Airtel-RAHUL

8/9/2019 Airtel-RAHUL

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ACKNOWLEDGEMENTACKNOWLEDGEMENT

I am sincerely thankful to all those people who have been

giving me any kind of assistance in the making of this project

report.

I express my gratitude to Mr.Dheeraj, who has through his

vast experience and knowledge has been able to guide me, both

ably and successfully towards the completion of the project. I

express my gratitude, G.I.M.T. I would hereby, make most of the

opportunity by expressing my sincerest thanks all my faculties

whose teachings gave me conceptual understanding and clarity

of comprehension, which ultimately made my job easier. Credit

also goes to all my friends; their continuous support has given

me the strength and confidence to complete the project without

any difficulty.

Last of all but not the least I would like to acknowledge my

gratitude to the respondents without whom this survey would

have been incomplete.

I am also thankful to authority of Airtel for providing me the

information.

RAHUL GOYAL

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PREFACEPREFACE

The project title Consumer Behaviour of Airtel is the analysis

of the big scale sector of communication. This project involves

the big scale level provided by Airtel to its customers. The

survey was conducted so as to analyze the big scale sector

prevailing in the current industry and the improvement that can

be made upon it.

Market research study has been conducted in order to bring out

the picture of big scale sector that exists in this industry. The

differences in service quality that exists in the market. What the

customers preferences are provided by the Airtel?

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

The project is an extensive report on how the Airtel

company markets its strategies and how the company has been

able in tackling the present tough competition and how it is

cooping up by the allegations of the quality of its products. The

report begins with the history of the products and the

introduction of the Airtel company. This report also contains the

basic marketing strategies that are used by the Airtel company

of manufacturing process, technology, production policy,

advertising, collaboration, export scenario, future prospect and

government policies. The report includes some of the key salient

features of market trend issues.

In todays world of cutthroat fierce competition, it is very

essential to not only exist but also to excel in the market.

Todays market is enormously more complex. Hence forth, to

survive in the market, the company not only needs to maximize

its profit but also needs to satisfy its customers and should try to

build upon from there.

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OBJECTIVE OF THE STUDY

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

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

3. To compare various parameters of manufacturing process,

technology, production policy, advertising, collaboration,

export scenario, future prospect and government policies.

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RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study

regarding the subject. As the prime objective of the project is to

compare Airtel with the existing competitors in the market and the

impact of WLL on Airtel, the research methodology adopted is

basically based on primary data via which the most recent and

accurate piece of first hand information could be collected.

Secondary data has been used to support primary data wherever

needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct

interview method, where a face-to-face formal interview was taken.

Lastly observation method has been continuous with the questionnaire

method, as one continuously observes the surrounding environment he

works in.

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In 1996, the Telecom Regulatory Authority of India (TRAI) bill was

introduced in the Lok Sabha, and the president officially announced

the TRAI ordinance on 25 January 1997. The government decided to

set up TRAI to separate regulatory functions from policy formulation,

licensing and telecom operations. Prior to the creation of TRAI, these

functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put

tremendous financial burden on the operators, diverting funds away

from network development and enhancements. As a result, by 1999

many operators failed to pay their license fees and were in danger of

having their licenses withdrawn. In March 1999, a new telecom policy

was put in place (New Telecom Policy [NTP] 1999). Under this new

policy, the old fixed-licensing regime was to be replaced by a revenue-

sharing scheme whereby between 8-12 percent of cellular revenue

were to be paid to the government.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND

THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in

1994-96 was beset by several problems for 3 - 4 years till the New

Telecom Policy of 1999 was announced. Some of these roadblocks /

current position is tabulated below:

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satisfaction of all parties with changes in methodology / revenue

sharing, intra circle long distance allowed, spectrum availability cleared

with vacation of frequencies for usage by GSM operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large up front cash requirements from promoters due to heavy

license fee burden in initial stages of deployment Asset based

financing approach by Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large up front cash requirements for license fee payments

mitigated with migration to revenue sharing mode allowing

promoters to deploy more capital for capital expenditure; project

financing being considered by most financial institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as

a matter of routine allowing ease of entry / exit - paves the way for full

control of businesses by foreign companies.

Inadequate growth of market / subscribers

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Roadblocks spelt out earlier resulted in low market / subscriber growth,

but with corrective measures taken, market / subscriber base expected

to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line

operators is still biased against the former.

Despite the recent gains of the cellular industry, not everything is rosy.

The cellular penetration rate is still very low at 0.8 percent in a nation

of over one billion people.

In recent years, many foreign companies had pulled out from their

cellular joint ventures in India due to the difficult operating environment

and bureaucracy. In 1999 alone, Swisscom pulled out from Sterling

Cellular, Telstra from Modi Telstra and both the Telecom Organization

of Thailand and Jasmine International from JT Mobile. In 2000,

Telecom Malaysia sold its stake in Usha Martin Telecom, and both

Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001,

British Telecom exited from Bharti Cellular. Bell South International has

also indicated its intention to pull out from Skycell Communications,

and Hong Kong-based Distacom is seeking to sell its stake in Spice

Communications. First Pacific's (based in Hong Kong) continued

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commitment to Escotel is uncertain, and the former is reviewing

various options.

