Aircel Report

DOOSRA KADAM

BySyndicate-10, Group-“B”

MBA-07

Army Institute of Management and Technology,Pocket P-5 Gautam budh nagar,

Greater Noida

Nov 2010

Acknowledgement

We express deep and whole hearted gratitude and sincere thanks to Mr. Jatin Chadha

Aircel Limited , for your invaluable guidance and effort taken to bring out the project

successfully.

Under commendable guidance we could learn and was able to evaluate our potential and

efforts. Without your tremendous support and full assistance, our project would not have

been completed.

Sudhir Singh Parihar

Shiv Kumar Tewatia

Rekha pal

Punit Kushwaha

Naresh Kumar

Certificate of Originality

WE Syndicate-10, Group “B”, Class of 2010, full time bonafide students of first year of

Master of Business Administration (MBA) Programme of Army Institute of Management &

Technology, Greater Noida. We hereby certify that this project work carried out by us at

Aircel Limited and the report submitted in the aim of increasing our knowledge base is an

original work of our under the guidance of the industry mentor Mr. Jatin Chadha, Aircel

Limited and faculty mentor Prof. Anand Rai and is not based or reproduced from any

existing work of any other person or on any earlier work undertaken at any other time or for

any other purpose, and has not been submitted anywhere else at any time

(Student's Signature)Date:

(Faculty Mentor's Signature)Date:

•

DECLARATION

We Syndicate-10, Group “B” hereby declare that all the information that has been

collected by us for the project is entirely authentic.

we would also like to mention that this project titled “Doosra Kadam” is a bonafide

work undertaken by us and it is not submitted to any other University or Institution for any

purpose any time before.

We would also like to mention that, the information that has been collected is not from

any unfair means. The data and information presented in the report is accurate and updated to

the best of our knowledge.

However, in an attempt to make this project our best effort, we have also collected

information from various other primary and secondary sources.

Place:

Date:

Syndicate-10, Group-“B”

OBJECTIVE OF THE REPORT

To study the Brief Organisational structure of Aircel Limited and number of

employees and other HR related aspects including hiring mechanism for new

employees.

Its core business/process, target customers, USP, marketing strategies and any

other operational issues.

Its capital, debt, securities, turnover, profit/loss and other important finance

related aspects.

To study how does the company pursue and achieve excellence in its chosen

operation and what are the knowledge takeaways for us in it.

How will we (or other students of AIMT) add value to the company and why

should it look at us and our other colleagues for hiring?

Type Private

Industry Telecommunications

Founded 1999

Headquarters Gurgaon

Key people Gurdeep Singh, COO

ProductsMobile

Telecommunication operator

ParentMaxis Communications (74%) [1]

Apollo Hospital (26%)

Website Aircel.com

Aircel commenced operations in 1999 and is a joint venture between Maxis Communications

Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications

holding a majority stake of 74%. Its wholly-owned subsidiaries are Aircel Cellular Ltd. (ACL)

and Dishnet Wireless Ltd.

Dishnet Wireless Ltd. (DWL) is a wholly-owned subsidiary of Aircel Ltd. As on December 31,

2009, DWL offers Global System for Mobile Communication (GSM)-based services in 11

circles namely Assam, North East, Jammu & Kashmir (J&K),Orissa, West Bengal, Kolkata,

Kerala, Himachal Pradesh, Bihar, Uttar Pradesh (East)and Uttar Pradesh (West). As a part of

Aircel group, the company enjoys stronglinkages with the group and shares management,

resources, processes & policies and

Brand i.e. ‘Aircel’. Further, majority shareholding of Maxis Communications Berhad,Malaysia

(74%) in Aircel Limited imparts strength to Aircel’s (and its subsidiaries’)business and

financial profile.DWL has registered continuous growth in the subscriber base that increased

from 6.5mn in December 2008 to 14.69 mn in December 2009. Amongst the 11 circles in

which DWL is operating in, it continues to enjoy leadership position in two circles.

