PROJECT REPORT ON

“A RESEARCH STUDY ON THE EFFECTIVENESS OF ADVERTISEMENT

STRATEGIES OF AIRTEL CELLULAR

SERVICE ON ITS CUSTOMERS”

A CASE STUDY OF

M/s OMM TELESERVICES Private Limited,

BHUBANESWAR, ORISSA

SUBMITTED TOALL INDIA MANAGEMENT ASSOCIATION

CENTRE FOR MANGEMENT EDUCATION

MANAGEMENT HOUSE, 14 INSTITUTIONAL AREA,LODHI ROAD, NEWDELHI-110003

26 JUNE 2011

BYMANISH KUMAR SINGH

(REGISTRATION NUMBER. 420921105)

GUIDED BYMr. PRABHURAM TRIPATHY

FACULTY MARKETING

REGIONAL COLLEGE OF MANAGEMENT (AUTONOMOUS)

FOR THE PARTIAL FULFILLMENT OF PROGRAMME

POST GRADUATE DIPLOMA IN MANAGEMENT

1

TO,

The Manager – Evaluation,

AIMA - CME,

Lodhi Road,

1. NAME : MANISH KUMAR SINGH

2. REGISTRATION NO : 420921105

3. PERMANENT ADDRESS : MANISH KUMAR SINGH

S/O Mr. JAI NARAYAN SINGH

PLOT NO 72

KHARVELA NAGAR

BHUBANESWAR-751001

ODISHA

4. DESIGNATION AND OFFICE ADDRESS: TRAINEE

M/s OMM TELESERVICES

SAHIDNAGAR

BHUBANESWAR, ODISHA.

5. NAME, DESIGNATION AND MANAGER OF ORGANISATION:

Mr. ADHIRENDRA GHADEI

TERITTORY SALES MANAGER,

AIRTEL, BHUBANESWAR

ODISHA.

2

TABLE OF CONTENTS

3

SERIAL NO

PARTICULARS PAGE NO

1 Acknowledgement

2 Preface

3 Declaration

4 Executive summary 1 - 3

5 Industry overview (Introduction) 4 - 16

6 Company profile 17 - 32

7 Research objective 33 - 35

8 Research methodology 36 – 40

9 Research instrument 41 - 42

10 Data collection 43 - 44

11 Data interpretation and analysis 45 - 61

12 Conclusion 62 - 64

13 Recommendations and suggestion 65 - 67

14 Bibliography 68 - 69

15 Questionnaire 70 - 74

ACKNOWLEDGEMENT

I wish to acknowledge my specific indebtness to Mr. ADHIRENDRA GHADEI,

Area Sales Manager, AIRTEL Bhubaneswar, for his valuable guidance and support in

completing my dissertation on the project topic for the partial fulfilment of my PGDM

course.

I am extremely grateful to my guide Mr.PRABHURAM TRIPATHY, faculty

MARKETING, for his valuable guidance and best possible help during my project work.

I would like to thank the employees of OMM TELE SERVICES Pvt ltd for providing

me the necessary data.

I deeply thank my parents and friends for their moral support and advice which

enabled me to achieve success in the project work.

4

PREFACE

I MANISH KUMAR SINGH have made this project in order to show the various

medium and strategies of advertisements adopted by the company and to find out the

effectiveness of the same on its customers while choosing the cellular operator. This

report contains all the necessary information regarding the history & evolution of the

cellular Company, focus of its brand image, methodology adopted for advertisements

selection. There is stiff competition in the present telecom sector and advertisements are

being used as an efficient and effective tool in communicating with the customers.

Influencing the customer’s behaviour and perception towards the products through

advertisements has been a tuff challenge in present scenario.

This project contains all the relevant information of “AIRTEL CELLULAR

SERVICES”.

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DECLARATION

I MANISH KUMAR SINGH STUDENT OF REGIONAL COLLEGE OF

MANAGEMENT, BHUBANESWAR HEREBY DECLARE THAT THIS PROJECT

REPORT ON “A RESEARCH STUDY ON THE EFFECTIVENESS OF

ADVERTISEMENT STRATEGIES OF AIRTEL CELLULAR SERVICE ON ITS

CUSTOMERS”, IS SUBMITTED FORTHE PARTIAL FULFILMENT OF POST

GRADUATE DIPLOMA IN MANAGEMENT DEGREE. IT IS OF MY OWN EFFORTS

& NOT FOR THE AWARD OF ANY OTHER TITLE OR PRIZE.

SUBMITTED BY

MANISH KUMAR SINGH

REGD NO: 420921105.

42, POST GRADUATE DIPLOMA IN MANAGEMENT,

81, REGIONAL COLLEGE OF MANAGEMENT,

BHUBANESWAR, ODISHA.

6

EXECUTIVE SUMMARY OF THE PROJECT

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Advertising is a form of communication used to persuade an audience (viewers, readers or

listeners) to take some action with respect to products, ideas, or services. Most commonly,

the desired result is to drive consumer behaviour with respect to a commercial offering,

although political and ideological advertising is also common. Advertising messages are

usually paid for by sponsors and viewed via various traditional media; including mass

media such as newspaper, magazines, television commercial, radio advertisement, outdoor

advertising or direct mail; or new media such as websites and text messages

Sales promotions are another way to advertise. Sales promotions are double purposed

because they are used to gather information about what type of customers you draw in and

where they are, and to jumpstart sales. Sales promotions include things like contests and

games, sweepstakes, product giveaways, samples coupons, loyalty programs, and

discounts. The ultimate goal of sales promotions is to stimulate potential customers to

action.

Increasingly, other media are overtaking many of the "traditional" media such as

television, radio and newspaper because of a shift toward consumer's usage of the Internet

for news and music as well as devices like digital video recorders

The marketing mix has been the key concept to advertising. The marketing mix was

suggested by Professor E. Jerome McCarthy in the 1960s. The marketing mix consists of

four basic elements called the four P’s. Product is the first P representing the actual

product. Price represents the process of determining the value of a product. Place

represents the variables of getting the product to the consumer like distribution channels,

market coverage and movement organization. The last P stands for Promotion which is the

process of reaching the target market and convincing them to go out and buy the product.

In this present scenario the success of a product mainly depends upon the successful

implementation of 4 P’s of marketing i.e. product, price, place and promotions. A major

portion of capital expenditure is spent on the advertisement aspect of the product.

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Promotion of a product has been a vital function of a company and advertising being a

exponential tool in achieving it. Advertisements is the medium through which companies

communicates with the consumers. So the ads are precisely done to make a reach in the

market effectively. Advertising has emerged as an effective tool in successful marketing of

a product.

Today companies are heavily relying on advertisements to make their products

successfully launched or placed and accepted in the market. An advertisement is a means

of awareness among the customers about a product and its value propositions.

Hence my research work is based on the effectiveness of advertisements strategies of

Airtel cellular services on its customers. This study emphasizes on the degree of

responsiveness of the customers in purchasing Airtel cellular services product based on the

advertisement strategies of the company. The project work has also emphasized on the

history of the company about its inception, historical background, board of directors,

organisational structure, mission & vision. It has also showcased the various kinds of

products and services the company offers. The achievements and awards of the company,

the advertisement strategies and its value proposition. There are recommendations and

suggestions also referred by me on the basis of the analysis of the data collected through

the survey conducted.

It further makes a comparative study of the mediums of advertisements used by Airtel to

create customer awareness. It deals with market research done with the sample survey of

250 respondents answering the questionnaire based on the different parameters of

advertisements. Some recommendations and suggestions is based on the response of the

customers survey to enhance their advertisements strategies.

