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A Project Study Report
ON
MBA
AIRTEL
MARKETING STRATEGIES
OFAIRTEL
ARYA INSITUTE OF ENGG. & TECHNOLOGY JAIPUR
SUBMITTED BY :- SUBMITTED TO :- SAMEER AGARWAL M/S YAMINI SARASWAT MBA II sem Lecturer MBA Deptt.
1
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “MARKETING
STRATEGIES OF AIRTEL”. The work would not have been possible to
come to the present shape without the able guidance, supervision and help to me
by number of people.
With deep sense of gratitude I acknowledged the encouragement and guidance
received by my organizational guide M/S Yamini Saraswat convey my heartful
affection to all those people who helped and supported me during the course, for
completion of my Project Report.
SAMEER AGARWAL
2
TABLE OF CONTENTS
1. OBJECTIVE OF THE STUDY 4
2. INTRODUCTION 5
3. TRENDS IN MOBILE COMMUNICATIONS 22
4. EXECUTIVE SUMMARY 30
5. COMPANY BACKGROUND 35
6. MARKETING & BUSINESS TOOLS ADOPTED BY AIRTEL 55
7. DATA ANALYSIS 57
8. FINDINGS 70
9. CONCLUSION 71
10.BIBLIOGRAPHY 72
3
OBJECTIVE OF THE STUDY
To study the consumer trends in telecommunication
sector.
To study consumer decision-making & preferences.
To study marketing strategies adopted by Airtel.
To study the market potential.
To study the market potential.
To understand the needs of different consumer segments.
Comparative study of different mobile companies.
4
5
TELECOM HISTORY SINCE 1842 TILL NOW………..”
With the dramatic changes in interpersonal
communication over the past decade, Internet messaging has
emerged as the primary medium for transferring information
quickly, inexpensively, and reliably. However, the growing
popularity of wireless telephones has added another dimension
to the communications equation—mobility. As more Indians rely
on cellular communication, this market is expected to see
explosive growth over the forecast period.
Let’s have a review of telecommunication History:-
Telecom history
1842: Wireless by conduction
1843: Early electromagnetic research, wireless by induction
1865: Induction and Dr. Loomis
Early radio discoveries
1879: D.E. Hughes and the first radio-telephone reception
1880: The photo phone and the first voice radio-telephone call
6
1880 to 1900: Radio development begins in earnest
1910: The first car-telephone
1924: The first car-mounted radio-telephone
1937: Early conventional radio-telephone development
The modern era begins
1946: The first commercial American radio-telephone service
1947: Cellular systems first discussed
1948: The first automatic radio telephone service
1969: The first cellular radio system
1973: The Father of the cell phone
1978: First generation analog cellular systems begin
1980: Growth of Japanese cellular development
1981: NMT -- the first multinational cellular system
1982: The rise of GSM
1990: North America goes digital: IS-54
Prehistory (Birth to Bell Labs, 1924)
While puzzling over the mysteries of radio, many
inventors worked concurrently on power generation,
telegraphs, lighting, and later, telephone. The thorough
7
understanding of electricity required to produce a reliable,
practical radio system took a long time and happened in
different phases.
In 1820, Danish physicist Christian Ousted discovered
electromagnetism, the science that could help generate
electrical power and, if fully understood and applied, usher in
the era of telecommunication.
Michael Faraday - 1791 to 1867
In 1821 Michael Faraday reversed Oberstar’s experiment
and in so doing discovered induction. This helped him build the
world's first electricity generator. He worked on different
electrical problems in the next ten years, eventually publishing
his results on induction in 1831.
Joseph Henry - 1797 to 1878
In 1830 the great American scientist Professor Joseph
Henry transmitted the first practical electrical signal; showing
that electromagnetism could do more than just create current
or pick up heavy weights -- it could communicate. In a stunning
demonstration in his Albany Academy classroom, Henry created
8
the forerunner of the telegraph. While Henry did not pursue
electrical signaling, he did help someone who did. And that
man was Samuel Finley Breese Morse.
Samuel Morse - 1791 to 1872
In 1837 Samuel Morse invented the first practical
telegraph, applied for its patent in 1838 and was finally granted
it in 1848. Joseph Henry helped Morse build a telegraph relay or
repeater that allowed long distance operation. The telegraph
brought the country closer and eventually the world. Morse also
experimented with wireless, not by passing signals though the
atmosphere but through the earth and water. Without a cable.
Wireless by conduction
On October 18, 1842, Morse laid wires between
Governor's Island and Castle Garden, New York, a distance of
about a mile. Part of that circuit was under water. But before he
could complete this demonstration a passing ship pulled up his
cable, ending it seemed, his experiment. Undaunted, Morse
proceeded without the cable, passing his telegraph signals
through the water itself. This is wireless by conduction.
9
Over the next thirty years most inventors and
developers concentrated on wire line telegraphy, that is,
conventional telegraphy carried over wires suspended on poles.
Few tinkered exclusively with wireless since a basic radio
theory had not yet been worked out. Telegraphy, however, did
produce a good understanding of wireless by induction since
wires ran parallel to each other and often induced rogue
currents into other lines.
Early electromagnetic research
In 1843 Faraday began intensive research into
whether space could conduct electricity.
