project bba

1. CHAPTER-1CHAPTER-1
INTRODUCTION
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2. INTRODUCTION
AIRTEL
Airtel is a brand of telecommunication services in India operated by Bharti Airtel.
Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand
name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services
(Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and
Enterprise Services (Telecommunications Consulting for corporates). It has presence in all
23 circles of the country and covers 71% of the current population (as of FY07).
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.
VODAFONE ESSAR
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India Despite the official name being Vodafone Essar, its products are simply
branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology,
offering voice and data services in 16 of the country's 23 license areas.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India . Despite the official name being Vodafone Essar, its products are simply
branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology,
offering voice and data services in 16 of the country's 23 license areas.
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3. BACKGROUNDBACKGROUND
The project is an extensive report on how the Airtel Company markets its strategies and
how the company has been able in tackling the present tough competition and how it is
scooping up by the allegations of the quality of its products. The report begins with the
history of the products and the introduction of the Airtel Company. This report also
contains the basic marketing strategies that are used by the Airtel Company of
manufacturing process, technology, production policy, advertising, collaboration, export
scenario, future prospect and government policies. The report includes some of the key
salient features of market trend issues.
In today’s world of cutthroat fierce competition, it is very essential to not only exist but also to
excel in the market. Today’s market is enormously more complex. Hence forth, to survive in the
market, the company not only needs to maximize its profit but also needs to satisfy its customers
and should try to build upon from there.
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4. COMPANY PROFILE OF AIRTEL
Vision
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus
remains unchanged: seek out the best technology in the world and put it at the service of our
ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan of action.
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 fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi,
Karnataka and Tamil Nadu and nationwide broadband and long distance networks.
Bharti has recently launched national long distance services by offering data transmission services
and voice transmission services for calls originating and terminating on most of India's mobile
networks.
The Company is also implementing a submarine cable project connecting Chennai-Singapore for
providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart
from being the largest manufacturer of telephone instruments, it is also the first telecom company
to export its products to the USA.
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
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5. position to be the leading integrated telecommunications services provider in key markets in India,
with a focus on providing mobile services”.
The Company has developed the following strategies to achieve its strategic objective:
• Focus on maximizing revenues and margins;
• Capture maximum telecommunications revenue potential with minimum geographical
coverage;
• Offer multiple telecommunications services to provide customers with a "one-stop shop"
solution;
• Position itself to tap data transmission opportunities and offer advanced mobile data
services;
• Focus on satisfying and retaining customers by ensuring high level of customer
satisfaction;
• Leverage strengths of its strategic and financial partners; and
• Emphasize on human resource development to achieve operational efficiencies.
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6. Businesses
Bharti Tele-Ventures current businesses include -
• Mobile services
• Fixed-line
• National and international long distance services
• VSAT, Internet services and network solutions
• Broadband services with DSL and Wi-Fi network
Competitive Strengths
Bharti Tele-Ventures believes that the following elements will contribute to the Company's success
as an integrated telecommunication services provider in India and will provide the Company with
a solid foundation to execute its business strategy:
• Nationwide Footprint - approximately 92% of India's total mobile subscribers resided in the
Company's fifteen mobile circles. These 15 circles collectively accounted for approximately 56%
of India's land mass;
• Focus on telecommunications to enable the Company to better anticipate industry trends
and capitalize on new telecommunications-related business opportunities.
• The strong brand name recognition and a reputation for offering high quality service to its
customers;
• Quality management team with vision and proven execution skills; and
• The Company's strong relationships with international strategic and financial investors such
as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group
and New York Life Insurance.
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7. 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.
BHARTI
AIRTEL
(Cellular
Operations)
TOUCHTEL
(Basic Service
Operations)
INDIA ONE
(National Long
Distance)
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8. Airtel - The flagship brand for cellular operations all across the Indian 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.
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 inspirational brand that was meant for leaders, for customers who stood out in a
crowd.