Aircel became the leading mobile operator in Tamil Nadu within 18months. In December

2003, it launched commercially in Chennai and quickly established itself as a market leader- a

position it has held since.

Aircel began its outward expansion in 2005 and met with unprecented success in the eastern

frontier circles. It emerged a market leader in Assam and in the north eastern provinces within

18 months of operations. Till date ,the company has gained foothold in 17 circles including

Chennai, Tamil Nadu, Assam, Northeast, Orissa, Bihar, Jammu Kashmir, Himachal Pradesh,

West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(west), UP(east) and

Mumbai.

The company has currently gained a momentum in the space of telecom in India post the

allocation of additional spectrum by the department of telecom, Govt.of India for 13 new

circles across India. These include Delhi(metro), Mumbai(metro),Andhra Pradesh, Gujarat,

Haryana, Karnataka, Kerala, Madhya Pradesh , Maharashtra and Goa, Rajasthan,

Punjab ,UP(west) and UP(east).

Aircel is offering free incoming while roaming in Bihar within Aircel network for the 1st 90

days from the day of activation. The ISD calls are charged Rs.1.75 per minute to USA and

Canada, along with 300 free messages, as part of this plan. Aircel to Aircel STD (domestic long

distance) calls can be made at 50paisa per minute.

India’s cricket captain and youth icon Mahendra Singh Dhoni is a brand ambassador of Aircel

and he has been extolling the virtues of Aircel mobile services on televisions, billboards and

newspapers across the country. The company says that Dhoni’s brand image fits in well with

what Aircel stands for – simplicity and the ‘boy next door’ image which underlines consumer

trust. The company feels there is no better way to connect with customers in India than cricket.

It has sponsored the Chennai Super Kings team in Indian Premier League and has now taken on

board Dhoni as the brand ambassador.

The company is also looking at segmenting the market. And the segments which it has

already identified for growth include students, small and medium enterprises and migrant

workers. For instance, the company realised that young users are not looking at a cheap price

but offerings which they can use – group community calling, faster data transfer and

downloads. It also realised that these young users are much more ready to change their

numbers- they simply upload their number on facebook for their large group of friends to

know. The Dhoni campaign was thus clearly targeted at these consumers.

Aircel might also leverage its global footprints to gain numbers in India. Maxis is a part of the

Bridge Alliance (it includes service providers like SingTel, SK telecom and Telekomsel) which

offers facilities like a uniform roaming rate across its 11 partners.

New Ventures –

Paid their spectrum eight successful bidders in the broadband wireless access (BWA)

auction fees to the department of telecom (DoT) on Monday. Together they paid Rs

38,543 crore. One of them is AIRCEL(Rs 3,438.01 crore.).

Aircel has indicated that it may choose WiMAX or TD-LTE for 2.3GHz spectrum

deployments or it can roll out both.

Aircel signs partnership agreement with Infosys to launch mobile application stores.

(WIRELESS Infosys Technologies Ltd.

Strategic business unit

DISHNET WIRELESS LIMITED-This company provides broadband services in different circles & it is one of the company which uses WIMAX technology .

AIRCEL CELLULAR LIMITED-This company provides mobile services in different circles.

AIRCEL BUSINESS SOLUTIONS-This is the sub part of aircel cellular limited which executes the ILD, NLD,WIMAX operations for aircel cellular.

COMPANY OFFERING(PRODUCTS) Aircel mainly deal in its core business of cellular connection. It provides variety of products such as.

-Post-paid mobile connections

-Prepaid mobile connections

-Recharge vouchers

-Value added services

-Broadband connectionsWith the help of these products company operate its business in the market & company launches other products but they can be depend on either the competition or customer preferenceProducts and Services

Aircel provides 2G services (3G services about to start) using digital GSM Technology. We offer GSM voice and data services in all of the regions in which We currently operate.