The string of sell-outs notwithstanding, there has been a merger and

acquisition wave sweeping across the Indian cellular industry in recent

years. Hong Kong-based Hutchison Whampoa, via Hutchison

Telecommunications (HK), acquired major stakes in Sterling Cellular

(December 1999), Usha Martin Telecom (mid-2000) and Fascel

(September 2000). Through a partnership with local company, Kotak

Mahindra Finance, Hutchison Whampoa practically controls Fascel

and Usha Martin Telecom, thus circumventing the 49 percent limit on

foreign ownership in Indian cellular operators. Hutchison Whampoa is

also the controlling shareholder of Hutchison Max Telecom. Not to be

outdone, Bharti Enterprises another major cellular player

acquired control of JT Telecom, which was later renamed Bharti Mobile

(December 1999), and Skycell Communications renamed Bharti

Mobinet (August 2000). Bharti also acquired the Punjab license of

Essar and started operations, giving competition to the lone operator

there, Spice Communications. Going forward, Bharti is likely to merge

all its cellular companies into one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the

fourth operator slots in four metros and 13 circles. Bharti emerged as

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be used to fuel its investment in long-distance, basic and cellular

services.

As of October 2002, only BPL Mobile has launched commercial

general packet radio service (GPRS) in Mumbai. However, large-scale

uptake remains elusive. While both Bharti and Idea have GPRS-

enabled networks, there is caution on their part to launch the service.

With hardly any applications, the success of GPRS remains a

question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are

actively promoting their brand and service portfolio through high-

visibility advertising and promotional campaigns. Cellular operators like

Bharti, Orange and BPL Mobile have been advertising aggressively on

hoardings and kiosks. Public transport like the city rail system and

cabs are used widely to carry the message of mobility.

Customer-focused activities are gaining traction among cellular

operators with the establishment of longstanding consumer benefit

programs. Orange in Mumbai offers "Orange Holidays" and "Orange

Monsoon Offers" at very attractive rates and added benefits like

discounts on airfare, food and beverages, among others. Others offer

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Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been the focus.

Few operators have concentrated on offering differentiated services for

businesses. However, as operators realize that offering basic voice

and Short Message Service (SMS) will get them the numbers but not

the margins, some are now seriously looking at the enterprise segment

for provisioning superior services.

Cost-centered solutions like closed user group (CUG), value-adds like

unified messaging and instant alerts are being offered.

A variety of mobile applications are finding takers among the enterprise

segment. Bharti is in the process of introducing a facility to fleet

management companies so that they can improve the efficiency of

trucks or buses by tracking movement and ensuring higher-use,

accurate route planning. Premium automakers are also installing a

global system for mobile communications inside a vehicle to help trace

lost vehicles and track down stolen cars.

Corporations can choose enhanced services like user-defined call

routing to prevent misuse. Calls can be barred, limiting access to

select numbers and diverting calls to one single number. Broadcasting

services are also quite popular, especially among fast food centers that

have a central number. Group SMS is quite popular, especially among15


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enterprises both in the service as well as the fast-moving consumer

goods (FMCG) segment that have a large field force and need to

provide regular updates on inventory status, discount schemes and

movement of goods from warehouse to the retail outlet. Banks too find

bulk SMS service very useful to forward transactional alerts to their

customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus

on differentiations to maintain their lead.

The implementation of enhanced networks like 2.5G will enable

operators to offer data services. This is an opportunity to

customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI means

that prices will no longer be controlled, thus there is less chance

of a cartel being formed.

Network coverage in terms of geographic spread and quality of

coverage is crucial especially for the business subscriber.

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The bigger the service provider's national presence, the better it

is for businesses. On the roaming front, signing up with a

national operator is advantageous.

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

service providers) will be a disadvantage for cellular operators in

the short term. Consequently, operators need to streamline their

customer relation activities and adopt aggressive subscriber

acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian

Telegraph Act of 1885. A document buried in the sands of time. The

next major policy document, which was produced, was the National

Telecom Policy of 1994, a consequence of the on going process of

liberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DoT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized

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1994 Licenses for paging

1994 Telecom policy announced

September 1994 Guidelines for private sector participation in

basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart

from 4 metros

January 1995 Tenders for 2nd operator in basic services

apart from DoT on circle basis.

August 1995 VSNL launches Internet services

January 1996 TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad

policy guidelines rather than a series of action points. Like other

policies, it sought to achieve the impossible in finite time like improve

quality of service and its availability, wide coverage (a phone in every

village), at reasonable rates, etc. The targets in quantifiable terms were

installation of 9.5mn additional lines, telephone on demand by 1997,

and a PCO pop of 500. The Eighth Plan had also allowed private

operators in value added services. To facilitate licensing, the nation

was divided into 20 circles (akin to a state) for basic and 21 circles for

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cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself

a circle.

The basic premise on which competition has been introduced is that

every circle will have one private operator apart from DoT/ BHARTI for

basic and two operators for cellular. DoT/ BHARTI have the option to

become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic

theme, which was broadening the reach of telephony in India, has not

been met. Even liberalization policies were not implemented properly.