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9. 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 Vodafone telecomm 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 1.8 million customers). And with tariffs becoming more affordable — as cell companies
started cutting prices — it was time to expand the market.
How could Bharti leverage this leadership position down the value chain? Surveys showed that the
concept of leadership in the customer’s minds was also changing. Leadership did not mean
directing subordinates to execute orders but to work along with a team to achieve common
objectives — it was, again, a relationship game that needed to be reflected in the Airtel brand.
Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly
through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers
were an important tool for market expansion and Bharti now focused on building closer
relationships with them.
That is precisely what the brand tried to achieve through its new positioning under the Airtel
“Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile users surrounded by
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10. 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.
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.
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11. 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.
• 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.
• Two, the product was made accessible and distributed through small stores, telephone booths
and even kirana shops so that the offering was well within arms reach.
• Third, to make the product more “approachable” to the customer, the company came with
vernacular ad campaigns
Like “Magic Daalo Say Hello” which appealed to local sensibilities.
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 1.2 million
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.
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12. 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
• First time ever in India - any pre-paid card brand goes on TV
• A combination of the film genre exposed through the TV medium designed to connect with the
masses of India
• Youth based - romance driven strategy platform makes the value proposition of Airtel Magic -
‘Mumkin Hai’ come alive
• 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.
• Airtel Magic positions itself on the platform of being excellent for emergency situations -
increasing productivity as a part of everyday life.
• 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.
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13. 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 shares in the process.
The brand ambassadors Shahrukh 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 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.
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14. 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
• First time ever in India - any pre-paid card brand gives such freedom to recharge any value
• A combination of the film genre exposed through the TV medium designed to connect with the
masses of India
• Youth based - romance driven strategy platform makes the value proposition of Airtel Magic -
‘Aisi azaadi aur kahan?” come alive
• Sharukh Khan Makes ‘everything in life possible’ 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 value proposition is centered on 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 kahan’ has been specially created to capture this effectively.
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15. 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.
• 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.
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16. • The company also offers multi-media messaging systems under which customers having a
specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the
phone. The cost per picture is between Rs 5 to Rs 7.
• Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than
it is today. A key area is to increase the number of activation centers. Earlier Bharti had 250 Airtel
Connect stores which were exclusive outlets (for its services) and about 250 Airtel Points which
were kiosks in larger shops. Now activation can be done by all of them, and not only by Connect
outlets, all within 15 to 20 minutes. In comparison, the competition takes two to four hours.
• Pre- paid cards are really catching up with the mobile phone users and it is actually helping the
market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, one
need not pay security deposits for picking up a pre-paid card. It is often available even with
paanwalas. As befits a fast-moving consumer service, the game is now moving beyond price to
expanding distribution reach and servicing a well-spread-out clientele with technology and
strategic alliances. Bharti is focusing on two factors to make pre-paid cards more attractive.
Keeping the entry cost low for consumers and making recharging more convenience.
• Bharti is in the process of launching a new system in alliance with Mumbai-based Company
Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping
a card. The system will not only save users the hassle of going out and buying a card every time it
expires but also enable mobile companies to reduce the cost of printing and distributing cards.
• Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to
reach its Magic pre-paid cards to subscribers' doorsteps. The company is also joining hands with
local grocery shops which will enable users to recharge their cards by just making a phone call to
the shop. Apart from improving the convenience of recharging, mobile operators are beefing up
their distribution channels. The company is constantly innovating to enhance the value proposition
for its pre-paid service. They are leveraging technology to expand their distribution network and
deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers.
• Bharti Cellular has also launched a special service, CareTouch, for high-value, corporate
customers, providing them with instant, single-point access for any assistance they require.
Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills,
16

