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OBJECTIVE OFOBJECTIVE OF
THE STUDYTHE STUDY
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OBJECTIVE OF THE STUDY
1. To identify the difference in market performance of Airtel industry.
2. To analyze the behavior of consumer towards Airtel.
3. To study the market of Airtel Industry in big scale sector.
4. To compare various parameters of manufacturing process, technology,
production policy, advertising, collaboration, export scenario, future
prospect and government policies.
5. To analyze and summarize the data collected so as to provide meaningful
relevant and important information to the company.
6. To gather relevant information regarding various aspects of the Airtel product.
7. To know customers satisfaction level
8. To find out the nearest competitors of the company.
9. To know the impact of all the advertisement and marketing on customers.
10.To know the airtel status in the market as compared to all ther brand in the
market.
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EXECUTIVEEXECUTIVE
SUMMARYSUMMARY
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EXECUTIVE SUMMARYEXECUTIVE SUMMARY
Now a day’s competition in the market is growing day by day, because of
globalization and liberalization. So it becomes difficult for all the organizations to
survive in the market. So to survive in the market it becomes important for all the
organizations to maintain healthy relations with their customers and also to understand
their behavior. This surely provides them an edge over the competitor.
Marketing management usually represents all managerial efforts and functions
to operate the marketing concept not only in letter but also in spirit. Marketing
concept demands customer oriented marketing plans, programs and policies; so that
the market can assured perfect positive correlations between the supply and demand
i.e. bundle of customer’s desires and expectations. The survival and growth of any
business depends not only upon profitability but also on customer satisfaction and
their behavior.
The report begins with the history of the products and the
introduction of the Airtel Company. This report also contains the basic
marketing strategies that are used by the Airtel Company of manufacturing
process, technology, production policy, advertising, future prospect and
government policies. This report also contains questionnaire related
consumer behavior towards Airtel.
This research work deals with surveying customers for knowing their
behavior towards Airtel. The sample size taken for this report is 50 in whole Delhi.
This is a descriptive research and the data collected in this research is first hand so it is
primary data. The data is collected through questionnaire method and the instrumental
used for data analysis is tabulation of data, bar chart and pie chart.
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CHAPTER-1
INTRODUCTION
TO THE TOPIC
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INTRODUCTION
In the early 1990s, the Indian government adopted a new economic policy aimed at
improving India's competitiveness in the global markets and the rapid growth of
exports. Key to achieving these goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,
Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India.
The circles are further classified under "A," "B" and "C," with the "A" circle being the
most attractive and "C" being the least attractive. The regulatory body at that time —
the Department of Telecommunications (DOT) — allocated two cellular licenses for
each metro and circle. Thirty-four licenses for GSM900 cellular services were
auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra
in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in
more than one metro, three circles or both. The circles of Jammu and Kashmir and
Andaman and Nicobar had no bidders, while West Bengal and Assam had only one
bidder each.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the
Lok Sabha, and the president officially announced the TRAI ordinance on 25 January
1997. The government decided to set up TRAI to separate regulatory functions from
policy formulation, licensing and telecom operations. Prior to the creation of TRAI,
these functions were the sole responsibility of the DOT.
High license fees and excessive bids for the cellular licenses put tremendous financial
burden on the operators, diverting funds away from network development and
enhancements. As a result, by 1999 many operators failed to pay their license fees and
were in danger of having their licenses withdrawn. In March 1999, a new telecom
policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the
old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby
between 8-12 percent of cellular revenue were to be paid to the government.
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1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR
RESOLUTION
Indian Cellular market immediately after the first round of licensing in 1994-96 was
beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was
announced. Some of these roadblocks / current position are tabulated below:
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ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements
for payment of license fees.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at over 60% per annum,
while businesses with weak promoters continuing to languish - spate of acquisitions /
mergers, with 4/5 major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being
accepted by all operators; Department of Telecommunications (DOT) restructured,
with operations and policy making roles vested in different bodies.
Issues relating to unfavorable interconnect terms for private operators, pass through
income, intra circle long distance, spectrum availability and allocation and the like
remained unresolved for long periods.
Interconnect terms since rationalized, risks on pass through income to DOT /
BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties
with changes in methodology / revenue sharing, intra circle long distance allowed,
spectrum availability cleared with vacation of frequencies for usage by GSM
operators.
Problems in Financial closures due to:
Licensing tenure of 10 years
Large upfront cash requirements from promoters due to heavy license fee
burden in initial stages of deployment Asset based financing approach by
Indian Financial Institutions.
Licensing tenure increased from 10 to 20 years
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Large upfront cash requirements for license fee payments mitigated with
migration to revenue sharing mode allowing promoters to deploy more capital
for capital expenditure; project financing being considered by most financial
institutions.
Foreign ownership / change of partner limitations
Foreign ownership norms clarified, and change of partners allowed as a matter of
routine allowing ease of entry / exit - paves the way for full control of businesses by
foreign companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with
corrective measures taken, market / subscriber base expected to zoom
1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY
The interconnection regime between cellular operators and fixed-line operators is still
biased against the former.
Despite the recent gains of the cellular industry, not everything is rosy. The cellular
penetration rate is still very low at 0.8 percent in a nation of over one billion people.
In recent years, many foreign companies had pulled out from their cellular joint
ventures in India due to the difficult operating environment and bureaucracy. In 1999
alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both
the Telecom Organization of Thailand and Jasmine International from JT Mobile. In
2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra
of Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from
Bharti Cellular. Bell South International has also indicated its intention to pull out
from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its
stake in Spice Communications. First Pacific's (based in Hong Kong) continued
commitment to Escotel is uncertain, and the former is reviewing various options.
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The string of sell-outs notwithstanding, there has been a merger and acquisition wave
sweeping across the Indian cellular industry in recent years. Hong Kong-based
Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major
stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and
Fascel (September 2000). Through a partnership with local company, Kodak
Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin
Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian
cellular operators. Hutchison Whampoa is also the controlling shareholder of
Hutchison Max Telecom. Not to be outdone, Bharti Enterprises — another major
cellular player — acquired control of JT Telecom, which was later renamed Bharti
Mobile (December 1999), and Skycell Communications renamed Bharti Mobinet
(August 2000). Bharti also acquired the Punjab license of Essar and started operations,
giving competition to the lone operator there, Spice Communications. Going forward,
Bharti is likely to merge all its cellular companies into one entity.
Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator
slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new
licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea
cellular with one each. Bharti and Hutchison have already commenced operations in
all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made
any headway.
BHARTI, the third cellular operator for Delhi and Mumbai, started services in March
2001. BSNL, as the third nationwide cellular operator, launched services in Kolkata
and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A
nationwide launch was scheduled for 2 October 2002. However, this has been
postponed until after mid October. Once BSNL rolls out its service, most telecom
circles will have four cellular operators. There will be tremendous competitive
pressure, which will result in lower tariffs. Future rate cuts are expected, which will
drive demand, together with falling handset prices and the introduction of prepaid
services.
