MBA PROJECTS(airtel

Summer Internship Project Report

ROLL NO.-521102515

Submitted bydeePAK PAReeK

iN PARtiAL fuLfiLLmeNt Of the RequiRemeNtfOR the AwARd Of the degRee

Of

mbAiN

mARKitiNg mANAgemeNt

1

SmuAnAlysis of Customer

behAviour regArding

buying of Airtel

produCts

deClArAtion

I, Deepak Pareek do hereby declare that the project

report titled “Bharti Airtel Ltd.” is a genuine research

work undertaken by me and it has not been published

anywhere earlier.

Date:

Place:

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Deepak Pareek

Acknowledgement

It is almost inevitable to incur indebtedness to all who generously

helped by sharing their invaluable time and rich experience with me,

without which this project would have never been accomplished.

No task can be achieved alone, particularly while attempting to finish

a project of such magnitude. It took many very special people to

facilitate it and support it. Hence, I would like to acknowledge all of their

valuable support and convey my humble gratitude to them.

First of all I thank the Indian marketers and advertisers who have

without fail produced, Surrogate Ads which we so often debate about. At

least they gave me a topic to work on and even realize the issue of

surrogate ads which I did not notice till now.

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Deepak Pareek

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Executive SummaryIt is no wonder that in today’s aggressive business environment, the challenges of

sustaining in these competitive surroundings, preoccupies the minds of many

Business leaders. Customers have many options to choose their telecom operator from

competitive market. Furthermore, they often perceive that what they are purchasing is,

for all practical purposes, a commodity that can be easily obtained from other

companies, if need be. So, how does a corporation distinguish itself in a highly

commoditized and competitive market? Today’s business is more dependent, than

ever before, on their top performing product to be innovate and provide services that

differentiate a company from its fierce competitors. In other words, corporations rely

upon their product and human assets to survive and thrive.

Airtel is one of the leading telecom firms of the country. Airtel is providing

intermediate services to the people of India since 1995. The company is largest

cellular service provider in India and fifth largest in the world in the field of various

telecom services like Mobile network, wireless, landline, broadband, satellite

television, etc. The company is famous for world presence, vast network coverage,

excellent service and brand image managed by experts.

This project was carried out for Bharti house, Infocity, Patia, Bhubaneswar, Odisha.

This is one of the leading centers for marketing and sale of Airtel product and services

in eastern region. The project was carried out for 45 days as summer internship

program in a systematic manner.

This project report contains various section where I’ve discussed about company

profile, its present strength, methodology used, sample size, sample unit, analysis and

discussion, questionnaire, and annexure. I have used various quantitative techniques

to find out the relation between various factors that contribute to awareness &

perception of retailer.

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CHAPTER – I

INTRODUCTION

Airtel comes to you from Bharti Airtel Limited, India's largest

integrated and the first private telecom services provider with a footprint

in all the 23 telecom circles. Bharti Airtel since its inception has been at

the forefront of technology and has steered the course of the telecom

sector in the country with its world class products and services.

Bharti Airtel has been leveraging the Gallup employee engagement

framework to drive business for the last five years. Gallup Great Work

Place awards were created to recognise the efforts of Gallup clients in

using the engagement framework to drive their businesses. STEP or

Small Team Engagement Programme develops the functional and people

management skills of vertical heads by giving them challenging targets

and leadership roles in cross-functional teams in order to groom them as

future business leaders. ‘Life’ helps families of employees come closer to

one another and thus helps in building a ‘conducive’ work atmosphere,

says Mr. Krish Shankar, Director, HR, Bharti Airtel Ltd.

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 Airtel Limited is today

acknowledged as one of India's finest companies, and its flagship brand

'Airtel', has over 22 million customers across the length and breadth of

India.

While a joint venture with TeleTech Inc., USA marked Bharti.s

successful foray into the Customer Management Services business, Bharti

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Enterprises. Dynamic diversification has continued with the company

venturing into telecom software development. Recently, Bharti has

successfully launched an international venture with EL Rothschild Group

owned ELRO Holdings India Ltd., to export fresh Agri products

exclusively to markets in Europe and USA.

TELECOMMUNICATION INDUSTRY

The telecommunications industry is responsible for radio,

television, voice communications, and broadband services. The growth

and innovation of the telecom industry has enabled people to

communicate across the globe and access endless amounts of information

over the internet. Broadband services are becoming faster and easier to

access with fiber optic networks and wireless services like WiMax and

CDMA. Many of the major telecom companies have merged over the last

10 years in order to offer massive product and service portfolios, as well

as further capitalize on bundled media packages ('triple play"). These new

technologies and growth through mergers are enabling these companies

to find new revenue sources and growth opportunities in a mostly mature

market.