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INTRODUCTION

INDUSTRY OVERVIEW

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1.1 Background

The Indian Telecommunications network is the third largest in the world and the

second largest among the emerging economies of Asia. Today, it is the fastest growing

market in the world. The telecommunication sector continued to register significant

success during the year and has emerged as one of the key sectors responsible for

India’s resurgent India’s economic growth.

1.1.1 Growth

This rapid growth has been possible due to various proactive and

Positive decisions of the Government and contribution of both by the

Public and the private sector. The rapid strides in the telecom sector have

been facilitated by liberal policies of the Government that provide easy

market access for telecom equipment and a fair regulatory framework for

Offering telecom services to the Indian consumers at affordable prices.

1.1.2 Wire line Vs Wireless

It has also undergone a substantial change in terms of mobile versus fixed

phones and public versus private participation. The preference for use of

wireless phones has also been predominant in the sector.

Participation of the private entities in the telecom sector is rapidly increasing rate there

by presenting the enormous growth opportunities. There is a clear distinction between

the Global Satellite Mobile Communication (GSM) and Code Division Multiple Access

(CDMA) technologies used and the graph below shows the divide between the two.

1.2 Segment wise Status 1.2.1 Wire line Services

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With increasing penetration of the wireless services, the wire line services in the country

are becoming stagnant. On the other hand, Broadband demand has picked up and promises

to stabilise fixed line growth.

1.2.2 GSM Sector

In terms of the Global System for Mobile Communication (GSM) subscriber base this now

places India third after China and Russia. China had 401.7 million GSM subscribers

Fig.1

1.2.3 CDMA Services

CDMA technology was introduced in India as a limited mobility solution. The introduction

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of CDMA services has created competition, lowered tariffs and offered many citizens

access to communication services for the first time.

1.2.4 Internet Services

Internet services were launched in India on August 15, 1995. In November 1998 the

government opened up the sector to private operators. A liberal licensing regime was put in

place to increase Internet penetration across the country. The growth of IP telephony or

grey market is also a serious concern. Government loses revenue, while unlicensed

operation by certain operators violates the law and depletes licensed operators market

share.

New services like IP-TV and IP-Telephony are becoming popular with the demand likely

to increase in coming years. The scope of services under existing ISP license conditions is

unclear.

Fig.2

Manufacture of Telecom Equipment

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Rising demand for a wide range of telecom equipment, particularly in the area of mobile

telecommunication, has provided excellent opportunities to domestic and foreign investors

in the manufacturing sector. The last two years saw many renowned telecom companies

setting up their manufacturing base in India. Ericsson has set up GSM Radio Base Station

Manufacturing facility in Jaipur. Elcoteq has set up handset manufacturing facilities in

Bangalore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of

manufacturing GSM mobile phones near Pune.

The Government has already set up Telecom Equipment and Services Export Promotion

Forum and Telecom Testing and Security Certification Centre (TETC). A large number of

companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in

India. With above initiatives India is expected to be a manufacturing hub for the telecom

equipments.

POLICY AND INITIATIVES

Regulatory Framework

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The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a

regulator for Telecom sector. The TRAI’s functions are recommendatory, regulatory and

tariff setting in telecom sector.

Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in

May, 2000. TDSAT has been empowered to adjudicate any dispute

between a licensor and a licensee

between two or more service providers

between a service provider and a group of consumers

hear and dispose of appeal against any direction, decision or order of TRAI

Tariffs for telecommunication services have evolved from a regime where tariffs were

determined by Telecom Regulatory Authority of India to a regime where tariffs are largely

under forbearance. TRAI intervenes by regulating the tariffs for only those services, the

markets of which are not competitive.

Universal Service Obligation Fund (USOF) exclusively for meeting the Universal Service

Obligation was established in April, 2002. The Universal Service Levy is presently 5 per

cent of the Adjusted Gross Revenue (AGR) of all telecom service providers except the

pure value added service providers like Internet, Voice Mail, E-Mail service providers etc.

Indian Telegraph Act has been amended in October’2006 to provide support for all

telegraph services including mobile and broadband to bridge the digital divide.

With the introduction of the Unified Access Licensing Regime, operators can offer telecom

access services to consumers in a technology neutral manner, subject to fulfilling certain

conditions. Introduction of this regime has also broken the legal/regulatory impasse

between the cellular and basic service providers. Issuance of Intra-Circle Merger and

Acquisition Guidelines provide investors an opportunity to take stakes in existing telecom

operations.

Government Initiatives

The Government has taken the following main initiatives for the growth of the Telecom

Sector:

All telecom services have been opened up for free competition for unprecedented

growth.

217 (Information Technology Agreement) ITA-I items are at zero Customs Duty.

Specified capital goods and all inputs required to manufacture ITA-I, items are at

zero Customs Duty

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Availability of low cost mobile handsets

The international Long Distance Services (ILDS) opened with effect from April

2002.Calling Party Pays (CPP) regime was implemented with effect from 1st May.

Guidelines for Unified Access Service License regime were issued in November

2003,27 licenses out of 31 Basic Service Licenses were converted to Unified

Access Service Licenses.

In April 2004, license fee for Unified Access Service Providers (UAS) was reduced

by 2per cent

License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of

the Adjusted Gross Revenue and spectrum charges between 2 to 4 per cent in June

2004.

Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry

fee for ILD reduced to Rs. 2.5Crore from Rs. 25 Crore

Lease line charges have been reduced to make the bandwidth available at

competitive prices to facilitate growth in IT enabled services

One India plan i.e. single tariff of Re. 1/-per minute to anywhere in India was

introduced from 1st March 2006 by the Public Sector Undertakings. This tariff was

emulated by most of the private service providers also. This scheme has led to

death of distance in telecommunication and is going to be instrumental in

promoting National Integration further

The robust telecom network has also facilitated the expansion of BPO industry that

is having 500,000 employees now and adding 400 employees per day.

Annual license fee for National Long Distance (NLD), International Long Distance

(ILD), Infrastructure Provider-II, VSAT commercial and Internet Service Provider

(ISP) with internet telephony (restricted) licenses was reduced to 6 per cent of

Adjusted Gross Revenue (AGR) with effort from Jan 2006.

The Government’s policy is neutral on use of technology by telecom service

providers subject to availability of scarce resources such as spectrum etc.

Foreign Direct Investment Policy

Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the

telecom manufacturing segment in 1991 - when India embarked on economic

liberalisation.FDI is defined as investment made by non-residents in the equity capital of a

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company. For the telecom sector, FDI includes investment made by Non-Resident Indians

(NRIs), Overseas Corporate Bodies (OCBs), foreign entities, Foreign Institutional

Investors (FIIs), American Depository Receipts (ADRs)/Global Depository Receipts

(GDRs) etc.

Present FDI Policy for the Telecom sector:

In Basic, Cellular Mobile, National Long Distance, International Long Distance,

Value Added Services and Global Mobile Personal Communications by Satellite,

FDI is limited to 49 per cent (under automatic route) subject to grant of licence

from the Department of Telecommunications and adherence by the companies

(who are investing and the companies in which investment is being made) to

the licence conditions for foreign equity cap and lock-in period for transfer and

addition of equity and other license provisions.

Foreign Direct Investment up to 74 per cent permitted, subject to licensing and

security requirements for the following:

Internet Service (with gateways)

Infrastructure Providers (Category II)

Radio Paging Service

FDI up to 100 per cent permitted in respect to the following telecom services:

ISPs not providing gateways (Both for satellite and submarine cables)

Infrastructure Providers providing dark fibre (IP Category I)

The above is subject to the following conditions:

FDI up to 100 per cent is allowed subject to the condition that such

companies would divest 26 per cent of their equity in favour of Indian public within

5 years, if these companies are listed in other parts of the world.

