Airtel

Institute of Management and Entrepreneurship Development

Erandwana, Pune

Executive Summary

The focus of this project would be to conduct a market assessment exercise to gauge and tap the full market potential of hotspot WiFi internet connectivity in India and based on this develop a comprehensive and fail safe marketing plan for the launch of “GSM-WiFi Hotspot Internet Connectivity with e-top up” by the JV Airtel - Microsense.

World over the communication needs of individuals are drastically increasing. People want internet connectivity wherever and whenever they move. Dipping prices of Wireless devices and equipments has resulted in the growth of number of hotspots with global hotspot growth projected at approximately 20% (CAGR). (Source: In-Stat, BTSL Analysis)

According to a Gartner study report, the number of worldwide Hotspot users in 2006 was a whopping 30 mn! The total number of WiFi hotspots in the world by 2010, according to In Stat/MDR is expected to touch 200,000! A similar trend is expected in India. Intel is looking at facilitating 1000 hotspots in 2008. Microsense & Dishnet are other players upbeat about hotspots. The Indian Hotspot growth is projected at approximately 70% (CAGR)! (Source: In-Stat, BTSL Analysis). Southern India has the highest hotspot penetration (79%).

The high sale of WiFi enabled devices, drop in tariffs, increased customer expectations of a world class experience, fast paced businesses spread across the country & increased awareness are all bound to boost this figure upwards.

However, the company feels that currently the growth in usage in limited primarily due to stock-outs of scratch cards, limited validity of 24 hrs in most cases & unavailability of roaming between Hotspots.

Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot connectivity and Microsense, which is a currently existing Wireless Internet Service Provider (WISP) in the country have joined hands to eliminate the key market growth inhibitors. They are introducing roaming facility in WiFi Hotspot connectivity by

eliminating the need for scratch cards and replacing them with e- top up through a common mobile phone device. The new service is to be known as “GSM-WiFi Hotspot Internet Connectivity with e-top up”.

So now while the prepaid customers of Airtel can directly access the Internet connection at a Hotspot with the amount for usage being directly deducted from his available balance, a post-paid/ billing account holder can get the amount for usage directly added to his monthly mobile phone bill, thereby ensuring seamless connectivity across the country to all users.

A secondary research was conducted to carry out an assessment of the external economic environment for the industry. While huge prospects are revealed by experts regarding the internet WiFi connectivity, many have also been caustic towards the government’s laggardness in providing the right kind of support to the industry.A primary survey was conducted whereby 250 WiFi users and 10 hotspot retailers were interviewed. The findings were in line with our environmental assessment. A market assessment exercise carried out revealed that the current level of business could it self are as high as 315 Crores annually this is growing at more than 25% p.a.

We conducted a SWOT analysis to form the basis for accurate design of the marketing mix. Segmentation on the basis of lifestyle was done and 4 segments were identified to be targeted. While our positioning would be that of a first mover or pioneer our key differentiators would be roaming and continuous connectivity.

4 pakages of products have been decided based on the requirement of each segment and their usage patterns. Pricing has been kept around the same as customers have expected in the survey. Pricing has been done on MBs downloaded basis and on minutes of usage basis. Detailed effort has been taken to take branding into account. A new brand under the umbrella brand Airtel would be created namely Airtel E- connect. It will have a logo similar to the umbrella brand logo.

The distribution would be handled by the same set of distributors Airtel currently holds. The promotion plan has been decided in broad sense. Exact media plan etc would be taken at the time of actual implementation. Some additional manpower would have to be hired at the higher level I order to keep focus on the emerging business. Detail service delivery process has been discussed and physical evidences have been listed.

A detailed financial analysis has been carried out taking into account all costs and other factors. The break even period arrives in the third year of operation. The venture would require an initial investment in fixed assests of slightly over 3 Crores in addition to utilize the existing set up.

The service is to be pilot tested in Bangalore and Mumbai and the launched in nine other cities in India in the first phase. I the second phase we plan to move abroad also thus the implementation is a two stage process spread over a period of two years.

ACCREDIATED BY NACC WITH ‘A’ GRADE

BHARATI VIDYAPEETH UNIVERSITYINSTITUTE OF MANAGEMENT AND

ENTREPRENEURSHIP DEVELOPMENT, PUNE PAUD ROAD, ERANDWANE, PUNE – 411038

CERTIFICATE

This to Certify that

Mr/Mrs/…………………………………………………… is a

bonafide student of…………………… Programme of the

university in this institute for the year………………………..

As part of university curriculum he /she has completed a

study project titled…….

……………………………………………………………………………………...

………………………………………………………………………………………

During the period from…………………………………………………………The project is prepared by the student under the guidance

of Prof……

……………………………………………………………………………………...

Dr.Nitin Nayak Prof. Vinod Ingawale(Teacher Guide) (Course Coordinator)Date:-…………….Place:-……………

Date: 7th May 09

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Anand Mohan student of Institute of Management & Entrepreneurship Development, Pune has successfully completed the project on “Developing a Marketing Plan for the Launch of GSM-Wi-Fi Hotspot Internet Connectivity with e-top up.” with Airtel Limited. from 1st March 09 to 4th May 09..

Please note this project was done for the partial fulfillment of MBA degree. We wish him success in his future endeavour.

Regards,

(Mr. Shailesh Ranjan)Sr.ManagerAirtel Limited.

Acknowledgement

I owe my special thanks to Dr. Nitin Nayak my project

guide for his creative and invaluable guidance.

I feel great pleasure in expressing my deepest sense of

gratitude of sincere makes to Mr. Shailesh Ranjan Sr.

Manager of Airtel Ltd. for giving me to complete this

internship program and this project work.

I also extend my thanks to all staff member of

Management Department, Bharati Vidyapeeth

University’s Institute of Management and

Entrepreneurship Development, Pune who helped me in

several ways to successfully complete this project.

INDEX

Sr. No. Particulars

1 Executive Summary

2 Section – I : Introduction, Objective, Approach & Methodology

3 Section – II : Environment Assessment

4 Section – III : Market Assessment

5 Section – IV : SWOT Analysis

6 Section – V : The Marketing Plan: Need Identification, STPD, 7P Marketing Mix

7 Section – VI : Plan of Implementation

8 Section – VII : List of References

9 Section – VIII : Annexure

Section I

Introduction to the Project

About the organization Airtel – Microsense

Airtel – Microsense is a joint venture between Airtel, which is a Bharti group company and Microsense which is a currently existing Wireless Internet Service Provider (WISP) in the country.

AirTel comes from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA.Bharti is the leading cellular service provider, with a footprint in 16 states covering all four metros. It has over 13 million satisfied customers.

Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 18 million customers across the length and breadth of India.

Bharti Tele-Ventures Ltd is India's leading provider of telecommunications services. The company has 4 distinct Business divisions - Mobile & telephone services, broadband services, long distance services and enterprise services.

The services provided by Airtel include Airtel Prepaid, the Ready Cellular Card from Airtel, Airtel Post-paid, Airtel Roaming which allows you to use your mobile phone to make or receive calls from almost anywhere in India and abroad & Long Distance the facility which allows you to make long distance calls in India and Overseas from your cellular phone.

Microsense provides WAN and WiFi Solutions in India, through a network of six offices located at Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Calcutta. Microsense is focussed on providing integrated network infrastructure, consultancy services and cutting edge solutions to the technology needs of ISPs and corporates.