World’s telecom industry is an uprising industry, proceeding

towards a goal of achieving two third of the world's telecom connections.

Over the past few years information and communications technology has

changed in a dramatic manner and as a result of that world telecom

industry is going to be a booming industry. Substantial economic growth

and mounting population enable the rapid growth of this industry.

The telecommunications market is expected to rise at an 11 percent

compound annual growth rate at the end of year 2010. The leading

telecom companies like AT&T, Vodafone, Verizon, SBC

Communications, Bell South, Qwest Communications are trying to take

the advantage of this growth. These companies are working on

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telecommunication fields like broadband technologies, EDGE(Enhanced

Data rates for Global Evolution) technologies, LAN-WAN inter

networking, optical networking, voice over Internet protocol, wireless

data service etc.

The telecom industry is taking a crucial part of world economy.

The total revenue earned from this industry is 3 percent of the gross

world products and is aiming at attaining more revenues. One statistical

report reveals that approximately 16.9% of the world population has

access to the Internet.

The telecom industry has grown and evolved at an incredible pace

for the last 20 years, dramatically changing the way people communicate

and transforming everyday life along the way. Mobile broadband

subscribership has topped 200 million worldwide. And the rollout of 3G

networks in emerging markets means there is the potential for mobile

broadband subscribers to outnumber wireline broadband subscribers

within the next decade.

This rapid growth has created a dynamic and competitive industry

climate with continually evolving technology and staggering financial

stakes. The shift of revenue from fixed to mobile and from voice to data

is accelerating. Data and media are being untethered from specific

devices or networks. Powerful new mobile devices deliver a combination

of functions previously available only from multiple tools.

The telecommunications industry was comprised of a club of big

national and regional operators. Over the past decade, the industry has

been swept up in rapid deregulation and innovation. In many countries

around the world, government monopolies are now privatized and they

face a plethora of new competitors. Traditional markets have been turned

upside down, as the growth in mobile services out paces the fixed line

and the internet starts to replace voice as the staple business.

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Indian Telecom Industry

The India telecom market ranks among the fastest growing

industries in the country. The improvement in the standard of living and

the development of infrastructure and connectivity are some of the mains

reasons for the significant growth of the telecom industry. The growth is

expected to be more over the years.

Presently, there are around 200 million telephone lines in India

which make it the third largest phone network in the world after China

and the US. Today, the telecom market in India enjoys a growth rate of

around 45 % which is the highest in the whole world.

India continues to be one of the fastest growing telecom markets in

the world. Reforms introduced by successive Indian governments over

the last decade have dramatically changed the nature of

telecommunications in the country. The sector ranks second in the world,

with over 225.7 million telephone subscriptions by 2011-end.The fast

track growth of the Indian telecom industry has made it a key contributor

to India’s progress. India adopted a phased approach for reforming the

telecom sector right from the beginning. Privatization was gradually

introduced, first in value-added services, followed by cellular and basic

services. An independent regulatory body, Telecom Regulatory Authority

of India (TRAI), was established to deal with competition in a balanced

manner. This gradual and thoughtful reform process in India has favored

industry growth. Today, there are more than 225 million telecom

subscribers in India. Every month, 6-7 million new subscribers are added.

Upcoming services such as 3G and WiMax will help to further augment

the growth rate. Furthermore, the Indian economy is slated to sustain its

7-9 per cent growth rate in the near future. This is supported by the

political stability that the country is experiencing currently. India’s

demographic outlook makes it one of the largest markets in the world. A

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conducive business environment is also created by a favorable regulatory

regime. There exists enormous business potential for telecom companies

on account of the country’s low teledensity, which is close to 19 per cent

presently. The Indian telecom industry is growing at the fastest pace in

the world and India is projected to be the second largest telecom market

globally by 2011

The Indian Telecommunications network with 200 million

connections is the fifth largest in the world and the second largest among

the emerging economies of Asia. Today, it is the fastest growing market in

the world and represents unique opportunities for U.S. companies in the

stagnant global scenario.

Mobile

Airtel has nationwide presence and is the market leader with a

market share of almost completely (as of May 2010). It is 6th most

valued brand according to an annual survey conducted by Brand

Finance and The Economic Times in 2010.