In 1864 Maxwell released his paper "Dynamical
Theory of the Electromagnetic Field" which concluded that
light, electricity and magnetism were all related and that all
electromagnetic phenomena travelled in waves.
Induction and Dr. Loomis
In 1865, a dentist Dr. Mahlon Loomis of Virginia
may have been the first person to communicate through
wireless via the atmosphere. Between 1866 and 1873 he
10
transmitted telegraphic messages at a distance of 18 miles. At
one location he even flew a metal-framed kite on a metal wire,
perhaps taking inspiration from Benjamin Franklin. At another
location a similar kite picked up these signals and noted them
with a galvanometer.
Early radio discoveries
Maxwell's 1864 conclusions were distributed around
the world and created a sensation. But it was not until 1888
that Professor Heinrich Hertz of Bonn, Germany, could produce
and detect radio waves consistently and reliably.
On November 22, 1875, while working on acoustical
telegraphy, a science close to telephony, Thomas Alva Edison
noticed unusual looking electro-magnetic sparks.
D.E. Hughes and the first radio-telephone reception
From 1879 to 1886, London-born David Hughes
discovered radio waves but was told incorrectly that he had
discovered no such thing. Discouraged, he pursued radio no
further.
Hughes noticed a clicking noise in his home built
telephone each time he worked using his induction balance, a
11
device now often used as a metal detector. He transmitted
signals from one room to another in his house in London. But
since the greatest range there was about 60 feet, Hughes took
to the streets with his telephone, intently listening for the
clicking produced by his clockwork transmitter, gradually
diminishing until it no longer could be heard.
Alexander Graham Bell was the man who invented the
telephone and made the first call on a wired telephone to
Thomas Watson. Bell was also first with radio.
1888 onwards: Radio development begins in earnest
In 1888 the German, Heinrich Hertz, conclusively
proved Maxwell's prediction that electricity could travel in
waves through the atmosphere. Unlike Hughes, the extensive
and systematic experiments into radio waves that Hertz
conducted were recognised and validated by inventors around
the world.
Jagadish Chandra Bose demonstrated electromagnetic waves in
1895 "by using them to ring a bell remotely and to explode
some gunpowder".
12
Marconi established the first successful radio system.
In 1901, his radio-telegraph system sent signals across the
Atlantic Ocean. Ships were the first wireless mobile platforms.
In 1901 Marconi placed a radio aboard a Thorny croft steam-
powered truck, thus producing the first land-based wireless
mobile transmitting data, not voice.
In December 24, 1906, Reginald Fessenden
accomplished the first radio bandwave communication of
human speech over a distance of 11 miles, from Brant Rock,
Massachusetts, to ships in the Atlantic Ocean. Radio was no
longer limited to telegraph codes, no longer just a wireless
telegraph, but a means of verbal communication.
The first car-telephone
From 1910 onwards, Lars Magnus Ericsson, the man
who founded Ericsson in 1876, and his wife Hilda, regularly
worked the first car telephone. Access was not by radio, instead
there were two long sticks, like fishing rods, handled by Hilda.
She would hook them over a pair of telephone wires, seeking a
pair that was free. When they were found, Lars Magnus would
13
crank the dynamo handle of the telephone, which produced a
signal to an operator in the nearest exchange.
Around the same time, the triode tube was developed,
allowing far greater signal strength to be developed both for
wireline and wireless telephony. No longer passive like a crystal
set, a triode was powered by an external source, which
provided much better reception and volume.
Later, with Armstrong's regenerative circuit, tubes were
developed that could either transmit or receive signals, were
stable and powerful enough to carry the human voice and
sensitive enough to detect those signals in the radio spectrum.
In 1919, three firms came together to develop a wireless
company that one day would have a reach across the globe.
Heavy equipment maker ASEA, boiler and gas equipment
maker AGA and telephone manufacturer LM Ericsson, formed
SRA Radio, the forerunner of Ericsson's radio division.
The first car-mounted radio-telephone
Bell Laboratories claims to have invented the first
version of a mobile in 1924. It was a two-way, voice-based
14
radio-telephone and the adjoining photograph from their site
certainly seems to confirm it.
History of cellular mobile telephony: 1982 to
2001
1980 - First cellular phones began to appear
1982 - Nordic Mobile Telephony (NMT) standard
1983 - American Mobile Phone System (AMPS) standard
1986 - Nordic Mobile Telephony (NMT) 900 MHz
1991 - Commercial launch of the GSM service
1993 - Coverage of main roads GSM services start outside
Europe
1994 - Japanese Digital Cellular (JDC)
1996 - USA Personal Communications Systems (PCS)
1982 - The beginning
During the early 1980s, analog cellular telephone
systems experienced rapid growth in Europe, particularly in
Scandinavia and the United Kingdom, but also in France and
Germany. Each country developed its own system, which was
15
incompatible with those of others, in equipment and operation.
This was an undesirable situation, because not only was the
mobile equipment limited to operation within national
boundaries, but also limited to the market for each type of
equipment. This scenario in a unified Europe was undesirable.