The above services would be subject to licensing and security requirements,

wherever required.

Proposals for FDI beyond 49 per cent shall be considered by Foreign Investment

Promotion Board (FIPB) on a case-to-case basis.

In the manufacturing sector 100 per cent FDI is permitted under the automatic

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route.

In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile

Personal Communications by Satellite, FDI is permitted up to 49 per cent (under

automatic route) subject to grant of license from Department of

Telecommunications.

Foreign direct investment up to 74 per cent permitted, subject to licensing and

security requirements for the Internet Service (with gateways), Infrastructure

Providers (category-II), Radio Paging Service.

FDI up to 100 per cent permitted in respect of ISPs not providing gateways (both

for satellite and submarine cables),

Infrastructure Providers providing dark fibre (IP Category I); Electronic Mail; and Voice Mail

FDI up to 49 per cent is also permitted in an investment company, set up for

making investment in the telecom companies licensed to operate telecom services.

Investment by these investment companies in a telecom service company is treated

as part of domestic equity and is not set of against the foreign equity cap.

Manufacturing - 100 per cent FDI is permitted under automatic route.

FDI is subject to the following conditions

FDI up to 100 per cent is allowed subject to the conditions that such companies

would divest 26 per cent of their equity in favour of Indian public in 5 years, if

these companies are listed in other parts of the world.

The above services would be subject to licensing and security requirements,

Wherever required.

Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case

basis

COMPETITION OVERVIEW

Major Players

There are three types of players in telecom services:

State owned companies (BSNL and MTNL

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Private Indian owned companies (Reliance Info comm, Tata Teleservices,)

Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Idea Cellular,

BPL Mobile, Spice Communications)

CHALLENGES AND OPPORTUNITIES

Opportunities

The telecom sector has been one of the fastest growing sectors in the Indian economy in

the past 4 years. This has been witnessed due to strong competition that has brought down

tariffs as well as simplification of policy environment that has promoted healthy

competition among various players.

The mobile sector alone has been growing rapidly and has emerged as the fastest growing

market in the whole worlds. Currently of a size nearing 70 million (GSM and CDMA), this

sector is expected to reach a size of nearly 200 million subscribers by financial year 2008.

The government has eased the rules regarding inter circle and intra circle mergers. This has

led to a slew of mergers and acquisitions in the recent past. Also as the sector is moving

closer to maturity, further consolidation is a reality and this will lead to the survival of

more profitable players in this segment.

In order to further promote the use of Internet in the country the government is taking

proactive steps to develop this sector with the help of the various players in this segment.

For this purpose, the use of broadband technology is being mooted and this will go a long

way in improving the productivity of the Indian economy as well as turn out to be the next

big opportunity for telecom companies after the mobile communications segment Non-

voice services and VAS are the gold mines. The big takeoff is expected with the rollout of

3G services in early 2007, once the spectrum issues are sorted out.

Internet users base fast reaching near the English speaking population base. Local language

and content required for further growth infrastructure equipment cost is down to a fraction

of what prevailed just a few years ago. Operators can plan better expansion plan now

increased viability for the operators to expand to semi-urban and rural markets, hence,

accelerate growth further .It’s not without reason that India is tipped to be the world’s

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third-largest economy by 2050! No wonder if it happens much earlier investors can look to

capture the gains of the Indian telecom boom and diversify their operations outside

developed economies that are marked by saturated telecom markets and lower GDP growth

rates. At a time when global telecom majors are struggling to cope with their losses and the

rollout of 3G networks, which has been a non-starter for close to a year now; India, with its

telecom success story, represents an attractive and lucrative destination for investment.

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Vision& Mission

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Bharti’s Vision

BY 2010 AIRTEL WILL BE THE MOST ADMIRED BRAND IN INDIA:

LOVED BY MORE CUSTOMERS. TARGETED BY TOP TALENT. BENCHMARKED BY MORE BUSINESS.

Bharti’s Mission

To be globally admired for telecom services that delight customers.

We will meet global standards for telecom services that delight customers through:

Customer Service Focus

Unified Messaging Solutions

Innovative products and services

Error- free service delivery

Empowered Employees

Cost Efficiency

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Company profile

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AIRTEL

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

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

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

Airtel has redefined the business through marketing innovations, continuous technological

up gradation of the network, introduction of new generation value added services and the

highest standard of customer care.

Bharti is the leading cellular service provider, with an all India footprint covering all 23

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

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

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

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

limited growth.

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

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

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

services in INDIA.

Although the cellular services market in India grew during the late 1990s (as the number of

players increased and tariffs and handset prices came down significantly) the growth was

rather marginal. This was because the cellular service providers offered only post-paid

cellular services,

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ORGANISATIONAL STRUCTURE OF AIRTEL

Fig.3

Board of Directors

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

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

Directors.

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

and the number of Independent Directors on the Board is 50% of the total Board strength.

The independence of a Director is determined on the basis that such director does not have

any material pecuniary relationship with the Company, its promoters or its management,

which may affect the independence of the judgment of a Director.

The Board members possess requisite skills, experience and expertise required to take

decisions, which are in the best interest of the Company.

The composition of the Board is as under:

Sunil Bharti Mittal

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Rajan Bharti Mittal Akhil Gupta Rakesh Bharti Mittal Chua Sock Koong N. Kumar Kurt Hellstorm Donald Cameron Paul O’Sullivan Professor V.S. Raju Pulak Chandan Prasad Bashir Abdullah Currimjee Gavin Darby Syeda Imam Ajay Lal York Chye Chang Paul Donovan

ACHIEVEMENTS

First to launch Cellular service on November 1995.

First operator to revolutionaries the concept of retailing with the inauguration of

Airtel Connect (exclusive showrooms) in 1995.

First to introduce push button phone in India.

First to expand it's network with the installation for second mobile switching centre

in April, 1997 and the first to introduce the Intelligent Network Platform First to

provide Roaming to its subscribers by forming an association called World 1

Network.

First to provide roaming facility in USA. Enjoy the mobile roaming across 38

partner networks & above 700 cities Moreover roam across international

destinations in 119 countries including USA, Canada, UK etc with 284 partner

networks.

BHARTI announces agreement with VODAFONE marking the entry of the

World's Largest Telecom Operator into India.

Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership

for a life insurance joint venture in India.

Airtel Launches future factory - Centres of Innovation to Incubate Pioneering

Mobile Applications.

16 states, 600 million people. Only India's leading mobile service offers you the

truly 'freedom-packed' Prepaid!

It is also the first company to export its products to the USA.

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PROMOTIONAL STRATEGY

After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market

witnessed a surge in cellular services. By 2005, there were a total of 12 players in the

market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat

Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited

(Idea) and Reliance India Mobile (RIM) (Refer Exhibit I).

All the players except RIM offered services based on the Global System for Mobile (GSM)

technology. RIM provided services based on Code Division Multiple Access (CDMA)

technology as well as GSM.

As competition in the telecom arena intensified, service providers took new initiatives to

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

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

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

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

most heavily by cellular service providers.

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

2004 it emerged the unprecedented leader commanding the largest market share in the

cellular service market. (Refer Exhibit II). Hutch implemented the celebrity endorsement

strategy partially, relying primarily on its creative advertising for the promotion of its

brand. BSNL, on the other hand, attracted the consumer through its low cost schemes.