Microsense provides WAN and WiFi Solutions in India. It offers expertise and experience in WAN and internet related technologies and has implemented systems for several large private and public corporates, educational and R&D institutions.

Its aim is to become the leading Wireless Mobile Data Infrastructure & service provider in India, with a pan Indian footprint, world class back end / billing systems, and a significant brand equity.

Microsense, a leading provider of wireless-fidelity (WiFi) infrastructure and services in India is going to set up 60 WiFi hotspots in Bangalore in the next six months. Microsense has over 20 hotspots (connecting centres) in Delhi region and 200 in the country. The locations include Cafe Coffee day outlets, hotels, restaurants and airports. All Microsense hotspots are Intel certified and WiFi alliance is certified to ensure highest international standard of service, DHNS reports from New Delhi.

Microsense is focusing on three business models for larger market penetration: build, operate and show (BOS) for hospitality sector and property owners, build, operate, transfer (BOT) — for service providers and build, operate and own (BOO). The service is provided through post-paid and pre-paid access accounts. Under the post paid scheme users can choose from ‘pay as you browse’ and a monthly flat charge.

About The Project Which Was Undertaken

World over the communication needs of individuals are drastically increasing. People want internet connectivity wherever and whenever they move. Dipping prices of Wireless devices and equipments has resulted in the growth of number of hotspots with global hotspot growth projected at approximately 20% (CAGR). (Source: In-Stat, BTSL Analysis)

According to a Gartner study report, the number of worldwide Hotspot users in 2004 was a whopping 30 mn! The total number of WiFi hotspots in the world by 2008, according to In Stat/MDR is expected to touch 200,000! A similar trend is expected in India. Intel is looking at facilitating 1000 hotspots in 2006. Microsense & Dishnet are other players upbeat about hotspots. The Indian Hotspot growth is projected at approximately 70% (CAGR)! (Source: In-Stat, BTSL Analysis). Southern India has the highest hotspot penetration (79%).

The high sale of WiFi enabled devices, drop in tariffs, increased customer expectations of a world class experience, fast paced businesses spread across the country & increased awareness are all bound to boost this figure upwards.

However, the company feels that currently the growth in usage in limited primarily due to stock-outs of scratch cards, limited validity of 24 hrs in most cases & unavailability of roaming between Hotspots.

Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot connectivity and Microsense, which is a currently existing Wireless Internet Service Provider (WISP) in the country have joined hands to eliminate the key market growth inhibitors. They are introducing roaming facility in WiFi Hotspot connectivity by eliminating the need for scratch cards and replacing them with e- top up through a common mobile phone device. The new service is to be known as “GSM-WiFi Hotspot Internet Connectivity with e-top up”.

So now while the prepaid customers of Airtel can directly access the Internet connection at a Hotspot with the amount for usage being directly deducted from his available balance, a post-paid/ billing account holder can get the amount for usage directly added to his monthly mobile phone bill, thereby ensuring seamless connectivity across the country to all users.

Objective & Scope of the Project

The focus of this project was to conduct a market assessment exercise to gauge and tap the full market potential of hotspot WiFi internet connectivity in India and based on this develop a comprehensive and fail safe marketing plan for the launch of “GSM-WiFi Hotspot Internet Connectivity with e-top up” by the JV Airtel - Microsense.

While the initial conceptualization had been formulated by the company itself, my scope of work & the objective of my project was:

To do an environment assessment through secondary research on the potential of hotspot business in India, the market conditions & the competition prevalent.

To do a market assessment through primary research to understand customer profiles, consumption patterns, key business drivers and inhibitors.

To develop the complete marketing mix for the new e-top up service.

Approach & Methodology

The above flow diagrams represent the exact flow of my project and so also this project report.

Section II

Environment Assessment

The Changing Indian Urban Lifestyle

A study Conducted by JuxtConsult, a Delhi-based internet research consultancy ahs pointed out the following key findings:

Digital is the new ‘symbol’ of emerging lifestyles among urban Indian net users. Digital is increasingly dominating net users’ lifestyle choices. Digital friendly features top their gadget buying agendas. Netizens are fairly ‘integrated’ Indians in their media habits. More of them prefer to ‘invest’ rather than to ‘save’. They associate success very highly with ‘monetary’ success, but essentially look

up to Indians as their role models. Lifestyle oriented consumers do not buy products and brands they buy lifestyles.

If that is the scenario, then what are the lifestyles that regular net users are seeking or buying? And how has the Internet impacted and influenced their lifestyle and consumption preferences?

For urban Indian net users, the digital age is slowly but surely dawning. They are using digital means of entertainment more and aspire to upgrade to a lifestyle that is digitally driven. These and other key insights have emerged out of one of the largest online surveys conducted by JuxtConsult in August 2008 among the Internet users in India. The survey sampled more than 30,000 users with the aim to unravel the identity of the net user along with his lifestyle choices. To estimate the penetration of Internet among urban Indians a telephonic survey spread across ten cities with over 3,000 participants was also conducted.

Digital is increasingly dominating net users’ choice of passing time at home. Net surfing is the most preferred pastime at home already for one in every five net users. It is the third most popular pastime at home among them at 21 per cent and not far behind of the top two choices - watching television and listening to music. The three digital forms of entertainment together are dominating home lives. Social ‘interaction’ has to fit within this way of life, or else it gets left out. Gadget Consumers

The digital wave is also reflected in the kind of gadgets ‘netsumers’ (consumers with access to the net) want to buy to enliven their lifestyles. Camera equipped mobile phones; computers, digital cameras, DVD and MP3 audio systems, home theatres systems, fully automatic washing machines, microwaves and air conditioners top their buying agendas. And these buying preferences are not just exclusive to users based in metro cities but are equally aspired for in the smaller cities. It seems that the ‘integrated technology’ features have become the new ‘symbols’ of the emerging lifestyle aspirations of netsumers.

Money Symbol of Success

Netsumers associate success very highly with ‘monetary’ success and their top role models are the rich and famous. Amitabh Bachchan, Sachin Tendulkar, Shah Rukh Khan rub shoulders with Dhirubhai Ambani, L.N.Mittal and Narayana Murthy among the top 10 role models of success for net users. Only president APJ Abdul Kalam stands out for his success without any ‘money’ factor involved in the top ten.

Online Loyalty has Offline Roots

The web also serves as the favorite medium to stay in touch with the world for net users. Internet is also the preferred way to keep in touch with news for 42% net users. Television follows at number two with 32% net users picking it, followed thereafter by newspapers. Magazines, mobiles or radio are still fairly insignificant means for staying in tune with what is happening around them.

Classier Choices, Premium Preferences

Netsumers are willing to invest in upgraded lifestyle products. They do not mind shelling out for better quality buys. In fact, two out of every three in the net tribe is willing to pay ‘mid or upward’ price for their desired product type and value added features. Be it FMCG or lifestyle products, netsumers are enthusiastic about adopting a premium way of life.

Some Instances of Netsumers Reaching out for a First-Rate Lifestyle are:

35% net users display interest in buying a mid size or premium car which may carry a price tag of over 4 lakh.

Diamonds are best friends for 41% of the web shoppers and 30% of them are loyal to gold jewellery.

A mobile cum palmtop is likely preference of 20% users.

