle wherein brand e$uity continues to

increase as the enterprise sustains deliery of an appropriate product

or serice at an eer increasing alue.

It is, howeer, 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 ta"en to do so will be longer and will

need sustained and focused efforts.

'



!indings

and"nalysis

(



FINDINGS AND ANALYSIS

A2 G3- G3('

As we can

see from

the aboe

graph, the

people who

are in the

age group

of ?64 ?H

years are the ones who are the ma#imum users of mobile phones. This

segment is the one which gies ma#imum business to the mobile

operators. This segment constitutes the young e#ecuties and other

office going people. They are C of the total people who were

interiewed. The ne#t age group are the people who are ?H4J years

old. They are ?7 of the total. They are those who are at home or

hae small business units etc. And the ne#t age group is the youngest

generation who are 64?6 years old. They are school and college

going students and carry mobile phones to flaunt. They are 6 of the

total interiewed people.

AGE GROUP

;!=;

;!

=;=8

!

=8<!

=0

)



O(6*- G3('

As the aboe graph shows that of the total people interiewed are

wor"ing. So, these people are the ones who are the ma#imum users of

mobile phones. They are the young e#ecuties, managers, Tele 4

callers etc. who re$uire mobile for their official purposes. The ne#t

category is the households, who are either housewies, small units

which operate from their homes etc. They are ?7 of the whole . The

ne#t segment is the students. They are 6 of the whole. And 67 of

the whole is a category who are the professionals.

S23*2 P3-*,23 G3('

OCCUPATION

;!G

!!G

=0G

;0G

STUDENTS E9ECUTIVES HOUSEHOLDS OTHERS

*



The aboe graph shows a slice of 7. These are the total no. of

people who are using Airtel. It seems that people are more aware of

Airtel than any other brand. The ne#t popular brand is (utch. J7 of

the people interiewed had (utch connections. The ne#t popular brand

was Idea. 6 people had Idea connections. As it came ery late in

the mar"et when Airtel had established it self ery well. So, that could

be one of the reasons of such a low percentage. The remaining

had trump connections.

C/6-123 S23*2 A6 A*3627 G3('

SERVICE PROVIDER

;!G

<0G

!G

!0G

I0+A AI:T+2 (/T,( )T(+:S

'+



As

the

aboe graph clearly shows that customer serices at Airtel seems poor.

C7 of the people are dissatisfied with the customer serices proided

by Airtel. They are the ones who hae the ma#imum share in the

mar"et but they are lagging behind in the customer serices. 67 of

the people were fully dissatisfied with the customer serices of Airtel.

This could leae an impact on the mind of the consumer. (e can een

switch oer his brand. ?7 of the people seemed partially satisfied

with the customer serices and only 67 seem to be fully satisfied with

Airtel&s customer serices, which is a ery small amount.

T2 O5 C(3, G3('

CUSTOMER SATISFACTION LEVEL

?7

67

C7

67

/221 EA:TIA221

0ISSATISI+0 /221 0ISSATISI+0

'1



ash cards

seemed $uite popular among the people interiewed. H of the total

mobile users were haing cash card connections. This means that the

cash cards should be easily and readily aailable in the local mar"ets.

Airtel should ma"e sure that Magic is aailable in each and eery noo"

and corner of the mar"et. 6 of the people were haing sim

connections which is the regular bill.

TYPES OF CARDS

CASH

CARD

8!

SIM

CARD

;!

'#



M-6'7 22/2 3('

Eeople on an aerage spend :S 77 per month as their mobile phone

e#pense. C people spend this amount. ? people spend :S J77

per month as their monthly mobile e#pense. And the remaining 6?

had an e#pense more than :S 6777, they could the ones haing sim

connections or haing cash cards and haing a lot of business calls on

their mobiles.

M-6'7 E2/2

;=

4

=4

R/ 00

R/ 4!0

R/ =00

'$



A@(322// A+-6 $LL G3('

%22 seemed to be a new word for many of the people. of the

people were not at all aware of such a technology. So, in order to get

the answer for this $uestion they were first e#plained the concept.

)nly, people "new what %22 is all about.

A@(322// -5 $LL P7(23/ G3('

A$ARENESS ABOUT $LL

YES

!!G

NO

4!G

'%



:eliance was the brand which was popular amongst the interiewed

people. As :eliance had done so much adertising and has it banners

and hoarding spread all oer 0elhi. So, this could be one the reasons

of its popularity. Tata was hardly a "nown brand in this new field.