Being a state owned player, BSNL could cover rural areas, and this helped it increase its

subscriber base. Reliance was another player that cashed on its innovative promotional

strategies, which included celebrity endorsements and attractive talk time schemes. Idea,

relied heavily on its creative media advertising sans celebrities.

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BHARTI announces agreement with VODAFONE marking the entry of the World's Largest Telecom Operator into India

Vodafone to invest approximately Rs. 6,700 crores (approx. USD 1.5 bn.) to

acquire around 10% in Bharti Tele-Ventures Ltd.

Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-Ventures Ltd. to

unassailable leadership position in India

The largest single foreign investment ever in the history of India

The largest investment in the Indian telecom sector

Bharti establishes its supremacy in the Indian telecom market, having attracted

Asia’s best – SingTel, and now world’s best – Vodafone.

Bharti set to gain global leadership in the telecom sector

Bharti Enterprises continues to hold shareholding and management control in

Bharti Tele-Ventures.

Awards for the year 2008-2009

BHARTI AIRTEL DRAWS TOP HONORS AT THE MIS ASIA IT EXCELLENCE

AWARDS 2009.

BHARTI AIRTEL AMONG THE TOP 10 BEST PERFORMING COMPANIES IN

THE WORLD ACCORDING TO BUSINESSWEEK IT 100 LISTS.

SUNIL BHARTI MITTAL IS THE “CEO OF THE YEAR” AT THE FROST AND

SULLIVAN ASIA PACIFIC AWARDS 2008 AND BHARTI AIRTEL BAGS

“WIRELESS SERVICE PROVIDER OF THE YEAR” AND “COMPETITVE

SERVICE PROVIDER OF THE YEAR”.

BHARTI TELE-VENTURES IS THE “BEST INDIAN CARRIER” AT THE

TELECOM ASIA AWARDS 2009.

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Airtel: Appropriating the value of 'expression'

Over the last couple of years, the market has grown considerably, with deeper

penetration and wider usage of voice and data services, accompanied by much higher

competitive intensity," Mr. Atul Bindal, chief marketing officer, Bharti TeleVentures,

expands on this. "In this context, differentiating merely on network, coverage and SMS is

just not enough. You need to go beyond all the rational identifiers - which are

prerequisites in any case - and connect at a deeper level. We needed a strong

differentiator in an increasingly commoditized and crowded market. We found this

differentiator in a core human truth that defines our category - which is that there are

moments when you need to make your point, when you need to be heard. Expressing and

communicating are perhaps two of the most basic emotions. Airtel enables you to make

your point in the most expressive way, anytime, anywhere. The campaign is towards

owning this through 'Express yourself. We believe For Airtel, the challenge also lay in

presenting a unified 'face' to the consumer. This assumes significance when viewed in the

light of the company's pre- and post-paid communication, which, in the past, had been

treated very differently. Brand image, as a result, was being driven in two different

dimensions. "Brand AirTel is a category leader straddling completely different market

segments such as consumer, business and corporate, as well as different voice, data and

payment platforms," says Bindal. "'Express yourself' enables the brand to unify and

connect across the entire base of our existing and prospective customers."

One of the most obvious benefits of owning a property such as 'candid expression'

(and 'Express yourself') is the expansive nature of the thought. "The moment you have as

broad a canvas as 'Express yourself', it becomes easy for anyone working on the brand to

come up with new ideas and executions. That's what makes a good campaign idea,"

observes Rediff's Prashant Godbole,

AIRTEL BROADBAND

Bharti TeleVentures is the fixed line operator business of Airtel. In the recent branding

exercise, all the services have been offered under the Airtel brand. Data is the next driver

for growth. This is clear to the operators who have belatedly realized the implications for

having a pie in all the segments of telecommunications. Hence Bharti ventured in the

broadband market.

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However, the main contention in the broadband market is the price offering which

includes the bandwidth costs as well as the cost of laying down the copper wire.

Typically, in the mentality of the profit making exercise, Airtel has so far focused only in

those areas where it perceives that a huge market is present. However, I still hold that

their thrust should be in smaller towns and cities where BSNL would ultimately usurp

their potential customer base. It seems that their fancily paid MBAs haven’t really

understood the success of BSNL who focused on the B and C class cities where it has

drawn unparalleled support despite the lousy customer experiences. This is because of the

absence of any other operator.

The current offerings by Airtel does not really enthuse a potential customer who is

looking at sustained data transfer. It is the classic case of having something better than

nothing. Add to the lousy customer care that Airtel is slowly perfecting, it is staffed with

people who usually land up in their jobs with little idea of their job profile. The so-called

Tech engineers have often been unable to help a customer who is facing issues with the

connectivity. I have read first person accounts for the same.

AIRTEL’s ENTERPRISE SERVICES

The company is a part of Bharti Enterprises, and 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, broadband &

telephone services (B&T) & 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 90 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.

Our Services:

Voice Services

Mobile Services

Satellite Services

30

Managed Data and Internet Services

Managed e-Data Services

Airtel launches VQE (Voice Quality Enhancer) for the first time in Kolkata.

Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata. VQE is a

revolutionary new system that spectrally reduces background noise. It eliminates acoustic

echo, adjusts speech levels in both directions and does away with low or distorted speech

so that every word of yours can be heard clearly, wherever you may be speaking

from.The VQE technology has been sourced from Tellabs of USA, world leaders in

Voice Quality technology. Some of the prominent GSM operators using Tellabs solution

in the world are SingTel, Bell South, Telstra, BT Cell etc. The Tellabs noise reduction

technology removes high background noise from the wireless side of the call thus

delivering near wire line clear call quality on mobile phones. The Tellabs 3000 series of

voice-quality enhancement echo technology also eliminates the complexity of acoustic

echo generated by digital mobiles and hands free kits.So go ahead. Express yourself and

feel the difference on Kolkata's only Non-Stop 2.5G Network.

AIRTEL SERVICES

AIRTEL NEWS

Bharti Airtel inks USD 400 million network expansion contract with NOKIA

Bharti Airtel limited: Q2 cash profit exceeds Rs. 1,600 crores, PBT crosses Rs.

1,000 crores.

Bharti Airtel is amongst India’s Most Admired Knowledge enterprises in 2006.

Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE.

Notice of postal ballot for seeking consent of the shareholders on scheme of

amalgamation of Satcom Broadband Equipments Limited and Bharti.

Broadband Limited with Bharti Airtel Limited.

Bharti Airtel to Observe Silent period from October 1, 2006.

SERVICE NAME

TYPE OF SERVICE

DESCRIPTION PREPAID CHARGES

POSTPAID CHARGES

(Rs.)

31

(Rs.)

Calling Line Identification Presentation (CLIP)

Automatic only for new

acquisitions

Displays the callers number on your mobile phone screen

  Rs. 25

Dial-a-serviceAutomatic only

for new acquisitions

Users can call to get certain information and service. For instance, Dial 604 for Infotel, Dial 131 for Railway info. These call numbers are available in the phone book

Rs. 2.40 per minute

Rs. 2 per minute

WAPAutomatic only

for new acquisitions

download exclusive contents from Airtel's WAP site

Per content download

Per content download

GPRS & MasalaAutomatic only

for new acquisitions

Access internet on the move and download exclusive contents from Airtel's WAP site

GPRS Charges - Rs 600 per

month

GPRS Charges - Rs 600 per month

646 Calling charges

Automatic only for new

acquisitions

Users can call into this voice recognition service and listen to jokes, movie gossips, download ringtones etc

Rs. 6 per minutes

Rs. 6 per minutes

VAS SMS Charges

Automatic only for new

acquisitions

Content offered by media companies like Indiatimes, Rediff, Yahoo fall into this category

Rs. 3 per

Table.1

AIRTEL 3G SERVICES

Bharti airtel, India's largest telecommunications company, on Monday announced the

launch of its 3G service in India - bringing the airtel internet experience on 3G first to

Karnataka - its largest circle by revenue market share. Airtel is targeting to launch in all

32

13 3G license circles by March. Announcing this, Sanjay Kapoor, CEO - Bharti airtel Ltd

(India and South Asia) said, "airtel's focus would be to bring to its customers an enriched

user experience on the back of a world class delivery network. I welcome all 745 million

mobile customers of the country to be a part of this journey with airtel."