The Europeans realized this early on, and in 1982, the
Conference of European Posts and Telegraphs (CEPT) form a
study group called the Group Special Mobile (GSM) to study and
develop a pan-European public land mobile system. The
proposed system had to meet certain criteria, which included:
1. Good subjective speech quality.
2. Low terminal and service cost.
3. Support for international roaming.
4. Ability to support handheld terminals.
5. Support for a range of new services and facilities.
6. Spectral efficiency
7. ISDN compatibility.
Nordic Telecom and Netherlands PTT proposed to
the CEPT the development of a new digital cellular standard
that would cope with the ever-burgeoning demands on
16
European mobile networks. The European Commission (EC)
issued a directive which required member states to reserve
frequencies in the 900 MHz band for GSM to allow for roaming.
1986 - Main GSM radio transmission techniques were chosen.
1987 - September - 13 operators and administrators from 12
areas in the CEPT GSM advisory group signed the charter GSM
(Groupe Spéciale Mobile) MoU "Club" agreement, with a launch
date of 1 July 1991.
The original French name Groupe Spéciale Mobile was changed
to Global System for Mobile communications; but the original
GSM acronym remains.
GSM specifications were drafted.
1989 – 1998
In 1989, GSM responsibility was transferred to the
European Telecommunication Standards Institute (ETSI), and
phase I of the GSM specifications was published in 1990.
Commercial services started in mid 1991, and by 1993 there
were 36 GSM networks in 22 countries, with 25 additional
17
countries like South Africa, Australia and many Middle and Far
East countries opting for GSM. By the beginning of 1994, there
were 1.3 million subscribers worldwide.
The developers of GSM chose an unproven (at that
time) digital system, as opposed to the then standard analog
cellular systems like AMPS in the United States and TACS in the
United Kingdom. They had faith in the advancements in
compression algorithms and digital signal processors to allow
the fulfillment of the original criteria and the continual
improvement of the system in terms of quality and cost.
The European Telecommunications Standards Institute
(ETSI) defined GSM as the internationally accepted digital
cellular telephony standard.
1990
Phase 1 GSM 900 specifications were frozen
DCS adaptation started.
Validation systems implemented.
First GSM World congress at Rome had 650 participants.
1991
First GSM specification was demonstrated.
18
DCS specifications were frozen.
GSM World Congress at Nice had 690 participants.
1992
January - The first GSM network operator was Oy Radiolinja Ab
in Finland.
December 1992 - 13 networks were on air in 7 areas.
GSM World Congress at Berlin had 630 participants.
1993
GSM was demonstrated for the first time in Africa at Telkom '93
in Cape Town.
Roaming agreements between several operators were
established.
By December 1993, 32 networks were on air in 18 areas.
GSM World Congress at Lisbon progressed with 760
participants.
Telkom '93 was held in Cape Town. First GSM systems were
shown.
1994
First GSM networks in Africa were launched in South Africa.
Phase 2 data /fax bearer services were launched.
19
Vodacom became the first GSM network in the world to
implement data/fax.
GSM World Congress at Athens drew 780 participants.
December 1994 -- 69 networks were on air in 43 areas.
1995
GSM MOU was formally registered as an association registered
in Switzerland with 156 members from 86 areas.
GSM World Congress at Madrid attracted 1400 participants.
December 1995 - 117 networks were on air in 69 areas.
Fax, Data and SMS roaming started.
GSM phase 2 standardisation was completed, including
adaptation for PCS 1900.
First PCS 1900 network was shown live 'on air' in the USA.
Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data
via GSM.
Namibia goes on-line.
Ericsson 337 wins GSM ‘phone of the year’.
US FCC auctioned off PCS licenses.
1996
December 1996 - 120 networks were on air in 84 areas.
20
GSM World Congress was held in Cannes.
GSM MOU Plenary was held in Atlanta GA, USA.
8K SIM was launched.
Pre-paid GSM SIM cards were launched.
Bundled billing was introduced in South Africa.
Libya goes on-line.
Option International launches the world's first GSM/Fixed-line
modem.
2001
Feb -- GSM Conference held in Cannes.
By May 2001 there were 500m GSM 900/1800/1900 users
worldwide.
16 billion SMS messages were sent in April 2001.
By April, 500 million people are GSM users.
21
“Trends in Mobile
Communications”
The growth and penetration of sophisticated digital
communication systems, infrastructures, and services, has
been increasing constantly over the last decade. Examples of
these services are the Internet, electronic mail, multimedia,
pagers, PDA's, and mobile telephony. From marginal
penetration 15 years ago, these systems and services are
becoming a commodity in both professional and consumer
markets worldwide. The developments in these fields are still
going strong. In particular, rapid advances - both in technology
and services - can currently be observed in wireless and mobile
systems that support the communication of different media,
such as data, speech, audio, video and control.
Current wireless network and mobile phone services roll-
out is centered around four available technologies, namely
WAP, UMTS, Bluetooth, and mobile positioning systems. The
wireless application protocol (WAP), initially carried by second
generation GSM and in the future by third generation UMTS
wireless networks, will turn the mobile phone into a networked
22
smart-phone capable of low to medium data rate Internet
functionalities. Bluetooth will allow for short-range data
communication between consumer appliances in a domestic
environment. Positioning systems will become integral part of
mobile phones such that services can be made dependent on
the location of the user in the network.
When projecting the progress in mobile networks and
services into the future, three developments are of importance.
In the first place, we can observe that more and more mobile
phone-like devices start to include accessories such as a small
keyboard, a display, and a speech interface. Such
communication and information-oriented systems are emerging
as hybrids between the mobile phone and the wireless laptop
personal computer. With higher bit rates supporting more
advanced services, the integration of the personal computer
and personal communication devices will be pushed even
further.