Conclusion

In conclusion, the lifestyle of net users is gearing up gradually towards a more ‘integrated’ and ‘digitized’ way of living. And that is increasingly determining not only how they spend time at home or when they go out, but also what products, value added features and brands they choose and prefer. The marketers who are using the net to reach to these consumers must catch these lifestyle trends to fit in and remain relevant, or they face the threat of being left out of the shopping basket of these netsumers.

The Indian Internet Connectivity Business Scenario

Internet Usage and Population Statistics:

YEAR Users Population % Pen.2002 1,400,000 1,094,870,677 0.1 %2003 2,800,000 1,094,870,677 0.3 %2004 5,500,000 1,094,870,677 0.5 %2005 7,000,000 1,094,870,677 0.7 %2006 16,500,000 1,094,870,677 1.6 %2007 22,500,000 1,094,870,677 2.1 %2008 39,200,000 1,094,870,677 3.6 %2009 50,600,000 1,112,225,812 4.5 %

India continues to be one of the fastest growing major telecom markets in the world. Sweeping reforms introduced by successive Indian governments over the last decade have dramatically changed the nature of telecommunications in the country. The mobile sector has grown more than tenfold from 2001 to around 60 million subscribers by mid-2005. Whilst GSM technology still dominates, CDMA has quickly grabbed 23% of this market. The mobile industry should continue to boom. Fixed-lines, although not as spectacular as mobiles, is growing solidly. This report presents the key measures of this dynamic market and takes a general look at the development and direction of the market.

India - Internet and E-Services Market Report

Despite the considerable popular interest in Internet in India, the ISP market has been in disarray. According to the telecom regulator, there were around 180 operational ISPs in the country, after a period of market rationalisation. Despite the large number of providers, 10% of the ISPs have 90% of the subscribers. The state-owned – BSNL and MTNL – have grown rapidly to hold first and second place in terms of subscribers. The growing popularity of cybercafes has been playing a big role in fuelling Internet development in India. This report looks at the ISPs and other aspects of India’s Internet market. There is also some information on Internet content and e-services.

India - Broadband and Data Services Report

India appears to have embraced the Internet with a degree of ambivalence. There is tremendous enthusiasm amongst the dial-up users and an estimated 60% of users regularly access the Internet via the country’s more than 10,0000 cybercafes. But when it comes to high-speed broadband access, there is reluctance, especially within the corporate sector, and the take-up rate has been slow. By early 2007 there were about 70,000,00 broadband subscribers – a penetration of less 0.1%. This report looks at the stage the development of broadband Internet has reached in India. Some information is also provided on data services available in the country.

India Internet Usage Surges:

February 17, 2008 - Internet adoption continues to grow in India. According to the Internet & Mobile Association of India (IAMAI) the low cost of broadband has helped increase Internet usage. E-commerce and high demand for .in domain registrations are also factors for the increase in online users. The ".in" domain registrations surpassed 15,000,00.

Broadband policy and other initiatives by the IT and Telecom Ministry encourage increased adoption. A monthly broadband subscription costs as little as 199 rupees (US $4.50). A second factor is the IT Telecom Ministry initiative to make computers available for purchase under 10,000 rupees (US $226). In addition to working with hardware manufacturers to remove the financial barrier for households in India, the organization continues to push development of language fonts to remove language and localization of content issues.

According to IAMAI, a trade association representing the online content and advertising, e-commerce and mobile content and advertising industry, Indians go online for a number of activities including e-mail and IM (98 percent); job search (51 percent); banking (32 percent); bill payment (18 percent); stock trading (15 percent); and matrimonial search (15 percent).

The WiFi Hotspot Internet Connectivity

What is WiFi Hotspot?

WiFi or 'Wireless Fidelity' allows you to connect to the Internet without wires, whether you are at work, at the airport or waiting at a train station. WiFi is a wireless technology that works rather like a mobile phone. WiFi enabled computers send and receive data indoors and out; anywhere within the range of a base station or 'hotspot'. In addition to

the obvious convenience of WiFi, another advantage is the speed of the technology, which is several times faster than the fastest cable modem connection and enables large amounts of data to be sent and received quickly.

Today, WiFi enabled devices are enabling users to connect to their office networks, browse the web, download music or stream live news feeds from convenient locations, such as hotels, conference centres, airports and bars all around the world. We see virtually limitless applications for WiFi technology. Users are already making voice over WiFi calls through their laptops and sending photos from WiFi enabled cameras. Even WiFi phones and games machines will become readily available in the not too distant future.

As well as the productivity benefits WiFi affords you and your mobile workforce while out and about, it can also enable you to add new staff members to your office network very easily without the need to install complicated cabling, hubs and routers. Other valuable applications of WiFi can ensure your customers; suppliers and contractors remain productive while on your premises, without endangering the security of your corporate network.

How is it done?

What is the technology? How does it work?

It basically works on broadband communication, receiving and relaying communication signals essentially through special modems meant for the purpose. It is also known as 802.11 networking and wireless networking. The big advantage of WiFi is its simplicity. You can connect computers anywhere in your home or office without the need for wires. The computers connect to the network using radio signals, and computers can be up to 100 feet or so apart.

Where are we headed?

Wi-Fi is quickly gaining in popularity with access points across the United States increasing by approximately 100% in 2003. Wi-Fi refers to a set of wireless networking technologies more specifically referred to as 802.11a 802.11b and 802.11g. These standards are universally in use around the globe, and allow users that have a Wi-Fi capable device, like a laptop or PDA, to connect anywhere there is a Wi-Fi access point that is available. The three standards that are referred to signify the speed of the connection they are capable of producing. 802.11b (which transmits at 11 Megabits per Second) is the most common, although it is quickly getting replaced by the faster Wi-Fi standards. Both 802.11a and 802.11g are capable of 54 MBPS, with 802.11a adding additional capabilities. Across the board, all of these Wi-Fi standards are fast enough to generally allow a broadband connection. Wi-Fi is an emerging technology that will likely be as common as electrical outlets and phone lines within a few years. Wi-Fi adds tremendous levels of convenience and increased productivity for workers whose offices are equipped with Wi-Fi, as well as travelers that can increasingly access Wi-Fi in airports, coffee shops, and hotels around the world.

Who are the players in the Indian Market?

Where is the Indian Hotspot Business Headed?

According to a Gartner study report, the number of worldwide Hotspot users in 2004 was a whopping 30 mn! The total number of WiFi hotspots in the world by 2008, according to In Stat/MDR is expected to touch 200,000! A similar trend is expected in India. Intel is looking at facilitating 1000 hotspots in 2008. Microsense & Dishnet are other players upbeat about hotspots. The Indian Hotspot growth is projected at approximately 70% (CAGR)! (Source: In-Stat, BTSL Analysis). Southern India has the highest hotspot penetration (79%).

The high sale of WiFi enabled devices, drop in tariffs, increased customer expectations of a world class experience, fast paced businesses spread across the country & increased awareness are all bound to boost this figure upwards.

However, the currently the growth in usage in limited primarily due to stock-outs of scratch cards, limited validity of 24 hrs in most cases & unavailability of roaming between Hotspots.

What are the Key Market Drivers?

High Sale of Laptops: Sale of laptops has gone up many-folds. The average price of a notebook stood at Rs 35,000 last year and the dip continues, now even faster. This is expected to rise by 119% per annum in India.

High Hotspot Penetration: A greater number of telecom players offer better services at lower price points. Companies like Tata, Microsense, BSNL etc. to set up more than 20,00,00 public hotspots by Jan 2010.

Reduced Tariffs: The Tariffs have reduced by more 50% in last 12 months.