In addition to basic mobile voice telephony services, we offer a wide range of value-added and data services. These include voicemail, dual SIM card capabilities, missed-call alerts, SMS,GPRS services and e-mail services. Aircel has roaming arrangements with some 250 international and 46 domestic operators

Aircel currently offers GSM services across 22 circles including the nine circle in India. August 1999: Aircel commenced its own market from TamilNadu and all of its 2G businesses and by the end of 2005, it captures most of the market of India. July 2004: The operator launched EDGE services and began talks with TV channels over content streaming July 2005:Aircel launched services in most over part of India. March 2007 : It has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country', and the 'Most Creative and Most Effective Advertiser of the Year'. It now has operations in 22 circles accounting for 70% of India's mobile customer base.

AWARDS AND ACHIEVEMENTS

Awarded in No. 1 in Customer satisfaction and Networking – 2006Best Mid-size companies’ in the Year- 2007Best Continued Campaign –Airc el TM - ABBY AwardsAdded Punjab, Haryana, Rajasthan and UP (East) circles to India operations Acquired ADIL, with operations in Rajastan, UP East and Haryana ‘India’s most admired Telecom Company' - Business World – IMRB NFO MBL Best Performer in Customer Satisfaction Won auction for licenses to operate GSM services in Karnataka, Andhra Pradesh and Chennai Best Regional Operator in India in year-2008

Recruitment Process

Internal Factors

Recruitment Policy of the organizational Size of the org & the Number of Employees Employed Cost Involved in Recruitment Growth & Expansion Plans of the Org.

External Factors

Supply & Demand of Specific Skills in the Market Political & Legal considerations such as Reservations of jobs for reserved Categories’ Company’s Image Perception by the Job seekers.

Sources of Recruitment

Present Employees

Unsolicited Applicants

Educational and Professional Institutions

Public Employment Offices

Private employment Agencies

Employee Referrals

Help wanted Advertising

Walk-Ins

Selection Process

Organizational activities that provide a pool of applicants for the purpose of filling job openings.

It is a process of searching for prospective employees.

Stimulating & Encouraging them to apply for jobs in the org.

Preliminary Interview

Selection Tests

Employment Interview

Reference and Background Analysis

Physical Examination

Job Offer

Competitors

Sl.

No.

Name of

Company

Total Sub

Figures% Market Share

1

Bharti

Airtel 133619705 30.07%

2

Vodafone

Essar 106347368 23.94%

3 IDEA 66726802 15.02%

4 BSNL 65790606 14.81%

5 Aircel 40079531 9.02%

6

Reliance

Telecom 16311206 3.67%

7 Uninor 5012929 1.13%

8 MTNL 4857967 1.09%

9

Loop

Mobile 2911685 0.66%

10 Videocon 1394543 0.31%

11 Stel 1233247 0.28%

12 Etisalat 10122 0.00%

  All India 444295711 100.00%

SWOT ANALYSIS OF AIRCEL UP (WEST)

Strengths:-

Product Innovation: Aircel is the first company which introduce the concept of

telescopic tariff (Talkmore! Pay less!).

Supplier Integration: All suppliers are integrated in Aircel through SAP.

Aggressive Tariffs: They came up with tariff plans at par with industry standards and

offered value to customers.

Strong Brand Image: Aircel has a strong brand image with a local connect with Dhoni

being their Brand Ambassador.

Achieved Top Position In Various Circles: Till date, company has gained foothold in

17 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar,

Jammu&Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh,

Karnataka, Delhi, UP(east)&(west) and Mumbai.

Weakness:-

Initial Network Penetration: Since it is now launched in UP (east) it has to suffer a lot

with network problem.

Opportunity:-

New Territories/Circles: Aircel can increase their market through expanding their

business in various circles and can grab rural market which is very important for

further growth.

Telecom Market Boom: Since telecom market is booming there is a great scope of

growth in future. Specially UP(EAST) ,out of 22 circles in INDIA,UP is having the

highest growth @4.06% comparing from the last months.

Innovative Services on Mobile: Aircel should provide various services at the mobile

screens such as Internet/Video/Music. One such action is done through introducing

[email protected]

Subscriber’s Awareness and Acceptance: It is very important that subscribers should

be made aware about all the innovative product introduce by aircel from time to

time,so that they can use them to their advantage.