The regulator TRAI was set up after delays and confusion and even

after its creation, DoT continued to fight with it in courts. It was also

affected by the resource crunch, and financing options like BOT,

BOOT and BOLT was not used at all. The major policy direction it

showed was to allow private sector entry in both basic and value

added services. The intention, though noble failed to achieve its goals

because of improper implementation, the economic costs are still

borne by the end user.

The telecom sector has witnessed some fundamental structural and

institutional reforms in the past decade. telecom equipment

manufacturing was completely deregulated in 1991. Value-added

services (including cellular services) were thrown open to private

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sector participation in 1992. Basic services were opened to private

participation in 1994 by dividing the country into 21 telecom Circles

and allowing one private operator per Circle to compete with DoT. An

independent telecom regulatory Authority of India was set up in 1997.

A new Policy for Internet Service Policy Providers (ISPs) was

announced in 1998 allowing independent service providers to enter the

sector ending the earlier monopoly of VSNL. Reorganization of DoT,

separating policymaking function and service provision and

corporatization of DoT's operational network are two major institutional

reforms, which need to be implemented.

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COMPANY PROFILE

Vision

"As we spread wings to expand our capabilities and explore new

horizons, the fundamental focus remains unchanged: seek out the best

technology in the world and put it at the service of our ultimate user:

our customer."

These are the premise on which Bharti Enterprises has based its entire

plan of action.

Bharti Enterprises has been at the forefront of technology and has

revolutionized telecommunications with its world-class products and

services.

Established in 1985, Bharti has been a pioneering force in the telecom

sector. With many firsts and innovations to its credit, ranging from

being the first mobile service in Delhi, first private basic telephone

service provider in the country, first Indian company to provide

comprehensive telecom services outside India in Seychelles and first

private sector service provider to launch National Long Distance

Services in India. Bharti had approximately 3.21 million total customers

nearly 2.88 million mobile and 334,000 fixed line customers.

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Its services sector businesses include mobile operations in Andhra

Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,

Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra

circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In

addition, it also has a fixed-line operations in the states of Madhya

Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu

and nationwide broadband and long distance networks.

Bharti has recently launched national long distance services by offering

data transmission services and voice transmission services for calls

originating and terminating on most of India's mobile networks.

The Company is also implementing a submarine cable project

connecting Chennai-Singapore for providing international bandwidth.

Bharti Enterprises also manufactures and exports telephone terminals

and cordless phones. Apart from being the largest manufacturer of

telephone instruments, it is also the first telecom company to export its

products to the USA.

Bharti Tele-Ventures' strategic objective is

to capitalise on the growth opportunities that the Company believes

are available in the Indian telecommunications market and consolidate

its position to be the leading integrated telecommunications services

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Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Competitive Strengths

Bharti Tele-Ventures believes that the following elements will

contribute to the Company's success as an integrated

telecommunication services provider in India and will provide the

Company with a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's total mobile

subscribers resided in the Company's fifteen mobile circles.

These 15 circles collectively accounted for approximately 56% of

India's land mass;

Focus on telecommunications to enable the Company to better

anticipate industry trends and capitalize on new

telecommunications-related business opportunities;

The strong brand name recognition and a reputation for offering

high quality service to its customers;

Quality management team with vision and proven execution

skills; and

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The Company's strong relationships with international strategic

and financial investors such as SingTel, Warburg Pincus,

International Finance Corporation, Asian Infrastructure Fund

Group and New York Life Insurance.

Brand Architecture:

Bharti is working on a complex three-layered branding

architecture to:

Create specific brands for each service,

Build sub-brands within each of these services and

Use Bharti as the mother brand providing the group its

corporate identity as well as defining its goal to become a national

builder of telecoms infrastructure.

BHARTI

AIRTEL(Cellular

Operations)

TOUCHTEL(Basic Service

Operations)

INDIA ONE(National Long

Distance)

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AirTel -The flagship brand for cellular operations all across the

country.

Touchtel- The brand earmarked for basic service operations.

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

telephony

Though the costs of creating new brands are heavy but the

group wants to create distinct independent brands to

address different customers and profiles.

Brand Strategy:

To understand the brand strategy, lets first look at the brand building

exercise associated with AirTel a brand that had to be repositioned

recently to address new needs in the market.

When the brand was launched seven years ago, cellular telephony

wasnt a mass market by any means. For the average consumer,

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owning a cellular phone was expensive as tariff rates (at Rs 8 a

minute) as well as instrument prices were steep sometimes as much

as buying a second-hand car.

Bharti could have addressed the customer by rationally explaining to

him the economic advantage of using a mobile phone. But Sachdev

says that such a strategy would not have worked for the simple reason

that the value from using the phone at the time was not commensurate

with the cost.

Instead of the value-proposition model, we decided to address the

sensory benefit it gave to the customer as the main selling tack. The

idea was to become a badge value brand, he explains.

So the AirTel leadership series campaign was launched showing

successful men with their laptops and in their deluxe cars using the

mobile phone. In simple terms, it meant AirTel was positioned as an

aspirational brand that was meant for leaders, for customers who stood

out in a crowd.

Did it work? Repeated surveys following the launch showed that there

were three core benefits that were clearly associated with the brand

leadership, dynamism and performance.

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tariffs becoming more affordable as cell companies started cutting

prices it was time to expand the market.