On 19 October 2004, Airtel announced the launch of a BlackBerry

Wireless Solution in India. The launch is a result of a tie-up between

Bharti Tele-Ventures Limited and Research In Motion (RIM).

The Apple iPhone 3G was rolled out in India on 22 August 2008 by

Airtel & Vodafone. Both the cellular service providers rolled out

their AppleiPhone 3GS in the first quarter of 2010. However, high prices and

contract bonds discouraged consumers and it was not as successful as the

iPhone is in other markets of the world. The Apple iPhone 4 was

introduced on 27 May 2011 by Airtel & Aircel. The iPhone 4S in India

was available on Airtel and Aircel. While in other countries carrier locked

phones (phones using the network only of carrier from which they are

brought) have less price compared to fully unlocked phones (phones

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having the allowance of using any network supported) the carrier of India

Sell at the same price of an unlocked version and are available more

expensive than other countries, and therefore having less buys.

3G

On 18 May 2010, 3G spectrum auction was completed and Airtel

will have to pay the Indian government 12,295 crore (US$2.7 billion) for

spectrum in 13 circles, the most amount spent by an operator in this

auction. Airtel won 3G licences in 13 telecom circles of

India: Delhi,Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar

Pradesh (east), Rajasthan, West Bengal, Himachal Pradesh, Bihar,

Assam, North East, Jammu & Kashmir. Airtel also operates 3G services

in Maharastra, Goa, Kanpur and Kolkata through an agreement

with Vodafoneand in Gujarat through an agreement with Idea. This gives

Airtel a 3G presence in 15 out of 22 circles in India.

On 20 September 2010, Bharti Airtel said that it has given contracts

to Ericsson India, Nokia Siemens Networks (NSN) and Huawei

Technologies to set up infrastructure for providing 3G services in the

country. These vendors will plan, design, deploy and maintain 3G-HSPA

(third generation, high speed packet access) networks in 13 telecom

circles where the company has won 3G licences. While Bharti Airtel has

awarded network contracts for seven 3G circles to Ericsson India, NSN

would manage networks in three circles. Chinese telecom equipment

vendor Huawei Technologies has been introduced as the third partner for

three circles.

On 24 January 2011, Airtel launched 3G services in Bangalore,

Karnataka – its largest circle by revenue. With this launch, Airtel became

the third private operator (fifth overall) to launch its 3G services in the

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country following Reliance Communications and Tata Docomo. On 27

January 2011, Airtel launched 3G in Chennai and Coimbatore.

On 27 July 2011 Airtel launched 3G in three major cities in Kerala

(Trivandrum, Cochin and Calicut) with 3G network sharing agreement

between idea.

Airtel plans to cover 1,500 cities across 13 circles by the end of

March 2012. The company, which has 3G licences for 13 circles, is also

in talks with other service providers to roll out the services in the

remaining 10 circles as part of its roaming offerings.

Airtel had about 3 million 3G subscribers as of May 2011.

4G

On 19 May 2010, the broadband wireless access (BWA) or 4G

spectrum auction in India ended. Airtel paid 3314.36 crores for spectrum

in 4 circles. The circles it will provide 4G in are Maharashtra, Karnataka,

Punjab and Kolkata.

Airtel has selected Nokia Siemens Networks to build and operate

its TD-LTE network in Maharashtra.

Airtel is expected to launch 4G services in by the end of 2012

using TD-LTE technology in 2.3 GHz frequency band.

VAS Fraud

There has been lot of criticism about Airtel for its unauthorised

VAS activation. Many of its services were activated automatically

according to a complaint forum. Several thousands of users were falsely

billed, for example downloading wallpaper or ringtones. In return Airtel

launched STOP/START 121 services for such issues. Alternatively, you

can sign up on the "Do Not Disturb" list to avoid all telemarketing calls

and SMSes.

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Controversy

Bharti Airtel (India) along with Loop Mobile, Idea Cellular,

Reliance Communications and Vodafone was issued notices by Telecom

Regulatory Authority of India (TRAI) for violation of Mobile number

portability (MNP) regulations. According to TRAI, they had received

complaints from customers regarding wrong rejection of porting requests

by telecom operators and 10 had been charged for a message requesting

porting code through number 1900. Bharti Airtel faces the largest number

of complaints, at 893 by December 2011, for rejecting mobile number

porting requests. People having cancer due to tower above building are

also reported while they mostly are found to be of Airtel and has one of

the worst towers in India.