17. 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.
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18. Bharti’s View on its Branding strategy:-
First, brand building efforts in today’s context have to be seen in a more holistic manner.
Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.
Unflinching orientation to customer needs is the second key success factor. Customers (be it for
industrial products or consumer goods and services) across the world are more informed and, at the
same time, becoming more individualistic in their needs and far more demanding with the passage
of time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer
needs, and then reacting in “real-time” are essential to attract and retain customer loyalty — a key
element of creating brand equity in the present situation.
Customizing the product (and communication of its benefit) to meet the specific needs of various
consumer/customer sub-segments is the third element in creating brand appreciation.
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.
18

19. Comparison of marketing strategies
between
Bharti Airtel and Vodafone.
19

20. Purpose of comparison
• The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti
Airtel and its rival Vodafone
• The comparison shows how both of the companies have been challenging each other to gain
market shares.
Why comparison with vodafone
 Bharti Airtel is the leader in telecommunication sector.
 Bharti Airtel holds the lion share of market of communication sector.
 However, Vodafone has been giving tough competition to Bharti Airtel.
 Vodafone is the second largest player and share holder in Communication sector.
 Since its launch Vodafone has been adopting aggressive marketing strategies.
 The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month
of its first launch of postpaid subscription in 2002.AD.
 With a different technology Vodafone creates its own market.
 Vodafone odafone. Today deals in every business of communication sector.
 Vodafone making and changing the strategies to capture the market shares
20

21. Brand positioning by Bharti Airtel
Market segmentation
 Geographical segment (metropolitans & cities India)
 Demographic segment - middle income groups
 People age group of 20 to 28 year
Target marketing
 People who living in cities and towns.
 Poor or middle income group people.
 Youngsters in big cities.
 Businessmen
Positioning
 Creating brands (Sharukh khan & Sachin Tendulker)
 Ads and promotions
 Promotion for study of poor childrens.
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22. Marketing mix
 Price: low price strategy
 Place: maximum outlets and service centers
 Product: verities available for various groups
 Promotion: various schemes for pre-paid and post-paid
22

23. MARKETING STRATEGIES
OF
VODAFONE.
23

24. Vodafone target the rural India
The main targeted customers of Vodafone are from rural India.
By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages
and towns.
Offering cheap handsets
Vodafone offers cheap and free connections to all customers.
The cost for these sets was Rs-799-849-1099set and onward.
Free support and services
In every district and big towns Vodafone opens its service centers to provide better support and
services.
Strong logistics and supply chain
Vodafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the Vodafone SIM & Sets.
Targeting youngsters in metropolitans
Vodafone attracts youngsters by offering colorful handset at very low prices.
24

25. BRAND POSITIONING
BY
VODAFONE
25

26. Market segmentation
 Geographical segment (rural India)
 Demographic segment - middle income groups
Target marketing
 People living in small towns and villages.
 Poor and middle income groups.
 Youngsters in big cities.
 Businessmen
Positioning
 Creating brands
 Ads and promotions
Marketing mix
 Price : low price strategy
 Place : maximum outlets and service centers
 Product : verities available for various groups
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27.  Promotion: various schemes for pre-paid and post-paid
Services provided by Bharti Airtel
• Mobile services with GSM technology
• Fixed-line connections
• National and international long distance services
• VSAT, Internet services and network solutions
• Broadband services
Services provided by Vodafone.
●mobile services with GSM technology
●fixed-line telephone services
●Universal Internetworking
●VoIP (Voice over Internet Protocol)
●Interactive Television
●Visual Communication
●Broadband Portal
●Telecommuting
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28. CHAPTER-2
LITERATURE REVIEW
28

29. LITERATURE REVIEW
Telecom sector was a state monopoly until the mid eighties when the liberalization process started.
The department of telecommunication (DoT), under the Ministry of Communication administered
telecom services. The planning commission, an apex level body, allocated funds for telecom
development from government resources. The telecom sector, therefore, competed with other
developmental priorities of the government for a share in resource allocation. Planning,
engineering, installation, maintenance, management, and operations of telecom services for the
whole of India was managed by the DoT, which also lay down and monitored adherence to
technical standards and managed frequency usage.
The DoT was a monolithic entity, with a huge work force managing the telecom operations of the
entire country. The bureaucratic approach and the slow acceptance and induction of new
technologies with very little customer orientation were perceived as barriers to growth. The
government created the corporate organizations in order to allow decision making autonomy and
flexibility and facilitate public borrowings which would not have been possible under a
government framework. However, policy formulation, regulation and several key decision areas
remained with the DoT. A new organization, the Telecom Commission, was created with a wide
rang eof executive, administrative and financial powers to formulate and regulate policy and
prepare the budget for the DoT. The Telecom Commission had four full time members managing
technology, production, services, and finance and four part time members representing the
planning commission, department of finance, department of industry, and department of
electronics.
The key driver for change in the sector was the National Telecom Policy announced in May 1994.
It boldly specified its major objectives as telephone demand, achievement of universal service
obligation and ensuring world class service to subscribers. This policy also paved the way for
private sector participation in telecom services. Objectives of NTP (1994) were
• Telecom for all the telephone in reach of all.
• Provision for certain basic telecom service at affordable and reasonable price.
29