How could Bharti leverage this leadership position down the value

chain? Surveys showed that the concept of leadership in the

customers minds was also changing. Leadership did not mean

directing subordinates to execute orders but to work along with a team

to achieve common objectives it was, again, a relationship game

that needed to be reflected in the AirTel brand.

Also, a survey showed that 50 per cent of the new customers choose a

mobile phone brand mostly through word-of-mouth endorsements from

friends, family or colleagues. Thus, existing customers were an

important tool for market expansion and Bharti now focused on building

closer relationships with them.

That is precisely what the brand tried to achieve through its new

positioning under the AirTel Touch Tomorrowbrand campaign. This

set of campaigns portrayed mobile users surrounded by caring family

members. Says Sachdev: The new campaign and positioning was

designed to highlight the relationship angle and make the brand softer

and more sensitive.

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now realizing that there are new compulsions to rework the AirTel

brand, and a new exercise is being launched to this effect. Right now,

the company is unwilling to discuss the new positioning in detail. But

broadly, the focus is on positioning AirTel as a power brand with

numerous regional sub-brands reflecting customer needs in various

parts of the country.

If AirTel is becoming more humane and more sensitive as a brand,

Bharti has also understood that one common brand for all cellular

operations might not always work in urban markets that are now

getting increasingly saturated.

To bring in new customers, the company decided that it needed to

segment the market. One such experiment, launched last year, is

Youtopia, a brand aimed at the youth in the 14 to 19 age bracket and

for those who are young at heart. With its earlier positioning, AirTel

was perceived as a brand for the well-heeled older customer; there

was nothing for younger people. With Youtopia, AirTel hoped to

reverse that.

In order to deliver the concept, AirTel offered rock bottom tariff rates

(25 paise for 30 seconds) at night to Youtopia customers a time

when they make the maximum number of calls. It also set up

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brand to offer GPRS services or permanent Internet connectivity on

the mobile phone which AirTel is expected to launch soon.

The Magic:

Perhaps the more ambitious experiment has been with Magic the

pre-paid card. The idea was to make the brand affordable, accessible

and, most importantly, feasible as a means of expanding the market

even faster.

PHASE I

Magic was aimed at bringing in infrequent users of a mobile phone into

the market and assure him that he would have to pay only if he made a

call. Such a customer used the phone sparingly mostly for

emergencies and was not willing to pick up a normal mobile

connection with its relatively high rentals (pre-paid cards do not include

rental charges).

To achieve its objectives Bharti did three things.

One, the product was made available at prices ranging

from Rs 300 to Rs 3,000 with no strings attached and was simple

to operate.

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Two, the product was made accessible and distributed

through small stores, telephone booths and even kirana shops so

that the offering was well within arms reach.

Third, to make the product more approachable to the

customer, the company came with vernacular ad campaigns like

Magic Daalo Se Hellowhich appealed to local sensibilities.

This apart, the company roped in Karisma Kapoor and Shah Rukh

Khan for a major ad campaign all across Delhi, a ruse that saw the

number of subscribers go up from 5.47 lakh to 12 lakh today,

overtaking Essars branded pre-paid card Speed, which was launched

much ahead of Magic. The company is now re-working its Magic

strategy even further.

Earlier, the branding strategy was aimed at roping in only interested

customers that is, customers who were already inclined to opt for

mobile services. But now, with basic service providers having been

allowed limited mobility at far cheaper rates, mobile service providers

could find themselves under threat again.

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

While the exact strategy is under wraps, insiders say the new branding

strategy would be aimed at offering them value which they had not

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PHASE II -

Bharti used AirTel Magic to build a strong value proposition and

accelerate market expansion through Indias first national pre-paid card

TV brand campaign

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

A combination of the film genre exposed through the TV medium

designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value

proposition of AirTel Magic - Mumkin Hai come alive

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

connect the category to the lives of the SEC B & SEC C segment

the middle class non-mobile user.

AirTel Magic positions itself on the platform of being excellent for

emergency situations - increasing productivity as a part of everyday

life.

Sharukh Khan makes everything in life possible while romancing

pretty Kareena Kapoor with AirTel Magic, Indias leading pre-paid

mobile card.

AirTel today unveiled its strategy for market expansion with the launch

of its new AirTel Magic pre-paid card brand campaign Magic hai to

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Mumkin hai. The strategy is targeted at the non-user segment defined

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

aimed at accelerating market expansion. The value proposition is

centered around a persons desire to make all his / her dreams,

ambitions & aspirations instantly possible. The new campaign for

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

their lives.

The brand is positioned to be relevant to the mass-market who want to

make all their dreams, hopes & desires come alive instantly. (At just

Rs.300/- per month AirTel Magic is so easy to buy.) Improving

productivity, letting you befriend the world and opening up new

horizons. It gives you the freedom to control your life in a way never

possible before. Indeed, anything that you think is possible is possible

with AirTel Magic. The new brand slogan Magic hai to Mumkin hai

has been specially created to capture this effectively.

This strategy is designed to help us talk to this segment directly in the

tone, manner & language of the masses. The Mumkin hai value

proposition will help us expand the market and gain a higher

percentage of market share in the process.