Telemedia

The Telemedia business provides services in 89 Indian cities and

consists of two brands.

Airtel Broadband provides broadband and IPTV services. Airtel

provides both capped as well as unlimited download plans [reduced

speeds at unlimited data are implied]. The maximum speed available for

home users is 16Mbit/s.

Airtel Fixed Line which provides fixed line services.

Airtel has about 3.16 million wireline customers, of which 42.6%

are broadband/internet subscribers as of August 2010. Until 18 September

2004, Bharti provided fixed-line telephony and broadband services under

the Touchtel brand. Bharti now provides all telecom services including

fixed-line services under a common brand "Airtel".

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Digital Television

The Digital TV business provides Direct-to-Home (DTH) TV

services across India under the brand name Airtel digital TV. It started

services on 9 October 2008 and has about 32.44 million customers as of

August 2010.

Enterprise

The Enterprise business provides end-to-end telecom solutions to

corporate customers and national and international long distance services

to telcos through its nationwide fiber optic backbone, last mile

connectivity in fixed-line and mobile circles, VSATs, ISP and

international bandwidth access through the gateways and landing stations.

It has two sections under it.

Mobile data service

The different services under mobile data are BlackBerry services,a

web-enabled mobile email solution working on 'Push Technology', USB

modem that helps in getting instant access to Internet and corporate

applications, Airtel Data Card that gives the liberty to access the internet

anytime, Easy Mail is a platform that provides access to

personal/corporate e-mails independent of handset operating system and

application services that shorten the queues at the billing section, off-load

the pressure on the billing staff and bring convenience to the user.

Enterprise business solutions

There are two kind of solutions offered by Airtel. One is GPRS

Based Solutions like mobile applications tools for enterprise, Track Mate,

automatic meter reading solutions etc. and the other is SMS Based

Solutions like interactive sms, bulk sms, inbound call center solutions.

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Android-based tablet

Beetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18

August launched a 9,999 rupees ($220) 7-inch tablet in India based on

Google Inc.'s Android operating system. The offering is intended to

capitalize on the expected demand for cheap computing devices in the

world's fastest-growing and second-largest mobile phone market.

Rest of the World

Africa

Bangladesh

Sri Lanka

Channel Islands: Jersey and Guernsey

On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly

owned subsidiaries of the Bharti Group, announced they would launch

mobile services in the British Crown Dependency islands of Jersey

and Guernsey under the brand name Airtel-Vodafone after signing an

agreement with Vodafone. Airtel-Vodafone operates a 3G network in

Jersey and Guernsey.

Jersey and Guernsey are British Crown Dependencies. They are not

independent countries. Therefore, Airtel's countries of operation is

considered to be 19.

Subscriber Base

Bharti Airtel has about 243.336 million subscribers worldwide –

232.95 million in India and South Asia and 50.949 million in Africa as of

the end of December 2011. The numbers include mobile services

subscribers in 19 countries and Indian Telemedia services and Digital

services subscribers.

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STATEMENT OF THE PROBLEM

Cellular services are performing well. But it is not that much level

it has to face much competition due to the technology development.

Today fashion becomes yesterday’s model of the cellular. Marketing the

product is the difficult work of the marketer.

Demand of the customer is related to the product increase in some

times and vice versa. The wide market is not converted by the marketer

due to their incapability.

market demand is essential one. Consumer demand is to be considered

because, the consumer as a king of marketing. Marketer should fulfil the

consumer needs.

SCOPE OF THE STUDY

The market and marketing are important in the modern world. This

analysis consists of the airtel cellular service in Salem market, market

segments and coverage are included under this evaluation. Schemes,

types of recharge, market area, beneficiaries of Airtel card and

competitors were studied under this head. The study limits within the

Salem city only. It involves the respondents of all category consumers

working in various fields like Government employees, private sector,

professionals, self employee and etc..

The study is aimed to analysis the market and marketed area of

Airtel cellular service over the Tamil Nadu and the respondents of the

various type of customers in Salem.

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OBJECTIVE OF THE STUDY

To study the consumer trends in telecommunication sector.

To study consumer decision-making & preferences.

To study marketing strategies adopted by Airtel.

To study the level of customer satisfaction in Airtel.

To study the market potential.

To study customer purchase decision behaviour.

To understand the needs of different consumer segments.

• Comparative study of different mobile companies.

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METHODOLOGY

Research in common parlance refers to a search for knowledge.

