Attaulah Hussain,,,,reSearch methadology

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Project Report

On

“ Marketting Strategies Of Airtel and Idea’’

Submitted to Punjab Technical University

In partial fulfillment of the requirements for the award of degree

MASTER OF BUSINESS ADMINISTRATION

Name of the Faculty Advisor Submitted by

Ms. MAMTA SHARMA Attaulah Hussain

Lect. Deptt. of Mgt. Roll.no: 1346550

Surya School Of Business Management, (Rajpura)

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DECLARATION

I Attaulah Hussain, MBA 2nd SEMISTER of my college surya world, hereby

declare that final project report entitled “Marketing strategy of AIRTEL vs.

IDEA” is an original work and the same has not been submitted to any other

institute for award of any other degree.

A seminar presentation of the training report was made on the date

_______________ and suggestions as approved by the faculty were duly

incorporated.

Attaullah Hussain

Dated:

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PREFACE

A determination to succeed is the only way to succeed. For this, it is very important that all knowledge, which we have, should be translated into action. It is only then that we can achieve something. Project work is the way to convert our raw talent into potential management. Classroom knowledge can only then be efficient when it is effectively wedded to the realities of the situation existing outside the classroom. In this project work place an important role. In this regard, I was given a project entitled “MARKETING STRATEGY OF AIRTEL AND IDEA

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ACKNOWLEDGEMENT

Success is not brought inherited. It is a product of what we put in. Success begins

with a good feeling about where we are and a positive attitude about where we

want to be. With this willingness, I have started this project.

First of all, I would like to thank to the supreme power, the almighty god,

who has always guided me to work on the right track of my life and has always

blessed me with his blessing by giving me the best. Next to him are my parents,

whom I am greatly indebted for having me brought up with love and

encouragement.

Next comes a person, without whose guidance and encouragement, this

project report would not have been successful. So, I would like to express my

gratitude towards Ms. Parkee Bhatnagar, HOD, surya school of business

management.

ATTAULAH HUSSAIN

Dated:

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EXECUTIVE SUMMARY First of all we have to know the meaning of research, research is increasing the knowledge

in existing knowledge or we can say that search for new ideas. So, I am taking out my

research to find out the perception of the consumers towards different cellular services, I

prepared my questionnaire and record the responses of consumers.

The presented report is an effort to find solution for the present day Problem in the cellular

service providers. Where the Company interested to find out the solution for the fact that being

a AIRTEL the Number one in the cellular service provider I proposed them to undertake a

Strategic Market Research where we would Read the Market perception of the AIRTEL and

IDEA. Starting with the Retailer’s perception and then the Company’s Perception and finally

Customer’s perception. We have presented this Research study with respect to three different

Areas with different samples size and completely different set of response Parameters. The

sampling technique used in all the three spheres of Research is Exploratory.

The data collected under all the three distinct perception point is completely primary data as I

was the prima fascia for theses responses. Primary data are collected taking the view of

consumers towards these cellular services. And secondary data also collected from the

secondary sources like the customer care services, business magazines.As a result of this

research I have see the loose pools of the company to modify their strategy at certain points

with respect to all the three perception nodes. In the Retailer’s perception segment I have

suggested the Company to increase the number of visits at retailer outlet and boost the retailer

with emotional support and confidence. In Company’ perception I suggested them to improve

the cellular services and introduce some new schemes to consumers with customer

attracting schemes which should be available at dealers.

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TABLE OF CONTENTS

Chapter Topics .

1.

1.1.1 Introduction 1.1.2 Airtel1.1.3 Idea

2. 2.1 Review of literature

3. 3.1 Need, Objectives, Scope & Methodology

3.1.1 Need of Study3.1.2 Objectives3.1.3 Hypothesis3.1.4 Research Methodology

4. 4.1 Analysis & Interpretation of data

5. 5.1 Conclusion, Limitations, Recommendations &Suggestions

5.1.1 Conclusions5.1.2 Findings5.1.3 Limitations5.1.4 Recommendations

6. 6.1 Bibliography & References6.1.1 Questionare

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INTRODUCTION TO COMPANY

Today the tele communication sector is very important in INDIA. There is very tough

competition between various companies. Now a day’s telecommunication companies offering

various plans or benefits to customers to outstand the competition in the market. So, the

telecommunication industry, in a way, creates employment for people. So, I am here to study

the marketing strategy of companies on the consumers.After the liberalization of the Indian

Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By

2005, there were a total of 12 players in the market with the five major players being Bharti

Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar

limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM), and Tata

Indicom. As competition in the telecom arena intensified, service providers took new

initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty

rewards, discount coupons, business solutions and talk time schemes. The most important

consumer segments in the cellular industry were the youth segment and the business class

segment. The youth segment was the largest and fastest growing segment and was therefore

targeted most heavily by cellular service providers.

Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004

it emerged the unprecedented leader commanding the largest market share in the cellular

service market. Hutch implemented the celebrity endorsement strategy partially, relying

primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand,

attracted the consumer through its low cost schemes. Being a state owned player, BSNL could

cover rural areas, and this helped it increase its subscriber base. Reliance was another player

that cashed on its innovative promotional strategies, which included celebrity endorsements

and attractive talk time schemes. Idea relied heavily on its creative media advertising sans

celebrities.

CHAPTER 1.introduction & company profile

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AIRTEL

Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private

integrated telecom conglomerate, Bharti Enterprises. A consortium of giants in the

telecommunication business. In it's six years of pursuit of greater customer satisfaction,

Airtel has redefined the business through marketing innovations, continuous

technological up gradation of the network, introduction of new generation value added

services and the highest standard of customer care.

