Summer Training Report by Mohit

8/3/2019 Summer Training Report by Mohit

http://slidepdf.com/reader/full/summer-training-report-by-mohit 1/66

COURSE CODE-BBA(CAM) 154

CONSUMER BEHAVIOUR OF AIRTEL FIMT/BBA(CAM)/MOHIT GUPTA

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CHAPTER-1





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OBJECTIVE OF THE STUDY

1. To make understanding of the company.

2. To make understanding about the service which they provide.

3. To identify the difference in market performance of Airtel industry.

4. To study the market of Airtel Industry in big scale sector.

5. To compare various parameters of manufacturing process, technology, production policy,

advertising, collaboration, export scenario, future prospect and government policies.





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RESEARCH

METHODOLOGY





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RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the subject. As the prime

objective of the project is to compare Airtel with the existing competitors in the market and the

impact of WLL on Airtel, the research methodology adopted is basically based on primary data

via which the most recent and accurate piece of first hand information could be collected.

Secondary data has been used to support primary data wherever needed.

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 has been continuous with the

questionnaire method, as one continuously observes the surrounding environment he works in.

Procedure of research methodology

To conduct this research the target population was the mobile users, Who are using GSM

technology.

Target geographic area. Sample size of 100 was taken.

To these 100 people a questionnaire was given, the questionnaire was a combination of

both open ended and closed ended questions.





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The date during which questionnaires were filled.

Some dealers were also interviewed to know their prospective. Interviews with the

managers of GSM service providers were also conducted.

Finally the collected data and information was analyzed and compiled to arrive at the

conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Bharti‘s history, current issues, policies, procedures etc, wherever

required.

Internet

Magazines

Newspapers

Journals

Bharti Circulars

Bharti News Letters





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CHAPTER-2





7

INTRODUCTION





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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 Kolkatta) 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 Kolkatta 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





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was to be replaced by a revenue sharing scheme whereby between 8-12 percent of cellular

revenue were to be paid to the government.

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 is tabulated below:

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 alloperators; Deptt of Telecommunications (DOT) restructured, with operations and policy making

roles vested in different bodies.





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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 up front 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

Large up front 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.





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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.

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, Kotak 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,





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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 Kolkatta 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. 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 GPR Senabled networks, there is caution on their part to launch the service. With hardly

any applications, the success of GPRS remains a question.





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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 andmusic 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 themargins, some are now seriously looking at the enterprise segment for provisioning superior

services.

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.





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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.

FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to

maintain their lead.

o The implementation of enhanced networks like 2.5G will enable operators to offer

data services. This is an opportunity to customize and differentiate better.

o 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.

o Network coverage in terms of geographic spread and quality of coverage is

crucial especially for the business subscriber.

o 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.

o Limited mobility wireless in local-loop services (by fixed network service

providers) will be a disadvantage for cellular operators in the short term.





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o Consequently, operators need to streamline their customer relation activities and

adopt aggressive subscriber acquisition and retention strategies.

REGULATORY ISSUESThe 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 on going process of

liberalization.

YEAR EVENTS

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





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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

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.





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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 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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Vision of the company

"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.

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

telecommunications with its world-class products and services.

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.





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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.

Bharti Tele-Ventures' strategic objective is

―To capitalize 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:

o Focus on maximizing revenues and margins;

o Capture maximum telecommunications revenue potential with minimum

geographical coverage;

o Offer multiple telecommunications services to provide customers with a "one-stop

shop" solution;





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o Position itself to tap data transmission opportunities and offer advanced mobile

data services;

o Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

o Leverage strengths of its strategic and financial partners; and

o Emphasize on human resource development to achieve operational efficiencies.

Businesses

Bharti Tele-Ventures current businesses include –

o Mobile services

o Fixed-line

o National and international long distance services

o VSAT, Internet services and network solutions

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:





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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 Architecture:

Bharti is working on a complex three-layered branding architecture — to:

Create specific brands for each service,

Build sub-brands within each of these services and

Use Bharti as the mother brand providing the group its corporate identity as well as

defining its goal to become a national builder of telecoms infrastructure.





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AirTel - The flagship brand for cellular operations all across the country.