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In the midst of declining interest in technology stocks, Bharti came out with its long-
awaited initial public offering (IPO) in January 2002. Leveraging on the success of its
cellular service, the company got a very good response from the primary market. The
total size of the IPO was 185 million shares at a floor price of Rs10. The issue was
oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel
its investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial general packet radio
service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both
Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch
the service. With hardly any applications, the success of GPRS remains a question.
Building visibility and awareness
Deviating from competing on the price platform, cellular operators are actively
promoting their brand and service portfolio through high-visibility advertising and
promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have
been advertising aggressively on hoardings and kiosks. Public transport like the city
rail system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the
establishment of longstanding consumer benefit programs. Orange in Mumbai offers
"Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added
benefits like discounts on airfare, food and beverages, among others. Others offer
special privileges in retail outlets, cinemas and music shops.
Enterprise mobile applications — promising revenue stream
All along, customer acquisition and the top line have been the focus. Few operators
have concentrated on offering differentiated services for businesses. However, as
operators realize that offering basic voice and Short Message Service (SMS) will get
them the numbers but not the margins, some are now seriously looking at the
enterprise segment for provisioning superior services.
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Cost-centered solutions like closed user group (CUG), value-adds like unified
messaging and instant alerts are being offered.
A variety of mobile applications are finding takers among the enterprise segment.
Bharti is in the process of introducing a facility to fleet management companies so that
they can improve the efficiency of trucks or buses by tracking movement and ensuring
higher-use, accurate route planning. Premium automakers are also installing a global
system for mobile communications inside a vehicle to help trace lost vehicles and
track down stolen cars.
Corporations can choose enhanced services like user-defined call routing to prevent
misuse. Calls can be barred, limiting access to select numbers and diverting calls to
one single number. Broadcasting services are also quite popular, especially among fast
food centers that have a central number. Group SMS is quite popular, especially
among enterprises both in the service as well as the fast-moving consumer goods
(FMCG) segment that have a large field force and need to provide regular updates on
inventory status, discount schemes and movement of goods from warehouse to the
retail outlet. Banks too find bulk SMS service very useful to forward transactional
alerts to their customers.
1.3 FUTURE TRENDS AND DEVELOPMENT
There will be more competition, forcing operators to constantly focus on
differentiations to maintain their lead.
The implementation of enhanced networks like 2.5G will enable operators to
offer data services. This is an opportunity to customize and differentiate better.
The entry of state-run operators like BSNL and BHARTI means that prices will
no longer be controlled, thus there is less chance of a cartel being formed.
Network coverage in terms of geographic spread and quality of coverage is
crucial especially for the business subscriber.
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The bigger the service provider's national presence, the better it is for
businesses. On the roaming front, signing up with a national operator is
advantageous.
Limited mobility wireless in local-loop services (by fixed network service
providers) will be a disadvantage for cellular operators in the short term.
Consequently, operators need to streamline their customer relation activities
and adopt aggressive subscriber acquisition and retention strategies.
1.4 REGULATORY ISSUES
The operations of this sector are determined as under the Indian Telegraph Act of
1885. A document buried in the sands of time. The next major policy document,
which was produced, was the National Telecom Policy of 1994, a consequence of the
ongoing process of liberalization.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
1985 DoT was created
1986 Creation of BHARTI and VSNL
1991 Telecom equipment liberalized
1994 Licenses for paging
1994 Telecom policy announced
September 1994 Guidelines for private sector participation in basic services
November 1994 Cellular licenses issued for metros
December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros
January 1995 Tenders for 2nd operator in basic services apart from DoT on
circle basis.
August 1995 VSNL launches Internet services
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January 1996 TRAI formed
November 1998 Internet policy announced
The National Telecom Policy of 1994 document, which laid out broad policy
guidelines rather than a series of action points. Like other policies, it sought to achieve
the impossible in finite time like improve quality of service and its availability, wide
coverage (a phone in every village), at reasonable rates, etc. The targets in quantifiable
terms were installation of 9.5mn additional lines, telephone on demand by 1997, and a
PCO pop of 500. The Eighth Plan had also allowed private operators in value added
services. To facilitate licensing, the nation was divided into 20 circles (akin to a state)
for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and
Delhi in itself a circle.
The basic premise on which competition has been introduced is that every circle will
have one private operator apart from DoT/ BHARTI for basic and two operators for
cellular. DoT/ BHARTI have the option to become the third cellular operator in
future.
Government did not achieve most of its stated targets. The basic theme, which was
broadening the reach of telephony in India, has not been met. Even liberalization
policies were not implemented properly. The regulator TRAI was set up after delays
and confusion and even after its creation, DoT continued to fight with it in courts. It
was also affected by the resource crunch, and financing options like BOT, BOOT and
BOLT was not used at all. The major policy direction it showed was to allow private
sector entry in both basic and value added services. The intention, though noble failed
to achieve its goals because of improper implementation, the economic costs are still
borne by the end user.
The telecom sector has witnessed some fundamental structural and institutional
reforms in the past decade. telecom equipment manufacturing was completely
deregulated in 1991. Value-added services (including cellular services) were thrown
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open to private sector participation in 1992. Basic services were opened to private
participation in 1994 by dividing the country into 21 telecom Circles and allowing one
private operator per Circle to compete with DoT. An independent telecom regulatory
Authority of India was set up in 1997. A new Policy for Internet Service Policy
Providers (ISPs) was announced in 1998 allowing independent service providers to
enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT,
separating policymaking function and service provision and corporatization of DoT's
operational network are two major institutional reforms, which need to be
implemented.
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COMPANY
PROFILE
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COMPANY PROFILE
Airtel’s Background
Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of
telecommunications services. The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBU‘s) - mobile services, telemedia services
(ATS) & enterprise services. The mobile services group provides GSM mobile
services across India in 23 telecom circles, while the B&T business group provides
broadband & telephone services in 94 cities. The Enterprise services group has two
sub-units - carriers (long distance services) and services to corporate. All these
services are provided under the Airtel brand.
Fact sheet
Name Bharti Airtel Limited.
Business Description Provides mobile, telemedia services (fixed line) and enterprise services (carriers & services to corporates)
Established July 07, 1995, as a Public Limited Company
ProportionateRevenue
Rs. 184,202 millionRs. 117,255 millionAs per Indian GAAP Accounts
ProportionateEBITDA
Rs. 74,407 millionRs. 42,250 million)As per Indian GAAP Accounts
Shares in Issue 1,897,148,464
Listings The Stock Exchange, Mumbai (BSE)The National Stock Exchange of India Limited (NSE)
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Customer Base 64,370,434 GSM mobile and 2,319,509 telemedia customers
OperationalNetwork
Provides GSM mobile services in all the 23 telecom circles inIndia, and was the first private operator to have an all India presence.Provides telemedia services (fixed line) in 94 cities in India.