Bharti is the leading cellular service provider, with an all India footprint covering all

23 telecom circles of the country. It has over 12 million satisfied customers.

Cellular telephony was introduced in India during the early 1990s. At that time, there

were only two major private players, Bharti (Airtel) and Essar (Essar) and both these

companies offered only post-paid services. Initially, the cellular services market

registered limited growth.

Moreover, these services were mostly restricted to the metros. Other factors such as

lack of awareness among people lack of infrastructural facilities, low standard of living,

and government regulations were also responsible for the slow growth of cellular phone

services in India. Although the cellular services market in India grew during the late

1990s (as the number of players increased and tariffs and handset prices came down

significantly) the growth was rather marginal. This was because the cellular service

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providers offered only post-paid cellular services, which were still perceived to be very

costly as compared to landline communications.

Following this realization, the major cellular service providers in India, launched pre-

paid cellular services in the late 1990s. The main purpose of these services was to target

customers from all sections of society (unlike post-paid services, which were targeted

only at the premium segment). Bharti Tele-Ventures is one of India's leading private

sector providers of telecommunications services based on an aggregate of 15,844,

382 customers as of October 31, 2005, consisting of 14, 740, 366 GSM mobile and 1,

104, 016 broadband & telephone customers

The businesses at Bharti Tele-Ventures have been structured into two main strategic

business groups - the Mobility Leaders business group and the Infotel Leaders business

group. The Mobility business group provides GSM mobile services across India in

twenty-three telecom circles, while the Infotel business group provides broadband &

telephone services, long distance services and enterprise services. All these services are

provided under the Airtel brand.

Bharti Enterprises has been at the forefront of technology and has revolutionized

telecommunications with its world class products and services. Established in 1976,

Bharti has been a pioneering force in the telecom sector with many firsts and

innovations to its credit.

Bharti provides a range of telecom services, which include Cellular , Basic, Internet and

recently introduced National Long Distance. Bharti also manufactures and exports

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telephone terminals and cordless phones. Apart from being the largest manufacturer of

telephone instruments in India, it is also the first company to export its products to the

USA. Bharti Tele-Ventures through its subsidiary Bharti Telenet Limited (BTNL) holds

the right to establish, maintain and operate a fixed-line telephone network in Haryana

through a license valid for 20 years from October 8, 2001.

BTNL provides fixed-line services to approximately 114,400 customers as of March 31,

2005 under the brand Airtel. BSNL also operates a fixed-line telephone service within

the same geographical area.

Bharti is the leading cellular service provider, with a footprint in 16 states covering all

four metros. It has over 12 million satisfied customers

Bharti Enterprises has successfully focused its strategy on telecom while straddling

diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to

becoming the largest manufacturer and exporter of world class telecom terminals under

its 'Beetel' brand, Bharti has created a significant position for itself in the global

telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of

India's finest companies, and its flagship brand 'Airtel', has over 12 million customers

across the length and breadth of India.

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Source:

(1) Population estimates are as per National Census, 2001 and are as of March 1, 2001.

The population for Uttar Pradesh (West) circle is approximately 37% of the total

population

(2) Wireless subscriber statistics are as of March 31, 2005 and are based on data released by

COAI. Wireless market size comprises the total number of wireless subscribers of all

(3) Demographics of Maharashtra and Tamil Nadu do not include demographics of state capitals

(metros) Mumbai and Chennai respectively.

(4) Demographics of Haryana does not include Faridabad & Gurgaon as they are

included in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) &

Uttaranchal does not include Noida & Ghaziabad as they are included in Delhi NCR.

The significant growth in the Company's mobile business has been through a

combination of organic growth and acquisitions of additional licenses and has been

summarized below. The information given below is for the total market and is not

representative of our market share or network coverage

.

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As of March 31,As of Mar 31,

2006

1999(1) 2000(2) 2001(3) 2005(4)

Number of Mobile licenses held by us 2 4 5 23

Total mobile subscribers in India (in millions) 1.12 1.88 3.58 41.03

Market mobile subscribers in our license areas(5) (in

millions)0.21 0.57 1.28 41.03

Percentage of market mobile subscribers to total mobile

subscribers in India18% 30% 36% 100%

1) Comprise the circles of Delhi and Himachal Pradesh.

2) Comprise the circles of Delhi, Himachal Pradesh, Karnataka and Andhra

Pradesh.

3) Comprise the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh

and Chennai.

4) Comprise the twenty-one operational circles of Bharti Tele-Ventures.

5) Based on data released by the COAI on the total number of persons subscribing

to mobile services in our licensed area

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MOBILE STRATEGY

Capture maximum telecommunications revenue potential with minimum

geographical coverage to maximize its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to

offer superior services

Airtel values

Inn venturing

• We will generate and implement entrepreneurial and innovative ideas, which will continuously create

new growth engines.

Customer First

• We are committed to delivering service beyond the expectations of the customer. Our quality of

customer responsiveness clearly differentiates us from others.

Performance Culture

• We benchmark our processes and performance against world-class standards. We distinguish between

performers and non-performers by valuing achievement at the individual as well as the team level. Ours is

a culture of inclusively where feedback, learning and ideas are actively encouraged, sought and acted

upon.

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Valuing Partnership

• We are committed to building exemplary relationship with our partners, which stand on the principles of

mutual trust and mutual growth

Valuing People • We nurture an environment where people are respected and their uniqueness is valued.

We believe that people are our key differentiators.

Responsible Corporate Citizenship

• We are committed to making a positive and proactive contribution to the community. As a responsible

corporate citizen we will contribute to and abide by environmental and legal norms.