Touchtel - The brand earmarked for basic service operations.

India One - The brand for national long distance (NLD) Telephony

Though the costs of creating new brands are heavy but the group wants to create ―distinct

independent brands to address different customers and profiles‖.

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.

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.





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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.

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





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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.

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.





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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 ha rmony. ―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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The Magic:

Perhaps the more ambitious experiment has been with Magic — the pre-paid card. The idea was

to make the brand affordable, accessible and, most importantly, feasible as a means of expanding

the market even faster.

PHASE I –

Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure

him that he would have to pay only if he made a call. Such a customer used the phone sparingly

— mostly for emergencies — and was not willing to pick up a normal mobile connection with its

relatively high rentals (pre-paid cards do not include rental charges).

To achieve its objectives Bharti did three things.

o One, the product was made available at prices ranging from Rs 300 to Rs 3,000

with no strings attached and was simple to operate.

o Two, the product was made accessible and distributed through small stores,

telephone booths and even kirana shops so that the offering was wel l within arm‘s

reach.

o Third, to make the product more ―approachable‖ to the customer, the company

came with vernacular ad campaigns like ―Magic Daalo Se Hello‖ which appealed

to local sensibilities.





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This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign

all across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 12 lakh today,

overtaking Essar‘s branded pre-paid card Speed , which was launched much ahead of Magic. The

company is now re-working its Magic strategy even further.

Earlier, the branding strategy was aimed at roping in only interested customers — that is,

customers who were already inclined to opt for mobile services. But now, with basic service

providers having been allowed limited mobility at far cheaper rates, mobile service providers

could find themselves under threat again.

That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is

under wraps, insiders say the new branding strategy would be aimed at offering them value

which they had not perceived would be available from using a pre-paid card.

PHASE II –

Bharti used AirTel Magic to build a strong value proposition and accelerate market expansion

through India‘s first national pre-paid card TV brand campaign

o First time ever in India - any pre-paid card brand goes on TV

o A combination of the film genre exposed through the TV medium designed to

connect with the masses of India

o Youth based - romance driven strategy platform makes the value proposition of

AirTel Magic - ‗Mumkin Hai‘ come alive





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o All elements - user imagery, context, tone & language created to connect the

category to the lives of the SEC B & SEC C segment – the middle class non-

mobile user.

o AirTel Magic positions itself on the platform of being excellent for emergency

situations - increasing productivity as a part of everyday life.

o Sharukh Khan makes ‗everything in life possible‘ while romancing pretty

Kareena Kapoor with AirTel Magic, India‘s leading pre-paid mobile card.

AirTel today unveiled its strategy for market expansion with the launch of its new AirTel Magic

pre-paid card brand campaign – ‗Magic hai to Mumkin hai‘. The strategy is targeted at the non-

user segment defined as young adults, 15-30 years of age; in the Sec B & C segment is aimed at

accelerating market expansion. The value proposition is centered around a person‘s desire to

make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for

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

The brand is positioned to be relevant to the mass-market who want to make all their dreams,

hopes & desires come alive… instantly. (At just Rs.300/- per month AirTel Magic is so easy to

buy.) Improving productivity, letting you befriend the world and opening up new horizons. It

gives you the freedom to control your life in a way never possible before. Indeed, anything that

you think is possible is possible with AirTel Magic. The new brand slogan ‗Magic hai to

Mumkin hai‘ has been specially created to capture this effectively. This strategy is designed to

help us talk to this segment directly in the tone, manner & language of the masses. The ―Mumkin

hai‖ value proposition will help us expand the market and gain a higher percentage of market

share in the process.

The brand ambassadors Sharukh Khan and Kareena Kapoor embody this ‗can do‘ or ―Mumkin

Hai‖ spirit (infact that is the reason they were selected as brand ambassadors). Sharukh rose from

a TV actor to become India‘s top film star and national heartthrob. Kareena‘s success is due to





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her ‗attitude‘, talent, hard work and the sheer ability to make a mark in such a short time. Both

these stars have said ‗Mumkin hai‘ and made it happen for themselves.

The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions

across India. The spirit of romance, dancing… the Indian cinema, well known to most as

Bollywood, holds millions of Indians together as one.