30. • World class quality of telecom service.
• India to emerge as a major manufacturing base and exporter of telecom equipment.
Telecom services were categorized into domestic basic (which included basic telephony, telex and
fax), domestic value-added services (VAS) which covered all other services such as paging,
cellular, data services, VSAT and international basic and VAS. Telecom service liberalization
started in 1984, with private sector being allowed to manufacture customer premise equipment. In
1992, service provision was opened for private sector. At this stage government also unbundled
basic and VAS. Private operators were allowed to participate in provision of VAS such as cellular
and paging services. Subsequently, basic services in the local lop were opened for private
operators. Basic service provision had been planned as a duopoly between the DoT and a selected
service provider. Several service providers, one for each of the twenty "circles" into which the
entire country had been divided would compete with the DoT for basic services. the bidders were
valued both on financial and technical parameters. Permissible network technologies were
specified and basic service providers were required to base their services on fiber-optic cable and
wireless in the local loop as far as possible. Licenses had been granted for an initial period of 15
years and could be extended by another 10 years. Private Service operators were allowed to
provide intra-circle long distance service which contributed to almost 60% of the total calls.
The government had mandated that all private basic service operators had to provide 10% of all
new lines in rural areas. A weight age of 15% for service provision in rural areas was given at the
time of bid selection. A penalty on a per day basis for each telephone not installed sought to
prevent companies from delaying meeting rural targets. At the same time, the government
encouraged new emerging technologies including local loop wireless, cellular telephony and
satellite based communication systems that could help develops rural telecom in a cost effective
manner.
Inter-circle communication remained under the DoT. VSNL maintained an exclusive license for
international services for at least until 2004. Advanced communication services like cellular,
paging, e-mail, fax, data transmission over telephone and leased circuits were increasingly being
made available by private operators. However, Electronic Data Interchange standards and its
adoption had not made much progress largely due to the problems in long distance
30

31. communication, lack of coordination for adopting standards, and unclear policies in the various
departments involved in national implementation.
Cellular mobile telephony industry was opened to the private sector in 1992. Initially there were
great hopes for profits in this business that somehow turned to despair. But once again there is
euphoria in this market due to the revenue-sharing policy, consolidation and growth. Several new
entrants have done well, and the industry is quickly moving to maturity/ due to the attractive
technology, marketing and competitiveness. Stiffer competition/ new entrants, and developments
in the limited-mobility industry have given opportunities as well as posed challenges, generating
appropriate responses. India's cellular phone industry is considered as one of the world's fastest
growing markets.
The cellular phone industry market is affected by the hesitation of investors in new technologies
and networks. The industry is also affected by the changing telecom and tariff policies on profit
prospects and competition. The cellular subscribers are growing at an exponential rate. They are
expected to touch 1.15 Crore by March 2003. This means mobile phones would account for 20.5%
of total telephone connections in India. Still the cellular density will remain low at 1.1% as
compared to fixed teledensity of 4.3%. Cellular growth is attributed to increased competition,
declining prices and increased pre-paid penetration. It has drawn massive investment from private
as well as global telecom giants facing saturation in most western markets. There are around 6.9
million subscribers in India compared to 150 million users in China. Gartner Dataquest estimated
that Indian cell phone market would expand at a compounded annual growth rate of 46% percent
over the next five years till 2006. We hope this will boost the Indian economy.
Growth in telephony continued in May as the subscriber base reached the 102.5 mn mark. Tele
density in May 2005 improved to 9.46% from 9.26% in April 2006. During May 2006, 2.31mn
subscribers were added as against 2.03mn subscribers in April 2006. In the fixed segment, a total
of 0.61mn subscribers were added during May 2006, taking the subscriber based of fixed line
services to 47.11mn. In the mobile segment, total additions during the month summed up to 1.7mn
out of which 1.225mn subscribers were added in the GSM segment and the remaining 0.475mn
were added in the CDMA segment.
Mobile telephone subscriber base witnessed a healthy growth of 1.7mn in May 2005, a strong start
to the new financial year. The segment subscriber base grew 3.22% mom to 55.38mn. Bharti
remained the overall market leader in both the CDMA and the GSM segments.
31