The brand ambassadors Sharukh Khan and Kareena Kapoor embody

this can do or Mumkin Hai spirit (infact that is the reason they were

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selected as brand ambassadors). Sharukh rose from a TV actor to

become Indias top film star and national heartthrob. Kareenas

success is due to her attitude, talent, hard work and the sheer ability

to make a mark in such a short time. Both these stars have said

Mumkin hai and made it happen for themselves.

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

genre connects millions across India. The spirit of romance, dancing

the Indian cinema, well known to most as Bollywood, holds millions of

Indians together as one.

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

magnifies the empowering optimism of Mumkin Hai, in the endearing

situation of a boy-girl romance. Where Sharukh Khan, sets his eyes

on Kareena Kapoor and wins her love with the help of AirTel Magic.

(Poignantly conveying that special feeling we all get when a dream is

made possible and a victory of the heart is won).

The strategy & new brand campaign is targeted at the large untapped

base of intending mobile customers from Sec A, B & C. The estimated

addressable market of such customers in the next two years is around

25 million in AirTels 16 states. The new strategy aims at correcting

the perception that the mobile category is useful mainly for business

or work related scenarios.

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

an extensive nationwide research and is an integral part of AirTel

Magics new multi-media campaign. The campaign has been created

by Percept Advertising.

PHASE III -

Bharti used AirTel Magic to build a strong value proposition and

accelerate market expansion through Indias first national pre-paid card

TV brand campaign

First time ever in India - any pre-paid card brand gives such

freedom to recharge any value

A combination of the film genre exposed through the TV medium

designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value

proposition of AirTel Magic - Aisi azaadi aur kahan? come alive

Sharukh Khan makes everything in life possible AirTel today

unveiled its strategy for market expansion with the launch of its new

AirTel Magic pre-paid card brand campaign Magic hai to Mumkin

hai. . The value proposition is centered around a persons desire

to make all his / her dreams, ambitions & aspirations instantly

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possible. The new campaign for AirTel Magic is all about

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

The brand is positioned to be relevant to the mass-market who want to

make all their dreams, hopes & desires come alive instantly .At a

amount of your choice you can recharge your account with available

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

opening up new horizons. It gives you the freedom to control your life

in a way never possible before. Indeed, anything that you think is

possible is possible with AirTel Magic. The new brand slogan Aisi

azadi aur kahanhas been specially created to capture this effectively.

Amount

Servi

ce

Processin

g

Talk

Time

Validi

ty

(Rs.)

Tax

(8%)

Fees(Rs.

) (Rs.)

(Day

s)54 4 25 25 560 4.44 25 30.56 575 5.56 25 44.44 5

100 7.41 25 67.59 5125 9.26 50 65.74 10150 11.11 50 88.89 10175 12.96 50 112.04 10200 14.81 50 135.19 10216 16 85 115 20225 16.67 85 123.33 20250 18.52 85 146.48 20275 20.37 85 169.63 20

300 22.22 85 183.78 20

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Amount

Servi

ce

Processin

g

Talk

Time

Validi

ty

(Rs.)

Tax

(8%)

Fees(Rs.

) (Rs.)

(Day

s)324 24 150 150 30350 25.93 150 174.07 30360 26.67 150 183.33 30375 27.78 150 197.22 30400 29.63 150 220.37 30

425 31.48 150 243.52 30475 35.19 150 289.81 30500 37.04 150 312.96 30525 38.89 150 336.11 30540 40 150 350 30600 44.44 150 405.56 30650 48.15 150 451.56 30700 51.85 150 498.15 30775 57.41 150 567.59 30

800 50.36 150 580.74 30

( Rs.)

Tax

(8%)

Fees(Rs.

)

(Rs.

)

(Day

s)850 62.96 150 637.04 60900 66.67 150 683.33 60

1000 74.07 150 775.93 601080 80 150 850 601200 88.89 150 961.11 60

1300 96.3 150 1053.7 601400 103.7 150 1146.3 601500 111.11 150 1238.89 601800 133.33 150 1516.67 602000 148.15 150 1701.85 602160 160 150 1850 603000 222.22 150 2627.78 605000 370.37 300 4329.63 3666000 444.44 300 5255.56 366

7000 518.52 300 6181.48 3668000 592.59 300 7107.41 3669000 666.67 300 8033.33 366

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9999 740.67 300 8958.33 366YOUR TALK TIME = MRP - PROCESSING FEE -

SERVICE TAX

Other Brand Building Initiatives:-

The main idea is to stay ahead of competition for at least six months.

Working on the above game plan Bharti is constantly coming up with

newer product offerings for the customers.

The focus, of course, is to offer better quality of service.

To make the service simpler for customers using roaming

facilities, Airtel has devised common numbers for subscribers

across the country for services like customer care, food services

and cinema amongst others.

It will also launch a unified billing system across circles so,

customers moving from one place to another do not have to

close and then again open new accounts at another place.

To assist customer care personnel to deal with subscriber

queries, a storehouse of 40,000 frequently asked questions and

their answers have been stored on the computers.

Bharti expects that most of its new customers (one

estimate is that it would be 60 to 70 per cent of the total new

subscriber base) would come from the pre-paid card segment.

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So, they must be given value-added products and services which

competitors dont provide.

Bharti, for the first time for a cellular operator, has decided

to offer roaming services even to its pre-paid customers, but the

facility would be limited to the region in which they buy the card.