In the second place, we observe that computing resources
are becoming ubiquitously - that is everywhere and at all time -
available. We will soon live in an environment that supports us
by providing ubiquitous Computing for a wide variety of tasks
23
and services. Daily life consumables, durable products and
services already contain an ever-increasing number of sensors,
actuators, processing units, and (embedded) software. The
personal computer has entered daily life as a necessary
commodity, and the development of sophisticated
communication systems in today's society relies heavily on the
availability of computation resources.
Finally, we observe that communication and computing is
becoming increasingly personal. The device (and therefore the
user) is always on-line, the user is identifiable, the device can
be personalized, and the system knows about the user’s
position.
“Cellular Mobile Pricing Structures and
Trends”
Successful growth and diffusion of mobile communication
services is focusing greater attention on how mobile relates to
fixed networks. Accordingly, it is necessary for regulatory
24
authorities to review current frameworks in those instances
where regulation might impede the offering of certain pricing
structures, such as calling party pays. This issue is critical in
putting fixed and mobile networks on an equal footing, so the
potential for competition between networks can be exploited.
Testing the demand for new pricing structures can be left to the
market. Successful growth and diffusion of mobile
communication services is focusing greater attention on how
mobile communication relates to the Internet and electronic
commerce. This report reviews and benchmarks the pricing of
emerging services such as short message services. These
services are the harbingers of? third generation? information
services over mobile networks, and policy makers need to
review current regulatory frameworks to enhance pricing
innovation and competition in the provision of these services.
25
Individual customization
An important trend in our society is agility or mass
individualization. Consumer behavior is much more volatile,
much less predictable and increasingly concerned with instant
gratification. The expectation is that in due course this trend
towards individualization will become a more important factor
in the emerging markets too, particularly in the urban areas. As
well as setting quality standards for products, this attitude also
demands delivery at the right time and in the right place. At
any moment, wherever the consumer may be, it has to be
possible to satisfy his or her requirements; it is a question of
the consumer as a "moving target" and how we can increase
our chances of "scoring a hit".
In modern thinking about categories of consumers, every
consumer has something of this instant consumer in his or her
make-up, alongside other possible descriptions, such as
"rational", "social" and "responsible". What's more, this can
vary according to the product category. One moment,
moreover, this instant consumer will be demanding products on
the basis of flavor, convenience or cheapness, and in the next
26
breath will be voicing concerns about the environment, animal
welfare or his or her own health. The likelihood is that in the
long term health, the environment and animal welfare will be
significant factors in the concept of quality, as safety already is.
Changes in consumption patterns are an important factor
in this development. While the retail trade is evolving from
supermarket to household service provider in response to mass
individualization, consumers are increasingly also obtaining
their food through other outlets: company canteens, take-away
meals, snack bars, old people's homes etc. "Young couples" in
Europe are rapidly moving towards the situation that already
exists in the United States, where 50% of the food consumed is
prepared outside the home. This places different demands on
products in terms of keeping qualities (shelf life), convenience
and presentation.
Consumer-driven technology development
These trends in the market and among consumers
generate a demand for a more differentiated and more rapidly
changing product range and also call for a different approach to
technology development (dedicated production systems). In the
27
future there will have to be product development that takes the
dynamic of the market and the divergent wishes of the
consumers as its starting point and uses the technologies of the
future: biotechnology, separations technology, sensor
technology and modern information technology (IT). To achieve
this, product development will have to be tackled in a more
structured way, and knowledge deriving from different areas of
research will have to be integrated more effectively. The
development of sensor technology in the agro sector, for
instance, requires the integration of materials technology,
biotechnology and process technology. New scientific
developments also provide interfaces through which the sector
may respond to wishes relating to health: both the information
about genetic aspects and the new insights into bioactive
components - substances that, in low concentrations, affect
human health - offer interesting prospects of made-to-measure
food!
In the future, "made-to-measure food" will also mean
"food produced in a way that the public finds socially
acceptable". Such aspects as the environment, animal welfare
28
etc. will play a major role. This will have to be specifically taken
into account in the development of technology.
From chains to flexible networks
As well as imposing requirements in terms of technology
development, trends such as mass individualization call for a
responsive answer to a sharply fluctuating market demand.
This places considerable demands on the organization of
agricultural production chains. The full vertical integration of
links in a chain can mean a loss of flexibility. It would appear to
be more efficient to opt for a continuation of the development
of the chain concept; leading to responsive networks that
combine the advantage of co-ordination with the flexibility of
more loosely linked organizations. These independent
organizations work closely together in the flow of goods along
the chain in order to achieve the desired "customer value" at
the lowest possible cost.
29
30
“EXECUTIVE SUMMARY”
Profile of: Mr. Sunil Mittal, Executive Director and Chief
Executive Officer Airtel Mobile Communications Ltd.
Mr Rajan Swaroop is a qualified professional with over 21 years
of working experience in Automotive, Telecom and IT
industries.
Mr. Swaroop is a graduate of Mechanical Engineering from IIT
Delhi and Post Graduate in Management from Indian Institute of
Management, Ahmedabad.