Ethical Practices

• We will uphold the highest ethical standards in all internal and external relationship. We will not allow

misuse or misrepresentation of any kind.

Board of Directors

The Board of Directors of the Company has an optimum mix of Executive and Non-

Executive Directors, which consists of three Executive and eleven Non-Executive

Directors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an

Executive Director and the number of Independent Directors on the Board is more than

50% of the total Board strength. The independence of a Director is determined on the

basis that such director does not have any material pecuniary relationship with the

Company, its promoters or its management, which may affect the independence of the

judgment of a Director.The Board members possess requisite skills, experience and

expertise required to take decisions, which are in the best interest of the Company.

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Awards

The Asia Pacific Award for the Most Innovative HR practices-2000.

The Golden Peacock National Training Award for excellence in Training practices-

2000.

The Golden Peacock National Quality Award-2001.

BCL is first mobile communication service provider in India to be certified for ISO

9001:2000 and 1st in world certified by British Standards Institution for Mobile

Communication.

Born a leader, the first cellular service, AirTel has maintained leadership

IDEA CELLULAR

Idea Cellular — the three-way joint venture between Tata, Birla and US-based AT&T

— was called Birla Tata AT&T before being renamed in May 2002. It was set up in

January 2001 following the merger of Tata Cellular and Birla AT&T Communications

and is India's leading cellular services provider.

With Idea's acquisition of Escotel in early 2004, its footprint now covers around 60 per

cent of India’s population and over 65 per cent of the telecom market. It has presence in

seven states: Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya

Pradesh, Chattisgarh, Uttar Pradesh (W), Haryana, Kerala and Delhi (inclusive of

NCR). Having operations in four of the five largest cellular circles in India, Idea is the

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market leader in the Maharashtra and Goa, Kerala, UP (W), Madhya Pradesh and

Chattisgarh circles in terms of number of subscribers. Each circle has its own dedicated

call centre with a single call resolution approach towards the customer.

Idea covers over 3,660 small and major towns and villages along with a total highway

connectivity of over 6,000 km. There are over 380 'Idea n' U' outlets and Idea shops and

a network of over 44,000 retailers and deacons.

Thanks to the frontline technology — from Nokia, Ericsson, Alcatel and Schlumberger

Sema among others — at its command, the company can offer its customers extensive

coverage, quality service and minimal congestion levels. The company is the fastest

growing GSM operator in its area of operation. The growth rate in the last six months

has been 85 per cent as against 84 per cent of all operators in the same area of

operation. The company is now cash positive, and is expected be profit positive in the

financial year 2004-05.

Idea Cellular offers a wide range of cellular services and products. Its post-paid and

pre-paid services are supported by a variety of package plans to suit.

It was the first company in the country to launch GPRS in November 2002. It

showcased EDGE (Enhanced Data Rates for GSM Evolution) in Delhi, in July 2004.

With EDGE, subscribers can enjoy live television with a data download rate of over 160

kbps. Idea subscribers will also have a richer experience while watching movie

previews, multimedia messages with video attachments, web-infotainment, high-speed

video downloads, java game downloads and other Internet-based multi-media

experiences on their EDGE enabled mobile phones.

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It pioneered the concept of 'Cellular Jockey' and offers 'Music Messaging' to all its

subscribers. It also launched 'Global SMS', which allows the users to send and receive

SMS from over 540 networks and 170 countries across the technology platforms like

GSM, CDMA, TDMA and satellite phones. The company introduced 'Mobile Top-Up' (a

flexible anytime anywhere recharge service for pre-paid customers) and 'Say IDEA'

feature that allows the users to access value added services by speaking into their

mobiles.

It also offers SMS in nine vernacular languages — Hindi, Gujarati, Marathi, Bengali,

Telugu, Tamil, Malayalam, Kannada and Punjabi, in addition to English to its

subscribers.

Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group and AT&T

(through Birla AT&T Communications – Maharashtra & Gujarat circle) and the Tata

Group (through Tata Cellular - Andhra Pradesh circle) set up cellular networks. Both

the above company were amongst the first company to commercially start operation in

circles other than metros and achieve financial closurein Indian Telecom industry

In the year 2000, the historic path-breaking merger of Tata Cellular with Birla AT&T

Communications and the subsequent acquisition of RPG Cellular - (Madhya Pradesh

circle) in the year 2001 - helped take the company to aim even further and led to the

formation of Birla Tata AT&T Limited.In year 2001, company won fourth cellular

license for Delhi metro circle and in year 2002 company introduced common brand

"!dea" and changed the name to IDEA CellularLimited.

Since then, there has been no looking back for IDEA Cellular. The company launch

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Delhi operations in year 2002 and added a record 100,000 subscriber within one month.

In 2003, the company achieved the largest financial closure in Indian Telecom for all its

circle. In 2004, the company entered into definitive agreement to acquire Escotel

Mobile Communications (existing operator in Haryana, Kerala and UP(W)) and Escorts

Telecommunications (cellular licensee holder forUP(E)Himachal Pradesh

Awards

Idea Cellular M-coupon service bagged the prestigious ‘Golden Peacock award for the

most innovative product / service’ in February 2003. The Golden Peacock awards,

established by the Institute of Directors, is given to companies demonstrating

sustainable excellence and innovation in the manufacturing and service sectors, leading

to improved performance.

In March 2003, Idea (Madhya Pradesh and Chhattisgarh) was declared the No 1

cellular service in India by the Telecom Regulatory Authority of India (TRAI)

for the second consecutive time.

Chosen as the winner of the award, ‘Indira Award for Marketing Excellence’ for

being the highest recalled brand in the year 2003

Ranked second in overall user satisfaction by the Voice & Data – IDC Mobile

User’s Satisfaction Survey, October 2003, which was based on parameters like

network availability and performance, customer care, value added services, pre-

sales and sales effort, and billing.