One can also define research as a scientific and systematic search for

pertinent information as a specific topic. In fact, research is an of

scientific investigation.

The Advanced Learner’s Dictionary of Current English lays down

the meaning of research as “a careful investigation or inquiry specially

through search for new facts in any branch of

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knowledge.” Redman and More define research as a “systematized

effort to gain new knowledge.” Some people consider research as

movement, a movement from the known to the unknown. It is actually a

voyage of discovery. We all possess the vital instinct of inquisitiveness

makes us probe and attain full and fuller understanding of the unknown.

This inquisitiveness is the mother of all knowledge and the method,

which man employs for obtaining the knowledge of whatever the

unknown, can be termed as research.

Defining the research problem:

A researcher must find the problem and formulate it so that it

becomes susceptible to research. Like a medical doctor, a researcher must

examine all the symptoms (observed by him) concerning a problem

before he can diagnose correctly. And therefore, I have also defined the

research problem i.e. to study consumer trends, behaviour, preferences

and level of satisfaction in Airtel communication Ltd.

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PRIMARY OBJECTIVES:-

To identify the market standing of the airtel limited with its

competitive telecom companies.

To study and analyze the perception status and the movement of

the airtel services along with its competitors.

SECONDARY OBJECTIVES:-

Find out the potential market and also prefer to write for

competitive.

Find out the potential customers, who can be very beneficial for the

company.

To make aware the customer about company’s services and to

educate them and aware about the different benefits.

To have a healthy conversation with customer to build a good

relationship, to find out the problem related with the service of the

company.

To motivate the customer towards company’s services and to

collect the meaningful suggestion for company betterment.

To formulate the competitive marketing strategies to have better

approach to the customer.

To study the present, past and response of customer towards the

services of airtel.

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RESEARCH DESIGN

Marketing research is often concerned with the behaviours of the

consumer in the respect marketing research have drawn heavily on the

behavioural. Sciences such a psychology and sociology in fact the

contribution of these science to marketing research have been very

significant especially with regard to two aspect.

1. The research technique used by psychology and they have amply

used sociologists being of considerable relevance to marketing

researchers.

2. The concept and the theories of these behavioural sciences are also

proved to be relevant to market researcher.

Type of information to be collected:

a. Phrasing of the questionnaire.

b. Order or sequence of the question.

c. Number of question to be asked.

d. Lay out of the questionnaire.

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LIMITATIONS

• In this project, I have tried to present facts with figures penetrating

to my survey skill it has some limitation, which are there in this

project need identification.

• The sample survey is done on a very small number of people thus

the results drawn may be different from the opinion of the universe.

• The time of two months is very less for covering all the aspects of

the project.

• The feedback received from the individuals is according to his

perception, limited exposure and personal knowledge level.

• Very less time was there for interacting with corporate clients.

• Problem in meeting with the concern person without appointment.

• The last but not the least is that the database which I gathered from

the websites is not so reliable because many times I face a

difficulty to find the address of the companies and sometimes the

companies change the address and not upgrade in the websites due

to which I waste my time as well as money also.

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CHAPTER SCHEME

The introductory chapters deals with the introduction, evolution of

market scope of the study, statement of the problem, objectives,

Hypothesis, methodology, statistical tools and limitation of the

study.

The second chapter include the profile of the study, company

profile and area of the study.

The third chapter consists of review of literature.

The fourth chapter contains of analysis and interpretations of data

relating to Airtel cellular service.

The final chapter ‘resume’ consolidates findings, suggestions and

conclusion.

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CHAPTER – II

COMPANY PROFILE

Telecom giant Bharti Airtel is the flagship company of Bharti

Enterprises. The Bharti Group, has a diverse business portfolio and has

created global brands in the telecommunication sector. Bharti has recently

forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with

Wal-Mart for the cash & carry business. It has successfully launched an

international venture with EL Rothschild Group to export fresh agri

products exclusively to markets in Europe and USA and has launched

Bharti AXA Life Insurance Company Ltd under a joint venture with

AXA, world leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest

integrated and the first private telecom services provider with a footprint

in all the 23 telecom circles. Bharti Airtel since its inception has been at

the forefront of technology and has steered the course of the telecom

sector in the country with its world class products and services. The

businesses at Bharti Airtel have been structured into three individual

strategic business units (SBU’s) - Mobile Services, Airtel Telemedia

Services & Enterprise Services. The mobile business provides mobile &

fixed wireless services using GSM technology across 23 telecom circles

while the Airtel Telemedia Services business offers broadband &

telephone services in 95 cities. The Enterprise services provide end-to-

end telecom solutions to corporate customers and national & international

long distance services to carriers. All these services are provided under

the Airtel brand

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Airtel Brand

Airtel was born free, a force unleashed into the market with a

relentless and unwavering determination to succeed. A spirit charged with

energy, creativity and a team driven “to seize the day” with an ambition

to become the most globally admired telecom service. Airtel, in just ten

years of operations, rose to the pinnacle of achievement.