To ensure that customers dont migrate to other competing

services (which is known as churn and ranges from 10 to 15 per

cent of the customer base every month), the company is also

working on a loyalty program. This will offer subscribers tangible

cash benefits depending upon their usage of the phone.

The loyalty program will not be only for a badge value, it

will provide real benefits to customers. The idea is to create an

Airtel community.

Another key area which Bharti is concentrating its attention

upon is a new roaming service launched in Delhi under which

calls of a roaming subscriber who is visiting the city will be routed

directly to his mobile instead of traveling via his home network.

The company also offers multi-media messaging systems

under which customers having a specialized phone with a in-built

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Bharti is in the process of launching a new system in

alliance with Mumbai-based company Venture Infotech which will

enable a pre-paid card user to renew his subscription by just

swiping a card. The system will not only save users the hassle of

going out and buying a card every time it expires but also enable

mobile companies to reduce the cost of printing and distributing

cards.

Bharti Televentures has tied up with 'Waiter on wheels,' a

company delivering food at home, to reach its Magic pre-paid

cards to subscribers' doorsteps. The company is also joining

hands with local grocery shops which will enable users to

recharge their cards by just making a phone call to the shop.

Apart from improving the convenience of recharging, mobile

operators are beefing up their distribution channels. The

company is constantly innovating to enhance the value

proposition for its pre-paid service. They are leveraging

technology to expand their distribution network and deliver round-

the-clock recharge options to its MOTS (Mobile On the Spot)

subscribers.

Bharti Cellular has also launched a special service,

CareTouch, for high-value, corporate customers, providing them

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with instant, single-point access for any assistance they require.

Customers can dial 777 and enjoy a slew of services, which

includes easier payment of bills, service on priority basis, and

value-added services without any additional paper work. Bharti

Cellular is offering a range of services without going through an

interactive voice recorder ensuring that they save time.

Dedicated CareTouch executives are expected to assist

customers with any service on priority basis. Besides the regular

proactive reminder calls for bill payment, customers can also call

CareTouch for bill payments at free of cost.

AirTel presented MTV Inbox; the first on-air SMS based

interactive music dedication show exclusively for AirTel and

AirTel Magic customers. Highly interactive VJ based show with

real-time feedback mechanism. Both brands joined hands to

target the high growth youth segment.

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Bhartis View on its Branding strategy:-

First, brand building efforts in todays context have to be seen in a

more holistic manner. Delivering value on a sustained basis is perhaps

the most potent key to build a brand that lasts.

Unflinching orientation to customer needs is the second key success

factor. Customers (be it for industrial products or consumer goods and

services) across the world are more informed and, at the same time,

becoming more individualistic in their needs and far more demanding

with the passage of time.

Pro-active tracking of shifts in consumer behavior, anticipating

redefined or emerging customer needs, and then reacting in real-time

are essential to attract and retain customer loyalty a key element of

creating brand equity in the present situation.

Customizing the product (and communication of its benefit) to meet the

specific needs of various consumer/customer sub-segments is the third

element in creating brand appreciation.

As far as allocation of time and financial resources are concerned, too

many companies mistakenly allocate a disproportionate amount on

mere advertising and promotion. This is not to say that advertising and

promotion are less relevant. On the contrary, with more choices and

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higher media clutter, businesses need to budget for an increasingly

higher spend on their brand promotion but this has to be undertaken in

tandem with enterprise-wide reengineering of the business

philosophy and core design, production, and delivery operations for the

product itself.

The positive spin to this argument is that by first addressing the

fundamentals, the enterprise itself becomes more competitive. This

can be the beginning of a virtuous cycle wherein brand equity

continues to increase as the enterprise sustains delivery of an

appropriate product or service at an ever increasing value.

It is, however, crucial to note that in the years to come, not only will the

cost of building a regional or a national (or an international) brand will

continue to rise but also the time taken to do so will be longer and will

need sustained and focused efforts.

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FINDINGS AND ANALYSIS

Age Group Graph

As we can see from the above graph, the people who are in the age

group of 21-28 years are the ones who are the maximum users of

mobile phones. This segment is the one which gives maximum

business to the mobile operators. This segment constitutes the young

executives and other office going people. They are 65% of the total

people who were interviewed. The next age group are the people who

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

are at home or have small business units etc. And the next age group

is the youngest generation who are 15-21 years old. They are school

and college going students and carry mobile phones to flaunt. They are

15% of the total interviewed people.

47

AGE GROUP

15-21

15%

21-28

65%

28-35

20%


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Occupation Graph

As the above graph shows that 55% of the total people interviewed are

working. So, these people are the ones who are the maximum users of

mobile phones. They are the young executives, managers, Tele -

callers etc. who require mobile for their official purposes. The next

category is the households, who are either housewives, small units

which operate from their homes etc. They are 20% of the whole . The

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

the whole is a category who are the professionals.

48

OCCUPATION

15%

55%

20%

10%

STUDENTS EXECUTIVES HOUSEHOLDS OTHERS


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Service Provider Graph

The above graph shows a slice of 50%. These are the total no. of

people who are using Airtel. It seems that people are more aware of

Airtel than any other brand. The next popular brand is Hutch. 305 of

the people interviewed had Hutch connections. The next popular brand

was Idea. 15% people had Idea connections. As it came very late in

the market when Airtel had established it self very well. So, that could

be one of the reasons of such a low percentage. The remaining 5%

had trump connections.