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CORE BELIEFS OF IDEA

The company continuously harnesses the power of wireless revolution to provide world-

class products and services. It aims at responding to customer needs proactively by

anticipating requirements and providing ready solutions.

Idea Cellular draws inspiration from the loyalty of its subscribers to keepraising the

bar, to shape the future, and to change and enrich the life of each and every member of

its ever-grow family.

The company is the fastest growing GSM operator in its area of operation. The growth

rate in the last six months has been 85 per cent as against 84 per cent of all operators in

the same area of operation. The company is now cash positive, and is expected be profit

positive in the financial year 2004-05.

Idea Cellular offers a wide range of cellular services and products. Its post-paid and

pre-paid services are supported by a variety of package plans to suit.

INTRODUCTION TO THE STUDY UNDERTAKEN

STARTEGY OF AIRTEL

'Magic Hai To Mumkin Hai'

In 2002, the leading Indian telecommunications company, Bharti Cellular Limited

(Bharti) signed the famous cricket player Saurav Ganguly and leading movie stars,

Madhavan and Kareena Kapoor as endorsers for its brand, Airtel Magic (pre-paid

cellular card). Its objective was to create the highest recall for Magic in the pre-paid

cellular telephony segment by cashing in on the two biggest passions of India - movies

and cricket. Bharti also changed the tagline for Magic from 'You Can Do Magic' to

'Magic Hai To Mumkin Hai' (If there is Magic, it's possible). The move attracted

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considerable media attention, as it was unusual for a company to spend so lavishly to

promote a single brand.

In October 2002, Bharti launched a television commercial (TVC), featuring Shah Rukh

Khan (leading actor, already endorsing Magic since a couple of years) and Kareena

Kapoor. The TVC, developed by one of India's leading advertising agencies, Percept

Advertising, was the first of the series of four TVCs for Magic's new campaign.

According to Bharti, the TVCs aimed at attracting young adults in SEC B and C

categories of the Indian market . Commenting on the new developments, Hemant

Sachdev (Hemant), Director, Marketing and Corporate Communications, Bharti

Enterprises, said, "The aim is to be relevant to the masses and make all their dreams,

hopes and desires come true instantly, at Rs 300 per month."

PROMOTIONAL STRATEGY-

Indian Idol Auditions on Airtel : Close on the heels of exclusive access to Kaun

Banega Crorepati 2's "fastest finger first", Airtel has added another feather to its cap, by

introducing mobile auditions for the eagerly-awaited Indian Idol 2 to be aired on Sony

Television.

Airtel Customers Get Asia Roaming :Airtel a member of Asia's largest mobile

alliance - Bridge Mobile, has announced the launch of a suite of mobile services that

will enable Airtel's customers to access a range of services when roaming overseas on

the alliance member's network.

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Airtel Reduces Roaming Tariff :Airtel has announced a reduction in its roaming

rates as a part of its celebration for covering 23 circles across India.

Airtel Gets Student-friendly :Airtel is customizing its mobile services packages

according to what it feels customers want the most.

*SCHEMES

SMS packages- airtel provides sms package in which company deducts 30 rs rent and other

charges and offer 2000 sms free in a month.

Airtel Promotes Performing Arts

Airtel has announced the launch of "Airtel Expressions", a platform to promote and celebrate the

various forms of expressions through the medium of performing arts in Delhi.

Airtel Launches BlackBerry 7100gAirtel and Research In Motion (RIM) have introduced the BlackBerry 7100g

business phone in the country.DIALER tones- airtel also provides the dialer tones to its customers , now any caller can hear

songs on your mobile phones , the company deducts 30 rs rent per month and call charges to

apply this tone is rs @6/min.

INTRODUCTION OF CONSUMER BEHAVIUOR

Consumer behavior is the study of how individuals make decisions to spend their

Available resources time, money , effort on consumption related items it includes the

study of what to buy , where to buy , how to buy, how often they use. there is a question

arises why we study the consumer behavior and perception towards a brand

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Just as consumer or marketer are diverse, the preseason why the consumer study are

also diverse , as consumer are , we benefit from insights into our own consumption

related decision what we buy , where we buy etc

Ian doing my research on consumer behaviors towards the mobile services, I have to

take into mind why consumer choose that service, how regularly he is using that

services

In addition to the studying consumer uses and post purchases evaluation of the product

they buy consumer researchers are also interested in how how individual dispose of

their product are they satisfied with their mobile services or not.

The term consumer behavior is often use to describe two different kinds of consumer

entities the personal consumer and organizational consumer. the personal consumer

includes the single person and the organizational consumer include the profit and non

profit entities. So in cellular services consumer

behavior of the people is very necessary , whether they purchase cellular connection on

the basis of services, coverage , brand name or lastly customer attendance . so iam

doing my research between two cellular brands AIRTEL and IDEA and to know the

consumer perception towards this cellular brands.

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Marketing strategy of idea

* jodi kamal ki- idea cellular launches a programme on star plus JODI KAMAL KI. In

which they advertise their products through this serial. Which comes at 9 p.m on every Saturday.

* Charity match sponsored by idea played between Bollywood and England at Mumbaiin

which bollywood wins the match and amount goes to people suffering from cancer.

* Free outgoing calls for every 2 minutes allover India, conditions apply on that.

1) Chemist schemes- available to all chemist available in haryana- in which the subscriber

has to pay rent rs 100 pSper month the call charges will be rs 50 paise to all mobile and free

sms 50 in month.