Registered Office Bharti Airtel Limited(A Bharti Enterprise)Qutab Ambience (at Qutab Minar), Mehrauli Road,New Delhi - 110 030
Bharti Airtel - Organization Structure
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Vision
"As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world and
put it at the service of our ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan of action.
Established in 1985, Bharti has been a pioneering force in the telecom sector. With
many firsts and innovations to its credit, ranging from being the first mobile service in
Delhi, first private basic telephone service provider in the country, first Indian
company to provide comprehensive telecom services outside India in Seychelles and
first private sector service provider to launch National Long Distance Services in
India. Bharti had approximately 3.21 million total customers – nearly 2.88 million
mobile and 334,000 fixed line customers.
Its services sector businesses include mobile operations in Andhra Pradesh, Chennai,
Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya
Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh
(West) circle. In addition, it also has a fixed-line operations in the states of Madhya
Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide
broadband and long distance networks.
Bharti has recently launched national long distance services by offering data
transmission services and voice transmission services for calls originating and
terminating on most of India's mobile networks.
The Company is also implementing a submarine cable project connecting Chennai-
Singapore for providing international bandwidth. Bharti Enterprises also manufactures
and exports telephone terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments, it is also the first telecom company to export
its products to the USA.
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Bharti Tele-Ventures' strategic objective is “to capitalise on the growth opportunities
that the Company believes are available in the Indian telecommunications market and
consolidate its position to be the leading integrated telecommunications services
provider in key markets in India, with a focus on providing mobile services”.
The Company has developed the following strategies to achieve its strategic objective:
Focus on maximizing revenues and margins;
Capture maximum telecommunications revenue potential with minimum
geographical coverage;
Offer multiple telecommunications services to provide customers with a "one-
stop shop" solution;
Position itself to tap data transmission opportunities and offer advanced mobile
data services;
Focus on satisfying and retaining customers by ensuring high level of customer
satisfaction;
Leverage strengths of its strategic and financial partners; and
Emphasize on human resource development to achieve operational efficiencies.
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's
largest Telecom Business operator with more than 75 million subscribers It also offers
fixed line services and broadband services. It offers its TELECOM services under the
Airtel brand and is headed by Sunil Mittal. The company also provides telephone
services and Internet access over DSL in 14 circles. The company complements its
mobile, broadband & telephone services with national and international long distance
services. The company also has a submarine cable landing station at Chennai, which
connects the submarine cable connecting Chennai and Singapore. The company
provides end-to-end data and enterprise services to the corporate customers through its
nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile
circles, VSATs, ISP and international bandwidth access through the gateways and
landing station.
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Airtel’s Preformance
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Airtel is the largest cellular service provider in India in terms of number of
subscribers. Bharti Airtel owns the Airtel brand and provides the following services
under the brand name Airtel: Mobile Services (using GSM Technology), Broadband
& Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line),
Long Distance Services and Enterprise Services (Telecommunications Consulting for
corporates). It has presence in all 23 circles of the country and covers 71% of the
current population .In April 2006 Bharti Global Limited was awarded a
telecommunications licence in Jersey in the Channel Islands by the local
telecommunications regulator the JCRA. In September 2006 the Office of Utility
Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications
licence. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a
relationship with Vodafone for Island mobile subscribers. In July 2007, Bharti Airtel
signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile
and fixed network. In March 2008, Bharti Airtel rolled out third generation services in
Sri Lanka in association with Singtel. This is because Singapore-based Asian telecom
major Singtel, which owns a little over 30% in Bharti Airtel, is a major player in the
3G space as it has already third generation networks in several markets across Asia.
Businesses
Bharti Tele-Ventures current businesses include -
Mobile services
Fixed-line
National and international long distance services
VSAT, Internet services and network solutions
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Competitive Strengths
Bharti Tele-Ventures believes that the following elements will contribute to the
Company's success as an integrated telecommunication services provider in India and
will provide the Company with a solid foundation to execute its business strategy:
Nationwide Footprint - approximately 92% of India's total mobile subscribers
resided in the Company's fifteen mobile circles. These 15 circles collectively
accounted for approximately 56% of India's land mass;
Focus on telecommunications to enable the Company to better anticipate
industry trends and capitalize on new telecommunications-related business
opportunities;
The strong brand name recognition and a reputation for offering high quality
service to its customers;
Quality management team with vision and proven execution skills; and
The Company's strong relationships with international strategic and financial
investors such as SingTel, Warburg Pincus, International Finance Corporation,
Asian Infrastructure Fund Group and New York Life Insurance.
Brand Strategy
To understand the brand strategy, let’s first look at the brand building exercise
associated with AirTel — a brand that had to be repositioned recently to address new
needs in the market.
When the brand was launched seven years ago, cellular telephony wasn’t a mass
market by any means. For the average consumer, owning a cellular phone was
expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep —
sometimes as much as buying a second-hand car.
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Bharti could have addressed the customer by rationally explaining to him the
economic advantage of using a mobile phone. But Sachdev says that such a strategy
would not have worked for the simple reason that the value from using the phone at
the time was not commensurate with the cost.
“Instead of the value-proposition model, we decided to address the sensory benefit it
gave to the customer as the main selling tack. The idea was to become a badge value
brand,” he explains.
So the AirTel “leadership series” campaign was launched showing successful men
with their laptops and in their deluxe cars using the mobile phone. In simple terms, it
meant AirTel was positioned as an aspirational brand that was meant for leaders, for
customers who stood out in a crowd.
Did it work? Repeated surveys following the launch showed that there were three core
benefits that were clearly associated with the brand — leadership, dynamism and
performance.
These were valuable qualities, but they only took AirTel far enough to establish its
presence in the market. As tariffs started dropping, it became necessary for AirTel to
appeal to a wider audience. And the various brand-tracking exercises showed that
despite all these good things, there was no emotional dimension to the brand — it was
perceived as cold, distant and efficient.
Sachdev and his team realized that in a business in which customer relationships were
the core this could be a major weakness. The reason? With tariffs identical to
competitor Essar and roughly the same level of service and schemes, it had now
become important for Bharti to “humanize” AirTel and use that relationship as a major
differentiation.
The brand had become something like Lufthansa — cold and efficient. What they
needed was to become Singapore Airlines, efficient but also human. A change in tack
was important because this was a time when the cellular market was changing.
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The leadership series was okay when you were wooing the crème de la crème of
society. Once you reached them you had to expand the market so there was need to
address to new customers.
By that time, Bharti was already the leading cellular subscriber in Delhi with a base of
3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more
affordable — as cell companies started cutting prices — it was time to expand the
market.