Threats:-

Competition From Existing Players: Since aircel has completed only 1 year in UP

(east), hence it has to face stiff competition from the well established players like

AIRTEL, VODAFONE, IDEA, RELIANCE etc.

Economic Slowdown: If economic slowdown continues in India it will strain the

business and customer spending in mobile company.

Declining ARPU: Average revenue per user is declining.

MARKETING DEPARTMENT

Aircel marketing department is divided into four divisions.

Product acquisition, usage & revenue.

Value added services(VAS) & roaming.

Marcomm or Branding.

Retail Outlets named as COCO(company owned company outlet).

Product: - Product development is the incubation stage of the product life cycle, with

introduction of the new products. As the product progresses through its life cycle, changes in

the marketing mix are required so that product can come up with customers requirements.

When Aircel was introduce last year, Aircel used its USP(POCKET INTERNET)so that it

could acquire new customers and earn revenue. For this Aircel did Benchmarking with its

competitors such as Airtel, Vodafone, Reliance, Idea & BSNL. Benchmarking is important

before designing a product. This was the stage of introduction in the product life cycle.

Pricing:-

After benchmarking there has to be Cost Benefit Analysis that needs to be done for

determining the cost of product, its tariffs and offerings. Cost Benefit Analysis help company

to get the most appropriate revenue gainer product of the different variants. For setting up the

cost of local calls Aircel consider termination charges & for STD they have to consider Inter

Usage charges and carrier charges. For ISD they consider long standard channels and ISD

slabbing. This strategy is generally follows when product is on introduction stage. These are

done to set up the introductory prices and to gain market share rapidly.

Place/ Distribution:-

For the product manager customer acquisition is the most important thing to do. If there is no

customer there is no need of product. To acquire customers sales department plays a major

role by setting up a Distribution Network of distributors and retailers which greatly help in

acquiring customers. Aircel operates with 3 types of distribution channel:-

Traditional channel or Unorganised Retail.

Aircel Preferred Partners (APP).

Modern Trade or Organised Retail such as the mobile stores, Hotspots, Spencer’s,

Mobile Bazaar etc.

To initially acquire the customers Aircel has a starter pack of Rs.49. The marketing

team and sales team at Aircel also have Retailer Engagement Plan through which they

incentivise their retailers by offering them in different schemes and promo offers.

Promotion:-

After acquiring the customers company do the usage analysis which can be done by

segmenting customers on the basis of usage by them, zone wise customers and revenue by

their usage. Usage analysis help in designing certain tailor made promo products such as

special topup cards/ recharge cards and rate cutters or tariff cards.

Product communication is important for the product. It helps in creating awareness among the

retailers and customers and hence generating revenue. Product communication is generally

done by BTL activities by using Posters, Banners, Playcards, Danglers etc. Communication

to specific segment of customers is done by using various tools like SMS blasters, using Cell

Info Display, Outbound Dialler etc. Furthermore to provide more value to certain segment of

customers we can have Up selling, Cross selling and Segmented Base Promotion.

Up selling can imply selling something that is more profitable or adds value to the customer

and upgrades him to a new segment or category. For example, if a customer is currently using

RC 31 which offers him 100 minutes Aircel to Aircel. They communicate to him a product in

the same category that offers him more value say a RC 55 that offers him 100 minutes to any

mobile/ landline.

The main objective of cross selling can be either to increase the income derived from the

customer or to protect the relationship with the customer. Cross selling involves offering the

customer items that compliment the original purchase in some manner. For example, if

customer is using rate cutter of Rs.29 and let him make a local call @50paisa then they can

also use a rate cutter of Rs.15 that gives him benefit of making all STD calls to

Delhi/Bihar/Punjab @Re.1 (STD or Local). In Segmented Base Promotion, company

segments a big chunk of customers on the basis of Recharge Value, Minutes Of Usage and

then promote certain products according to their KPI. Communication is done by sending

them promotion messages about new products such as Rate Cutters, STD tariffs etc.