2) SUMO WRESTLER USED- the company uses sumo in their ad, which says prepaid

ho to idea jaisa. Which means talk more pay less.

3) ONE INDIA ONE IDEA- in which you can call,sms,std at the rate of rs 1.but the

company deduct 1.25paise per day.

4) SMS package- in this the customer has to deduct rs 15 and company gives 1000 sms free

for a month to customers.

5) value-added services such as vernacular SMS (in 9 languages), games on the mobile, a

large covered area for pre-paid roaming,

6) Sending a Mail to any e-mail ID is so much easier. Just follow the simple steps and send a

mail to friend or a colleauge anywhere in the world from wherever you are.

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7) RING TONE SERVICES- idea provides ring tone service to its customers , the

company deduct rs 30 as a monthly rental. And you can apply any song as your ring tones.

8) Yahoodating -

Looking for a bit of romance in your life. Well, with Yahoo dating service you may find the

perfect partner you had always been looking for. To Register type Date Reg ID Password

Age Sex Location & sms at 8243.

9) YahooMail -

Sending a Mail to any e-mail ID is so much easier. Just follow the simple steps and send a

mail to friend or a colleauge anywhere in the world from wherever you are. You can read,

compose, delete and reply to your Yahoo! e-mail.

Idea Cellular — the three way joint venture between Tata, Birla and US-based

AT&T — was called Birla Tata AT&T before being renamed in May 2002. It was set up in

January 2001 following the merger of Tata Cellular and Birla AT&T Communications and is

India's leading cellular services provider.

BTNL provides fixed-line services to approximately 114,400 customers as of March 31, 2005

under the brand Airtel. BSNL also operates a fixed-line telephone service within the same

geographical area.

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IDEA_CELLULAR SERVICES

POPULATION1 As on March 01, 2006 18 million

MOBILE - SUBSCRIBER BASE2 As on March 31, 2006 928,38

FIXED LINE DELs3 As on March 31, 2006 983,89

VEHICLES4 As on March 31,1996 1,215,542

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CUSTOMER SATISFACTION

Company’s first task is to create customers but today customers face a vast array of

product and Brand choices, prices and suppliers. How do customer make their choices?

They believe that customer’s estimate which offer will deliver the most value. Customers are

value maximizers within the bound of search of cost and limited knowledge, mobility and

income. They form an expectation of value and act on it. Whether or not the offer leaves up to

the value expectation affects customer’s satisfaction and their repurchase probability.

There premise is that buyers will buy from the firm they perceive to offer the highest

delivered customer value and total customer cost.

Customer delivered value = (Total Customer value – Total Customer cost).

Total customer value is the bundle of benefits customers expect from a given

product or a service.

Total customer cost is the bundle of costs customers expect to incur in

evaluating, obtaining and using the product and service.

Satisfaction is a person’s feeling of pleasure or disappointment resulting from

comparing a product’s perceived performance and expectations.

Many companies are aiming for high satisfaction because customers who are just satisfied still

find easy to switch when better offer comes along. Those who are highly satisfied are much

less ready to switch. High satisfaction or delight creates an affinity with the brand not just a

rational preference. The result is high customer loyalty.

CHAPTER 2..Review OF Literature

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Some of today’s most successful companies are raising expectation and delivering

performance to match. These companies are aiming for TCS (Total Customer Satisfaction).

TOOLS FOR TRACKING AND MEASURING CUSTOMER SATISFACTION

[1] Complaint and suggestion systems: -

A customer-centered organization makes it easy for its customers to deliver suggestions

and complaints. Many restaurants and hotels provide forms for guests to report their likes and

dislikes. A hospital could place suggestion boxes in the corridors, supply comment cards to

exciting patients and hire a patient advocate to handle patient’s grievances. These information

flows provide these companies with many good ideas and enable them to act more rapidly to

resolve problem.

[2] Customer satisfaction surveys: -

Many companies obtain a direct measure of customer satisfaction by conducting

periodic surveys. They send questionnaires or make telephone calls to a random sample of

their recent customers and ask if they were very satisfied, satisfied, somewhat dissatisfied or

very dissatisfied. With various aspects of company’s performance while collecting customer

satisfaction data it is useful to ask additional question to measure the customer’s repurchase

intuition, those will normally be high if the customers satisfaction is high. It is also useful to

measure customer’s willingness to recommend the company and brand to other person. A

high positive word of mouth indicates that the company is producing high customers

satisfaction.

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STATEMENT OF NEED & OBJECTIVE

Main objective

The MAIN objective of my project report is to study the marketing,strategy of AIRTEL

and idea Cellular service panipat city and its effect on mobile users existing and who

are going to use mobile service in future. In other words, my aim is to study the

Sub objective

TO know the customer perception

To know which is the best

To know the brand loyality

Any researcher must be very clear about the objective of his study or research.

To find out whether the existing users of Airtel and Idea are satisfied? And which factors play

important role to satisfy customers.

Objectives:

1. To know the challenges faced by the mobile companies.2. Identify the factors that affect company’s growth.3. Identify the consumer perception about the company.4. To know the consumers preference for specific product.5. Identify the cost reduction factors that are less in use.

CHAPTER: 03NEED, OBJECTIVE, RESEARCH METHODOLOGY

PAGE NO: 30

To obtain the desired result researcher needed to know:

How many customers use the broadband services of Airtel ?

What is the brand image of Airtel and idea in consumers mind?

Which features of Airtel and Idea do customers like most?

What are the expectations of consumers from Airtel And Idea?