Eossibly, because of less promotions done by them as compared to

:eliance.

)n the basis of analysis of the $uestionnaire I hae found that the

ma#imum no. of people who use mobile phones are in the age group

of ?7 to ?H. who are the young e#ecuties and other office goers.

They spend a ma#imum of :S. 77 as their mobile e#pense.

A$ARENESS OF $LL PLAYERS

RELIANCE

8!G

TATA

INDICOM

;!G

'



There are more no. of prepared cards than post paid cards. The

mobile users want to spend money side by side than to spend money

at the end of the month on a big bill.

9ow when I compared Airtel with its competitor from the point of iew

of the consumer I found that on the basis of Tariff plan, alue added

serices and billing accuracy Airtel is at par or ahead of its competitor

but in the case of customer care and aailability they lag behind there

competitors. As, Airtel has a hold in the mar"et because it has the

ma#imum no. of connections, so it must improe upon it customer

serices. As far as %22 is concerned people are aware about it but

not many people are aware about Tata. They only Know more about

:eliance. Eeople at this point of time are not interested to switch oer

from 5SM to %22.

''



Suggestions

'(



SUGGESTIONS

ollowing are the few suggestions to AIRTEL for improing

the mar"et share and image of the products concerned.

;. PRODUCT

VModification must be brought about in AI:T+2, in terms

of $uality. Its demand should be increased.

=. PLACE

V The brands must be made aailable easily in, E)

general stores.

<. PROMOTION

Vompany must underta"e e#tensie promotional

actiities li"e adertisements must be released in

different Medias to create brand awareness.

Vree samples should be distributed among the

prospects. Sales promotion tools li"e gifts, contests and

coupons must be gien to retailers as well as customers

and prospects.

V atalogues should be distributed among

customers.

')



S#O$

"nalysis

'*



S$OT ANALYSIS

S6326'/• Being one of the largest companies in India the company has

achieed a degree of focus in its core business of its

products.

• It has a strong brand name, superior $uality products and an

eniable distribution networ".

• It has a clear and well4defined organi!ation structure and

limits of financial authority.

• Increase in adertisement spends affect the company&s

margins.

• The companys bottom line falls ictim to the bloated and

highly paid wor"force, which affects its margins.

$2(2//:

• 2ittle efforts oer the Adertising of products.

• 0istribution channel is not accurately categori!ed.

• Eremium priced products, hence can&t compete in low price

segment.

• 9o separate strategy for rural mar"et.

(+



O-36*6*2/:

• The company<s financial performance can receie a major

boost from its cost reduction efforts.

• There is a lot of scope of product and mar"et diersification.

• +#ports of products will also hae huge chances in the coming

years.

• Airtel &s business has ample scope for gaining mar"et share

from the unorgani!ed sector. :ural penetration too holds ast

potential to bring about growth.

T'32(6/• The slowdown in the economy has restricted topline growth of

most M5 majors and for Airtel also it will be difficult to

maintain historical growth rates in such a depressed scenario.

• ompany&s major raw materials are influenced by goernment

policies controls as well as agaries of the monsoons.

luctuations in the prices of raw materials would hae

significant impact on costs and margins of the company.

Moreoer, inordinate hi"e in Broad Band Internet products would

also increases company&s production and distribution cost.

(1



RECOMMENDAT

ION

(#



RECOMMENDATION

I hae made following recommendation to the company after

doing the summer training thereL

• The company should modify its credit policy as they only

target the cash paying customers who are not easy totrace.

• The company should emphasis more on the $uality of

Eharmaceuticals Eroducts it was mostly claimed by the

e#porters that their receipts from company doesn&t

matches with the sample&s $uality shown before giing

orders.

• The company should ma"es its mar"eting strategy

fle#ible enough in order to face competition.

• The company should "eep an eye on the proper deliery

of the goods to e#porter on time, as it has been

recommended by e#porters to ma"e the deliery on time.

• The company rate policy must be fle#ible 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 mar"et so

that it may able to catch a biger mar"et share and itshould be able to compete with the local traders and

commission agents while haing a brand name.