Value added services : The value added services of Aircel are divided into Data , Voice and

SMS. Value added services contribute 9%-10% of revenue in the organisation.Data consists

of GPRS, WAP & MMS platforms. It basically the handset dependent and is another fastest

growing segment in VAS domain. Aircel WAP Portal generally known as Aircel Pocket

Internet. Data contributes 2% to overall VAS revenue in existing Aircel circles. Aircel Pocket

Internet services include:-

Downloading wallpapers, polytunes, games, themes, etc.

Yahoo One Search.

Cricket Info.

Regional category Songs and News.

Voice services consist of various short codes providing informative & entertainment based

services with instant response. Innovative products are required in this segment to catch the

pulse of customers. It contributes 6% of overall revenue in existing Aircel circles. Features:-

. Voice station

Jokes

Music

Live astrology

Dialer tunes- Make caller to listen favourite songs now instead of boring tring tring.

This service is branded as Dialer Tones (DT) at Aircel and it is their key premium

VAS product. DT contributes 27% to overall VAS revenue in existing Aircel Circles.

SMS inclues P2A and P2P messaging- P2A is known as “Person to Application”

messaging. It generates SMS based request through SIM tool kit(STK) & manual

intervention.P2P is known as “Person to Person” messaging. The traffic of P2P

messaging is high & it is highly effective medium of communication thesedays.

MARCOMM OR BRANDING

Branding is a more sophisticated form of marketing communication. The purpose of branding

a project is to establish an identity that conjures up a positive image. This is exactly what the

marketing people try to do when they brand a product. Marcomm of Aircel consists of

following activities such as Retail Visibility, Outdoor Advertising, BTL Activities and

Promotions, communication and Research. Every activity has its great value in the

organisation. These activities help in generating awareness about the product, maintaining

recall value, inducing prospective customers and satisfying existing customers.

Retail visibility

Retail visibility is especially present with retailers. Aircel uses traditional media for retail

visibility such as sign ages, desk branding, standees, and print on paper (POP material) such

as Danglers, tentcards, brochure holders, foam banners, one way vision, flinges etc. These

elements help in advertising products especially with the retailers. But deciding which should

be used in retail is decided with respect to budget of the company.

Outdoor advertising

Outdoor advertising works well for promoting your product in specific geographic areas.

While bill boards, bus benches & transit advertising can be very effective for a small-

business owner, any successful outdoor campaign begins with your location’s signage.

Outdoor sign is often the first thing a potential customer sees. Sign should be sufficiently

bright & conspicuous to attract attention & sufficiently informative to let prospective

customers know what’s sold there.

For outdoor advertising Aircel uses hoardings, cloth banners, leaflets, pole kiosks, lollypops

etc. They also uses backlit signages, frontlit signages, reflective boards.

BTL (Below the line) Activities and promotion

Below the line sales activities are short-term incentives, largely aimed at consumers. With the

increasing pressure on the marketing team to achieve communication objectives more

efficiently in a limited budget, there has been a need to find out more effective & cost

efficient way to communicate with the target markets. This has led to a shift from the regular

media based advertising. BTL uses less conventional methods than the usual specific

channels of advertising to promote products, services, etc.than ATL strategies.

Promotions are an intricate part of marketing mix. Marketing mix includes product, price,

place/distribution and promotion. With promotional activities, a firm communicates directly

with potential customers. All the promotional activities must be integrated to deliver a

consistent & positive message in developing a promotion program, a company must first

determine the target audience, the most important objectives & a promotion budget and then

design the promotion activities accordingly.

Promotional objectives can include providing product information, stimulating demand,

increasing store traffic, differentiating products, building a brand image, reminding current

customers about product benefits, countering competitor’s offers, responding to the news,

smoothing out seasonal demand fluctuation & improving customer relationship.