Customer Expectation: Attitude Change of Consumers towards Wi-Fi is driving business to focus on enhancing the Wi-Fi services. Uptake of services by businesses and end-users has been driven by falling prices and appropriate applications.

Market Differentiation: Installing a Hotspot is now used a differentiator & have a higher customer lifetime value.

Business Requirement: High speed constant connectivity at all places is now a business necessity. Wi-Fi hotspots serve as a means solve the problem. This is especially useful when working away from the primary office location.

Lower Installation Costs: Wireless associated equipment, like Wi-Fi cards, and Wi-Fi access points, are now much cheaper. The set-up costs of a Wi-Fi Hotspot has gone down by a considerable 68% in last 18 months. It is further expected to fall by another

25% in coming 12 months.

Multiple usage devices: Laptops are not just the only device that can get connected to Wi-Fi networks. PDAs & many other devices too can enjoy this mobility. Fully loaded cellular phones are coming cheaper too!

Increasing Awareness: The market size in India is growing at tremendous 329% as a outcome of Increasing awareness & acceptability.

Out of Office Connectivity: The service allows mobile employees to be more productive by working from public “hot spots” at airports, hotels, and coffee bars.

Relaxed Government Regulations: Setting up a Wi-Fi hotspot doesn’t attract any kind of legal restrictions or fees. The license exempt has brought the prices down dramatically.

Increased Productivity: WLANs enable workers to be more productive with access to the Internet, e-mail, and network files wherever they are in the business campus.

What are The Key Market Inhibitors?

Lack of Awareness: The awareness about the facility and usage is not made clear. Locating a hotspot is also a hindrance. Communication needs to be more strong and visibility should be high.

Non-target venue deployment: Non-availability of hotspot at target venues and at the same time deployment in low penetration venues. Thus, all the hotspots do not attract returns worth the investment.

Incongruence between existing pricing plans and consumer expectations: The pricing plans or tariff plans are still way above to attract the higher usage and thus, resulting in low penetration.

No roaming across locations: The restriction on usage across hotspots due to no roaming agreements and validity of coupons.

Security: The security if data transmission is still under question but with 802.11g the solutions seems around the corner.

Scratch card stock outs: The non-availability of scratch cards to access hotspots is highly prevalent, leading to lower usage and take-off.

Section – III

Market Assessment Using Primary Research

Data Collection for Market Assessment

Once the secondary research was done and an environment assessment conducted, a detailed primary research by way of market survey was undertaken in order to obtain the required data to enable us to undertake a market assessment exercise.

The survey was conducted in two parts. While the first part included interviewing the hotspot owners/ mangers, the second part included interviewing the end consumers of WiFi internet hotspot connectivity.

Type of Research: The research was mainly quantitative in nature since it was required by us to make a near assessment of the true market potential for WiFi Connectivity. However, it was also ensured that a fair amount of qualitative probing was also done during the course of the interviews to understand the exact profile of the end consumers.

Sample Size: It was decided to keep the sample size large enough to ensure near accurate findings. The sample size decided for consumer’s survey was 250. For this purpose, 10 hotspot locations were selected across Mumbai & 25 respondents each were interviewed at these points. Also the hotspot location owners/ managers were also interviewed simultaneously.

About the Respondent: The respondents would largely comprise of people visiting Hotspots like café’s and restaurants, Airports, convention centres and business centres, shopping malls, food plazas, retail outlets and other such public places. These would be categorized on the basis of age, gender and occupations.

The list of Hotspots visited in order to interview WiFi consumers, has been annexed along with sample questionnaires for both consumer’s as well as retailer’s surveys.

Criteria for Elimination of Respondents: Only those respondents would be included who are at least aware to a certain extent about the WiFi connectivity. Also, they must be either a owner or user of any WiFi enabled device. Also, only those outlets have been covered, which have hotspot WiFi connection for their customers.

Objective of the Research: The objective of the research broadly would be to understand customer profiles, consumption patterns, key business drivers and inhibitors. More specifically it was expected to provide information regarding:

Level of awareness about WiFi internet connectivity amongst people. The profile of the consumers wrt age, gender, profession etc. Consumption behaviour wrt where, when, from whom and how much. The preferred WISP, its goodwill and the key issue areas. The level of likeability for our new service by the consumers and retailers. The level of association with our new service by them. The price expected by the consumers for this service. The probable amount of brand switching possible. The % increase in the market due to new service introduction.

Data Analysis and Key Findings

preferred locations for WiFi net access

130150

80 7590

55

Café

Hote

l

lounge

airport

Conventio

n

centr

e

Colle

ge

oth

er

No

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f re

sp

on

den

tsConsumer’s Survey Findings:

Level of Awareness about WiFi amongst Consumers:

Response Nos. %Yes I am 72 20Yes but not clear 88 24Very little 90 25No I am not aware 110 31

Total 360 100

WiFi Enabled Devices Owned By Consumers:

Device Owned/ Used Nos.

Laptop 200Media player 5Digi cam 12PDA 18WiFi phone 25

Preferred Hotspots for Net Access by the Consumers:

The bar graph clearly shows that equally large number of people prefer café and hotel lounge. It was observed that while the IT professionals and tech savvy youth, who are

primarily high frequency but low duration consumers, preferred café’s over other options, the business executives and travellers, who are high frequency –high duration consumers, prefer hotel and airport lounges more over other options.

The adjacent table clearly shows the poor awareness levels of WiFi Connectivity! Only 20% respondents were fully aware of it. A whopping 56% of them are either unaware or know very little.

From the adjacent table it can be seen that the majority of the WiFi enabled device users use Laptops. This is true because the other devices have not yet fully entered the Indian market. Also notebook PC sales are increasing.

Time of consumption

Weekdays30%

weekends70%

Reasons for using net at a Hotspot

15%

13%

8%

6%18%

12%

28%

leisure surf ing personal mails chat dow nloads

information access off ice server business mails

Frequency of Usage

1129

48

8257

23

< Once amonth

Once amonth

Once afortnight

Once aw eek

Tw ice aw eek

> Tw ice aw eek

no

of

resp

on

den

ts

The Time Distribution for Usage of WiFi across the Week by the Consumers:

The Pie chart clearly indicates the concentration of consumption during the weekend. This is primarily because then both youth as well as elderly people use the service. This is a very vital finding which can help us design our pricing strategy.

Reasons for Usage of WiFi by the Consumers:

It is evident that people use the WiFi for varied reasons. However the majority of people use it for checking their business mails which are urgent and important. (28%). These are the business executives and travellers who are incidentally also the heavy consumers. It was observed that

while the IT professionals and tech savvy youth used WiFi more for leisure surfing, checking personal mails, downloads, chatting and seeking information to certain extent, the business travellers and executives mainly used it to check business mails, seek information or to access their company server!

How Frequently Do They Consume?

Clearly the median class is once a week. Thus, most people use WiFi internet connection at least 4 times per month. This is another significant finding that can help us make a market assessment.

Duration of usage per occasion

32

63

99

3811 7

< 15 mins 15 – 30mins

30 – 45mins

45 – 60mins

60 – 120mins

> 120 mins

no

of

resp

on

den

ts

preferred WISP

9%

40%

28%

17%6%

Anora Tech – Boingo Microsense

Sify Wi-Zone Dishnet Wireless

Pronto Netw orks

level of satisfaction with current WISP

19%

34%26%

13%8%

V dissatisfied Dissatisfied can't say satisfied very satisfied

How Much Do They Consume On Each Occasion?