As India's leading telecommunications company Airtel brand has

played the role as a major catalyst in India's reforms, contributing to its

economic resurgence.

Today we touch peoples’ lives with our Mobile services, Telemedia

services, to connecting India's leading 1000+ corporate. We also connect

Indians living in USA, UK and Canada with our call home service.

VISION & PROMISES

By 2012 Airtel will be the most admired brand in India:

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

“We at Airtel always think in fresh and innovative ways about the

needs of our customers and how we want them to feel. We deliver what

we promise and go out of our way to delight the customer with a little bit

more”

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Corporate Responsibility at Bharti Airtel

At Bharti, CSR is a way of life. Each department and employee

strives to be sensitive to the stakeholders and environment within their

work context. Bharti encourages employees to take decisions and design

business-linked processes that are sensitive to communities and

environment.

Corporate Social Responsibility (CSR) in Bharti encompasses

much more than only social outreach programs. It is an integral part of

the way Bharti conducts its business. The essence of Bharti’s

commitment to Corporate Social Responsibility is embedded in the

‘Corporate Values’, which stem from its deepest held beliefs. These

Values are:

1. To be responsive to the needs of our customers

2. To trust and respect our employees

3. To continuously improve our services – innovatively and expeditiously

4. To be transparent and sensitive in our dealings with all stakeholders

We encourage our employees to take decisions and design business

processes, keeping in mind the following:

• Ethics, fairness and being correct

• Meeting and going beyond compliances and legal requirements

• Showing respect and sensitivity towards stakeholders and

communities, and Nurturing the environment

We practice our CSR beliefs and commitments through a three-

pronged approach:

• Engaging with stakeholders

• Ensuring stakeholder sensitive policies and practices

• Undertaking programs for our employees, community and

environment

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Environment, Health and Safety

At Bharti we believe in the philosophy to refuse, reduce, reuse and

recycle. The company has taken many initiatives in this regard, both

within the offices for the benefit of our employees; and for outside world

for the convenience of the people

Few examples of the initiatives taken are mentioned below:

(a) Most of the new Airtel buildings recycle waste water for sanitary and

cooling of equipment purposes e.g. DG sets and AC systems. These

buildings also have rain water harvesting systems for ground water

replenishment where appropriate.

(b) All Airtel offices have energy efficient light fittings and DG sets. We

also ensure automation that enables energy savings in our buildings.

Building Management System (BMS) – Intelligent Building concept is

being followed in all the new Airtel building and campuses that are

coming up. The BMS controls The Heating, Ventilation and Air-

conditioning (HVAC) system,, electricity load management, water

management, parking management, security and safety systems to ensure

an efficiently run building on optimal resources.

(c) New buildings also incorporate the concept of and Energy Wheel

which optimises energy efficiency in buildings. The AC system in our

buildings adds a certain amount of fresh air periodically; In the process of

adding this fresh air the cool air within the building vents out which may

result into higher usage of energy to bring the cooling/ temperature back.

The Energy Wheel concept ensures that as we bring the fresh air in it is

pre-cooled thereby optimizing energy efficiency.

(d) Air quality is checked periodically in all Bharti Airtel offices, and

based on the results, duct cleaning, carpet cleaning, chair and sofa

shampooing is undertaken. Water quality is also monitored in cooling

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towers for DG sets and Air Conditioner systems so that water born

diseases such as legionella, etc. are avoided.

(e) Use of air curtains on major office exits and double glazing also

results in significant energy saving.

(f)At the time of oil change in DG sets etc. the discarded oil for disposal

is only sent to companies/ vendors approved by the Central Pollution

Control Board (CPCB) for proper disposal as per CPCB approved

processes. All Bharti Airtel offices follow the basic requirements

specified by the Pollution Control Board) and ensure statutory

compliance.

(g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills

are carried out in Bharti Airtel offices as a practice. All Airtel offices are

provided with First Aid boxes and have identified people as First Aid

specialists.