The new TV campaign of AirTel Magic crafted in the Hindi film idiom, magnifies the

empowering optimism of ―Mumkin Hai‖, in the endearing situation of a boy-girl romance.

Where Sharukh Khan, sets his eyes on Kareena Kapoor and wins her love with the help of AirTel

Magic. (Poignantly conveying that special feeling we all get when a dream is made possible and

a victory of the heart is won).

The strategy & new brand campaign is targeted at the large untapped base of intending mobile

customers from Sec A, B & C. The estimated addressable market of such customers in the next

two years is around 25 million in AirTel‘s 16 states. The new strategy aims at correcting the

perception that the mobile category is useful mainly for ‗business‘ or ‗work‘ related scenarios.

The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide

research and is an integral part of AirTel Magic‘s new multi-media campaign. The campaign has

been created by Percept Advertising.

PHASE III –

Bharti used AirTel Magic to build a strong value proposition and accelerate market expansion

through India‘s first national pre-paid card TV brand campaign





3 0

o First time ever in India - any pre-paid card brand gives such freedom to recharge

any value

o A combination of the film genre exposed through the TV medium designed to

connect with the masses of India

o Youth based - romance driven strategy platform makes the value proposition of

AirTel Magic - ‗Aisi azaadi aur kahan?‖ come alive

o Sharukh Khan makes ‗everything in life possible‘ AirTel today unveiled its

strategy for market expansion with the launch of it‘s new AirTel Magic pre-paid

card brand campaign – ‗Magic hai to Mumkin hai‘. . The value proposition is

centered around a person‘s desire to make all his / her dreams, ambitions &

aspirations instantly possible. The new campaign for AirTel Magic is all about

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

The brand is positioned to be relevant to the mass-market who want to make all their dreams,

hopes & desires come alive… instantly .At a amount of your choice you can recharge your

account with available validity time .Improving productivity, letting you befriend the world and

opening up new horizons. It gives you the freedom to control your life in a way never possible

before. Indeed, anything that you think is possible is possible with AirTel Magic. The new brand

slogan ‗Aisi azadi aur kahanhas been specially created to capture this effectively.

Amount

(Rs)

Service

tax (8%)

Processing

fees (Rs)

Talk

time (Rs)

Validity

(Day)54 4 25 25 5

60 4.44 25 30.56 5





3 1

75 5056 25 44.44 5

100 7041 25 67.59 10

125 9026 50 65.74 10

150 11.11 50 88.89 10

175 12.96 50 112.04 10

200 14.81 50 135.19 20

216 16 85 115 20

225 16.67 85 123.33 20

250 18.52 85 146.48 20

275 20.37 85 169.63 20

300 22.22 85 183.78 20

Amount

(Rs) Service

tax (8%) Processing

fees (Rs) Talk

time (Rs) Validity

(Day) 324 24 150 150 30

350 25.93 150 174.07 30

360 26.67 150 183.33 30

375 27.78 150 197.22 30

400 29.63 150 220.37 30

425 31.48 150 243.52 30

475 35.19 150 289.81 30





3 2

500 37.04 150 312.96 30

525 38.89 150 336.11 30

540 40 150 350 30

600 44.44 150 405.53 30

650 48.15 150 451.56 30

700 51.85 150 498.15 30

775 57.40 150 567.59 30

800 50.36 150 580.74 30

Amount

(Rs) Service

tax (8%) Processing

fees (Rs) Talk

time (Rs) Validity

(Day) 900 66.67 150 683.33 60

1000 74.07 150 775.93 60

1080 80 150 850 60

1200 88.89 150 961.11 60

1300 96.3 150 1053.7 60

1400 103.7 150 1146.3 60

1500 111.11 150 1238.89 60

1800 133.33 150 1516.67 60

2000 148.15 150 1701.85 60

2160 160 150 1850 60





3 3

3000 222.22 150 2627.78 60

5000 370.37 300 4329.63 366

6000 444.44 300 5255.56 366

7000 518.52 300 6181.48 366

8000 592.59 300 7107.41 366

9000 666.67 300 8033.33 366

9999 740.67 300 8958.33 366

Other 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.