In the last 9 years in Escorts, he has handled various roles
including Head of Strategic Planning and Investment at
Corporate Office. He was the Director & CEO of Telecom
Equipment manufacturing company, Escorts Communications
Limited and currently as CEO of a set of Internet Services
Companies - Airtel Limited.
31
Whilst in the strategy role, Mr Swaroop was involved in
setting up of Airtel; in Escorts Communication, he was involved
in a turn around; whilst in Airtel, four new businesses were set
up.
Prior to Escorts, Mr Swaroop spent six years in
operating roles with automotive and light engineering company
like MICO (subsidiary of Robert-Bosch) and Metal Box. Another
six years was spent in the IT Industry with Computer Point,
where he was responsible for business development, marketing
and subsequently, as a profit center head.
During these years, he has also been associated with
education exchange programs with international business
schools such as Kellogg's Business School, North Western
University and Georgetown University, New York.
He is interested in reading, gardening, listening to
music etc. His wife, Poonam has been in advertising and
marketing field for 15 years with leading advertising companies
and currently involved in supporting some social service
organisations.
32
Profile of: Mr. Rajan Dutta, Chief of HR & TQM
Mr. Rajan Dutta is an Economics Honours Graduate and an
MBA. He has also done Post Graduate Diploma in HRD from
Ahmedabad and in Training & Development from ISTD, Delhi. A
specialist Trainer, Job Evaluator & Total Quality Management
facilitator, Mr. Dutta has successfully introduced and
implemented some of the HR & TQM interventions in
organizations and professional bodies that he has been
associated with.
He has held senior level positions during his last 20 years
of work in companies like Vam Organics, Modi Xerox and RPG
Group where he was the Group Vice-President-HR
He is currently the Chief of HR & TQM in Airtel Mobile
Communications Ltd. Mr. Dutta is the Chairman of National
Centre for Quality Management (NCQM) Delhi, Executive
Committee Member of Delhi Management Association. He was
the past President of National HRD Network-Delhi and currently
33
the Board Member of HRD Network, National Chapter. He is
also a member and speaker to various HRD Committees like CII,
FICCI, ASSOCHAM, AIMA and several other professional and
educational institutions in India and abroad.
He has authored and contributed to various newspapers,
magazines and books in
34
35
COMPANY BACKGROUND
Airtel comes to you from Bharti Cellular Limited - a part
of the biggest private integrated telecom conglomerate,
Bharti Enterprises.
Bharti provides a range of telecom services, which
include Cellular, Basic, Internet and recently introduced
National Long Distance. Bharti also manufactures and exports
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
is the leading cellular service provider, with a footprint in 15
states covering all four metros and more than 7 million satisfied
customers.
VISION:
To make mobile communications a way of life and be the
customers' first choice.
MISSION:
36
We will meet the mobile communication needs of our
customers through:
• Error- free service delivery
• Innovative products and services
• Cost efficiency
• Unified Messaging Solutions
CORE VALUE:
We will delight our customer with our simplicity, speed &
innovation.
We will honours our commitment.
We will follow the highest standard of professional
integrity & behaviour.
We will respect individual, build winning teams and lead
by example.
We will create a fun filled and friendly workplace.
Airtel Mobile Communications Limited
37
Bharti Tele-Ventures Limited was incorporated on July 7,
1995 for promoting investments in telecommunications
services. Its subsidiaries operate telecom services across India.
Bharti Tele-Ventures is India's leading private sector provider of
telecommunications services based on a strong customer base
consisting of 7.42 million total customers, which constitute,
6.76 million mobile and 657,000 fixed line customers, as of
April 30, 2004.
Bharti Tele-Ventures vision for its mobile business is “To
make mobile communications a way of life and be the
customers first choice”.
The mission is to meet the mobile communication needs of the
customer through 1) error free service 2) Innovative products
and services and 3) cost efficiency. The Company’s strategic
objective is to consolidate its leadership position amongst the
mobile service providers in India.
The Indian mobile market, according to the COAI, has increased
from approximately 1.2 million subscribers as of March 31,
38
1999 to approximately 29.21 million subscribers as of June 30,
2004.
Despite this rapid growth, the mobile penetration rate in India,
at approximately 2.8% as of June 30, 2004, is significantly
lower than the average mobile penetration rate in other Asian
and international markets.
The number of mobile subscribers in India is expected to show
rapid growth over the next four years. By 2006 it is projected at
50 million by COAI and 44 million by Gartner.
Bharti Tele-Ventures believes that the demand for mobile
services in India will continue to grow rapidly as a result of the
following factors:
lower tariffs and handset prices over time;
growth in pre-paid customer category;
greater economic growth and continued development
of India's economy;
higher quality mobile networks and services; and
greater variety and usage of value added services.
39
Bharti Tele-Ventures, through its subsidiary has the licenses to
provide GSM services in all the twenty-two telecom circles in
India. It proposes to consolidate all its subsidiaries providing
mobile services under Bharti Cellular Limited.
As of June 30, 2004, approximately 92% of India's total mobile
subscriber market resided in the Company's sixteen mobile
circles, which collectively covered only 56% of India's land
mass.
MOBILE FOOTPRINT
The map below depicts the location of, and provides certain
information for, Bharti Tele-Ventures' existing mobile circles in
India:
40
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 for
the state of Uttar Pradesh.