Community Initiatives

Corporate Social Responsibility is embedded in, and built upon, the

stated ‘values’ of Bharti – the institution. These values guide all our

activities and each employee is encouraged to take decisions and design

business-linked processes that are sensitive to communities and

environment.

“We have an obligation to fulfill to society and the communities in

which we operate, and help improve the quality of life for everyone,

today and in the future.”Based on the basic guidelines and direction

provided in the Code of Conduct, Bharti has undertaken many

community programs.

Bharti’s contribution to society is (a) Bharti’s Corporate Social

Responsibility (CSR) Initiatives, including initiatives undertaken by way

of employee mobilization as well as running environment related

29

programs; and (b) Bharti Foundation, a separate vehicle established in

2000 to lead the CSR agenda of Bharti Group of Companies.

BUSINESS DIVISIONS

Bharti Airtel offers GSM mobile services in all the 23-telecom

circles of India and is the largest mobile service provider in the country,

based on the number of customers.

The group offers high speed broadband internet with a best in class

network. With Landline services in 94 cities we help you stay in touch

with your friends & family and the world.

The group focuses on delivering telecommunications services as an

integrated offering including mobile, broadband & telephone, national

and international long distance and data connectivity services to

corporate, small and medium scale enterprises.

The Airtel subscriber base according to Cellular Operators

Association of India (COAI) as of December 2010 was:

30

Metros

Hyderabad −8,947,870

Chennai – 2,947,870

Delhi – 7,420,171

Mumbai – 3,263,688

Kanpur - 3,259,687

Kolkata – 3,181,073

"A" Circle

Andhra Pradesh – 15,329,598

Gujarat – 5,980,024

Karnataka – 14,004,247

Maharashtra – 7,865,425

Tamil Nadu – 9,157,295

"B" Circle

Haryana – 1,856,093

Kerala – 3,383,097

Madhya Pradesh – 8,527,584

Punjab – 5,946,742

Rajasthan – 12,001,442

Uttar Pradesh (East) – 11,455,638

Uttar Pradesh (West) – 5,475,843

West Bengal – 7,592,487

"C" Circle

Assam – 2,828,490

Bihar – 13,901,163

Himachal Pradesh – 1,528,727

Jammu and Kashmir – 1,879,828

31

North Eastern States – 1,748,202

Orissa – 4,989,102

Airtel is the market leader in India with about 152,495,219 out of the

total 745,000,000 subscribers in India or about 20.46% market share as of

December 2010.

The Brand Trust Report published by Trust Research Advisory, places

Airtel as the only mobile operator in the top 10 most trusted brands in

India.

MTN

In May 2008, it emerged that Bharti Airtel was exploring the

possibility of buying the MTN Group, a South Africa-based

telecommunications company with coverage in 21 countries in Africa and

the Middle East. The Financial Times reported that Bharti was

considering offering US$45 billion for a 100% stake in MTN, which

would be the largest overseas acquisition ever by an Indian firm.

However, both sides emphasize the tentative nature of the talks,

while The Economist magazine noted, "If anything, Bharti would

be marrying up," as MTN has more subscribers, higher revenues and

broader geographic coverage. However, the talks fell apart as MTN group

tried to reverse the negotiations by making Bharti almost a subsidiary of

the new company.

In May 2009, Bharti Airtel again confirmed that it is in Talks with

MTN and companies have now agreed discuss the potential transaction

exclusively by 31 July 2009. Bharti Airtel said in a statement "Bharti

Airtel Ltd is pleased to announce that it has renewed its effort for a

significant partnership with MTN Group".

Talks eventually ended without agreement, due to the South

African government opposition.

32

Joint Ventures

Airtel-Ericsson

As per a five-year managed services agreement signed recently .

Ericsson will manage and optimize Airtel’s mobile networks in Africa.

Ericsson will modernize and upgrade Airtel’s mobile networks in Africa

with the latest technology including its multi standard RBS 6000 base

station.As part of the modernization, Ericsson will also provide

technology consulting, network planning & design and network

deployment.Ericsson has been the managed services and network

technology partner in the Asian operations.

Signature tune

The signature tune of Airtel is composed by Indian musician A. R.

Rahman. The tune became hugely popular and is the world's most

downloaded mobile music with over 150 million downloads. A new

version of the song was released on 18 November 2010, as part of the

rebranding of the company. This version too was composed by Rahman

himself.