YOUR TALK TIME = MRP – PROCESSING FEES –

SERVICE TAX





3 4

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.

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





3 5

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.

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





3 6

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.

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 customerneeds, 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.





3 7

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.





3 8

CHAPTER-3





3 9

FINDINGS AND

ANALYSIS





4 0

FINDINGS AND ANALYSIS

Age Group Graph

As we can see from the above graph, the people who are in the age group of 21-28 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 young executives and

other office going people. They are 65% of the total people who were interviewed. The next age

group are the people who are 28-35 years old. They are 20% of the total. They are those who are

at home or have small business units etc. And the next age group is the youngest generation who





4 1

are 15-21 years old. They are school and college going students and carry mobile phones to

flaunt. They are 15% of the total interviewed people.

Occupation Graph

As the above graph shows that 55% of the total people interviewed are working. So, these people

are the ones who are the maximum users of mobile phones. They are the young executives,

managers, Tele - callers etc. who require mobile for their official purposes. The next category is

the households, who are either housewives, small units which operate from their homes etc. They

are 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of

the whole is categories who are the professionals.

10%

20%

10%

60%

CUSTOMER SATISFACTION LEVEL

PARTIALLY

FULLY

FULLY DISSATISFIED

DISSATISFIED





4 2

Customer Service At Airtel Graph

As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people

are dissatisfied with the customer services provided by Airtel. They are the ones who have the

maximum share in the market but they are lagging behind in the customer services. 10% of the

people were fully dissatisfied with the customer services of Airtel. This could leave an impact on

the mind of the consumer. He can even switch over his brand. 20% of the people seemed

partially satisfied with the customer services and only 10% seem to be fully satisfied with

Airtel‘s customer services, which is a very small amount.

SIM CARD

15%

CASH CARD

85%

TYPES OF CARDS





4 3

Types Of Card Graph

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users

were having cash card connections. This means that the cash cards should be easily and readily

available in the local markets. Airtel should make sure that Magic is available in each and every

nook and corner of the market. 15% of the people were having a sim connection which is the

regular bill.

TATA INDICOM

15%

RELIANCE

85%

AWARENESS OF WLL PLAYERS





4 4

Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the people were not at all awareof such a technology. So, in order to get the answer for this question they were first explained the

concept. Only, 55% people knew what WLL is all about.

Awareness of WLL Players Graph

Reliance was the brand which was popular amongst the interviewed people. As Reliance had

done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be

one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly,

because of less promotions done by them as compared to Reliance.

On the basis of analysis of the questionnaire I have found that the maximum no. of people who

use mobile phones is in the age group of 20 to 28. Who are the young executives and other office

goers?

They spend a maximum of RS. 500 as their mobile expense.

There are more no. of prepared cards than post paid cards. The mobile users want to spend

money side by side than to spend money at the end of the month on a big bill.

Now when I compared Airtel with its competitor from the point of view of the consumer I found

that on the basis of Tariff plan, value added services and billing accuracy Airtel is at par or ahead

of its competitor but in the case of customer care and availability they lag behind therecompetitors. As, Airtel has a hold in the market because it has the maximum no. of connections,

so it must improve upon it customer services. As far as WLL is concerned people are aware

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

People at this point of time are not interested to switch over from GSM to WLL.





4 5

CHAPTER-4





4 6

SWOT ANALYSIS





4 7

SWOT ANALYSIS

Strengths

o Being one of the largest companies in India the company has achieved a degree of

focus in its core business of its products.

o It has a strong brand name, superior quality products and an enviable distribution

network.

o It has a clear and well-defined organization structure and limits of financial

authority.

o Increase in advertisement spends affect the company‘s margins.

o The company‗s bottom line falls victim to the bloated and highly paid workforce,

which affects its margins.

Weakness:

o Little efforts over the Advertising of products.

o Distribution channel is not accurately categorized.

o Premium priced products, hence can‘t compete in low price segment.

o No separate strategy for rural market.





4 8

Opportunities:

o The company's financial performance can receive a major boost from its cost

reduction efforts.

o There is a lot of scope of product and market diversification.

o Exports of products will also have huge chances in the coming years.

o Airtel‘s business has ample scope for gaining market share from the unorganized

sector. Rural penetration too holds vast potential to bring about growth.