How could Bharti leverage this leadership position down the value chain? Surveys
showed that the concept of leadership in the customer’s minds was also changing.
Leadership did not mean directing subordinates to execute orders but to work along
with a team to achieve common objectives — it was, again, a relationship game that
needed to be reflected in the AirTel brand.
Also, a survey showed that 50 per cent of the new customers choose a mobile phone
brand mostly through word-of-mouth endorsements from friends, family or
colleagues. Thus, existing customers were an important tool for market expansion and
Bharti now focused on building closer relationships with them.
That is precisely what the brand tried to achieve through its new positioning under the
AirTel “Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile
users surrounded by caring family members. Says Sachdev: “The new campaign and
positioning was designed to highlight the relationship angle and make the brand softer
and more sensitive.”
As it looks to expand its cellular services nationwide —to eight new circles apart from
the seven in which it already operates — Bharti is now realizing that there are new
compulsions to rework the AirTel brand, and a new exercise is being launched to this
effect. Right now, the company is unwilling to discuss the new positioning in detail.
But broadly, the focus is on positioning AirTel as a power brand with numerous
regional sub-brands reflecting customer needs in various parts of the country.
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If AirTel is becoming more humane and more sensitive as a brand, Bharti has also
understood that one common brand for all cellular operations might not always work
in urban markets that are now getting increasingly saturated.
To bring in new customers, the company decided that it needed to segment the market.
One such experiment, launched last year, is Youtopia, a brand aimed at the youth in
the 14 to 19 age bracket and for those who are “young at heart”. With its earlier
positioning, AirTel was perceived as a brand for the well-heeled older customer; there
was nothing for younger people. With Youtopia, AirTel hoped to reverse that.
In order to deliver the concept, AirTel offered rock bottom tariff rates (25 paise for 30
seconds) at night to Youtopia customers — a time when they make the maximum
number of calls. It also set up merchandising exercises around the scheme — like a
special portal for young people to buy things or bid for goods.
The company is now looking at offering other services at affordable prices to this
segment which include music downloads on the mobile and bundling SMS rates with
normal calls to make it cheaper for young people to use.
The other experiment that Bharti has worked on is to go in for product segmentation
through the Tango brand name. The brand was created to offer mobile users Internet-
interface services or what is known as WAP (Wireless Application Protocol).
The idea was to bring Internet and mobile in perfect harmony. “The name was chosen
from the popular movie title It Takes Two To Tango: basically, you need the two
services to tango to offer customers a new choice”, says Sachdev.
This, however, had less to do with the branding exercise as with inefficiency of
service (accusingly slow download speeds) and the limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated that the branding
exercise could be revived because Tango will be the brand to offer GPRS services —
or permanent Internet connectivity on the mobile phone — which AirTel is expected
to launch soon.
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O ther Brand Building Initiatives:-
The main idea is to stay ahead of competition for at least six months. Working on the
above game plan Bharti is constantly coming up with newer product offerings for the
customers.
The focus, of course, is to offer better quality of service.
To make the service simpler for customers using roaming facilities, Airtel has
devised common numbers for subscribers across the country for services like
customer care, food services and cinema amongst others.
It will also launch a unified billing system across circles so, customers moving
from one place to another do not have to close and then again open new
accounts at another place.
To assist customer care personnel to deal with subscriber queries, a storehouse
of 40,000 frequently asked questions and their answers have been stored on the
computers.
Bharti expects that most of its new customers (one estimate is that it would be
60 to 70 per cent of the total new subscriber base) would come from the pre-
paid card segment. So, they must be given value-added products and services
which competitors don’t provide.
Bharti, for the first time for a cellular operator, has decided to offer roaming
services even to its pre-paid customers, but the facility would be limited to the
region in which they buy the card. To ensure that customers don’t migrate to
other competing services (which is known as churn and ranges from 10 to 15
per cent of the customer base every month), the company is also working on a
loyalty program. This will offer subscribers tangible cash benefits depending
upon their usage of the phone.
The loyalty program will not be only for a ‘badge value’, it will provide real
benefits to customers. The idea is to create an Airtel community.
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Another key area which Bharti is concentrating its attention upon is a new
roaming service launched in Delhi under which calls of a roaming subscriber
who is visiting the city will be routed directly to his mobile instead of traveling
via his home network.
The company also offers multi-media messaging systems under which
customers having a specialized phone with a in-built camera can take pictures
and e-mail it to friends or store it in the phone. The cost per picture is between
Rs 5 to Rs 7.
Bharti is also aware that it has to make owning a ready-to-use cellular service
much easier than it is today. A key area is to increase the number of activation
centers. Earlier Bharti had 250 Airtel Connect stores which were exclusive
outlets (for its services) and about 250 Airtel Points which were kiosks in larger
shops. Now activation can be done by all of them, and not only by Connect
outlets, all within 15 to 20 minutes. In comparison, the competition takes two to
four hours.
Pre- paid cards are really catching up with the mobile phone users and it is
actually helping the market to increase. First, they are easier to obtain and
convenient to use. Unlike post-paid, one need not pay security deposits for
picking up a pre-paid card. It is often available even with paanwalas. As befits a
fast-moving consumer service, the game is now moving beyond price to
expanding distribution reach and servicing a well-spread-out clientele with
technology and strategic alliances. Bharti is focusing on two factors to make
pre-paid cards more attractive. Keeping the entry cost low for consumers and
making recharging more convenience.
Bharti is in the process of launching a new system in alliance with Mumbai-
based company Venture Infotech which will enable a pre-paid card user to
renew his subscription by just swiping a card. The system will not only save
users the hassle of going out and buying a card every time it expires but also
enable mobile companies to reduce the cost of printing and distributing cards.
28
Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering
food at home, to reach its Magic pre-paid cards to subscribers' doorsteps. The
company is also joining hands with local grocery shops which will enable users
to recharge their cards by just making a phone call to the shop. Apart from
improving the convenience of recharging, mobile operators are beefing up their
distribution channels. The company is constantly innovating to enhance the
value proposition for its pre-paid service. They are leveraging technology to
expand their distribution network and deliver round-the-clock recharge options
to its MOTS (Mobile On the Spot) subscribers.
Bharti Cellular has also launched a special service, CareTouch, for high-value,
corporate customers, providing them with instant, single-point access for any
assistance they require. Customers can dial 777 and enjoy a slew of services,
which includes easier payment of bills, service on priority basis, and value-
added services without any additional paper work. Bharti Cellular is offering a
range of services without going through an interactive voice recorder ensuring
that they save time. Dedicated ‘CareTouch’ executives are expected to assist
customers with any service on priority basis. Besides the regular proactive
reminder calls for bill payment, customers can also call CareTouch for bill
payments at free of cost.