49

SERVICE PROVIDER

15%30%

5%

50%

0%

10%

20%

30%

40%

50%

60%

IDEA

AIRTE

L

HUTC

H

OTH

ERS

Series1


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Customer Service At Airtel Graph

As the above graph clearly shows that customer services at Airtel

seems poor. 60% of the people are dissatisfied with the customer

services provided by Airtel. They are the ones who have the maximum

share in the market but they are lagging behind in the customer vices.

10% of the people were fully dissatisfied with the customer services of

Airtel. This could leave an impact on the mind of the consumer. He can

even switch over his brand. 20% of the people seemed partially

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

satisfied with Airtels customer services, which is a very small amount.

Type Of Card Graph50

CUSTOMER SATISFACTION LEVEL

20%

10%

60%

10%

FULLY PARTIALLY

DISSATISFIED FULLY DISSATISFIED


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Cash cards seemed quite popular among the people interviewed. 85%

of the total mobile users were having cash card connections. This

means that the cash cards should be easily and readily available in the

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

and every nook and corner of the market. 15% of the people were

having sim connections which is the regular bill.

51

TYPES OF CARDS

CASH

CARD

85%

SIM

CARD

15%


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Monthly expense graph

People on an average spend RS 500 per month as their mobile phone

expense. 64% people spend this amount. 24% people spend RS 300

per month as their monthly mobile expense. And the remaining 12%

had an expense more than RS 1000, they could the ones having sim

connections or having cash cards and having a lot of business calls on

their mobiles.

52

Monthly Expense

12%

64%

24%

Rs 600

Rs 450

Rs 200


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Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the

people were not at all aware of such a technology. So, in order to get

the answer for this question they were first explained the concept.

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

53

AWARENESS ABOUT WLL

YES

55%

NO

45%


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Awareness of WLL Players Graph

Reliance was the brand which was popular amongst the interviewed

people. As Reliance had done so much advertising and has it banners

and hoarding spread all over Delhi. So, this could be one the reasons

of its popularity. Tata was hardly a known brand in this new field.

Possibly, because of less promotions done by them as compared to

Reliance.

On the basis of analysis of the questionnaire I have found that the

maximum no. of people who use mobile phones are in the age group

of 20 to 28. who are the young executives and other office goers.

54

AWARENESS OF WLL PLAYERS

RELIANCE

85%

TATA

INDICOM

15%


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

There are more no. of prepared cards than post paid cards. The

mobile users want to spend money side by side than to spend money

at the end of the month on a big bill.

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

of the consumer I found that on the basis of Tariff plan, value added

services and billing accuracy Airtel is at par or ahead of its competitor

but in the case of customer care and availability they lag behind there

competitors. As, Airtel has a hold in the market because it has the

maximum no. of connections, so it must improve upon it customer

services. As far as WLL is concerned people are aware about it but

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

Reliance. People at this point of time are not interested to switch over

from GSM to WLL.

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SUGGESTIONS

Following are the few suggestions to AIRTEL for improving

the market share and image of the products concerned.

1. PRODUCT

*Modification must be brought about in AIRTEL, in terms

of quality. Its demand should be increased.

2. PLACE

* The brands must be made available easily in, PCO &

general stores.

3. PROMOTION

*Company must undertake extensive promotional

activities like advertisements must be released in

different Medias to create brand awareness.

*Free samples should be distributed among the

prospects. Sales promotion tools like gifts, contests and

coupons must be given to retailers as well as customers

and prospects.

* Catalogues should be distributed among

customers.

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SWOT ANALYSIS

Strengths

Being one of the largest companies in India the company has

achieved a degree of focus in its core business of its

products.

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

enviable distribution network.

It has a clear and well-defined organization structure and

limits of financial authority.

Increase in advertisement spends affect the companys

margins.

The companys bottom line falls victim to the bloated and

highly paid workforce, which affects its margins.

Weakness:

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence cant compete in low price

segment.

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No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major

boost from its cost reduction efforts.

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

Exports of products will also have huge chances in the coming

years.

Airtels business has ample scope for gaining market share

from the unorganized sector. Rural penetration too holds vast

potential to bring about growth.

Threats

The slowdown in the economy has restricted topline growth of

most FMCG majors and for Airtel also it will be difficult to

maintain historical growth rates in such a depressed scenario.

Companys major raw materials are influenced by government

policies / controls as well as vagaries of the monsoons.

Fluctuations in the prices of raw materials would have

significant impact on costs and margins of the company.

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Moreover, inordinate hike in Broad Band Internet products would

also increases companys production and distribution cost.

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RECOMMENDATION

I have made following recommendation to the company after

doing the summer training there:

The company should modify its credit policy as they only

target the cash paying customers who are not easy totrace.

The company should emphasis more on the quality of

Pharmaceuticals Products it was mostly claimed by the

exporters that their receipts from company doesnt

matches with the samples quality shown before giving

orders.

The company should makes its marketing strategy

flexible enough in order to face competition.