(2) Mobile subscriber statistics are as of June 30, 2004 and are
based on data released by COAI. Mobile market size comprises
the total number of mobile subscribers of all the service
providers in a circle.
(3) Demographics of Maharashtra and Tamil Nadu do not
include demographics of state capitals (metros) Mumbai and
Chennai respectively.
41
(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.
1) Comprises the circles of Delhi and Himachal Pradesh.
2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka
and Andhra Pradesh.
3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka,
Andhra Pradesh and Chennai.
4) Comprises the sixteen 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 areas.
MOBILE STRATEGY
42
Capture maximum telecommunications revenue potential with
minimum geographical coverage to maximise its revenues and
margins.
Build high quality mobile networks by deploying state-of-
the-art technology to offer superior services.
Use the experience it has gained from operating its
existing mobile networks to develop and operate other
mobile networks in India and to share the expertise across
all of its existing and new circles.
Attract and retain high revenue generating customers by
providing competitive tariffs, offering high quality
customer support, proactive retention programs and
roaming packages across all of its mobile circles.
Provide affordable tariff plans to suit each segment of the
market with a view to expand the reach, thereby
increasing the mobile customer base rapidly.
43
KEY HIGHLIGHTS OF JAN-04 ARE AS FOLLOWS:
Industry additions were up from the last month's 12.71
Lacks to 13.69 Lacs this month. In percentage terms, this
translates to a increase of 8 % in net adds over last month.
The number of subscribers moved up from 21.99 Mn at the
end of Dec-03 to 23.36 Mn at the end of Jan-04, a growth of
6.22 %.
All India monthly growth in subscriber numbers was 6.13 %.
The growth elsewhere was :
· Metros – 5.28 %
· A circles – 6.22 %
· B circles – 7.75 %
· C circles – 3.43 %
· All Circles Total – 6.67 %
· Airtel – 6.39 %
B Circle category has shown the highest growth in
subscriber base on an individual basis this month.
At Airtel, we have always sought to enhance value for you as
a customer by providing you the most relevant and easy to use
44
services through innovation and by harnessing the latest
developments in technology. In line with this strategy, we have
constantly introduced innovative products and services to suit
your unique needs and wants.
Our services range from CLI to Music Messaging to Lost Call
Alerts – all to serve you better.
Some services which we are providing :-
SMS
Astrology
Music Messaging
Ring tones
Dial-a-Ring tone
Logos
Blinking SMS
Flash SMS
Jokes
Love Logos
Caller Line
Identification
Voice Mail
Itemised Billing
Inquiry Services
Picture Messages
Yahoo Dating
Yahoo! Mail
Yahoo Messenger
Group Messaging
Mobile Banking
News Updates
45
“COMPANY’S PLANS”
PREPAID PLANS
Are you wary of committing yourself to a date for making
your bill payments? Is it too much of a bother for you to
remember dates for bill payments? Do you often end up paying
late fees against your monthly utility services bills? Do you end
up spending too much if you have the option to pay the bill
later?
Think over for if one of these represents you, we have a
solution for you. Start thinking prepaid is our advise!
So what exactly is this prepaid! It is simply a way of going
cellular by paying for the talk time in advance. For e.g. if you
feel that you need Rs. 300 worth of talktime for a month, you
can buy a recharge coupon which gives you that much talktime
on your cellphone. Once that money gets exhausted you can
buy another recharge coupon for the same or different
denomination depending on your future need.
46
Prepaid allows you to be in control of your cellular
expenses even while you are spending. You will be surprised
that today In India, Prepaid connections account for almost 60
to 70 percent of the total new entrants into cellular telephony.
That’s because almost every one of us wants to be in control of
our cellular expense.
ADVANTAGES OF PREPAID
Some of the many advantages that you enjoy with Airtel
Pre-Paid...
Total Cost Control
Enjoy the liberty of total cost control with your Airtel Pre-
paid! Re-charge as much as you feel the need to! Now that's
what we call complete freedom!
No Rentals
Buy an Airtel prepaid card without having to pay any rentals!
No deposits
Your Airtel prepaid card comes without you having to pay
47
heafty deposits!
STD/ISD facility till the last rupee
Now experience complete freedom like never before with
Airtel! Our STD/ISD facility allows you to make long distance
calls in India and Overseas from your cellular phone!
Instant Balance Inquiry
Check your talk-time instantly by calling our toll-free
number!
60 second pulse
Airtel provides you with a 60-second pulse rate! Freedom for
you to experience like never before!
Instant Recharge
Avail of instant recharge on your Airtel prepaid card with just
a few simple steps!
24-hour recharge facility
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With our round-the-clock recharge facility, recharge you
Airtel prepaid card anytime, anywhere!
Caller Line Identification
Call Line Identification gives you the power to know the
phone number of the calling party even before you answer
the call, thus giving you the choice to either reject or take
the call. It provides the added advantage of saving the
incoming number directly in the Handset Phone Book. So
that the next time you want to call the same person, you
don't need to retype his number, simply use your phone
book.
Call Divert, Call Hold and Call Wait
Avail of special services like call waiting, call hold and call
divert – all with your Airtel prepaid card!
Short Messaging Service (SMS)
With Airtel’s Short Messaging Service (SMS), send messages
49
and jokes to your friends and colleagues, anytime anywhere!
SMS based Information Services
With Airtel's SMS based information services; you can get up
to-the-minute cricket scores, order flowers as well as send
couriers or check your daily horoscope!