Clearly here the median class is 30 – 45 mins per occasion. Hence we can safely conclude that average consumption per event of usage of WiFi internet connection is 30 – 45 mins.

Who are the Most Preferred WISPs operating in the Market?

Well, as seen here, Microsense clearly leads currently being preferred by 40 % of respondents followed only by Sify Wi Zone… This can be capitalized upon while launching the new service and also for the purpose of brand building.

Are the Customers Happy with Their Service Providers?

Well, most respondents have either responded in the negative or have chosen to take a neutral stand. This indicates that even though people have the need for the service very much, the WISP is not able to give desired level of service to its customers. The mean of ratings given to the WISPs is 2.57 which is between dissatisfied and can’t say. Hence its more inclined towards the negative.

Also if we add up the negative responses the total comes to more than 50% while if we add up only the positive responses the total comes to only about 20 %.

counsumers likeability of our new concept

not at all6%

somew hat no

12%

neutral24%somew hat

yes36%

very much22%

will you subscribe to this sevice

not at all4%

I don’t think10%

cant say28%

I think so38%

def yes20%

What Are The Key Areas of Concern for the Consumers?

key areas of concern currently

7647

123188 212 192

9856 39

Poor

locatio

n o

f

hots

pots

No in

fo o

f

locatio

n

Hig

h p

rices o

f

serv

ices

Unavaila

bility

of

coupons

Lim

ited c

oupon

valid

ity

No r

oam

ing

facility

Poor

dow

nlo

ad

speed

Fre

quent

dis

connectio

ns

Security

concern

s

no

of

resp

on

den

ts

It can easily observed from the bar chart above that the three main causes of customer dissatisfaction are unavailability of coupons, limited validity and lack of roaming facility, a fact which was pointed out by our secondary research as well and which has got confirmed now through consumer survey!

Test of Likeability of Our Concept by the Consumers:

58% respondents have liked the new roaming concept in WiFi connectivity through mobile top up. The mean rating achieved was 3.56 which is close to ‘somewhat like’ response. Hence we can infer that most consumers have liked the concept of our new service.

Test of Association with Our Concept by the Consumers:

Again a large no. of respondents (58%) have said they would be subscribing to the new service. Also only a very small proportion of the respondents (4%) have said they would not subscribe to our service. The mean rating was 3.6 which is close to ‘I think so’ response.

resonalble price for the service in Rs/ Hr

43

67

108

2412

0

20

40

60

80

100

120

< 80 80 - 90 90 - 100 100 - 110 > 110

will you sw itch to airtel for this service

22%

3%

10%

29%

23%

13%

Existing Airtel Cust not at all I don’t think

can't say I think so abs yes

will consumption increase?

8%16%

21%39%

16%

not at all I don’t think cant say I think so def yes

% increase in consumption expected

816

31

54

29

< 5 5 - 10 10 - 15 15 - 20 > 20

no

of

resp

on

den

ts

Consumer’s Response to the Reasonable Price for the Service:

The median class is 90 – 100, which means most respondents are expecting the new service to be made available to them at the current market price levels. This input would be crucial in designing our pricing strategy later.

Consumer’s Willingness to Switch Brand:

22% of the respondents are existing Airtel customer. For the remaining 78% of the total respondents, the mean rating given is 3.42, which is more towards “I think so”. Thus we can safely infer that the current consumers would have no issues switching over to Airtel in order to avail this service!

Will Consumer’s WiFi Usage Increase?

55% respondents have opined that their monthly usage of WiFi would increase with the introduction of roaming facility in hotspot connectivity!

Amount of Increase in Consumption Expected:

Out of the 55% respondents who said their consumption would increase after roaming is made available, 40% (54) respondents have said it could be as high as 15 – 20 %! Hence we can safely assume that post launch of e top up facility, the market would increase by about the same percentage points.

Retailers Survey Findings:

avg no of visitors per day t the hotspots

8%

12%

6%

51%

12%

11% < 50

50 - 100

100 - 150

150 - 200

200 - 250

> 250

% of visitors who use WiFi at the hotspot

7%12%

10%

48%

8%

15% < 5

5 - 10

10 - 15

15 - 20

20 - 25

> 25

will retailesr business increase?

10%

10%

20%

40%

20%not at all

somew hat no

neutral

somew hat yes

very much

willingness to sw itch to Airtel - Microsense

10%

10%

10%

20%

40%

10%

Existing M icrosenseP oint

not at all

I don’t think

can't say

I think so

abs yes

Average No. of Visitors at the Hotspot per Day:

Majority of the hotspot respondents have suggested the avg. daily visitors to be between 150 & 200.

Hence we can safely assume daily average of visitors at a hotspot to be around 175.

Proportion of Visitors who use WiFi Connection:

48% respondents have suggested that almost 15 – 20 % of their visitors make use of WiFi connection at the Hotspot.

This is a significantly high figure, which would be useful in making a market assessment.

Effect on Retailers Business with the Launch of New Service:

When the retailers were asked whether they feel their business will increase if they provide Airtel WiFi connection at their location, 60% of them felt that it definitely will. This is crucial to ensure a win - win situation for both us as well as the retailers.

Will the Retailers Switch to Airtel – Microsense?

50% of retailers have said they have no concerns switching over to Airtel – Microsense from their current WISP. Also, 10% retailers currently have Microsense connection. So we should not be having any concerns regarding retailer preference.

Market Assessment

Average frequency of WiFi usage per person = 4 times/ month.

Average duration of usage per occasion = 30 – 45 mins.

Hence, average usage per month per person = 120 – 180 mins= 2 – 3 hrs

Average rate of usage in Rs/ hour = 100

Hence, average monthly spend per person = 200 – 300.

Hence annual spend per person in Rs/ annum = 2400 – 3600.

Assume mean spend per person per annum = Rs. 3000

Now,

Average visitors per hotspot per day = 150 – 200

Average no. of WiFi users per day per hotspot = 30 - 40@ 15 – 20%

Thus, average no. of users per hotspot per annum = 11000 – 15000

No. of hotspots in the country = 4000

Total avg. no. of users per annum in India = 44000000 – 60000000

Assuming the same avg. frequency of usage, theTotal no. of WiFi users in the country(Dividing above fig by 12 x 4 = 48) = 900000 – 1200000

Assume mean no. of WiFi users in India = 1050000

Thus,

The total business for WiFi connectivity = 1050000 x 3000

TOTAL ESTIMATED MARKET SIZE IS Rs 315,00,00,000/-

Rupees Three Hundred & Fifteen Crores!

Section – IV

SWOT Analysis

Based on our internal analysis we have identified the following strengths and weaknesses, whereas based upon the external environmental assessment and the

primary research leading to the market assessment, we have identified the following opportunities and threats.

Strengths Weaknesses

1. Excellent synergy of Airtel and Microsense.

2. A complete Win – Win – Win Model for customers, company as well as retailers.

3. Microsense’s ownership of WiFi Customers and Hotspots.

4. Airtel is India’s largest mobile phone operator with 13 million customer base.

5. Customer data base availability with Airtel.

6. Vast telecom infrastructure available with Airtel.

7. In – house IT support from Telesoft.8. Vast Financial resources with Airtel

Bharti Enterprise.9. Experience in value added services.10. Strong brand identity with Airtel.