32. CHAPTER-3
OBJECTIVES OF STUDY
32

33. OBJECTIVE OF THE STUDY
Every organization has to achieve its organization goals. For this it is very essential for an
organization to know about the view of consumers and their competitive products. This survey
research may be also aimed as to estimate potential buyer for the product. The objective of the
study is as under:-
1. To identify the difference between market performance of Airtel industry and Vodafone.
2. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.
3. To compare various parameters of marketing strategies, manufacturing process,
technology adopted production policy, advertising, collaboration, export scenario,
future prospect for the two companies and government policies.
4. To study customer buying behavior and factors which influence the purchase decision
process.
5. To know how the company has been successful in encountering the aggressive marketing
strategies of competitors.
33

34. CHAPTER-4
RESEARCH METHODOLOGY
34

35. RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep study regarding the subject. The prime
objective of the project is to compare Airtel with the existing competitor (Vodafone) 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.
TYPE OF RESEARCH METHODOLOGYTYPE OF RESEARCH METHODOLOGY
EXPLORATORY:EXPLORATORY:
Type of research carried out was exploratory in nature; the objective of such research is toType of research carried out was exploratory in nature; the objective of such research is to
determine the approximate area where the drawback of the company lies and also to identify thedetermine the approximate area where the drawback of the company lies and also to identify the
course of action to solve it. for this purpose the information proved useful for giving rightcourse of action to solve it. for this purpose the information proved useful for giving right
suggestion to the companysuggestion to the company..
35

36. Data CollectionData Collection MethodMethod
There two type of method of data collectionThere two type of method of data collection..
•• primary dataprimary data
•• secondary datasecondary data
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.
SSecondary dataecondary data::
SSecondary data refer to the data that has been already collected .the secondary data,econdary data refer to the data that has been already collected .the secondary data,
which has been used to carry out this study, are as followwhich has been used to carry out this study, are as follow::
•• BBooks, journals, magazines, newspapersooks, journals, magazines, newspapers
•• Industry reportsIndustry reports
•• Company’s internet siteCompany’s internet site
•• Someother relevant study material and websites..Someother relevant study material and websites..
Sample unitSample unit: - Delhi & NCR.: - Delhi & NCR.
36

37. MMethod of collectionethod of collection: -: -
Field procedure for gathering primary data included observation and interview schedule in whichField procedure for gathering primary data included observation and interview schedule in which
the questionnaires were filed by the interviewer.the questionnaires were filed by the interviewer.
Personal interviews through self administered survey was done to collect the data, market researchPersonal interviews through self administered survey was done to collect the data, market research
was undertaken, that was accomplished by performing various activities designed.was undertaken, that was accomplished by performing various activities designed.
Research instrumentResearch instrument::
QuestionnaireQuestionnaire
The questionnaire was formulated by keep in mind the following pointsThe questionnaire was formulated by keep in mind the following points: -: -
•• Giving the respondents. clear comprehension of the question.Giving the respondents. clear comprehension of the question.
•• Inducing the respondents to co-operate.Inducing the respondents to co-operate.
•• Giving instructions as to what is needed.Giving instructions as to what is needed.
•• Identifying the needs to be known.Identifying the needs to be known.
37