Voice Mail service
Voice Mail lets you receive messages even when your
handset is switched off or when you are outside the coverage
area. You can listen to your messages whenever you feel
like, from anywhere in the world. Voice Mail can store up to
75 messages, with each message of two-minute duration.
POST PAID PLANS
Airtel welcomes you to a vibrant world of unlimited
opportunities. More exciting, innovative yet simple new ways to
communicate, just when you want to, not just through words
but ideas, emotions and feelings. To give you the unlimited
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freedom to reach out to your special people in your special
way.
CUSTOMER CARE
Do you need any clarifications on your bills? Do you
have any feedback or query on our Products & services? You
can call us, send us an E-mail or meet us in person. We shall be
glad to help you out in every possible way.
CONTACT US BY PHONE
If you are on Airtel, just call us on 121 your Airtel Prepaid
phone.
If you are on Airtel postpaid, just call us on 9897012345 or
toll free 121 from your Airtel Postpaid phone.
These toll free numbers however, cannot be dialed when
you are roaming.
Airtel launches “Music Messaging” service
Customers can dedicate songs along with their voice messages;
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Dec. 22, 2003, Merrut : Airtel, one of the leading cellular
operators in Haryana, UP(West) & Uttranchal and Kerala today
announced the launch of a new innovative service called “Music
Messaging”. The service will allow music lovers to listen to the
various songs and then dedicate the same to any other Airtel
mobile subscriber along with a personalized voice message.
For using the service, the customer simply needs to dial
646 from his mobile and follow the voice prompts. This will lead
him to the options Hindi and English songs. There are 10 songs
under each option and the customer can either go on to listen
to the song clippings of 90 seconds each or move on to the
next or previous song. While listening to the song, the
subscriber may choose to dedicate the song to some other
Airtel Subscriber after recording a 10 second long personalized
voice message. The music message will then be received by
the person to whom it has been dedicated as a Voice Message
with the CLI of the sender. Once delivered, the message begins
with the sender’s voice message followed by a 30 second clip
52
of the song that has been dedicated. The charge for the service
is just Rs 7/minute for a 60 second pulse.
Announcing the launch of the service, Mr. N.F.Aibara, COO,
Airtel-Haryana said “The mobile phone today is no longer just a
communication device. Rather it is a driver of self-identity and
creative pursuits especially for the youth segment which
constitutes about 70 % of the new customers that we enrol
every month. We have always sought to provide our customers
with new and exciting services that have been made possible
through innovation and use of latest technology. The launch of
this new service is another step in the same direction as it
enables customers to add a musical edge to their messages-
nothing can be more powerful than a message in one’s own
voice along with a song to suit the situation. I am sure this
service will be liked by all our customers and more specially the
youth”
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BHARTI CELLULAR FOOTPRINT
Bharti is to first achieve critical mass, then drill deep instead of
spreading thin. Thereafter, it is ready for controlled expansion.
In keeping with this, the company has been providing excellent
service to its subscribers in various states. It controls a portfolio
54
of India's most attractive and contiguous telecom geographies,
including the states of Maharashtra (excluding Mumbai), Goa,
Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh and
Delhi (inclusive of NCR). With a footprint dominating the map of
India, Airtel Cellular accesses over 45% of India's total
telephony potential. With the objective of critical mass
achieved, Airtel Cellular turned to drilling deep.
55
Some Marketing And Business Tools Adopted By
AIRTEL As To Promote Its Activities:
Seminars: seminars are conducted at different places by
the expert time by time to make people aware.
Publicity: publicity is done through various media.
Stalls at famous places: they conduct their stall after a
particular period of time on the famous and public place to
attract them towards themselves.
DSA (Direct Sales Agency)
Print media
Hoarding
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Banners
Advertisem
Leaflets
Follow ups
57
58
STOCK OF KARAMPURA
Outlet nameAirtel
market %
Competitor's
market%
Airtel
market%
Competitor's
Market%
Airtel Lapu
%
Competitor's
Lapu %
Dashant comm. 40% 60% 45% 55% 41% 59%
Ashish Airlink 67% 33% 45% 55% 45% 55%
New photo comm. 36% 64% 42% 58% 43% 57%
Ringing tone 45% 55% 43% 57% 40% 60%
Harjas comm. 38% 63% 43% 57% 38% 63%
Jasleen comm. 45% 55% 57% 43% 29% 71%
Arun electronics 38% 62% 38% 63% 38% 62%
Aman comm. 42% 58% 40% 60% 38% 62%
Rose comm. 43% 57% 29% 71% 29% 71%
TOTAL 45% 55% 43% 57% 37% 63%
59
60
STOCK OF JANAKPURI
Outlet nameAirtel
market %
Competitor's
market%
Airtel
market%
Competitor's
market%
Airtel
Lapu %
Competitor's
Lapu %
Gee communication 43% 57% 40% 60% 33% 67%
B.K.Marketing 64% 36% 50% 50% 40% 60%
Anand mart 61% 39% 9% 91% 41% 59%
Mobile villa 68% 32% 27% 73% 44% 56%
S.k.Agg.TV.cen 80% 20% 40% 60% 44% 56%
Matrix telecom 37% 63% 50% 50% 30% 70%
Gupta properties 58% 42% 38% 62% 45% 55%
M.D.H enterprises 74% 26% 42% 58% 53% 47%
Mobile city 44% 56% 33% 67% 45% 55%
Vishnu electronics 58% 42% 38% 62% 43% 57%
TOTAL 61% 39% 24% 76% 43% 57%
61
62
STOCK OF DELHI CANTT.