1. Microsense already operates in the WiFi market. This can lead to confusion in the minds of existing customers of Microsense.

2. A JV between Airtel and Microsense would further strengthen the position of Microsense increasingly.

3. Revenue sharing agreements and other accounting practicalities can come in way.

4. Differences in opinions and clash of interests can seep in hampering the sanctity of the relation between the two partners.

5. Too complex a IT and other infrastructural arrangement exposed to high risks.

Opportunities Threats

1. With the launch of roaming in WiFi connectivity, the consumption of the service is expected to increase by at least 20 %.

2. Moreover, the hotspots are growing at a very rapid pace.

3. Complete consolidation of mobile phone users and WiFi users.

4. High margin business since very little competition.

5. Even a mere 20% of market would mean business in excess of 50Cr.

Can go on to become the preferred vendor of mobile services to the corporate sector with this value added feature!

1. Forward integration by other infrastructure providers such as Tata broadband etc.

2. Backward integration by other WISPs such as Sify Wi-zone etc.

3. Customers unwilling to switch over to Airtel for their mobile phone service.

4. Irrational price wars started by competitors just to alienate their threats.

5. Clash of interests between the JV partners namely Airtel and Microsense.

Section – V

The Marketing Plan

The Need Identification

As discussed earlier, world over the communication needs of individuals are drastically increasing. People want internet connectivity wherever and whenever they move. Dipping prices of Wireless devices and equipments has resulted in the growth of number of hotspots. A similar trend is expected in India.

The high sale of WiFi enabled devices, drop in tariffs, increased customer expectations of a world class experience, fast paced businesses spread across the country & increased awareness are all reasons for this boom.

However, as learned from the market research exercise, currently the growth in usage is limited primarily due to stock-outs of scratch cards, limited validity of 24 hrs in most cases & unavailability of roaming between Hotspots.

Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot connectivity and Microsense, which is a currently existing Wireless Internet Service Provider (WISP) in the country have joined hands to eliminate the key market growth inhibitors. We plan to introduce roaming facility in WiFi Hotspot connectivity by eliminating the need for scratch cards and replacing them with e- top up through a common mobile phone device. The new service is to be known as “GSM-WiFi Hotspot Internet Connectivity with e-top up”.

So now while the prepaid customers of Airtel can directly access the Internet connection at a Hotspot with the amount for usage being directly deducted from his available balance, a post-paid/ billing account holder can get the amount for usage directly added to his monthly mobile phone bill, thereby ensuring seamless connectivity across the country to all users.

How It Shall Be Done?

In order to facilitate the delivery of such a service Airtel, which supported the telecom infrastructure requirements for Hotspot connectivity and Microsense, which is a currently existing Wireless Internet Service Provider (WISP) in the country have joined hands. The JV is an excellent example of growth through collaboration.

How does the JV make any difference?

Current Business Structure Involving Distributor and Multi Level Money Exchange

New Business Structure Eliminating Distributor And Introducing E – Top Up!

With the JV in place the distributors would get eliminated thereby reducing costs which can be passed on to the consumers. The customer pays directly to Airtel and not the hotspot, part of this is shared with Microsense and eventually the hotspot. Hence, eliminating the need for scratch cards and the problems associated with them.

Business executives

Business traveller

IT professsionals

Tech savvy youth

Segmentation – Targeting – Positioning - Differentiation

The marketing of WiFi GSM service can be classified as a Niche Marketing exercise because while the larger category is internet connectivity, with in this category we have a niche market for WiFi Hotspot connectivity.

Segmentation:

We have selected the Psychographic basis of segmentation based on Lifestyles of consumers. This is because, while Geography & Behaviour hold no consideration, Demographic parameters like Age, Gender etc. hold little relevance since in the world of Netizens, these fail to act as any boundaries of segmentation.

We have segmented the total market into four segments based on lifestyles as follows:

Further segmentation would lead us to two groups as follows:

Individual Customers: Young IT professionals and Tech Savvy Youth, who are the typical urban upwardly mobile persons. These usually use WiFi at the Café. They are the volume segment with more no. of small sessions and use internet largely for leisure surfing, emails & chatting as found from the survey!

Corporate Customers: The business executive and traveler, who is an individual with higher disposable income. These usually use WiFi at the hotel or airport lounge. This is the lucrative segment with greater usage and margins, like to remain connected for business emails & for accessing company server.

Targeting:

We plan to tap the whole market i.e. both these segments with the same product/ service. Hence we are following product specialization targeting method and want to build a strong reputation in this service category.

Positioning:

Our positioning strategy would revolve around our pioneering effort in eliminating the key inhibitor for availability of un–interrupted hotspot WiFi connectivity, in order to fully capitalize on it. We would position ourselves as the first WISP to provide roaming in WiFi connectivity using mobile top up method.

Our positioning statement would be:

“We Are the First to Provide You Roaming In WiFi Connectivity”

Differentiation:

Since we are pioneering in this technology we don’t have any direct competition and hence whatever we do would be obviously different. However, we would also want to be different from the normal WISPs on the following points:

Roaming facility!

Unlimited validity!

Mobile top up!

Ease of payment!

Lower prices!

The 7P Marketing Mix for Our Service

P1 – The Product:

Product Line: We have categorized the customers into two segments, viz. Individual and Corporate. Accordingly we have the following products for them to suit their convenience.

E- Connect Starter Pack : Allows one to have a trial before subscribing to the service. It has 200 MB capacity and is valid for a period of 31 days. Both individual as well as corporate customers are offered this pack.

My Connect Infinity Surf : It is offered to individual clients whereby they are charged on the basis of time of usage on a monthly basis.

My Connect Infinity Download : It is offered to individual clients whereby they are charged on the basis of MBs downloaded on a monthly basis.

Corp Connect Infinity Surf : It is offered to corporate clients alone whereby they are charged again on the basis of time o usage on a monthly basis. However, anticipating high usage and guaranteed payments, they would be charged 20% less wrt individual customers. Also the security deposit would not have to be kept by them.

Corporate clients are not offered Infinity Download plans owing to our findings about their usage patterns from the primary research.

Branding:

Brand Name: We would brand our new service as “Airtel E – Connect” & promote it as the all new WiFi Connectivity with roaming by Airtel”

For the brand to be successful, we must build enduring relationships with its different audiences. Integral to this relationship would be the visual image of the brand the consumer carries in his/her mind.

We would strive to harp upon the well established Airtel Brand over the years to the fullest. This would be helpful to gain quick acceptance with the prospects.

The Airtel brand image created through the consistent application of a carefully developed visual identity would help Airtel E - Connect distinguish itself in a cluttered market. Airtel's visual identity would help create instant brand recall and strengthen the relationships with our audiences.

The Airtel E – Connect Logo:

The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn word mark. We would use a similar logo for easy identification and brand recall.

Packaging:

We have taken special care to package our product to suite the general requirements of the targeted customer segment. Accordingly, the packages are designed for both individual and corporate customers. Separate names have been given to each package, even for the two variants with in the individual customer offerings. Also a trial pack by the name clearly suggesting it has been designed.

P2– The Pricing:

Basis of the Pricing Strategy:

This is not a highly price sensitive service since it’s a niche service provided by very few service providers. Since our service is in the introduction stage, we would want to gather as much market share possible that too at the earliest. Hence coupled with incessant promotional campaign, we would maintain the price initially at par with the market expectations so as to rapidly penetrate the market. Then we would slowly increase our prices to cover our costs and finally start charging a premium once we have achieved a substantial market share.