Airtel presented MTV Inbox; the first ‘on-air’ SMS based interactive music
dedication show exclusively for AirTel and AirTel Magic customers. Highly
interactive VJ based show with real-time feedback mechanism. Both brands
joined hands to target the high growth youth segment.
Stakeholder engagement and material issues
Airtel’s approach to responsible business activities is through regular engagement
with its internal and external stakeholders to confirm issues of importance. This is
then aligned with its governance framework and management approach. Airtel
engages with its stakeholders i.e. employees, customers, suppliers, business partners,
29
the community, investors and regulatory bodies on an ongoing basis to help crystallise
the range of significant or material issues. The stakeholder engagement process is
reviewed and the materiality assessment is performed once in every two years,
depending upon the requirements. During 2012, the stakeholders put forth the
following areas as focus areas for Airtel – better levels of customer service and
increased customer satisfaction, digital inclusion to catalyze social inclusion and
economic parity, fuel consumption and alternate cleaner energy sources, employee
engagement, climate change and waste management.
The four material issues that Airtel focuses on emerged basis those that were most
important to stakeholders, best aligned with the businessand on which Airtel
operations had significant impact. In order to address these issues through its
governance structure, Airtel has formulated policies and management approaches
around each issue. Every material issue is governed by a member of the company’s
Management Board.
These 4 material issues are –
• Customer service and satisfaction: This parameter is the raison d’etre of our
business existence; therefore, we continuously measure and work to enhance customer
satisfaction and engagement levels.
• Digital inclusion to catalyze social inclusion and economic parity: At Airtel,
it is our endeavour that our robust network and far-reaching distribution helps bring
millions into digi presence, making a positive impact on the community at large.
• Energy and climate change: Airtel is committed to minimizing the negative
impact of its services on the environment. Reducing the carbon footprint, working
towards a sustained decline in our infrastructure GHG emissions, reliance on alternate
30
green sources of energy and increasing resource efficiency are other ways that Airtel
is addressing this issue.
• Waste management and resource optimisation: Airtel’s effort is to minimize
waste that is generated by its operations and to ensure end-to-end traceability and
recycling of both physical waste and e-waste.
These material issues are critical to being able to stay true to the organizational vision
of “enriching lives.” They are, therefore, reviewed and assessed every two years. The
entire process of stakeholder engagement and deriving material issues is due to
be undertaken again next year as part of the two year review process.
Bharti’s View on its Branding strategy:-
First, brand building efforts in today’s context have to be seen in a more holistic
manner. Delivering value on a sustained basis is perhaps the most potent key to build a
brand that lasts.
Unflinching orientation to customer needs is the second key success factor. Customers
(be it for industrial products or consumer goods and services) across the world are
more informed and, at the same time, becoming more individualistic in their needs and
far more demanding with the passage of time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging
customer needs, and then reacting in “real-time” are essential to attract and retain
customer loyalty — a key element of creating brand equity in the present situation.
Customizing the product (and communication of its benefit) to meet the specific needs
of various consumer/customer sub-segments is the third element in creating brand
appreciation.
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As far as allocation of time and financial resources are concerned, too many
companies mistakenly allocate a disproportionate amount on mere advertising and
promotion. This is not to say that advertising and promotion are less relevant. On the
contrary, with more choices and higher media clutter, businesses need to budget for an
increasingly higher spend on their brand promotion but this has to be undertaken in
tandem with enterprise-wide “reengineering” of the business philosophy and core
design, production, and delivery operations for the product itself.
The positive spin to this argument is that by first addressing the fundamentals, the
enterprise itself becomes more competitive. This can be the beginning of a virtuous
cycle wherein brand equity continues to increase as the enterprise sustains delivery of
an appropriate product or service at an ever increasing value.
It is, however, crucial to note that in the years to come, not only will the cost of
building a regional or a national (or an international) brand will continue to rise but
also the time taken to do so will be longer and will need sustained and focused efforts.
Airtel money - Leading the transformation
Airtel Money is India’s first mobile wallet service by a mobile operator. It can run on
any Airtel GSM, through a simple, non-internet based menu on anybasic phone, or
through a powerful smartphone app on all leading mobile platforms. An alternative to
other payment options including cash, customers can use Airtel Money for an
extensive range of services across merchants to pay for remote transactions like
instant money transfers, booking railway and movie tickets, paying for utility bills,
insurance premiums, recharging phones, DTH and for physical transactions like
shopping.
Registration is simple and can be done throughdialing *400# online, dialing the
customer awarenesshelpline or by visiting the nearest airtel retailer.
32
While getting a bank account can be intimidating for the uninitiated and finding a
bank branch might be challenging in rural areas, registering for an airtel money
account on the phone is easy. With the evolution to airtel money, other financial
products and services like micro-insurance and micro-investments will provide greater
value for the people.
To provide savings as a proposition among the masses, Airtel Money offers Super
Account, its Axis Bank partnered product in UP, Bihar, Delhi and Mumbai. Super
Account provides the facility of withdrawing cash and helps people earn interest on
their deposits.
Airtel Money has also partnered with MFIs like Swadhaar for furthering its financial
inclusion agenda. Micro Savings are promoted through the Small Savings Bank a/c of
Axis bank that makes transacting convenient through a simplified, mobile-based
platform at the nearest airtel outlet, which becomes the teller the at customers'
doorstep metaphorically. Airtel Money thus brings with it the scope for product and
delivery innovation, extending "Micro Pensions/Insurance" using economies of
scale, and takes cash management out of the MFI's domain, thus saving on cost and
time which can be utilized in further business and product development. It is foreseen
that these customers, especially women, will inculcate a habit of savings
without fear of loss or theft and should feel empowered by way of this powerful
digital tool. In addition, Airtel is looking to partner with Government bodies to
provide efficiency and transparency to Government to Customer (G2C) payments like
PDS, LPG, pensions, scholarships, health payments, SHG loans, etc.
Airtel Money can help support these public service initiatives by allowing the
Government to seamlessly send money to the pre-registered Airtel Money has made it
easy for the common man to get access to a secure and convenient payment channel. It
has provided empowerment and helped create a difference in people’s lives.
Airtel Money has commenced the journey of financial inclusion in India and has the
potential to bring about a sweeping change in the nation's socio-economic landscape.
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It can shift the focus from cash-to-mobile as a swift and convenient mode of payment
and diminish the distance between banks and customers, creating a
revolution in the lives of many.
Airtel customer care principles:
• Self service for better standards of customer care
• Innovative services for individuals and enterprise
• Safeguarding customer privacy and interests and data-security
• Enhancing customer satisfaction
My Airtel My Offer (MAMO)
My Airtel My Offer (MAMO) is an innovative and highly personalized product that
enables Customers anywhere to choose from a variety of online offers and services. It
offers the customer a choice of local, STD, ISD, SMS and data packs and is easily
accessible through multiple channels. MAMO offers the consumer convenience,
round the clock accessibility and renewability.