The company should ta"e the opinion of e#porters from time

to time to "now what problems they are facing from the

company&s side' And if any change they re$uire in present

supplying condition'

(%



LIMITATI

ON

(



LIMITATIONS

9o project is without limitations and it becomes essential to

figure out the arious constraints that we underwent during

the study. The following points in this direction would add to

our total deliberationsL4

6. 0uring the study, on many occasions the respondent

groups gae us a cold shoulder.

?. The respondents from whom primary data was gathered

any times displayed complete ignorance about the complete

branded range, which was being studied.

J. 2ac" of time is the basic limitation in the project.

. Some retailerswholesellers refuses to cooperate with the

$ueries.

. Some retailerswholesellers gae biased or incomplete

information regarding the study.

C. Money played a ital factor in the whole project duration.

D. 2ac" of proper information and e#perience also because

hurdle for me.('



H. Some retailers did not answer all the $uestions or do not

hae time to answer.

((



CONCLUSI

ON

()



)92/SI)9

After analy!ing the findings of the research, I can conclude that Airtel

lagged behind its competitors as far as customer serice and

aailability is concerned. The ma#imum no. of people who use the

mobile are in the age group of ?7 to ?H. ash cards are the most

popular type of mobile connections, as they are consumer friendly and

recharging the connection is not a problem.

Ma#imum no. of people spend :S 77 on their connections. As Airtel is

the only company haing the ma#imum no of mobile connections so it

must seriously loo" into the loop holes of the e#isting customer serice

department.

As we "now that now airtel has already launched its product with logo

P& Aisi a!aadi aur "ahanQ& has already became popular in mar"et. So we

can say that inspite of so many competitor in the mar"et Airtel is haing

a good position just because eery time, it tries its best to understand

the need of its important customer.

(*



BIBLIOGRAPHY

)+



BIBLIOGRAPHY

In this project report, while finali!ing and for analy!ing $uality problem

in details the following Boo"s, Maga!ines*ournals and %eb Sites

hae been referred. All the material detailed below proides effectie

help and a guiding layout while designing this te#t report.

$2+/*62/:

www.airtelworld.com

www.google.com

www.india.com

M(()*2/:

Airtel =? *uly to 67 *uly ?77>

Airtel India page of (T paper =Thursday 60ecember ?77>

owards India =?C 0ecember to *an. ?77>

)1

http://www.airtelworld.com/

http://www.google.com/

http://www.india.com/

http://www.google.com/

http://www.india.com/

http://www.airtelworld.com/



%uestion

naire

)#



QUESTIONNAIRE

0ear SirMadam,

I am a student of MBA of Krishna Institute of +ngineering

Technology, 5ha!iabad, doing my summer training project on

consumer behaior from Airtel. Elease gie your precious time for

filling these details.

3.6 or how long you hae been using Airtel Eroduct'

74? 1ears

?4 1ears

467 1ears

More than 67 years

3.? Are you using other product instead of Airtel'

1es

9o

3.J Among them, which Brand you, prefer most'

Idea

(utch

Airtel

3. (ow would you rate the e#perience with Brand'

+#cellent 5ood Aerage Below Aerage

Idea

(utch Airtel

)$



3. 0o you collect any information search before ma"ing purchase'

1es

9o.

)%



3.C If yes, which sources are used'

Maga!ines 0ealers

Sales +#ecuties

)perators reference

Eamphlets and catalogue

:eference from friends and relaties

Any other

3.D %hat are the features you loo" for in a product before ma"ingpurchase decision' 5ie preferences =64(ighest, C4 least>

Brand credibility

Erice and 0iscount

After sales serices and parts, networ"

-alue for money

-ehicle performance

Add on features or ergonomics of design

3.H. %hich of these mar"eting sales schemes attracts you whilepurchasing any connection'

5ood 9etwor"

0iscount scheme

Serice pac"age

Any other

3.; If you hae to purchase a new connection or product in nearfuture, which Brand will you go for and why'

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

)



3.67 Are you aware of arious promotional actiities being run by Airtel, if yes then how' Are you satisfied with these promotionalactiities'

-erySatisfied

Satisfied SomewhatSatisfied

9otsatisfied

ustomer are

By Ad ilms

By amp

? hrs call center serices

3.66 (ow would you rate Airtel performance as your e#pectationon points scale = (ighest>

6 ? J After Sale serice

Maintenance

Eroduct as per e#pectation

3.6? %hat are you suggestions for improing the product $uality,

serice aailability and parts aailability'

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

)'



Documents

22463913 Consumer Behaviour of Airtel Geeta