Communication

Marketing communication is a subset of the overall subject area known as marketing. In the

past a number of terms have been used in the field of marketing communication the most

common of which appear to be ‘advertising’ and ‘promotion’. The origin of these two words

helps us to define what marketing communications entails, namely the pushing forward of

products and services and the turning of the consumer towards the product or service. Once

these two elements are meant there is a chance of sale. Marketing communications includes a

number of elements that make up the marketing communication mix: advertising, personal

selling, sales promotion, publicity, direct marketing and cyber marketing.

Marketing communication is an element of the marketing mix and as such is probably the

most visible. Being part of the marketing mix means that as a variable it should never be

managed in isolation from the other elements. This means that in terms of planning the

marketing communication plan should be aligned with and supportive of both the short-term

and long-term objectives of the wider marketing plan.

Once the objectives have been set the budget can be determined by a number of methods

which can be broken down into two approaches: top-down and bottom-up. There is no

universally accepted norm for determining the marketing communication budget although

there is a growing use of the objective and task method.

The most crucial decision in any marketing communication campaign is deciding which

group of consumers to target. All other communication decisions will flow from this. It is

accomplished through the use of market segmentation. Once the target audience has been

defined communication mix decisions can be made concerning the appropriate use of a

variety of methods. Creative and media decisions can be made then.

Marketing communications is the most visible of any of the marketing mix variables. It is of vital importance that any communication activity is set in the context of the overall marketing strategy. It involves the setting of its own objectives and budget which should be soundly based on the target audience as should the marketing communication mix decisions. Marketing communication research should be used to establish the effectiveness of the communications strategy. All marketing communication practitioners should be ready to capitalize on any future developments in the field of communicate Financial and Operational Performance

Financial performance

Chennai-based Aircel is beginning to play a major role in the financial performance of Malaysia’s Maxis Communications ever since it was acquired in March 2006 from C Sivasankaran of the Sterling Group. Aircel has substantially increased its contribution in Maxis’ overall revenue as well as in the EBITDA growth, besides the overall subscriber growth during the first quarter of 2007. Aircel’s contribution to Maxis overall revenue in the first quarter has gone up sharply to 15% as against 10% in the previous quarters, while the contribution to EBITDA went up to 9% as against 7% a few quarters ago, Maxis said in a communication to investors recently. In value, Aircel contributed RM 320 million (close to Rs 390 crore) to the group’s turnover of RM 2,157 million (Rs 2,600 crore) in the quarter as against RM 29 million (Rs 38 crore) ie more than 10 times over the previous quarter. Similarly, Aircel’s contribution on EBITDA was around RM 102 million (close to Rs 122 crore) as against group’s EBITDA of RM 1,082 million (Rs 1,300 crore), Maxis pointed out. The Indian arm was key to this increase in the group’s both revenue and EBITDA, the company said further.

This was possible, as the subscriber base of Aircel has more than doubled to 5.5 million as of March 2007 as compared to 2.6 million a year back, taking Maxis's total subscriber base to 14 million during the quarter. Aircel managed to retain its market share in Chennai and Tamil Nadu with 26% and 29%, respectively. In the other five circles, the company's market share rose from 9.3% to 11% in the current quarter. In the last quarter under review alone Aircel has gained 1 million subscribers, Maxis said. Aircel is operational in nine circles with immediate market coverage to 350 million people, a quick gain on population from last quarter's 230 million people from seven circles. Having earmarked around $1 billion investments in India

over a period of three years, Maxis sees its Indian subsidiary become a key player in the group’s overall growth in revenue and profits.

Aircel’s contribution to Maxis overall revenue in the first quarter has gone up sharply to 15% as against 10% in the previous quarters, while the contribution to EBITDA went up to 9% as against 7% a few quarters ago, Maxis said in a communication to investors recently. In value, Aircel contributed RM 320 million (close to Rs 390 crore) to the group’s turnover of RM 2,157 million (Rs 2,600 crore) in the quarter as against RM 29 million (Rs 38 crore) ie more than 10 times over the previous quarter. Similarly, Aircel’s contribution on EBITDA was around RM102 million (close to Rs 122 crore) as against group’s EBITDA of RM 1,082 million (Rs 1,300 crore), Maxis pointed out. The Indian arm was key to this increase in the group’s both revenue and EBITDA, the company said further.