Outlet nameAirtel
market %
Competitor's
market%
Airtel
market%
Competitor's
market%
Airtel
Lapu %
Competitor's
Lapu %
Shri Jain&sons 75.00% 25% 53% 47% 60% 40%
Bhatia telecom 75.00% 25% 45% 55% 45% 55%
Praveen jain &sons 70.97% 29% 56% 44% 56% 44%
Mangal general
store64.52% 35% 57% 43% 48% 52%
Jaiswal comm. 72.73% 27% 55% 45% 48% 52%
Nayyar comm. 75.00% 25% 45% 55% 44% 56%
Ankit comm. 62.50% 38% 52% 48% 56% 44%
Jai singh electronics 76.47% 24% 48% 52% 60% 40%
Jain telecom &
watch66.67% 33% 50% 50% 43% 57%
Total 72.27% 28% 49% 51% 54% 46%
63
64
STOCK OF RAMESH NAGAR
Outlet nameAirtel
market %
Competitor's
market%
Airtel
market%
Competitor's
market%
Airtel
Lapu %
Competitor's
Lapu %
Mohan connection 55% 45% 45% 55% 33% 67%
Gogia art gallery 50% 50% 44% 56% 43% 57%
Aman comm. 63% 38% 42% 58% 42% 58%
Sunny telecomm. 44% 56% 33% 67% 31% 69%
Sunny business 26% 74% 47% 53% 40% 60%
Umang telecomm. 43% 57% 36% 64% 67% 33%
Navneet electronics 54% 46% 54% 46% 43% 57%
Kamal telecomm. 56% 44% 42% 58% 43% 57%
Global shopee 56% 44% 56% 44% 29% 71%
Tailex star 45% 55% 40% 60% 38% 62%
TOTAL 50% 50% 43% 57% 40% 60%
65
66
STOCK OF PUNJABI BAGH
Outlet nameAirtel
markt %
competitor's
market%
Airtel
markt%
competitor's
market%
Airtel
Lapu %
competitor's
Lapu %
Magic gallery 46% 54% 40% 60% 31% 69%
Photo world 40% 60% 40% 60% 35% 65%
Baba hommade 42% 58% 63% 37% 36% 64%
Gift avenue 48% 52% 5% 95% 37% 63%
Airfone 36% 64% 45% 55% 29% 71%
Sheetal electronics 43% 57% 35% 65% 36% 64%
Malhotra properties 38% 63% 38% 62% 36% 64%
Star comm. 43% 57% 30% 70% 36% 64%
Malik comm. 43% 57% 37% 63% 39% 61%
Highway international 44% 56% 29% 71% 38% 62%
TOTAL 43% 57% 38% 62% 35% 65%
67
68
STOCK OF PALAM/MAHAVEER ENCLAVE
Outlet nameSingh
enterprises
shri
radha
krishna
tel.
Bharat
stores
Bagga
comm.
Saurabh
comm.
Bhawna
comm.
Naya
ujala
comm.
Kumar
comm.
Laxmi
general
store
Airtel prepaid
connection stock67% 58% 63% 71% 75% 73% 56% 50% 56%
Competitor's stock 33% 42% 38% 29% 25% 27% 44% 50% 44%
Airtel coupon value 42% 40% 33% 33% 42% 40% 60% 40% 50%
Competitor's coupon
value58% 60% 60% 67% 58% 60% 40% 60% 50%
Airtel Lapu value 45% 40% 50% 56% 48% 47% 42% 40% 38%
Competitor's Lapu
value55% 60% 50% 44% 52% 53% 58% 60% 63%
69
70
FINDINGS
MATCH COMPETITORS SCHEMES.
COMMUNICATE THE SCHEMES TO RETAILERS DAILY.
BETTER NUMBERS IN PRE – PAID AS CUSTOMER REQUIRES
CHOICE.
ENHANCE THE SERVICE IN AREAS WITH WEAK NETWORK.
COORDINATION BETWEEN DEPARTMENTS MUST BE
IMPROVED.
THE ZBM & ZSM MUST VISIT THE ‘A’ CLASS RETAILERS
FREQUENTLY.
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“CONCLUSION”
AIRTEL CONNECTIONS ARE SELLING BECAUSE OF BEST
NETWORK COVERAGE.
GOOD RELATIONSHIP OF FOS. & REATILER IS BEING HELPFUL
IN SELLING.
LARGE MARKET COVERAGE, EASY AVAILABILITY OF
COUPONS.
CUSTOMER CARE NUMBER DOES NOT CONNECTS EASILY
AND EXECUTIVES THERE WERE ALSO NOT AWARE OF THE
SCHEMES.
Websites & Search Engine:
www.airtelworld.com
www.bhartiteleventures.com
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www.researchandmarket.com
www.info-shop.com
www.smartmobs.com
www.yahoosearch.com
AIRTEL’s reports
Books & magazine on mobile communication
Marketing Management by Philip Kotler
Research Methodology by C.R. Kothari
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