38. Building visibility and awareness
Deviating from competing on the price platform, cellular operators are actively promoting their
brand and service portfolio through high-visibility advertising and promotional campaigns.
Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on
hoardings and kiosks. Public transport like the city
rail system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the establishment of
longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and
"Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, food
and beverages, among others. Others offer special privileges in retail outlets, cinemas and music
shops.
38

39. Enterprise mobile applications — promising revenue stream
All along, customer acquisition and the top line have been the focus. Few operators have
concentrated on offering differentiated services for businesses. However, as operators realize that
offering basic voice and Short Message Service (SMS) will get them the numbers but not the
margins, some are now seriously looking at the enterprise segment for provisioning superior
services.
Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and
instant alerts are being offered.
A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the
process of introducing a facility to fleet management companies so that they can improve the
efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route
planning. Premium automakers are also installing a global system for mobile communications
inside a vehicle to help trace lost vehicles and track down stolen cars.
Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls
can be barred, limiting access to select numbers and diverting calls to one single number.
Broadcasting services are also quite popular, especially among fast food centers that have a central
number. Group SMS is quite popular, especially among enterprises both in the service as well as
the fast-moving consumer goods (FMCG) segment that have a large field force and need to
provide regular updates on inventory status, discount schemes and movement of goods from
warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward
transactional alerts to their customers.
2.3 FUTURE TRENDS AND DEVELOPMENT
There will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.
• The implementation of enhanced networks like 2.5G will enable operators to offer data
services. This is an opportunity to customize and differentiate better.
39

40. • The entry of state-run operators like BSNL and BHARTI means that prices will no longer be
controlled, thus there is less chance of a cartel being formed.
• Network coverage in terms of geographic spread and quality of coverage is crucial especially
for the business subscriber.
• The bigger the service provider's national presence, the better it is for businesses. On the
roaming front, signing up with a national operator is advantageous.
• Limited mobility wireless in local-loop services (by fixed network service providers) will be a
disadvantage for cellular operators in the short term. Consequently, operators need to streamline
their customer relation activities and adopt aggressive subscriber acquisition and retention
strategies.
40

41. 2.4 REGULATORY ISSUES
The operations of this sector are determined as under the Indian Telegraph Act of 1885. A
document buried in the sands of time. The next major policy document, which was produced, was
the National Telecom Policy of 1994, a consequence of the on going process of liberalization.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
1985 DOT was created
1986 Creation of BHARTI and VSNL
1991 Telecom equipment liberalized
1994 Licenses for paging
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
41

42. operators in value added services. To facilitate licensing, the nation was divided into 20 circles
(akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle
and Delhi in itself a circle.
The basic premise on which competition has been introduced is that every circle will have one
private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/ BHARTI
have the option to become the third cellular operator in future.
Government did not achieve most of its stated targets. The basic theme, which was broadening the
reach of telephony in India, has not been met. Even liberalization policies were not implemented
properly. The regulator TRAI was set up after delays and confusion and even after its creation,
DoT continued to fight with it in courts. It was also affected by the resource crunch, and financing
options like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was
to allow private sector entry in both basic and value added services. The intention, though noble
failed to achieve its goals because of improper implementation, the economic costs are still borne
by the end user.
The telecom sector has witnessed some fundamental structural and institutional reforms in the past
decade. Telecom equipment manufacturing was completely deregulated in 1991. Value-added
services (including cellular services) were thrown 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.
42

43. Scope of the study
# To conduct this research the target population was the mobile users, Who are using GSM
technology.
# Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.
# To these 50 people a questionnaire was given, the questionnaire was a combination of both open
ended and closed ended questions.
# 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 Store
# Bharti News Letters
# Vodafone Store
# Vodafone Ministore
43

44. CHAPTER-5
DATA ANALYSIS &
INTERPRETATION
44

45. Subscriber numbers in (mn) held by Vodafone and Airtel
June-05 Sep-06 Dec-07 Mar-08 Dec-08 Mar-09
Airtel 3.19 4.62 5.50 6.54 10.98 14.07
Vodafone 1.82 4.19 6.24 7.26 10.45 12.99
Source TRAI:
45