Company Strategy

Aircel entered the mobile market in 1999 and became the leading mobile company in TamilNadu. The operator has a presence in all four metro circles in India. The operator is expanding its business and increasing market share through a combination of growth by increasing capacity on its networks in Chennai, Andhra acquisition as well as network investment. Aircel is currently Pradesh and Karnataka, while also rolling out new networks in West Bengal and western Uttar Pradesh.

RESEARCH METHODOLOGY

1. The sample size for first objective i.e. switch analysis is 200

Sample size for second objective i.e. promotion efficacy is 100 each for users and retailers

2. Sample is done on the basis of random and judgemental Sampling.

3. Primary collection of data is done through questionnaires and telecalling.

4. Questionnaires have both close as well as open ended questions.

5. The secondary data is collected through company’s official website.

6. Sample composition:

Students, (b) working, (c) self-employed, (d) retailers

RESEARCH OBJECTIVES

Primary Objective:

1. To analyse reason for switching from Aircel to other operators.

2. To know the promotion efficacy of Aircel as a brand and especially the assess to recall its USP (pocket internet).

Secondary Objective:

1. To assess the scope of the Aircel use in Future.

2. To gain feedback from its users, non users as well as retailers.

DATA INTERPRETATION AND ANALYSIS

SWITCHING ANALYIS

CUSTOMER BREAKUP: BY AGE

INTERPRITATION- A large population of our customers are less than 35 years and most of them are in the age group of 21 to 25. This shows that maximum number of aircel users are youth and they can target this segment to increase customer base.

CUSTOMER BREAKUP: BY PROFESSION

INTERPRITATION- Maximum user of Aircel is students and second highest users are

employed people. Therefore Aircel can target students to increase customer base

NO. connection

Frequency PercentValid

PercentCumulative

PercentValid 2.00 110 55.0 55.0 55.0

3.00 40 20.0 20.0 75.04.00 40 20.0 20.0 95.05.00 10 5.0 5.0 100.0Total 200 100.0 100.0

INTERPRITATION- Maximum number of Aircel users is having two to three connections. This shows that there are certain factors in which Aircel is lacking because of which people are going for its competitors.

Aircel

Frequency Percent Valid PercentCumulative

PercentValid No 30 15.0 15.0 15.0

yes 170 85.0 85.0 100.0Total 200 100.0 100.0

INTERPRITATION- Maximum number of users said that Aircel is their prime number

which shows their preference for Aircel over its competitors.

Recharge. Availability

Frequency Percent Valid PercentCumulative

Percent

Valid 2.00 20 10.0 10.0 10.0

3.00 60 30.0 30.0 40.0

4.00 70 35.0 35.0 75.0

5.00 50 25.0 25.0 100.0

Total 200 100.0 100.0

INTERPRITATION- Recharge availability of aircel is good according to its customers and they find their recharge cards easily at any place and they are satisfied with the recharge availability.

Network

Frequency Percent Valid PercentCumulative

PercentValid 1.00 30 15.0 15.0 15.0

2.00 40 20.0 20.0 35.03.00 60 30.0 30.0 65.04.00 70 35.0 35.0 100.0Total 200 100.0 100.0

INTERPRITATION- Maximum number of customers find aircel network ranging between average and good. According to research it can be analyzed the customers are not much satisfied with the network and for certain customers it is the prime reason for their switching to another subscriber.

Tariff

Frequency Percent Valid PercentCumulative

PercentValid 2.00 50 25.0 25.0 25.0

3.00 110 55.0 55.0 80.04.00 40 20.0 20.0 100.0Total 200 100.0 100.0

INTERPRITATION- Aircel user find the tariff schemes average and they do not find any difference between the tariffs of aircel and its competitors.