34
CHAPTER-2
RESEARCH
METHODOLOGY
35
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problems. In it we
study the various steps that are generally adopted by a researcher in studying his
research problems along with the logic behind them. It is necessary for the researcher
to know not only the research methods. Researchers not only need to know how to
develop certain indices or tests, how to calculate the mean, the mode, the median or
the standard deviation or chi square, how to apply particular research techniques, but
they also need to know which of these methods or techniques are relevant.
RESEARCH PROCESS
Research process consists of series of steps necessary to effectively carry out research
and he desired sequencing of these steps. However it should be kept in mind that these
research steps are mutually neither exclusive nor they are separate and distinct.
The following order concerning various steps provides a useful procedural guideline regarding the research process.
1. Identify and formulate the problem.
2. Choose the research design.
3. Determine the information needs.
4. Design data collection forms.
5. Determine sample design and sample size.
6. Organize and conduct field survey.
7. Analyze and interpret the collected data.
8. Prepare the research report.
36
RESEARCH DESIGN
A research design is simply a plan or framework for a study that is used in collecting
and analyzing the data. This framework is to ensure that relevant information is
collected and that too depending upon the objectives of the study.
According to Green & Tull, “A research design is the specification of methods and
procedures for acquiring the information needed. It is the overall operational pattern
or framework of the project that stipulates what information is to be collected from
which sources by what procedures.”
The research design can be classified into three categories – Exploratory, descriptive,
and casual:
Exploratory Research
It seeks to discover new relationships, emphasis on discovery of ideas. This research
is used when very little is known about the problem being examined. Exploratory
research studies are also termed as formulative research studies as its main purpose is
to formulate a problem. Exploratory research is used here is flexible and the areas
where this type of research used are to know the:
Brand preference
Attitude of the customers
Market potential
Buyer's behavior
Consumer's awareness.
The purpose of this type of research is to gain insight into problem. The research
design used for the project at hand is of exploratory in nature. Exploratory research
is always based on small non-representative samples and data obtained are
subjected to qualitative analysis.
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Exploratory research helps to gather information about practical problems in
carrying out the research and to provide insight into, and an understanding of, the
problem confronting the researcher.
DESCRIPTIVE RESEARCH
It attempts to determine the frequency with something occurs or the relationship
between two phenomenon's. It is a type of conclusive research that has its major
objective of describing something like market characteristics or functions.
Descriptive research gives a clear statement of the problem, specifies hypothesis,
and detailed information needs. It is conducted for the for the reasons like to
describe characteristics of relevant group are associated and to make specific
predictions, to estimate the percentage of units in a specified population exhibiting
a certain behavior, to determine the perceptions of product characteristics, to
determine the degree to which marketing variables. A descriptive design requires a
clear specification of who, what, when, where, why, and way of research.
Descriptive research used the following methods:-
Observation
Questionnaires
Interviews
Examination of records
Some of the examples are:
Market studies
Market share studies
Sales analysis studies
Image studies.
CAUSAL RESEARCH
38
These designs often adopted in order to discover and determine the cause and effect
relationship. It is also experimental research as its major objective is to obtain
evidence regarding cause and effect relationship. It requires a planned and structured
design. The main method of experiment research is experimentation and hypotheses
are specific. Experimental research is useful in cases where variables are manipulated
in a relatively controlled environment.
SOURCE OF COLLECTING DATA
PRIMARY DATA
Primary data are those which are collected afresh and for the first time and thus
happen to be original in nature. The methods of primary data collection are through.
Observation
Interview method
Questionnaire
Schedules.
Primary data was collected using the following techniques.
Questionnaire Method, Direct Interview Method and Observation Method.
The main tool used was, the questionnaire method. Further direct interview method,
where a face to face formal interview was taken. Lastly observation method had been
continuously observes the surrounding environment.
SECONDARY DATA
Secondary data has been used to support primary data wherever needed.
39
It is used to obtain information on, Airtel and its competitor history, current
issues, policies, procedures etc, wherever required.
SOURCES OF SECONDARY DATA
Websites
Magazines
Newspapers, etc.
TYPE OF RESEARCH
This is descriptive research as this research includes surveys and fact finding inquires
of different kinds. So descriptive research help in knowing about particular item or
group of items in other words it describes the state as it exist at present.
SAMPLE SIZE
The sample size taken for this research is 50.
DATA COLLECTION
The data collected in this research is first hand so it is primary data. It is collected
directly from the respondent through questionnaire and through visualization.
DATA COLLECTON METHOD
40
The data was collected through research questionnaire method and through
visualization for franchise analysis. A questionnaire was framed then data collected by
making it fill by different respondent.
SAMPLE TECHNIQUES
Sampling techniques used in judgment sampling. As the selection of sample was done
according to the researcher's own discretion and all effort were made to keep the
research objective.
DATA ANALYSIS TECHNIQUES
Analysis of data is done through quantitative method that is numerical figures
expressed in percentage.
DATA ANALYSIS INSTRUMENT
Instrument used for data analysis is tabulation of data, Bar chart and pie chart.
41
DATA
ANALYSIS
42
Age group of consumers towards mobile phone:
SR.NO AGE GROUP PERCENTAGE (%)
1 Below 20 30
2 20-30 38
3 30-40 22
4 Above 40 10
Interpretation:As we can see from the above chart, the people who are in the age group of 20-30
years are the ones who are the maximum users of mobile phones. This segment is the
one which gives maximum business to the mobile operators. This segment constitutes
the students and office going people. They are 38% of the total people who were
interviewed. The next age group is the youngest generation who are below 20 years
old. They are school and college going students. They are 30% of the total interviewed
people. The next age groups are the people who are 30-40 years old. They are 22% of
the total. The next age groups are above 40.
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Percentage of male and female consumer:
SR NO. OPTIONS PERCENTAGE (%)
1 Male 54
2 Female 46
Interpretation:
As we can see from the above chart, males are the maximum user of cellular phone.They are the 54% of the total people who are interviewed. The next group are of females they are 46% of total.
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Occupation of consumer:
SR.NO OCCUPATION PERCENTAGE (%)
1 Student 42
2 Service 30
3 Self-employed 10
4 Unemployed 18
Interpretation:
As the above chart shows that 42% of the total people interviewed are students. So, these people are the ones who are the maximum users of mobile phones. The next group are those who are doing service, they are 30% of total. They are the young executives, office going, managers, Tele - callers etc. who require mobile for their official purposes. The next group is of unemployed people, they are 18% of total people interviewed. These are those who are searching for job, housewife and retired people. The next group is of self-employed people these are 10% of total people interviewed.
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Which cellular service provider is used by all?