46. MARKET PLAYERS IN TELE COMMUNICATION
0
5
10
15
20
25
Market share Aug''05 Market share Aug''09
Bharti Airtel
vodafone
Reliance infocomm
Idea Cellular
Operator Market share
Aug''05
Market share
Aug''09
Bharti Airtel 19.06 22.49
Vodafone 21.81 16.96
Vodafonecomm 17.03 16.01
Idea Cellular 10.45 8.49
46

47. 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 are 15-21
47

48. 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 housewife, 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.
48
OCCUPATION
15%
55%
20%
10%
STUDENTS EXECUTIVES HOUSEHOLDS OTHERS

49. Service Provider Graph
These are the total market share of mobile user or people captured by the mobile provider
company. There two major company in mobile phone service sector Vodafone and Airtel who
respectively hold the market share with other company as 17% and 20% of total market user
segment of mobile customer.
49

50. 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.
50
CUSTOMER SATISFACTION LEVEL
20%
10%
60%
10%
FULLY PARTIALLY
DISSATISFIED FULLY DISSATISFIED

51. Type 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 sim connections which is the
regular bill.
51

52. Monthly expense graph
People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the
remaining 12% had an expense more than RS 1000, they could the ones having sim connections or
having cash cards and having a lot of business calls on their mobiles.
52
Monthly Expense
12%
64%
24%
Rs 600
Rs 450
Rs 200

53. Awareness About WLL Graph
WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of
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.
53

54. Awareness of WLL Players Graph
0%
10%
20%
30%
40%
50%
60%
70%
80%
Vodafone
Airtel
Vodafone was the brand which was popular amongst the interviewed people. As Vodafone 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 Vodafone.
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 is 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 there
competitors. 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 Vodafone. People at this
point of time are not interested to switch over from GSM to WLL
54

55. Customer Response towards
Questionnaire
55

56. Which Brand you, prefer most?
 Airtel
 Vodafone
 Reliance
 TATA
 Idea
56

57. How long you have been using this Product?
 0-2 Years
 2-5 Years
 5-10 Years
 More than 10 years
Consumers response shown in chart for usage
57

58. Are you using other product with Airtel?
 Yes
 No
33%
67%
YES
NO
Here are the customer responses about the use of the Airtel product and other product rather than
Airtel.
in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown interest in other
telecom products in urban areas.
58

59. Do you collect any information search before making purchase?
66%
34%
0%
10%
20%
30%
40%
50%
60%
70%
YES NO
information
search
59

60. CHAPTER-6
FINDING
60

61. SWOT ANALYSIS
Strengths:
• Being one of the largest companies in India the company has achieved a degree of
focus in its core business of its products.
• It has a strong brand name, superior quality products and an enviable distribution
network.
• It has a clear and well-defined organization structure and limits of financial
authority.
• Increase in advertisement spends affect the company’s margins.
• The company‘s bottom line falls victim to the bloated and highly paid workforce,
which affects its margins.
Weakness:
• Little efforts over the Advertising of products.
• Distribution channel is not accurately categorized.
• Premium priced products, hence can’t compete in low price segment.
• No separate strategy for rural market.
Opportunities:
• The company's financial performance can receive a major boost from its cost
reduction efforts.
• There is a lot of scope of product and market diversification.
61

62. • Exports of products will also have huge chances in the coming years.
• Airtel’s business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth.
Threats:
• The slowdown in the economy has restricted topline growth of most FMCG majors and
for Airtel also it will be difficult to maintain historical growth rates in such a depressed
scenario.
• Company’s major raw materials are influenced by government policies / controls as
well as vagaries of the monsoons. Fluctuations in the prices of raw materials would
have significant impact on costs and margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also increases
company’s production and distribution cost.
62

63. CHAPTER-7
LIMITATION
63

64. 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/whole sellers refuse 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 due to short period of time.
8. Some retailers did not answer all the questions or do not have time to answer.
64