The company should keep an eye on the proper delivery

of the goods to exporter on time, as it has been

recommended by exporters to make the delivery on time.

The company rate policy must be flexible enough to

catch new customers because if company offers lower

price to a new customer then he may continue buy the

goods and can be a permanent customer for the

company.

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The company should offers such rate in the market so

that it may able to catch a biger market share and it

should be able to compete with the local traders and

commission agents while having a brand name.

The company should take the opinion of exporters from time

to time to know what problems they are facing from the

companys side? And if any change they require in present

supplying condition?

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LIMITATIONS

No project is without limitations and it becomes essential to

figure out the various constraints that we underwent during

the study. The following points in this direction would add to

our total deliberations:-

1. During the study, on many occasions the respondent

groups gave us a cold shoulder.

2. The respondents from whom primary data was gathered

any times displayed complete ignorance about the complete

branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/wholesellers refuses to cooperate with the

queries.

5. Some retailers/wholesellers gave biased or incomplete

information regarding the study.

6. Money played a vital factor in the whole project duration.

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7. Lack of proper information and experience also because

hurdle for me.

8. Some retailers did not answer all the questions or do not

have time to answer.

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CONCLUSION

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

lagged behind its competitors as far as customer service and

availability is concerned. The maximum no. of people who use the

mobile are in the age group of 20 to 28. Cash cards are the most

popular type of mobile connections, as they are consumer friendly and

recharging the connection is not a problem.

Maximum no. of people spend RS 500 on their connections. As Airtel

is the only company having the maximum no of mobile connections so

it must seriously look into the loop holes of the existing customer

service department.

As we know that now airtel has already launched its product with logo

Aisi azaadi aur kahan has already became popular in market. So

we can say that inspite of so many competitor in the market Airtel is

having a good position just because every time, it tries its best to

understand the need of its important customer.

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QUESTIONNAIRE

Dear Sir/Madam,I am a student of PGDM of Global Institute of management

and technology doing my summer training project on consumer

behavior from Airtel. Please give your precious time for filling these

details.

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

0-2 Years 2-5 Years 5-10 Years More than 10 years

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

Yes No

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

Idea Hutch Airtel

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

Idea Hutch Airtel

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

Excellent Good Average BelowAverage

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Yes No.

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Q.6 If yes, which sources are used?

Magazines Dealers Sales Executives Operators reference Pamphlets and catalogue Reference from friends and relatives Any other

Q.7 What are the features you look for in a product before makingpurchase decision? Give preferences (1-Highest, 6- least)

Brand credibility Price and Discount After sales services and parts, network Value for money Vehicle performance

Add on features or ergonomics of design

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

Good Network Discount scheme Service package Any other

Q.9 If you have to purchase a new connection or product in nearfuture, which Brand will you go for and why?

____________________________________________________________________________________________________________________________________________________________________________________________________________

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Q.10 Are you aware of various promotional activities being run byAirtel, if yes then how? Are you satisfied with these promotionalactivities?

Customer Care By Ad Films By Camp 24 hrs call center services

Q.11 How would you rate Airtel performance as your expectationon 5 points scale (5 Highest)

1 2 3 4 5 After Sale service Maintenance Product as per expectation

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

____________________________________________________________________________________________________________________________________________________________________________________________________________

VerySatisfied

Satisfied SomewhatSatisfied

Notsatisfied

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BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem

in details the following Books, Magazines/Journals and Web Sites

have been referred. All the material detailed below provides effective

help and a guiding layout while designing this text report.

Websites:

www.airtelworld.com

www.google.com

www.india.com

Book Reference

Kothari, C.R., Research Methodology(Methods &

Techniques), New age International(P)Ltd.,1990

69
http://www.airtelworld.com/http://www.google.com/http://www.india.com/http://www.airtelworld.com/http://www.google.com/http://www.india.com/


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A

PROJECT REPORT

ON

CONSUMER BEHAVIOUR OF AIRTEL

A Summer Training Project report submitted to G.I.M.T.

NOIDA as a part fulfillment of Full time Postgraduate

Diploma in Business Management.UNDER THE

GUIDANCE OF MR. DHEERAJ kumar

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SUBMITTED TO G.i.m.t. NOIDA (U.P)

SUBMITTED BY RAHUL GOYAL

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CONTENTS

ACKNOWLEDGEMENT -- 1

PREFACEPREFACE -- 2-- 2

EXECUTIVE SUMMARYEXECUTIVE SUMMARY -- 3-- 3

OBJECTIVE OF THE STUDY -- 4

RESEARCH METHODOLOGY -- 5-6

INTRODUCTION -- 7-20

COMPANY PROFILE -- 21-47

FINDINGS AND ANALYSIS -- 48-56

SUGGESTIONS -- 57

SWOT ANALYSIS -- 58-60

RECOMMENDATION -- 61-62

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LIMITATIONS

-- 63-64

CONCLUSION -- 65

QUESTIONNAIRE -- 66-68

BIBLIOGRAPHY -- 69

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Acknowledg

ement

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Preface

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Executive

Summary

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Objective ofthe Study

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ResearchMethodolog

y

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Introduction

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CompanyProfile

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Suggestions

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Recommendation

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Limitations

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Conclusion

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Questionnair

e

Airtel-RAHUL

Documents