The launch of its 3G services is a key milestone in Bharti airtel's vision to play a leading

role in delivering the power of the mobile internet to an increasing number of people in

India.

With the mobile industry across the world expecting to connect 2.4 billion people to the

internet over the next five years, most for the first time, it is incumbent upon service

providers to bring all the ecosystem players together in a cohesive manner - handset

manufacturers, equipment vendors, application developers and even consumers - to scale

up the penetration for 3G services in the country.

Keeping the focus on the user experience and relevant services, Aritel’s 3G plans are

personalised and simple to understand.

Time-based plans for light users of data - where usage and billing will be by hour. Flexi-

shield plans for heavy users of data - where usage and billing will be capped.

Airtel has finally launched its 3G mobile and data services in India starting off with

Bangalore and Chennai. Airtel is expected to launch its 3G service in 13 licensed circles

by March 2011. Airtel has also introduced a new family of 3G USB Data modes. Airtel

has now become the second privately held mobile operator after Tata Do Co Mo to

launch 3G mobile and data services in India.

Airtel had promised to launch its 3G services and finally it's being available in select

regions of the country. Spectrum License fee of Rs. 12,296 crores has been paid by Airtel

and the company is said to have tied up with Ericsson, Nokia Siemens Network and

Huawei for installation of high speed packet access (HSPA) network in its 3G circles for

India.

The third generation cellular network technology promises you blazing fast data

connection speeds, multimedia streaming and several other services bundled. But all of

these come at a cost. Tata Do Co Mo has already announced Tariff Plans details but the

3G services are available only in select circles (regions).

33

Airtel has promised that it will introduce two types of 3G data services plan:

- Time-based plans: light users of data where usage and billing will be by hour

- Flexi-shield plans: heavy users of data where usage and billing will be capped

Airtel 3G Tariff Plans would be further classified for Occasional User, Medium User and

Heavy User. As of now, we await details about the Airtel Tariff Plans. So stay tuned to

this space.

3G DATA PLANS

Airtel launched its 3G mobile and data services in India earlier today starting off with

Bangalore and Chennai. Following the formal announcement, everyone was looking

forward to the 3G Tariff Plans from Airtel. Telecom Talk has posted the slides from

Airtel 3G launch conference to give a fair idea of the 3G services tariffs. Unfortunately,

there are no Unlimited 3G plans being offered by Airtel.

As Airtel stated in the official statement, the 3G services plan would be broadly divided

into Time-based and Flexi-shield plans. Let's take a look at these plans below:

Time-based Plans:

Occasional Users -

Rs. 10, Rs. 45 and Rs. 60 recharge coupons.

Medium Users -

Rs. 200, Rs. 450 and Rs. 750 recharge/plans with 30 day validity.

Flexi-shield Plan:

Usually meant for heavy users and most probably meant for Airtel Post-Paid mobile

subscribers. With a rental of Rs. 650 per month, users get 1.25GB worth FREE data usage.

Once the 1.25GB data usage limit is crossed, Airtel will charge 10paise per MB till 14GB

data usage and Rs. 2,000 Bill Cap. If you cross even the 14GB data usage then your data

connection speed drops to 128kbps. Suddenly, BSNL Tariff Plans start looking nice to you,

don't they?

34

A.R REHMAN TUNE CROSSES AIRTEL’S EXCLUSIVITY BARRIER

35

Cellular service provider AirTel seems to have hit the right note with its new

commercial starring musician A R Rehman. The commercial which is currently on air

has a beat which also doubles up as a ringtone which is ostensibly available only to

AirTel users. But the interesting part is that the ringtone is being flaunted not just by

AirTel customers but by customers of rival service providers like BPL, Orange and

Dolphin as well!

“We did expect the tune to catch up but this has really exceeded our expectations,”

admits Bharti Cellular’s chief marketing officer (western region) Pratik Pota. Overall,

he explains, it is a great advertising product for AirTel and works like a “walking,

talking brand ambassador.”

The ringtone which is also the jingle for Aritel’s TV commercial, is proving to be a

potent advertising tool for the company. It is not very clear what this means for the

other cellular operators. Cellular users have been “forwarding” the tune to one another,

which according to Mr Pota, has given AirTel a chance to enter the “mind of the user”

irrespective of which service he opts for.

“It gives the user a chance to go back to the AirTel product and acts as a strong

reminder medium,” he explains. Marketing professionals like Samsika Marketing

Consultants’ managing director Jagdeep Kapoor point to the usage of an “audio

celebrity” as something that is significant.

“The normal practice is to opt for film stars and sportsmen rather than an audio

personality” he says.

Rivals, though seemingly unfazed by the phenomenon, seem to be doing their own

homework on this brand of advertising. While none of them commented on AirTel’s

strategy and its impact on their own subscriber base, one advertising professional

working with a rival service provider opines that the tune is “transient” and not likely to

have any long term impact as a brand building tool.

Being the latest entrant in the Mumbai circle, AirTel has had to find ways of cutting

through the clutter.

36

Says Mr Kapoor,” AirTel will have try to find ways to attract new customers and

convert the existing ones.” Explaining that the usage of an audio celebrity was more

“strategic than tactical”, he adds that non-AirTel users will have the AirTel “brand

experience” inspite of not using the service.

While Mr Pota highlights the fact that the usage of the tune by other operators means

“free advertising” for AirTel and the users having a positive disposition towards the

product, the nature of reaction from competition remains unclear.

“Competition will not do well to adopt a knee jerk reaction and will have to come out

with advertising that is well thought out” explains Mr Kapoor. He anticipates a situation

where the new entrant (AirTel) will continue to be more aggressive.

TENDULKAR & SHAHRUKH.

37

Both Tendulkar and Shahrukh Khan already share the frame for soft drinks major

PepsiCo India. Tendulkar is not the first cricketer to endorse Bharti’s Airtel brand.

Indian captain Saurav Ganguly had done so when Airtel launched its service in the

eastern metropolis of Kolkata in 2001.

Though company executives were mum on the value of the Tendulkar deal, those in the

advertising fraternity peg the signing rate for the three-year deal anywhere between Rs 8

crore and Rs 10 crore.

Both Sachin and Shah Rukh are two of the most sought after celeb endorsers in the

country, with the former edging out the latter in the celeb endorsement race. The Master

Blaster’s portfolio includes brands like Colgate Palmolive, ESPN-STAR Sports, Pepsi,

MRF, Boost, TVS, Palio, Visa, Adiddas and Britannia. The leading brands endorsed by

Khan include Hyundai, Pepsi, Airtel, Tag Huer, Clinic All Clear, Bagpiper and

Videocon, among others.

According to company executives, the idea of roping in Tendulkar is in line with the

group’s strategy to connect to the mass market through celeb endorsers from movies,

cricket and music. “For mass connect, Shah Rukh and Sachin are the best bet as brand

endorsers,” says a senior company executive. Bharti plans to launch a multimedia

campaign targeting its service at the mass market.