65. CHAPTER-8
SUGGESTION
65

66. 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 customers.
4. PRICE
* Price should be as competitive as other company maintains
* Distribution of new connection should be in reach of customer pocket
66

67. CHAPTER-9
Conclusion
67

68. 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 is 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 Airtel is 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 in spite of so many competitors in the
market Airtel is having a good position just because every time, it tries its best to understand the
need of its important customers.
From the comparison and deep analysis of every aspect of business of both the companies we can
conclude that bharti Airtel has to more work in every field of communication business.
It is the time not only to survive but to sustain in the market for a long time.
For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and
when the need arises.With aggressive marketing strategies Airtel has to target rural India as 70%of
population of India lives in these areas. The other segment may be costumers of all age groups.
68

69. CHAPTER-10
Recommendations
69

70. RECOMMENDATIONS
I have made following recommendation to the company after doing the summer training there:
• The company should modify its credit policy as they only target the cash paying customers
who are not easy to trace.
• The company should emphasis more on the quality of Pharmaceuticals Products it was
mostly claimed by the exporters that their receipts from company doesn’t matches with the
sample’s quality shown before giving orders.
• The company should make its marketing strategy flexible enough in order to face
competition.
• The company should keep an eye on the proper delivery of the goods to exporter on time,
as it has been recommended by exporters to make the delivery on time.
• The company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then he may continue buy the goods and can be a
permanent customer for the company.
• The company should offers such rate in the market so that it may able to catch a bigger
market share and it should be able to compete with the local traders and commission agents while
having a brand name.
The company should take the opinion of exporters from time to time to know what problems they
are facing from the company’s side. And if any change they require in present supplying
condition?
70

71. Bibliography
71

72. 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.
Books :
Principles of Marketing –Philip Kotler & Kevin keller edi. 12
Market Research – D.D. Sharma
Research Methodology – C.R. Kothari
Websites:
www.Airtelworld.com
www.india.com
www.Vodafone.in
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)
72

73. Annexure
73

74. ANNEXURE
QUESTIONNAIRE
Q.1 Name those companies which provide telecom services now a days?
 Airtel
 Vodafone
 Reliance
 TATA
 Idea
Q.2 which mobile company services you are using now a days?
 Airtel
 Vodafone
 Reliance
 TATA
 Idea
Q. 3 Among them, which Brand you, prefer most?
 Airtel
 Vodafone
 Reliance
 TATA
 Idea
Q.4 How long you have been using this Product?
 0-2 Years
 2-5 Years
 5-10 Years
 More than 10 years
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75. Q.5 Are you using other product instead of Airtel?
 Yes
 No
Q.6 How would you rate the experience with Brand?
 Airtel
 Vodafone
 Reliance
Q.7 Do you collect any information search before making purchase?
 Yes
 No
Q.8 If yes, which sources are used?
 Magazines
 Dealers
 Sales Executives
 Operators reference
 Pamphlets and catalogue
 Reference from friends and relatives
 Any other

Q.9 What are the features you look for in a product before making purchase decision? Give
preferences (1-Highest, 6- least)
 Brand credibility
Excellent Good Average Below Average
75

76.  Price and Discount
 After sales services and parts, network
 Value for money
 Vehicle performance
 Add on features or ergonomics of design
Q.10. Which of these marketing / sales schemes attracts you while purchasing any connection?
 Good Network
 Discount scheme
 Service package
 Any other
Q.11 If you have to purchase a new connection or product in near future, which Brand will you go for
and why?
_________________________________________________
_________________________________________________
_________________________________________________
Q.12 Are you aware of various promotional activities being run by Airtel, if yes then how?
Are you satisfied with these promotional activities?
 Customer Care
 By Ad Films
Very
Satisfied
Satisfied Somewhat
Satisfied
Not
satisfied
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77.  By Camp
 24 hrs call center services
Q.13 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.14 What are you suggestions for improving the product quality, service availability and
parts availability?
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________
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