RESEARCH METHODOLOGY

This reseach presented has an exploratory type reseach plot . where I gathered

responses for those aspects in the market. Which were not so clear .In my research I

stsarted to take responses personally by visiting to the customers and registered their

response. I want to known the customer perception towards the AIRTEL and IDEA. In

my research I take 200 sample size. Whom I personally registered their responses for

each and every aspect related to the customers perception.

The sample size for Customer was 150 where the Customers responses have been

collected from all the possible races and areas which were in my reach while working

on this research. The Customer responses registered here have been collected from

different Hangout Zones like restaurants , friends to get the young responses. For

some mature responses, I have approached some officials so that some professional

PAGE NO: 31

responses are collected. I have also contacted some Shop Keepers and . Thus I have

gathered the customer responses from all major sections in n Society who are probably

using an cellular service. The importance of the project lies in the fact that we are

interested to find Out the data which is not so evident in the market because its related

to perception of the customers and this can be only analyzed when we personally meet

the customers .

Data is collected from both the Primary sources i.e. questionnaire and also

from Secondary sources.

Primary sources: The primary source of data collection is through

questionnaire. The questionnaires are distributed among 200 peoples and their

view is recorded and used in analyzing the data

Secondary sources :The secondary sources includes online sites, newspapers

and templates from AIRTEL and IDEAdistributions centers

SAMPLE SIZE- 200

RESEARCH DESIGN – explanatory reserch

ANALYSIS AND INTERPRETATION

. Which connection you are using at present?

Analysis & interpretation

Ther are total 55% persons which uses AIRTEL.

And 45 % of the persons are using idea due to its good schemes

So, the conclusion is that majority of people are using airtel

benefits than idea.

45%

CLIENT USAGE



connection you are using at present?

Analysis & interpretation

Ther are total 55% persons which uses AIRTEL.

And 45 % of the persons are using idea due to its good schemes.

So, the conclusion is that majority of people are using airtel services because of its more

55%45%

CLIENT USAGE

Airtel

idea

CHAPTER 04.ANALYSIS AND INTERPRETATION

PAGE NO: 32


services because of its more

ANALYSIS

. Due to which reason you are availing mobile services?

intrepretation

In this graph we conclude that 40% people uses mobile for their status symbol., the 30%

people uses mobiles for their office jobs, then the remaining 10 % and 20 % people uses

mobiles for family or for the other purposes.

So, most of the persons takes mobile in them for their status

useful in jobs , so many people takes mobile to easily contact with their employers.

And lastly some people retain mobiles for many purposes other than that, it c

family , friends etc.

0

5

10

15

20

25

30

35

40

Status Office

40

ANALYSIS

. Due to which reason you are availing mobile services?

intrepretation

hat 40% people uses mobile for their status symbol., the 30%


mobiles for family or for the other purposes.

So, most of the persons takes mobile in them for their status symbolsand it is also very


And lastly some people retain mobiles for many purposes other than that, it c

Office use

Family Other

30

10

20

PAGE NO: 33

hat 40% people uses mobile for their status symbol., the 30%


symbolsand it is also very


And lastly some people retain mobiles for many purposes other than that, it can be for

No.

ANALYSIS

Do you think that advertising has cha

brand?

We conclude the conclusion from the graph that

55% of the peoples say that their perception

30 % of the people say their perception about the cellular doesn’t changes due to the

advertising effectiveness of the company

15% percent of peop[le cant say about this.

0

10

20

30

40

50

60

Yes

55

ANALYSIS

Do you think that advertising has changed your perception for

intrepretation

We conclude the conclusion from the graph that

55% of the peoples say that their perception changes due to the effect of advertising.

of the people say their perception about the cellular doesn’t changes due to the

advertising effectiveness of the company

15% percent of peop[le cant say about this.

No Can't say

30

15

PAGE NO: 34

nged your perception for

changes due to the effect of advertising.

of the people say their perception about the cellular doesn’t changes due to the

Can't say

No.

How many are using Airtel and IDEA i

Details?

intrepretation

AIRTEL USERS- from the above graph it is concluded that 12% uses for

person uses airtel for the business puposes

school leveland lastly 7 % people uses for other purposes

0

5

10

15

20

25

30

Airtel User

12

8

28

7

How many are using Airtel and IDEA in Profession/Service

from the above graph it is concluded that 12% uses for

person uses airtel for the business puposes , 28 % students uses in colleges and in

school leveland lastly 7 % people uses for other purposes

IDEA

10

20

10

5

Service

Business

Students

Others

PAGE NO: 35

/Service

from the above graph it is concluded that 12% uses for service8%

, 28 % students uses in colleges and in

Service

Business

Students

Others

IDEA USERS- 10 % people uses idea cellular in services , business man uses 20%

of services due to many schemes offered by idea remaining 10% are used by

students and 5% are used for others purposes.

ANALYSIS

Age Group users ?

Interpretation

BETWEEN 0-20 AGE GROUP

people avail services of mobiles.

BETWEEN 21-40 AGE GROUP

.* BETWEEN 41-60AGE GROUP

phones in INDIA.

ABOVE that age group only 12 % of people uses services

05

1015202530354045

Up to 20No. 24

24

10 % people uses idea cellular in services , business man uses 20%


students and 5% are used for others purposes.

ANALYSIS

Interpretation

20 AGE GROUP- from the graph we conclude that 24 % of the

of mobiles.

40 AGE GROUP- in this 41% of the people uses mobile services

60AGE GROUP- in this 23 % of people uses service of mobile

that age group only 12 % of people uses services.

21 to 40 41 to 60 Above 6041 23 12

41

23

12

Age Group

PAGE NO: 36

10 % people uses idea cellular in services , business man uses 20%


from the graph we conclude that 24 % of the

in this 41% of the people uses mobile services

in this 23 % of people uses service of mobile

Above 60

No.