Talk time

Frequency Percent Valid PercentCumulative

PercentValid 2.00 10 5.0 5.0 5.0

3.00 130 65.0 65.0 70.04.00 50 25.0 25.0 95.05.00 10 5.0 5.0 100.0Total 200 100.0 100.0

INTERPRITATION- Maximum number of Aircel users find Aircel talk time schemes

average and similar to that of its competitors.

Customer care

Frequency Percent Valid PercentCumulative

PercentValid 2.00 20 10.0 10.0 10.0

3.00 60 30.0 30.0 40.04.00 110 55.0 55.0 95.05.00 10 5.0 5.0 100.0Total 200 100.0 100.0

INTERPRITATION- maximum number of users find the customer care service good but there is still many users who are not happy with the service.

Onnetuse

Frequency PercentValid

PercentCumulative

Percent

Valid No 50 25.0 25.0 25.0

Yes 150 75.0 75.0 100.0

Total 200 100.0 100.0

INTERPRITATION: Data interprets that the number of people who are aware of the packs are also the users of the same. i. e the number of awareness and usage of the pack is equal

CONCLUSION AND RECOMMENDATIONS

Aircel should work on its network related problem

Aircel should come with an idea ,by which it can help its customer in spreading his new no. among his friends at the time of purchase

As aircel customer base is very less, it should come up with more attractive and economic plans for aircel to other mobile user.

Customer care services should be looked upon.

Since the recall value of Aircel as a brand is low as compared to its rival companies, the company must lay more emphasis on creating more awareness amongst the masses thereby increasing its recall value.

The analysis shows that maximum Aircel users is the youth of today specifically between the age bracket of 18 t o 25. Hence the focus should be on colleges and other educational institutes as well as coffee outlets and other hangout areas of the youth where the company can get in direct touch with the young crowd to create its brand awareness.

The company also needs to work upon it brand visibility as during the analysis since we found out that many of the non users were not able to recall anything else apart from Aircel being a telecom brand. People were not well aware of company’s advertisements and its company logo.

Future prospect of Aircel use is good if we consider overall analysis and it is high in self- employed category. But there is a good scope to change the decisions of the people who yet not decided about the use of Aircel in future. Students category are more in this undecided position. So, awareness about the schemes & offers should be made to the students so they will become prospective consumers.

There is greater scope of prospective customers if awareness increases among students and working category because they are aware about Aircel before IPL.

Since housewives category are less aware about the services so plan such a BTL activity through which they can directly link with the Aircel.

DSM should be regular in their timely distribution of posters and danglers especially in areas like IT crossing, Alambagh and IIM road.

Retailers are facing problem in the following region Varanasi- Babutpur, jagatpur, Niralanagar Gorakhpur- Azadnagar, Sadar Kanpur- Akhbarpur, Hashan Jung and Lucknow – Amausi,Nazirabad

Suggestions Well I suggest Aircel to increase the Quality and Capacity of both, cellular services as well as other related services such as Customer care support and roaming etc. Company has got a good span over Indian Market but they need some more investment on the above suggested topics to sustain NO.1 in the market. Aircel is running successfully in Indian market so it can diversify its business to other countries by the way of mergers and amalgamations. Enormous facilities can be included in Aircel services. Advertisement should be improved so that it will reach to every level of people. New exclusive and good schemes should be introduced in the market. Sales promotional activities can be introduced by the AircelCompany. Moreover, maintain the good relation with the costomer.

It can be concluded that the existing customers are satisfied with the Aircel service and is having good prospective customers for Aircel services. By creating more awareness, better coverage, connectivity and new schemes the prospects for Aircel service can be generated. The researchers concluded that “A bird without wings cannot fly likewise, a man without Aircel connection in a cell cannot dwell in future”

REFERENCES

http://acraa.com/images/pdf/Dishnt.pdf

www.coai.com

www.wikipedia.com

http://www.highbeam.com

http://www.aircel.com/AircelPortal/aircel.portal

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=24377649