38

RESEARCH OBJECTIVE

OBJECTIVES

39

Primary Objective

Find Out effectiveness of the Advertisement Strategies adopted by AIRTEL cellular

services, through TV commercials, print media, public promotional activities by

sponsoring events and other advertisement mediums

Secondary Objective

To know the brand awareness of AIRTEL among the customer’s.

To find out the most effective promotional channel.

To make the customer aware of the benefits of the product and convince him to

opt for AIRTEL telecom products.

Make a comparison on Aritel’s add campaigns with its competitors.

AIM

40

The main aim of the Project and the research work undertaken for the study was to FIND

OUT THE EFFECTIVENESS OF ADVERTISEMENT ON ITS CUSTOMERS. The

study was done to acquire the knowledge about the customer awareness towards the

advertisements of products of AIRTEL and its EFFECTIVENESS on people.

RESEARCH QUESTIONS

41

1. What are the various promotional activities carried out by AIRTEL?

2. What are the consumer’s perception towards tariffs plans and quality

of service provided by AIRTEL and other brands?

3. What are the market strategies of AIRTEL to target the upcoming market of Bhubaneswar, Odisha?

4. What is the product line available for the customers in the Odisha market & what else can be designed and provided according to their requirements?

42

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

43

TYPES OF REASERCH:

Basically research are categorized into four major category:

First is descriptive & Analytical

Second Applied & Fundamental

Third Quantitative & Qualitative

Fourth Conceptual & Empirical

The project Presented is based on

Descriptive Research – As it include Survey and fact finding enquiries of different

kind.

Quantitative Research – As quantative figure like market share is taken as the most

important feature for the analysis.

SAMPLING TECHNIQUE

Sampling technique available can be broadly classified as

44

1. Probability Sampling (here the every item in the universe have the equal chance of inclusion in the sample)

2. Non Probability Sampling (Here the item in the sample are deliberately selected by the researcher)

Again both are classified as follows

Probability Sampling

Simple Random sampling

Complex random Sampling

Cluster Sampling

Systematic Sampling

Stratified sampling

Area Sampling

Multi-stage Sampling

Sampling with probability proportional to the size

Non-probability Sampling

Haphazard or convenience sampling

Purposive sampling

Quota Sampling

Judgment Sampling

My sampling technique is non probability via quota sampling

As in the given project the sample considered is specific to predetermined areas of Bhubaneswar, Odisha.

METHOD OF DATA COLLECTION

45

My Survey is conducted on two sources of data collection:-

a) Primary data

b) Secondary data

a) Primary data

Looking into the objectives and information needed, I have chosen the following

two methods as per the response of the subject:-

i) Schedules

ii) Personal Interview.

i) Scheduler Method

Schedules (Performa containing a set of questions) are being field in by the

enumerators who are specially appointed for the purpose.

ii) Personal Interview

I have taken the opportunity to take personal interview wherever it was essential.

The strategy was adopted to avoid the biased information and to spill out the

required data from the respondent. This has supplemented the Schedules in a

purposive manner.

b) Secondary data

The Secondary data were mainly collected from different magazines, Journals,

company’s Literature, Newspapers and from Internet.

46

HYPOTHESIS:

H1: Brand visibility is essential for increased customer patronage.

H2: Brand promotions along with customer satisfaction are effective in giving AIRTEL

edge in now a day’s retail market.

H3: Effective advertisement channels and its promotional strategy is the major

requirement for acquiring major market segment.

47

RESEARCH INSTRUMENTS

RESEARCH INSTRUMENTS USED

48

In my survey I used the following instruments, these are:

1. Interviewing

2. Aggregate Data Analysis

3. Human Factors Analysis

4. Organizational Analysis

5. Surveys

6. Survey Construction

7. Survey Sampling

8. Evaluation Research

These research instruments helped me a lot in completing the research work.

49

DATA COLLECTION

DATA COLLECTION

My Survey is conducted on two sources of data collection:-

a) Primary data

50

b) Secondary data

a) Primary data

Looking into the objectives and information needed, I have chosen the

following two methods as per the response of the subject:-

i) Schedules

ii) Personal Interview.

i) Scheduler Method

Schedules (Performa containing a set of questions) are being field in by the

enumerators who are specially appointed for the purpose.

ii) Personal Interview

I have taken the opportunity to take personal interview wherever it was

essential. The strategy was adopted to avoid the biased information and to spill

out the required data from the respondent. This has supplemented the

Schedules in a purposive manner.

b) Secondary data

The Secondary data were mainly collected from different magazines, Journals,

company’s Literature, Newspapers and from Internet.

Near about 250 respondents are interviewed for getting answers and other

valuable suggestions required for the completion of research work. For the

purpose of collecting the data I moved to many places in BHUBANESWAR

and to some outskirts of BHUBANESWAR as well.

51

DATA INTERPRETATION AND

ANALYSIS

DATA INTERPRETATION AND ANALYSIS

52

This chapter is the core part of my dissertation because it includes the research findings

expressed by text, figures, tables, charts and graphs. It is absolutely important to present

the clearly for precise analysis.

In order to get the 250 respondents are chosen as sample space thereby making them fill

my questionnaires. To conduct the survey 25 respondents are interviewed each day. Total

of 15 days being taken to complete the entire process and 1 more day for calculating the

figures thus obtained.

53

Q1 How many hours do you watch TV?

PARAMETERS

No Of Respondents Percentage

Less than 2 hours 20 8

2 hours to <4 hours 30 12

>4 hours to <6 hours 140 56

More than 6 hours 60 24

total 250 100

Table.2

8%

12%

56%

24%

how many hours do you watch tvLess than 2 hours 2 hours to <4 hours >4 hours to <6 hours More than 6 hours

Fig.4

54

Q2 In your opinion, what makes up a good TV commercial?You may tick more than one option

Table.3

Graphics Music/ringtones Celebrity Endorsement Storyline / Concept

45 50

120

35

18 20

48

14

In your opinion, what makes up a good TV commercial

Series1 Series2

Fig.5

55

ParametersNo Of

Respondents PercentageGraphics 45 18

Music/ringtones 50 20Celebrity

Endorsement 120 48Storyline / Concept 35 14

total 250 100

Q3 Name & briefly describe TWO product commercials on TV about Airtel [within the past 3 months] you can remember most clearly.

ParametersNo Of

Respondents PercentageAirtel cellular service 110 44

Airtel 3G service 80 32Airtel data card 20 8Airtel digital tv 40 16

total 250 100

Table.4

110

80

20

40

Airtel cellular service Airtel 3g service Airtel data card Airtel digital tv

Fig.6

56

Q4 On a scale of 1 to 7, how would you rate the 2 commercials you mentioned in the previous question?

Parameters

Parameters 1

Parameters 2 Answer 1

Answer 2

Percentage 1

Percentage 2

No Of Responden

ts

1st TV Ad Dull Interestin

g 10 20 33.33 66.66 301st TV Ad Cliché Original 16 19 45 55 35

1st TV Ad Unconvincin

g Convincin

g 18 22 45 55 40

1st TV Ad PointlessInformativ

e 5 25 16 84 302nd TV

Ad Dull Interestin

g 5 15 25 75 202nd TV

Ad Cliché Original 10 30 25 75 402nd TV

Ad Unconvincin

g Convincin

g 4 26 13 87 302nd TV

Ad PointlessInformativ

e 6 19 24 76 25total 74 176 29 71 250

Table.5

57

1 2 3 4 5 6 7 8

1016 18

5 510

4 6

20

1922

25

15

30

2619

On a scale of 1 to 7, how would you rate the 2 commercials you mentioned in the

previous questionanswer 1 answer 2

Fig.7

Q5 .The following points affect my ability to remember a certain TV advertisement factors being

Likeability (whether or not I like the ad)

Creativity (how creative I find the ad)

Frequency (number of times I have seen the ad)

Likeability (Whether Or Not I Like The Ad)Parameters No Of Respondents Percentage

Strongly Agree 150 60Agree 65 26

Disagree 30 12strongly disagree 5 2

total 250 100

Table.6

58

60%26%

12%

2%

following points affect my ability to remember a certain TV advertise-

ment factors being 1.likebility (whether or not I like the

ad) Strongly Agree Agree Disagree stongly disagree

Fig.8 Contd...