Give rank to the following facilities while you are going to avail the

mobile service?

Interpretation

TALKTIME-7 % of service men give preference to the talk time,9 % business

man uses for talk time and the remaining 6% of students prefer the talktimes in

mobile.

SMS-3% of business man use service of sms,12% of students uses sms and

remaining 4% service man uses th

0

Availability

Talk Time

SMS

Roaming

Coverage

Others

ANALYSIS


Interpretation

7 % of service men give preference to the talk time,9 % business


3% of business man use service of sms,12% of students uses sms and

remaining 4% service man uses that.

10 20

Others

Students

Business

Service

PAGE NO: 37


7 % of service men give preference to the talk time,9 % business


3% of business man use service of sms,12% of students uses sms and

Others

Students

Business

Service

Roaming-3% of students and service man give importance to the roaming

facality.and remaining 8% of business man give imp to roaming.

COVERAGE-2% of students and business man takes coverage in teir mind

remaining 5 % of service man takes in his mind of

service

Do you think AIRTEL company is number 1 in INDIA thanI DEA?

intrpretation

The conclusion from the above graph is that 72 % of respondent say yes that air

tel is the number one brand in all respect

The remaining 28 % of the people says that the idea cellular is the no 1 brand in

India in all respect

% of students and service man give importance to the roaming

facality.and remaining 8% of business man give imp to roaming.

2% of students and business man takes coverage in teir mind

remaining 5 % of service man takes in his mind of coverage of the cellular

ANALYSIS

Do you think AIRTEL company is number 1 in INDIA thanI

intrpretation


tel is the number one brand in all respect


PAGE NO: 38

% of students and service man give importance to the roaming

2% of students and business man takes coverage in teir mind

coverage of the cellular

Do you think AIRTEL company is number 1 in INDIA thanI



From above it concludes that

INDIA.

ANALYSIS

Airtel

0 10

Upto 5

5 to 20

20 to 50

Above 50

None

10

8

From above it concludes that AIRTEL leads way than the IDEA.in all respect in

ANALYSIS

Income

Group

(Monthly

Income in

Thousand

Rs.)

idea

20 30 40

28

20

34

No.

PAGE NO: 39

AIRTEL leads way than the IDEA.in all respect in

Income

Group

(Monthly

Income in

Thousand

Rs.)

PAGE NO: 40

11) People’s first choice of cellular service when they want to use

mobile phone

AIRTEL 45% HUTCH 30% IDEA 8%

RELIANCE 10% TATA INDICOM 5% OTHERS 2%

interpretation

From the above grapgh we conclude that 45 % of people like to avbil the services of AIRTEl

first time, remainng 30% of people like HUTCH services to avail, only 8% of people LIKe IDEA

because of the range problem. 10 % of people like reliance because of the brand nameor low call

rates. 5 % of people like tat indicom because of new mobile people hasve less faith in that , but

TATA has also brand name and offereing many benefits . only 2 5 of people like other services

like LANDLINE services, they have no faith in mobiles.

AIRTEL

HUTCH

TATA INDICOM

RELIANCE

IDEA

OTHERS

Type of advertisement mostly like by people in AIRTEL and IDEA is

AIRTEL IDEA

a) Audio

b) visual B) visual

0

10

20

30

40

50

60

70

audio visual

ANALYSIS

Type of advertisement mostly like by people in AIRTEL and

AIRTEL IDEA

a) Audio a) Audio

b) visual B) visual

visual audio visual

PAGE NO: 41

Type of advertisement mostly like by people in AIRTEL and

airtel

idea

PAGE NO: 42

interpretation

AUDIO- 10% of people says that they are effected by airtels audio adds, but 5 % of

people are effected by ideas audio adds

VISUAL- 35 % of idea adds visual has effect on consumers and airtels only 20%

visual add has effect on tahat.

AUDIO VISUAl- 70 % of people are well aware of adds come on television ,

but in case of idea only60 % people has their effect causes due to adds in television.

PAGE NO: 43

CONCLUSION

As we analyze whole the report we found some major factor that affect company’s growth. Airtel is the leader in telecom sector where Idea is behind him. Airtel has a strong position in Indian telecom sector through its services.Some of the major factor faced by idea is connectivity and for Airtel its call rates. This study will help both companies to analyze their cost and control our drawbacks to maintain our status in the telecom industry.As we talk about Idea, they can beat the leader in area of price. The Indian consumers mostly are price sensitive. They look for low price products. So the major factor of switching the customer is price. Some other factors also have their presence in consumer mind like value added services, connectivity, validity etc. Idea has low price average value added services and good validity period but also have low connectivity.As we talk about Airtel, they are the leader and they present many services for our customers like value added services, connectivity. But as we research that Airtel has high prices rather than Idea, and also provide low validity period for same price. This is the main area where consumer can switch from there.After all analysis we can say that Airtel and Idea both have same advantage and disadvantage in market. Both should improve their services and reduce the services that are less in use and less in consumer awareness so they can get profit.

CHAPTER 05 : CONCLUSIONS, FINDINGS ,LIMITATIONS ,RECOMMENDATIONS

PAGE NO: 44

However AIRTEL is a established and IDEA is a growing name in the

field of mobile services still in a very short period of time reliance has

captured a huge market share because of handset financing and cheap

facilities such as SMS, call rate etc. In future, IDEA will surely give a

hard competition to AIRTEL as well as other mobile service companies.

In the same time, AIRTEL is also habitual in adapting itself according to

the market situation. Hence we can say that both AIRTEL as well as

IDEA will prove to be a benchmark for others in future.