Stages of Our Pricing Strategy:

Upto a market share of 0 – 10 % : Penetrative pricing with rapid penetration.

Market share between 10 – 20 %: Cost plus pricing. Beyond a market share of 20 % : Value based premium pricing.

Market Based Pricing Method:

From the survey two key findings were received. Firstly the most comfortable price range was Rs 90 – 100 per hour of usage. Owing to our lower distribution cost we can initially provide the service @ Rs 90 / Hr of usage time. Secondly, the ratio of weekend usage to weekday usage is 70:30. Hence, we shall provide discounted service during weekends in order to provide incentive to users of other service providers to subscribe to our service.

The Introductory Prices For The Different Variants:

E- Connect Starter Pack : This would be priced at Rs. 99/- for 1 GB capacity or 31 days usage, which ever exhausts earlier. The price would remain same for individual as well as corporate customers.

My Connect Infinity Surf : Rs 1.5 per minute of usage + Initial subscription charges of Rs 500 + security deposit of Rs. 2000/-

My Connect Infinity Download : Rs 10 per MB of download + Initial subscription charges of Rs 500 + security deposit of Rs. 2000/-

Corp Connect Infinity Surf : Rs. 1.2 per minute of usage + Initial subscription charges of Rs 500 + Zero security deposit!!

Mode of Payment: While prepaid mobile customer need not personally pay anything as the amount would directly get deducted from their balance, for the Post-paid account holders payment can be done either through cheque, cash along with monthly bill or alternately by credit card online at our website using personal ID and password provided to the customers for this purpose.

P3– The Place/ Availability:

In this case the customer need not each time visit a dealer/ distributor for refilling his balance, since the same can be done through e top up using a mobile phone having Airtel connection. However, for the first time in order to subscribe to the service a customer has to visit an Airtel World which is the Airtel Dealer/Distributor shop present in large numbers across the various cities in India.

The following is a map showing the number of Airtel Worlds, Authorized distributors etc in each of the cities where this service would be launched in due course of time.

Also, in order to facilitate the service provision to travellers, the subscription can also be done at any of the 500 hotspots to be opened up in these cities.

The service would be available more than 500 hotspots in 11 cities by Dec 2007! Currently he service would be available at around 50 hotspots in Mumbai and Bangalore.

P4– The Promotion:

Since we have decided to gain rapid penetration, we would do aggressive promotion. However, this does mean we embark on heavy expenditure. We would strive to indulge in low cost high efficiency advertising and sales promotion techniques.

The Stage Wise Plan:

Stage 1: Pre – Launch : Here we would rely heavily on PR rather than advertising. We can tie up with business newspapers and magazines and other youth journals to extensively write about our new service thereby creating a buzz about it. Hence we embark largely on buzz marketing pre-launch. This phase should continue about 6 weeks before the launch but not more also.

Stage 2: Launch of Service : A heavy advertising campaign with much publicised launch of the new service with heavy emphasis on brand and service awareness and inciting trial urge will have to be carried out. While heavy advertising is required it is crucial to bear in mind that too frequent advertising will only act negative. This phase would see lot of TVCs, radio and print advertising. The launch should in no case exceed a period of 1 week to 10 days.

Stage 3: Post – Launch : Regular reminder advertising to maintain brand recall and preference would have to be undertaken. Also immediately post the launch, we should have heavy PR activity in order to again create a buzz for the success of launch of our new service.

Some Cost Effective but Highly Efficient Promotional Techniques:

Introductory discount of 10% for all new subscribers for first three months. Existing customers of Airtel as well as Microsense get 10% discount

automatically for a year to maintain loyalty. Free Airtel SIM cards and waiver of security deposit to users of other mobile

service providers who subscribe to E connect and have to switch to Airtel service. Maintain as much as possible the same last 6 digits for ease of conversion. Free starter packs given complimentary to corporates and influential individuals. Conducting frequent online polls and contests. A baseline with some punch: “Always Stay Connected …” SMS campaign to communicate with all the existing Airtel Customers. Informative and eye catching hoardings outside airports and railway stations. Point of purchase display material at each Airtel World. Bright and unique design pointers and sign boards at Hotspots. Free address booklet of all the member Hotspots across the country. Dedicated hotline customer service desk to handle queries, trouble shoot problems

regarding login etc., also to provide contact details of hotspots in any area. A dedicated website – www.airteleconnect.com providing detail information. Cross – promotion by way of distribution of information booklet regarding our

service, along with WiFi enabled device vendors. Print ads in local dailies, business papers and magazines, IT journals an dyouth

magazines.

P5– The People:

The people who finally interact with the customers in our case are the persons at the hotspot during service delivery and the dealer’s personnel during subscription, bill payment, complaints registration etc. however, care has to be taken to avoid any unpleasant incident during any moment of truth whereby the customer gets a chance to form an opinion about our service which may not be fully reflective of our organizations attitude towards customer satisfaction.

Hence, no ground or field staff is required. However, in order to thrust focus on the capturing of full market potential at the earliest, we would have to hire a dedicated Marketing Manager & operations manager. Also we would need one technical leader and a billing and settlement manager. Apart from this we would need one sales person at each of the cities regional office in order to push sales through the distributor network.

Hence additional manpower required would be as follows:

Manager Marketing 01 (country head) Manager Operations 01 (country head)Technical leader 01 (country head)Billing Manager 01 (country head)Sales executives 10 (regional level)Customer service executive 05 (Country level)

P6– The Process:

Steps Involved During Service Delivery at the Hotspot:

1. Customer visits the hotspot and enquires about WiFi availability.2. Manger to address his query and inform him about availability.3. Customer attempts to connect to the WiFi.4. Manager to assist in case problem is encountered.5. Helpdesk no. to be made available to customer in case required.6. In case new subscription is requested manger to execute the request as by the

distributor.7. At the end of session manager has to request the customer to fill a feedback

form. Don’t insist if the customer is unwilling.8. Thank him for visiting your hotspot and also to choosing Airtel E Connect for

his service.9. To shake hands with him and accompany him till the door.10. Ask him to visit again.

Steps Involved During Subscription:

1. Customer walks in and enquires about E connect.2. He/ She is greeted and made comfortable.3. The customer assistance to address his query and gather full information regarding

the customer usage, WiFi device, type of requirements etc.4. S/He should provide full information regarding available products to the customer

depending upon his/ her classification and requirements.5. Ask whether the customer is interested in buying and can he be shown the prices.6. If he says no, then politely ask for his contact details and references if any. Greet

him and assist him till the door. Thank him for his visit and tell him he can come back anytime he wishes.

7. If he says yes, then inform him about the pricing structure. Probe and clarify concerns if any.

8. Ask what type of package he would like to take. Assist him in making a choice but don’t force what so ever.

9. Once decided, ask for his personal information like contact address, name, contact number, office addresses etc. Collect proof of residence and identity from him with due respect to the documents provided by him.

10. Help him fill in the subscription form completely at his own rest.11. collect subscription charge, security deposit and issue a new subscription package

hamper to him12. Prepare a receipt towards payments made by him.13. Inform him about the contents of the welcome hamper. Probe for any further

queries.14. Thank the customer for subscription and welcome him to the group.15. Inform him about the customer service hotline.16. Accompany him till the door and give a firm hand shake with a smile before he

leaves.