SR.NO Cellular service provider PERCENTAGE (%)
1 Airtel 38
2 Vodafone 36
3 Idea 10
4 Reliance 8
5 Tata Docomo 0
6 BSNL/MTNL 2
7 Any Other 6
Interpretation
The above chart shows that 38% of total people those who are using Airtel. It seems that people are more prefer to have Airtel than any other brand. The next popular brand is Vadafone. 36% of the people interviewed have Vodafone connections. The next popular brand is Idea. 10% people have Idea connections.As it came very late in the market when Airtel had established it self very well. So, that could be one of the reasons of such a low percentage.The next brand is
46
reliance, 8% of the total people have reliance connection.The next popular brand is Aircel. 6% of total people have Aircel connection. The next brand is BSNL/MTNL, 2% of people have BSNL/MTNL connection. Its seems that people have low preference to have Tata Docomo. No one or 0% have this connection.
Which type of connection is used by all?
SR.NO Options PERCENTAGE(%)
1 Pre-paid connection 72
2 Post-paid connection 28
Interpretation
Pre-paid connection seemed quite popular among the people interviewed. 72% of the total mobile users were having pre-paid connections. This means that the pre-piad should be easily and readily available in the local markets.28% of the people were having a post-paid connection which is the regular bill.
47
Expenditure (monthly) spends on mobile usage:
SR.NO Monthly Expenditure PERCENTAGE (%)
1 Below 100 16
2 100-500 48
3 500-1000 30
4 Above 1000 6
Interpretation
48% people spends Rs. 100-500 per month as their mobile phone expense.30% of total people interviewed spends Rs. 500-100 per month as their mobile phone expense.16% people spend below Rs. 100 per month as their monthly mobile expense. And the remaining 6% had an expense more than Rs. 1000, they could the ones having post-paid connections or having pre-paid connection and having a lot of business calls on their mobiles.
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Do customers collect any information before making purchases?
SR.NO Options PERCENTAGE (%)
1 Yes 84
2 No 16
Interpretation
The above chart shows that 84% of total people interviewed collect information before making any purchases related mobile phone connection. And 16% people don’t collect information before making purchases.
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If yes, which sources are used?
SR.NO SOURCE PERCENTAGE (%)
1 Magazines 4
2 Dealers 26
3 Sales Executives 13
4 Operators Reference 13
5 Pamphlets and Catalogue 11
6 Reference from friends and relatives 28
7 Any Other 4
Interpretation
The total people who collect information, out of which 28% people collect information from reference from friend and relative. The next maximum people collect information from dealers. These are 26% of total people. The people who collect information from sales executive and operators reference are 13% of total people. The people who collect information from pamphlets and catalogues are 11% of total people. And 4% people collect information from magazine and from other source.
50
Which marketing/ sales schemes attracts customer while purchasing any connection?
SR.NO Marketing/Sales Schemes PERCENTAGE (%)
1 Good Network 38
2 Discount scheme 28
3 Service package 30
4 Any Other 4
Interpretation
As shown in above chart, 38% people purchase connection by seeing good network of that brand. 30% of total people consider service package while purchasing any connection.28% people see discount scheme while purchasing any connection. And 4% people are those who consider any other marketing/ sales schemes while purchasing any connection.
Customers rating on Airtel performance on 5 points scale
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(5 Highest)
After Sales Service
SR.NO RATING PERCENTAGE (%)
1 1 2
2 2 8
3 3 38
4 4 46
5 5 6
Interpretation
The above chart shows that 46% of people give rating of 4 to the after sales service of Airtel. 38% of people give rating of 3 to the after sales service of Airtel. 8% of people give rating of 2. 6% of people give rating of 5 to the after sales service of Airtel. And 2% of people give rating of 1 to the after sales service of Airtel. This means that mostly people are satisfied with Airtel’s after sales service.
52
Maintenance
SR.NO RATING PERCENTAGE (%)
1 1 4
2 2 4
3 3 38
4 4 46
5 5 8
Interpretation The above chart shows that 46% of people give rating of 4 to the after maintenance of Airtel. 38% of people give rating of 3 to the maintenance of Airtel. 8% of people give rating of 5. 4% of people give rating of 1and 2 to the maintenance of Airtel. This means that mostly people are satisfied with Airtel’s maintenance.
53
Product as per expectation
SR.NO RATING PERCENTAGE (%)
1 1 2
2 2 6
3 3 30
4 4 52
5 5 10
Interpretation The above chart shows that 52% of people give rating of 4 to the Product as per expectation of Airtel. 30% of people give rating of 3 to the Product as per expectation of Airtel. 10% of people give rating of 5. 6% of people give rating of 2 to the Product as per expectation of Airtel. And 2% of people give rating of 1 to the Product as per expectation of Airtel. This means that mostly people are satisfied with Airtel’s Product as per expectation
54
Customer’s satisfaction towards Airtel’s promotional activities
Customer Care
SR.NO OPTION PERCENTAGE (%)
1 Very Satisfied 16
2 Satisfied 70
3 Somewhat Satisfied 14
4 Not Satisfied 0
Interpretation
It seems that 70% people are satisfied with customer care service of Airtel.16% of total people interviewed are very satisfied. And 14% people are somewhat satisfied with customer care service of Airtel. Hence, mostly interviewed people are satisfied with customer care service of Airtel.
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Ad Films
SR.NO OPTION PERCENTAGE (%)
1 Very Satisfied 24
2 Satisfied 48
3 Somewhat Satisfied 28
4 Not Satisfied 0
Interpretation
The above chart shows that 48% people are satisfied with Ad films of Airtel.28% of total people interviewed are somewhat satisfied. And 24% people are very satisfied with Ad films of Airtel. Hence, mostly interviewed people are satisfied with Ad films of Airtel.
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Camp:
SR.NO OPTION PERCENTAGE (%)
1 Very Satisfied 4
2 Satisfied 42
3 Somewhat Satisfied 52
4 Not Satisfied 2
Interpretation
It seems that 52% people are somewhat satisfied with camp conducted by Airtel.42% of total people interviewed are satisfied. 4% people are very satisfied with camp conducted by Airtel. And 2% people are not satisfied. Airtel should find some way to satisfied customer.
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24 hours call center services
SR.NO OPTION PERCENTAGE (%)
1 Very Satisfied 34
2 Satisfied 50
3 Somewhat Satisfied 16
4 Not Satisfied 0
Interpretation
It seems that 50% people are satisfied with 24 hours call center service of Airtel. 34% of total people interviewed are very satisfied. And 16% people are somewhat satisfied 24 hours call center service of Airtel. Hence, mostly interviewed people are satisfied with 24 hours call center service of Airtel.
58
Customers rating on Airtel in terms of connectivity and area of network coverage?