Mobile penetration is currently exploding in INDIA and Bharti Airtel has been riding the

crest of the huge mobile industry wave that has been formed. Consequently great potential

and hugemarket opportunities have now opened up the playing field in India’s telecom

market and alsomade it much more competitive. In the present open market environment,

there are currentlyover 10 major operators in India which are competing with each other to

get the major share of this market. So at any point of time, AIRTEL can’t take things lightly. It

needs to change itsmarketing and advertising strategies gradually. The advertisements used at

present seemappropriate for AIRTEL but we can’t always rely on these advertisements and

the celebrities

FINDINGS

The conclusion of my study is that AIRTEL’s Advertising has a major impact its users.

People like its schemes very much .AIRTEL had created a very good image on the mind

of the new users of cellular service. But in idea there is very low advertisuing

effectiveness on the consunmers.. airtel has adopted a very good strategy by providing a

new connection with NOKIA who is market leader in mobile set, many new users buy

Nokia sets and they get a free connection of AIRTEL.

PAGE NO: 45

theresearch carried out helpedus to come to the following out comesalso :➢In terms of liking of ads,Airtel is way ahead of idea.➢Viewers havea likingtowards most ofthe celebrities usedinAIRTELads.➢The viewers like the adswithsome funnycontent but this is missing inmost oftheAIRTELads➢The majority ofthecustomers startsor shifts toa serviceprovider based upon wordof mouth anddifferent schemes. Theadvertisementsplay a very littlepart intheir decision.➢The preferences of theviewers for the celebritiesarealways changingso we can’t relyonasingle celebrity for ever.➢Viewers liketo seeshort and up tothe mark ads but Most of theAIRTEL ads are toolengthy.

LIMITATIONS

The responses collected are perception based so the nature variant can be biasing

factor.

I was not able to cover the whole panipat city.

The time for the research was limited.

Money also become the constraint for me

PAGE NO: 46

I have only a limited time to cover all the factors in my research.

Accuracy of data –

Data taken through primary and secondary sources, accuracy of research is depending on retailer’s feedback that can be artificial, lies.

Availability of required person –

In the short time period, availability of required person can be delay the project and affect the quality of project.

The researchwas carried out taking careof each & everysmall pointswhich can alter theresults but still there were some limitationsthatmust be acknowledged

The respondents chosenwere mainly from cities. So theresults don’t includetheresponses of rural customers.

To findout theoverall effectiveness of advertisements a lotof dataregarding thepricepaid to the celebrities and costofadvertisementetc. was required, but asthis type ofdata is classifiedso itwas notavailable

PAGE NO: 47

RECOMMENDATIONS

According to my study here are some recommendations about Airtel and Idea

Airtel:

1. Airtel should finance the handset like reliance but handset restriction

should not be there.

2. Advertisement should be meaningful and able to persuade the customer.

3. Sale promotion technique should be used to survive in the market and to

increase the sale

4. Insurance should be provided.

5. Airtel should focus on call rates that they offer6. Airtel should improve its customer services like feedback from consumer

as well as retailers7. Airtel should launch some new innovative scheme that gives benefits

consumer as well as retailers8. Airtel should reduce those services that are less in use or less in

awareness like contest on mobile.Idea:

1. Mostly, customers have regular habit of changing their handsets, which is

not possible in case of reliance. So such kind of restriction should not be

there.

2. Advertisement should be meaningful and able to persuade the customer.

3. Idea should focus on value added services.4. For getting trust Idea should start some social work for improve its brand

value5. Idea should focus on its services that do not like by consumer like

q Anytime calling,q Anytime messaging,

6. Idea should improve its connectivity

PAGE NO: 48

BIBLIOGRAPHY

Books

Kotler, Philip : Marketing Management

Schiffiman, Leon. G. : Consumer Behaviour

Kothari, C.R. : Research Methodology

Magazines and Newspapers:

The Economics Times

Business India

Business World

Websites: www.ideaInfo.com

www.airtelworld.com.

CHAPTER 06: BIBLOGRAPHY AND REFRENCES , QUESTIONARE

PAGE NO: 49

QUESTIONARE

QUESTIONS FOR DATA COLLECTIONS

1) Which telecom service you are presently using?

a) Airtel

b) BSNL

c) Idea

d) Reliance

e) Tata Indicom

f) Hutch

A) If the answer of the question is Airtel or Idea then

1) For how many years you are using the service?

a) One

b) Two

c) Three

d) More than three

2) Reason for choosing the best Service provider;

a) Better service

b) Goodwill of the company

c) Good schemes

d) Just needed

3) Before that were you using other service? Yes/No

if yes then specify the name …………………..

4) Do you think that schemes of Airtel are better than

schemes of Ideas? Yes/No

5) How would you rank the customer service of both Airtel and idea ?

PAGE NO: 50

AIRTEL IDEA

a) Excellent a)Excellent

b) Very good b) Very good

c) good c) good

d) Average d)Average

e) Poor e) Poor

6) Are you satisfied with the service of Airtel? Yes/No

if not then specify the reasons ………………………..

……………………………………………………

[Q.7] Please rate the following Bharti and idea features on the scale of 5 (5= very good, 4= good, 3=Avg. 2= Bad, 1= worst)

. Airtel Idea

(a) Salesman’s attitude.(b) Wiring & Installation.(c) After sales service.(d) Voice clarity(e) Billing(f) Custom service

8) If the name is Airtel and Idea then the reason for switching on present

(g) Service ………………………………………………………..

………………………………………………………………..

NAME: --------------------------------------------------------------------------------

AREA:-----------------------------------------------------------------------------------

Thanks for your co-operation

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Attaulah Hussain,,,,reSearch methadology