Creativity (How Creative I Find The Ad)Parameters No Of Respondents Percentage

Strongly Agree 100 40Agree 90 36

Disagree 40 16strongly disagree 20 8

total 250 100

Table.7

59

40%

36%

16%

8%

remember a certain TV advertise-ment factors being

2.Creativity (how creative I find the ad)

Strongly Agree Agree Disagree stongly disagree

Fig.9

Contd...

Frequency (number of times I have seen the ad)

parameters No Of Respondents Percentage Strongly Agree 110 44

Agree 90 36Disagree 45 18

strongly disagree 5 2total 250 100

Table.8

60

44%

36%

18%

2%

remember a certain TV advertisement factors being

3.Frequency (number of times I have seen the ad)

Strongly Agree Agree Disagree stongly disagree

Fig.10

Q6 The more times I watch a certain TV commercial, the higher the chances of me recalling it .

Parameters No Of Respondents Percentage Strongly

Agree 110 44Agree 90 36

Disagree 45 18strongly disagree 5 2

total 250 100

61

Table.9

Strongly Agree Agree Disagree stongly disagree

110

90

45

5

4436

18

2

The more times I watch a certain TV commercial, the higher the chances of

me recalling it .Series1 Series2

Fig.11

Q 7 Which feature of AIRTEL attracted you to use AIRTEL cellular services?

ParametersNo Of

Respondents PercentageAdvertisements 80 32

Connectivity 15 6Schemes 130 52Goodwill 25 10

total 250 100

Table.10

62

32%

6%52%

10%

Which feature of AIRTEL attracted you to use AIRTEL cellular services

Advertisements Connectivity Schemes Goodwill

Fig.12

Q 8 Which of the one schemes/ offers you would like most with AIRTEL?

ParametersNo Of

Respondents PercentageNOKIA + AIRTEL 120 48AIRTEL MAGIC 35 14

Post-paid services 45 18AIRTEL Broadband 50 20

total 250 100

Table.11

63

NOKIA + AIRTELAIRTEL MAGIC

Postpaid servicesAIRTEL Broadband

120

35 45 50

48

14 18 20

Which of the one you like most in AIRTELSeries1 Series2

Fig.13

Q 9 Which celebrity you like very much in AIRTEL?

ParametersNo Of

Respondents Percentage Sachin Tendulkar 50 20

Shahrukh khan 80 32Kareena kapoor 45 18

A. R. Rehman 35 14R .Madhavan 25 10

Sharman Joshi 15 6total 250 100

Table.12

64

Sach

in Tendulka

r

Shah

rukh

khan

Kareen

a

A

. R. R

ehman

R .Mad

havan

Sharm

an Jo

shi

50 80 45 35 25 15

20 32 18 14 10 6

Which celebrity you like very much in AIRTEL

Series1 Series2

Fig.14

Q 10 Which type of advertisement you most like in AIRTEL?

Parameters No Of Respondents Percentage

Audio Visual 75 30

Print 60 24

Audio 35 14

Promotion through internet 80 32

total 250 100

65

Table.11

30%

24%14%

32%

Chart TitleAudio Visual PrintAudio Promotion through internet

Fig.15

Q 11. Do you consider AIRTEL as No.1telecom Company in India?

Parameters no of respondents percentage

yes 165 66

no 85 34

total 250 100

Table.12

66

1

2

165

66

85

34

Do you consider AIRTEL as no 1 companyyes no

Fig.16

INTERPRETATIONS

The following conclusions are drawn from the above research work:

1. From the above study I found that near about 56% of respondents watch TV. from 4 to 6

hours per day and 24% of people watch T.V. for more than 6 hrs and remaining 12% of

people watch TV more than 24 hrs and more than 4 hrs and 8% people watch TV less

than 2 hrs per day.

So I conclude that the frequency of advertisements should be more with a least time gap

between them.

67

2. More than 48% people have opted for celebrity endorsement and 20% going for music

and ringtone, 8% for graphics and 14% for concept. So from this finding the celebrity

endorsement factor is considered the most important factor while making advertisements

and other factors also in equal proportion.

3. In this question I have put four Airtel TV commercial of cellular service, 3g service data

card and digital TV service and I found that 44%OF respondents remember Airtel cellular

service ad , 32% remember Airtel 3g service ad. 16% remember digital TV ad and 8%

remember Airtel data card. So it is visible that 76% of people can remember the Airtel

cellular service ad and it is successful in positioning the ads in consumers minds.

4. In this question I have asked people to rate the TV commercial based on previous

questions on certain parameters namely

Dull – Interesting

Cliché – Original

Unconvincing – convincing

Pointless – Informative

and I found both the TV ads to be interesting , original, convincing and informative.

5. In this question I did a memory test of the respondents on certain advertisement scales

i.e.

Likeability

Creativity

Frequency

and concluded with the following results

a. Likeability of the ad – 60% of the respondents strongly agree that they like the ad ,

26% agree and remaining 14% disagree and strongly disagree.

b. Creativity – 40% of the respondent strongly agree and found the ad creative and 36%

agree and rest 24% Disagree and strongly disagree.

c. Frequency - 80% of the total respondent agree and Strongly agree that the frequency

of the ad is highly visible and remaining 20% disagree that the frequency is low.

6. In this question the frequency level of the TV commercial is put to test and the result of

the test are as follows

80% of the respondents agree and strongly agree that more times they watch the ads

higher the chances of recalling it.

Remaining 20% disagree and strongly disagree with the fact that higher the frequency

more the chances of recalling it.

68

7. In this question I tried to find out the features related to Airtel cellular services. The

results are 52% people opted for the schemes 32% opted for advertisements .10% for

good will and 6% for connectivity.

8. In this question i tried to find out the schemes offered by Airtel is acceptable to what

extent. I found that Nokia+ Airtel schemes are liked more and 48% people opted for it.

205 people liked the Airtel broadband schemes, 18% liked the post paid services, and 14%

liked the Airtel magic schemes.

9. In this question I had tried to find out which celebrity is the most liked and effective in

Airtel ads and I found that Shahrukh Khan leading the race with 32% votes followed by

Sachin Tendulkar with 20% Kareena Kapoor with 18% votes, AR Rehman with 14% votes ,

R .Madhavan with 10% and Shraman Joshi with 10% votes.

10. In this question I tried to find out the type of advertisements which is most liked by the

people and I found out that promotion through internet is liked by 32% people and audio

visual ads are liked by 30% people print ads is liked by 24% people and audio ads liked by

14% people

11. In this question I tried to find out the perception of people about Airtel being placed as No

1 Telecom Company in India and I found out that 66% people said Yes and 34% said No.

69

CONCLUSION

CONCLUSION

The main aim of the Project and the research work undertaken for the study was to FIND

OUT THE EFFECTIVENESS OF ADVERTISEMENT ON ITS CUSTOMERS. The

study was done to acquire the knowledge about the customer awareness towards the

advertisements of products of AIRTEL and its EFFECTIVENESS on people.