Threats

o 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.

o 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.





4 9

CHAPTER-5





5 0

SUGGESTIONS





5 1

SUGGESTIONS

Following are the few suggestions to AIRTEL for improving the market share and image of the

products concerned.

1. PRODUCT

Modification must be brought about in AIRTEL, in terms of quality. Its demand should

be increased.

2. PLACE

The brands must be made available easily in, PCO & general stores.

3. PROMOTION

Company must undertake extensive promotional activities like advertisements must be

released in different Medias to create brand awareness. *Free samples should be

distributed among the prospects. Sales promotion tools like gifts, contests and coupons

must be given to retailers as well as customers and prospects.

Catalogues should be distributed among customer.





5 2

RECOMMENDATION





5 3

RECOMMENDATION

I have made following recommendation to the company after doing the summer training there:

o The company should modify its credit policy as they only target the cash paying

customers who are not easy to trace.

o 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.

o The company should make its marketing strategy flexible enough in order to face

competition.

o 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.

o 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.

o 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?





5 4

LIMITATIONS





5 5

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 retailers/wholesalers refuses to cooperate with the queries.

5. Some retailers/wholesalers 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 do not have time to answer.





5 6

CHAPTER-6





5 7

CONCLUSION





5 8

CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel lagged behind its

competitors as far as customer service and availability is concerned. The maximum no. of people

who use the mobile are in the age group of 20 to 28. Cash cards are the most popular type of

mobile connections, as they are consumer friendly and recharging the connection is not a

problem.

Maximum no. of people spends RS 500 on their connections. As Airtelis the only company

having the maximum no of mobile connections so it must seriously look into the loop holes of

the existing customer service department.

As we know that now airtel has already launched its product with logo ―Aisi azaadi aur kahan‖has already became popular in market. So we can say that inspite of so many competitor in the

market Airtel is having a good position just because every time, it tries its best to understand the

need of its important customer.





5 9

BIBLIOGRAPHY





6 0

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.airtelworld.com

www.google.com

www.india.com

Magazines:

Airtel (2 July to 10 July 2004)

Airtel India page of HT paper (Thursday 1December 2004)

Cowards India (26 December to 4 Jan. 2004)





6 1

QUESTIONNAIRE





6 2

QUESTIONNAIRE

Dear Sir/Madam,

I am a student of BBA of Fairfield Field Institute Of Management & Technology,

Kapashera, doing my summer training project on consumer behavior from Airtel. Please give

your precious time for filling these details.

Q.1 For how long you have been using Airtel Product?

0-2 Years

2-5 Years

5-10 Years

More than 10 years

Q.2 Are you using other product instead of Airtel?

Yes

No

Q.3 Among them, which Brand you, prefer most?

Idea

Hutch

Airtel





6 3

Q. 4 How would you rate the experience with Brand?

Idea

Hutch

Airtel

Excellent Good Average Below Average

Q.5 Do you collect any information search before making purchase?

Yes

No.

Q.6 If yes, which sources are used?

Magazines

Dealers

Sales Executives

Operators reference

Pamphlets and catalogue

Reference from friends and relatives

Any other





6 4

Q.7 What are the features you look for in a product before making purchase decision? Give

preferences (1-Highest, 6- least)

Brand credibility

Price and Discount

After sales services and parts, network

Value for money

Vehicle performance

Add on features or ergonomics of design

Q.8. Which of these marketing / sales schemes attracts you while purchasing any connection?

Good Network

Discount scheme

Service package

Any other

Q.9 If you have to purchase a new connection or product in near future, which Brand will you go

for and why?

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________





6 5

Q.10 Are you aware of various promotional activities being run by Airtel, if yes then how? Are

you satisfied with these promotional activities?

Very Satisfied Satisfied Somewhat Satisfied Not Satisfied

Customer Care

By Ad Films

By Camp

24 hrs call center services

Q.11 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

Q.12 What are you suggestions for improving the product quality, service availability and parts

availability?

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________

Summer Training Report by Mohit

Documents

Transcript of Summer Training Report by Mohit