SR.NO Option PERCENTAGE (%)
1 Excellent 30
2 Good 58
3 Fair 12
4 Poor 0
5 Very poor 0
Interpretation
The above chart shows that 58% of total people interviewed rate Good to the
Airtel’s connectivity and area of network coverage. 30% people rate Excellent.
And 12% of total people rate Fair to the Airtel’s connectivity and area of
network coverage. This means mostly people are satisfied with Airtel
connectivity and area of network coverage
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CHAPTER-4
Findings and
Interpretation
60
Finding and Interpretation
IIn this survey the findings are given below:
The people who are in the age group of 20-30 years are the ones who are the
maximum users of mobile phones. This segment is the one which gives
maximum business to the mobile operators.
38% people purchase connection by seeing good network of that brand. While
30% of total people consider service package while purchasing any connection.
And 28% people see discount scheme while purchasing any connection.
38% of total people who are interviewed are those who are using Airtel. It
seems that people are more prefer to have Airtel than any other brand.
The next popular brand is Vadafone. 36% of the people interviewed have
Vodafone connections.
48% people spend Rs. 100-500 per month as their mobile phone expense. And
30% of total people interviewed spend Rs. 500-100 per month as their mobile
phone expense.
The total people who collect information, out of which 28% people collect
information from reference from friend and relative. The next maximum people
collect information from dealers. These are 26% of total people.
58% of total people interviewed rate Good to the Airtel’s connectivity
and area of network coverage. 30% people rate Excellent. And 12% of
total people rate Fair to the Airtel’s connectivity and area of network
coverage.
50% of total people are satisfied with 24 hours call center service of
Airtel.
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It seems that 52% people are somewhat satisfied with camp conducted by
Airtel.42% of total people interviewed are satisfied. 4% people are very
satisfied with camp conducted by Airtel. And 2% people are not satisfied.
It seems that 70% people are satisfied with customer care service of
Airtel.16% of total people interviewed are very satisfied. And 14%
people are somewhat satisfied with customer care service of Airtel.
62
SWOT ANALYSIS
63
SWOT ANALYSIS
Strengths
Being one of the largest companies in India the company has achieved a
degree of focus in its core business of its products.
It has a strong brand name, superior quality products and an enviable
distribution network.
It has a clear and well-defined organization structure and limits of
financial authority.
Increase in advertisement spends affect the company’s margins.
The company‘s bottom line falls victim to the bloated and highly paid
workforce, which affects its margins .
Weakness
Little efforts over the Advertising of products.
Distribution channel is not accurately categorized.
Premium priced products, hence can’t compete in low price segment.
No separate strategy for rural market.
Opportunities:
The company's financial performance can receive a major boost from its
cost reduction efforts.
There is a lot of scope of product and market diversification.
Exports of products will also have huge chances in the coming years.
Airtel’s business has ample scope for gaining market share from the
unorganized sector. Rural penetration too holds vast potential to bring
about growth.
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Threats
The slowdown in the economy has restricted topline growth of most
FMCG majors and for Airtel also it will be difficult to maintain historical
growth rates in such a depressed scenario.
Company’s major raw materials are influenced by government
policies / controls as well as vagaries of the monsoons. Fluctuations in
the prices of raw materials would have significant impact on costs and
margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also
increases company’s production and distribution cost .
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CHAPTER-5
SUGGESTION
66
Suggestions
The company should modify its credit policy as they only target the cash
paying customers who are not easy to trace.
The company should emphasis more on the quality of Pharmaceuticals
Products it was mostly claimed by the exporters that their receipts from
company doesn’t matches with the sample’s quality shown before giving
orders.
The company should make its marketing strategy flexible enough in order to
face competition.
The company should keep an eye on the proper delivery of the goods to
exporter on time, as it has been recommended by exporters to make the
delivery on time.
The company rate policy must be flexible enough to catch new customers
because if company offers lower price to a new customer then he may continue
buy the goods and can be a permanent customer for the company.
The company should offers such rate in the market so that it may able to catch
a bigger market share and it should be able to compete with the local traders
and commission agents while having a brand name.
The company should take the opinion of exporters from time to time to know what
problems they are facing from the company’s side. And if any change they require in
present supplying condition.
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CHAPTER-5
LIMITATIONS
68
LIMITATIONS
No project is without limitations and it becomes essential to figure out the various
constraints that we underwent during the study. The following points in this direction
would add to our total deliberations:-
1. During the study, on many occasions the respondent groups gave us a cold
shoulder.
2. The respondents from whom primary data was gathered any times displayed
complete ignorance about the complete branded range, which was being
studied.
3. Lack of time is the basic limitation in the project.
4. Some customers refuse to cooperate with the queries.
5. Some customers gave biased or incomplete information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience also because hurdle for me.
8. Some retailers did not answer all the questions or say they do not have time to
answer.
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ANNEXURE
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QUESTIONNAIRE
Customer Name:
Phone no. :
Email id :
1. Age: a) < 20 b) 20-30 c) 30-40 d) >40
2. Gender:
a) Male b) Female
3. Occupation:a) Student b) service c) self- employed d) unemployed
4. Which is your cellular service provider?a) Airtelb) Vodafonec) Idead) Reliancee) Tata docomof) BSNL/MTNLg) Other ……………………….
5. What type of connection are you using?a) Pre-paid b) post-paid
6. What is your monthly expenditure in terms of your mobile usage?a) < 100 b) 100 – 500 c) 500 – 1000 d) > 1000
7. Do you collect any information before making purchase?
a) Yes b) No
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8. If yes, which sources are used?
a) Magazines
b) Dealers
c) Sales Executives
d) Operators reference
e) Pamphlets and catalogue
f) Reference from friends and relatives
g) Any other
9. Which of these marketing / sales schemes attracts you while purchasing any connection?
a) Good Networkb) Discount schemec) Service packaged) Any other
10. How would you rate Airtel performance as your expectation on 5 points scale (5 Highest)
1 2 3 4 5
After Sale service
Maintenance
Product as per expectation
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11. Are you aware of various promotional activities being run by Airtel, if yes then how? Are you satisfied with these promotional activities?
Customer Care
By Ad Films
By Camp
24 hrs call center services
12. How do you rate Airtel in terms of connectivity and area of network coverage?
a) Excellentb) Goodc) Faird) Poore) Very poor
Very
Satisfied
Satisfied Somewhat
Satisfied
Not
satisfied
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BIBLIOGRAPHY
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BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in details the
following Books, Magazines/Journals and Web Sites have been referred. All the material
detailed below provides effective help and a guiding layout while designing this text report.
Websites:
www.airtel.in
www.google.com
www.india.com
www.wikipedia.com
Magazines:
Airtel (2 July to 10 July 2012)
Airtel India page of HT paper (Thursday 1December 2012)
Cowards India (26 December to 4 Jan. 2013)
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