(AIM OF THE DISSERTATION)

70

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

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

the new users of cellular service. AIRTEL has adopted a very good strategy by providing a

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

Nokia sets and they get a free connection of AIRTEL. AIRTEL is successful in capturing

the highest market share by adopting Celebrity Endorsement Strategy. A.R. Rehman’s tune

for AIRTEL worked as free advertising for AIRTEL as another service user uses it too. 

Other celebrities like Shahrukh Khan (bollywood) and Sachin Tendulkar (Cricket) has also

contributed very much in AIRTEL.

Strategic alliance  The Company has a strategic alliance with SingTel. The

investment made by SingTel is one of the largest investments made in the world

outside Singapore in the company. The company also has a strategic alliance with

Vodafone. The investment made by Vodafone in Bharti is one of the largest single

foreign investments made in the Indian telecom sector. The company’s mobile

network equipment partners include Ericsson and Nokia. In the case of the

broadband and telephone services and enterprise services (carriers), equipment

suppliers include Siemens, Nortel, Corning, among others. The Company also has

an information technology alliance with IBM for its group-wide information

technology requirements and with Nortel for call center technology requirements.

Outsourcing  The call center operations for the mobile services have been

outsourced to IBM Daksh, Hinduja TMT, and Teletech & Mphasis.

Competition   Airtel is facing strong completion from MTNL and BSNL inspite of

the fact they are far away from Airtel technologically but these two have a inside

ranch in rural and urban area and have low tariff rates.

Brand Ambassador  Airtel has strong brand ambassador, Sachin Tendulkar,

Shahrukh khan and A. R. Rehman, R Madhavan, to promote the product and

services.

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Recommendations and suggestion

Some recommendations suggested by me are as follows

Commercials often create an emotional ambience that draws you into the

advertisement and makes you feel good. We are more attracted by products that

make us feel good.

Music and other sound effects add to the excitement of commercials. Sound can

make the product seem more life-like or less life-like, as in a music video. Either

way, they help set the mood advertisers want.

A great

example

of affective

advertising is found in the “Geico” commercials. By creating a friendly, honest,

funny gecko as a spokesperson, consumers tend to trust what the gecko is saying

and find humour in his actions. This creates a good feeling about the actual service

“Geico” offers.

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RECOMMENDATIONS

AND

SUGGESTIONS

Advertising communications must take cognizance of the underlying patterns of

buying behaviour in setting objectives so that strategies and messages may be

accordingly devised. Needs and motivations of decision makers may be assessed

through the use of various quantitative and qualitative marketing and advertising

research methods.

Information about the brands benefits and the attributes on which the benefits are

based can register with the consumer can also result from exposure to the ad.

Advertisements can also generate feelings in an audience that they begin to

associate with the brand or its consumption.

Through the choice of the spokesperson and various executional devices, the

advertisement can lead to the creation of an image for the brand, often called

“brand personality”

The advertisement can create the impression that the consumer’s peers or experts-

individuals favour the brand and groups the consumer likes to emulate.

Advertisements can also generate feelings in an audience that they begin to

associate with the brand or its consumption.

Through the choice of the spokesperson and various executional devices, the

advertisement can lead to the creation of an image for the brand, often called

“brand personality”

The advertisement can create the impression that the consumer’s peers or experts-

individuals favour the brand and groups the consumer likes to emulate.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Web based sources

www.airtel.com

www.nokia.com

www.google.com

www.indiacellular.com

Book References

Consumer Behaviour and Research (S Sumathi, Vikas Publications).

Advertising and Brand Management (By Tapan Panda, Oxford Publications).

Marketing Management(Dr. S.L.Varshney and Dr. R.L. Gupta, Third

Revised Edition, Sultan Chand and Son).

Consumer Behaviour and Marketing Strategy,

(Peter, Paul J. & Jerry C. Olson. 1990).\

NEWS PAPERS AND MAGAZINES

Times Of India

Business World

Indian Management

76

QUESTIONNAIRE

77

Dear Sir/Madam,

I would like to introduce myself as an PGDM (AIMA) student of REGIONAL COLLEGE

OF MANAGEMENT, Bhubaneswar and doing a project on the topic. “A RESEARCH

STUDY ON THE EFFECTIVENESS OF ADVERTISEMENT STRATEGIES OF

AIRTEL CELLULAR SERVICE ON ITS CUSTOMERS”.

This project is to be submitted to the AIMA for the award of PGDM. Hence I, request you to kindly spend few minutes of your valuable time in answering this.

PERSONAL DATA

NAME:

ADDRESS:

OCCUPATION:

CELLULAR SERVICE USING

QUESTIONNAIRE

Q1 How many hours of TV do you watch a day, on average?

I. Less than 2 hours

II. 2 hours to <4 hours [2 hrs to less than 4 hrs]

III. >4 hours to <6 hours [more than 4 hrs to less than 6 hrs]

IV. More than 6 hours

Q2 . In your opinion, what makes up a good TV commercial?

You may tick more than one option.

I. GraphicsII. Music

III. Celebrity EndorsementIV. Storyline / Concept

78

Q 3 Name & briefly describe TWO product commercials on TV [within the past 3 months] you can remember most clearly.

I. Airtel cellular serviceII. Airtel 3g service

III. Airtel data cardIV. Airtel digital tv

Q4 On a scale of 1 to 7, how would you rate the 2 commercials you mentioned in the previous question?

Example: 1 being Dull, 4 being So-so and 7 being Interesting, etc.

1 2 3 4 5 6 7

I. 1st TV Ad - Dull ... Interesting

II. 1st TV Ad - Cliche ... Original

III. 1st TV Ad - Unconvincing . Convincing

IV. 1st TV Ad - Cliche ... Original

V. 1st TV Ad - Pointless ... Informative

VI. 2nd TV Ad - Dull ... Interesting

VII. 2nd TV Ad - Cliche ... Original

VIII. 2nd TV Ad - Unconvincing ... Convincing

IX. 2nd TV Ad - Pointless ... Informative

Q5 Select the TOP THREE most important elements that go into a CREATIVE commercial from the list below.

I. MusicII. Storyline

III. GraphicIV. Elements HumourV. Originality

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Q6 The more times I watch a certain TV commercial, the higher the chances of me recalling it?

I. Strongly Agree II. Agree

III. Disagree IV. Strongly Disagree

Q7 The following points affect my ability to remember a certain TV advertisement factors being

Strongly Agree Disagree Strongly

Agree Disagree

I. Likeability

(Whether or not I like the ad)

II. Creativity

(How creative I find the ad)

III. Frequency

(Number of times I have seen the ad)

Q8 Which feature of AIRTEL attracted you to use AIRTEL cellular services

I. Advertisements II. Connectivity

III. SchemesIV. Goodwill

Q9 Which type of advertisement you most like in AIRTEL?

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I. Audio Visual

II. Print

III. Audio

IV. Promotion through internet

Q10 Which celebrity you like very much in AIRTEL?

I. Sachin Tendulkar II. Shahrukh khan

III. KareenaIV. R. Rehman V. R .Madhavan

VI. Sharman Joshi

Q11 Which of the one schemes/ offers you would like most with AIRTEL?

I. NOKIA + AIRTELII. AIRTEL MAGIC

III. AIRTEL BroadbandIV. Post-paid services

Q12 Do you consider AIRTEL as No.1telecom Company in India?

I. Yes II. No

THANK YOU.

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MANISH KUMAR SINGH ,BHUBANESWAR ,ORISSA ,

manishsingh28822gmail.com

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