P7– The Physical Evidences:

These are very crucial as these give the feel of tangibility to the otherwise intangible service. In our case we can harp upon the following physical evidences:

The reassuring look and feel of our Airtel World franchisee or distributor shops.

The Airtel logo which imbibes trust and faith in the minds of million of people.

Our punchy baseline : “Always Stay Connected …”

The selectivity in selection of location and venue for the hotspot. Bright sign board of Airtel E Connect at all hotspots. Quality of advertising and other print material

Section VI

Plan of Implementation

Plan for Implementation

The plan would be rolled out in the following two phases.

Phase I:

In this phase we shall launch the service for Local Mobile Subscribers & National Roaming Subscribers. This would log for about 2 years before which we are sure of moving on to the next phase of launch.

Initially test marketing would be done in two cities simultaneously viz. Mumbai & Bangalore. Mumbai because it is the financial hub of the country and Bangalore because it is the IT hub of the country!

Upon successful results, we would immediately roll out close to 300 Hotspots in another 9 cities viz. Pune, Kolkatta, Nagpur, Indore, Gurgaon, Delhi, Ahmedabad, Hyderabad, and Chennai.

Phase II:

In this phase we plan to venture into foreign markets so as to also provide the service to our International Roaming Subscribers.

Section VII

List of References

List of Websites Visited

1. www.microsense.com

2. www.wifi.com

3. www.getbestinfo.com

4. www.howstuffworks.com

5. www.roamingwire.com

6. www.bharti.com

7. www.contentsutra.net

8. www.mindbranch.net

9. www.iamai.org

Articles Referred To

1. Strategic choices for newly opened market – HBR review sept –oct.

2. View from the ground : the indian cyber space!

Section VIII

Annexure

Annexure I

Consumer’s Survey Questionnaire (sample)

Good Morning/ Afternoon/ Evening Sir/ Madam,

We are conducting a survey to understand the requirements of hotspot WiFi internet connection consumers. In this context I would like to have your valued inputs. Can I please take some precious minutes of your valuable time?”

Section – I: Current Consumption Pattern

1. Are you aware of WiFi Hotspot Internet Connectivity?

Yes, I am Cont Yes but I am not clear ContVery little Cont No I am not Term

2. Are you a user of WiFi Hotspot Internet connection?

Yes, I am Cont No, I am not Term

3. What Wi-fi Enabled Devices do you use (if any), owned/otherwise?

Laptop 1 Media Player 2Digi Cam 3 PDA/ Palmtop 4WiFi Phone 5 None Term

4. What kind of hotspots do you preferably access WiFi internet connection at?

Neighbourhood cafe 1 Hotel lounge 2Airport Lounge 3 Convention centre 4College/ Office 5 Any other 6

5. When do you use WiFi connection more?

Weekdays 1 Weekends 2

6. For what purpose do you use hotspot WiFi Internet connection?

Leisure surfing 1 Personal emails 2Chat 3 Downloads 4Information 5 Accessing office Server 6Business emails 7 Any other 8

7. How frequently do you use a Hotspot WiFi connection?

< Once a month 1 Once a month 2Once a fortnight 3 Once a week 4Twice a week 5 > Twice a week 6

8. What is the approx. average duration of your sessions on the net at the hotspot?

< 15 mins 1 15 – 30 mins 230 – 45 mins 3 45 – 60 mins 460 – 120 mins 5 > 120 mins 6

9. Which is your most preferred/ used WiFi Internet Service Provider (WISP)?

Anora Tech – Boingo 1 Reliance 2Microsense 3 BSNL 4Sify Wi-Zone 5 Any Other 6

10. How satisfied or dissatisfied are you with the service provided by your WISP?

V Dissatisfied Dissatisfied Can’t say Satisfied V Satisfied1 2 3 4 5

11. What are the key issues or complaints you have encountered with the service?

Poor location of hotspots 1 No info of location 2High prices of services 3 Unavailability of coupons 4Limited coupon validity 5 No roaming facility 6Poor download speed 7 Frequent disconnections 8Security concerns 9 Any other 10

(Now Introduce Our Concept to the Respondent)

Section – II: The Future Consumption Speculation

12. Do you like the idea of unlimited roaming with mobile top ups in WiFi connectivity?

Not at all Somewhat No Neutral Somewhat Yes Very Much1 2 3 4 5

13. Do you think you will subscribe to this new service?

Not at all I don’t think so Can’t say I think I would Def Yes 1 2 3 4 5

14. What is a reasonable price (Rs/Hr) for such a service according to you?

< 80 80 – 90 90 – 100 100 – 110 >1101 2 3 4 5

15. You may have to switch over to Airtel. Would you be comfortable doing so?

No Need Not at all I don’t think Can’t say I think so Abs Yes 0 1 2 3 4 5

16. Do you feel your usage of WiFi would increase with availability of such a service?

Not at all I don’t think so Can’t say I think so Def it will1 2 3 4 5

Section – III: Personal Details

Name: Gender: M F

Age:

15 – 25 1

Profile:

Buss Executive 125 – 35 2 Buss Traveller 235 – 45 3 IT Professional 3

45 + 4 Student/ Youth 4

Thank you very much for your time and responses Sir/ Madam!

Annexure II

Retailer’s Survey Questionnaire (sample)Good Morning/ Afternoon/ Evening Sir/ Madam,

We are conducting a survey to understand the requirements of WiFi internet connection Hotspots. Can I please take some precious minutes of your valuable time?”

Section – I: Consumer Profile and Consumption Patterns

1. Which WISP provides service at this Hotspot (if any)?

Anora Tech – Boingo 1 Reliance 2Microsense 3 BSNL 4Sify Wi-Zone 5 None Term

2. How many visitors do you approx. receive on an average at this hotspot per day?

< 50 1 50 – 100 2100 – 150 3 150 – 200 4200 – 250 5 > 250 6

3. What is the % of visitors who use WiFi connection on an average per day?

< 5% 1 5 – 10 % 210 – 15 % 3 15 – 20 % 420 – 25 % 5 > 25% 6

4. What are their regular/ key complaints?

Poor location of hotspots 1 No info of location 2High prices of services 3 Unavailability of coupons 4Limited coupon validity 5 No roaming facility 6Poor download speed 7 Frequent disconnections 8Security concerns 9 Any other 10

(Now Introduce Our Concept to the Respondent)

Section – II: The Future Consumption Speculation5. Do you think such a service if offered by you, would increase business for you?

Not at all Somewhat No Neutral Somewhat Yes Very Much1 2 3 4 5

6. Would you be comfortable switching over to Airtel - Microsense?

No Need Not at all I don’t think Can’t say I think so Abs Yes 0 1 2 3 4 5

7. Do you feel your usage of WiFi would increase with availability of such a service?

Not at all I don’t think so Can’t say I think so Def it will1 2 3 4 5

Section – III: Personal Details

Name of Hotspot: Contact Person:Address:

Thank you very much for your time and responses Sir/ Madam!

Annexure III:

List of Hotspots Visited for Collection of Data.

Sr. No. Name of Hotspot Location

1 The Taj Lands End - Bandra Bandra2 Ramada Palm Groove Juhu3 Grand Maratha Sheraton Sahar Airport4 Le Meridian Sahar Airport5 The Grand Continental Sahar Airport6 Grand Central Chembur7 Copper Chimney Bandra8 Barista Chain Fort9 Café Coffee Day Chain Bandra10 CCI club Nariman Point