33

AIRTEL CUSTOMERS

Bharti had 7.99 Cr subscribers, as on September 30, 2011, an

increase in the total subscriber base of 57% over the corresponding period

last year and maintained its leadership position through an improved

market share of all India wireless subscribers at 24.6% as on September

30, 2011, up from 23.4% corresponding to the same period of last year.

Commenting on the results and performance, Mr. Sunil Bharti

Mittal, Chairman & Managing Director, Bharti Airtel Limited, said

“With record customer additions every month, Airtel continues to

consolidate its leadership position in the market. The successful launch of

DTH service has provided another opportunity to the brand to strengthen

it’s connect with the customers, while generating a new revenue stream.”

Bharti Airtel Limited - Summary of Consolidated Financial

Statements - represents Consolidated Statement of Income as per United

States Generally Accepted Accounting Principles (US GAAP)

(A mount in Rs. Cr, expert ratios)

34

Particulars

Quarter Ended

Y-o-Y Growth Sept. 2011 Sept. 2010

Audited Audited

Total revenues 9,020 3,337 42%

EBITDA 3,699 2,710 37%

Cash profit from operations 3,125 2,597 20%

Income before income taxes 1,972 1,747 13%

Net income 2,046 1,614 27%

Operating Highlights

(Figures in nos, except ratios)

Particulars Unit

Sept.

30,

2011

June

30,

2010

Q-on-Q

Growth

Sept. 30,

2009

Y-on-Y

Growth

Customers on our

Network

Mobile Services 000's 77,479 69,384 12% 48,876 59%

Tel-media Services 000's 2,509 2,394 5% 2,075 21%

Total 000's 79,989 71,777 11% 50,951 57%

Market Share of Major mobile Operators as of September 2011 (%)

Mobile Operators Market Share Bharti Airtel 24.96Reliance

Communication 18.22Vodafone Essar 17.76BSNL 12.19Idea Cellular 9.88Tata Teleservices 9.54Others 7.45

35

Investor Relations

Creating value for our customers, employees, investors, partners,

vendors and the society at large lies at the root of our fundamental

business strategy. Our core principles of trust and transparency have

come a long way in helping us develop and nurture long-term

relationships with our key stakeholders. Our performance exudes from

our belief in and commitment to the telecom sector; and translates into

creating innovative exciting opportunities for one and all.

We are one of India’s leading providers of telecommunication

services with a nationwide presence in all the 23 licensed jurisdictions

(also known as Telecom Circles). We served an aggregate of 82,748,790

customers as of October 31, 2011; of whom 80,199,747 subscribe to our

GSM services and 2,549,043 use our Telemedia Services either for voice

and/or broadband access delivered through DSL. We are the largest

wireless service provider in the country, based on the number of

subscribers as of October 31, 2011. We also offer an integrated suite of

telecom solutions to our enterprise customers, in addition to providing

long distance connectivity both nationally and internationally. We have

recently forayed into media by launching our DTH Services in October

2011. All these services are rendered under a unified brand “Airtel”.

36

Fact sheet

Name Bharti Airtel Limited.

Business Description Provides GSM mobile services in all the 23

telecom circles in India, and was the first private

operator to have an all India presence.

Provides tele-media services (fixed line and

broadband services through DSL) in 95 cities in

India.

Established July 07, 1995, as a Public Limited Company

Proportionate Revenue Rs. 270,122 million (year ended March 31, 2011-

Audited)

Rs. 184,202 million (year ended March 31, 2007-

Audited)

As per Indian GAAP Accounts

Proportionate EBITDA Rs. 114,018 million (year ended March 31, 2011

- Audited) Rs. 74,407 million (year ended March

31, 2007 - Audited) As per Indian GAAP

Accounts

Shares in Issue 1,898,101,604 as at September 30, 2011

Listings The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited

(NSE)

Market Capitalisation Market Capitalization (as on January 05, 2012)

Approx. Rs. 1,301 billion Closing BSE share

price = Rs. 685.35

Customer Base 80,199,747 GSM mobile and 2,549,043

Telemedia Customers (status as on October 31,

37

2011)

Operational Network Provides GSM mobile services in all the 23

telecom circles in India, and was the first private

operator to have an all India presence.

Provides telemedia services (fixed line) in 95

cities in India.

Company’s Current Situation

Bharti Airtel is one of India’s leading providers of

telecommunication services with a nationwide presence in all the 23

licensed jurisdictions (also known as Telecom Circles). We served an

aggregate of 82,748,790 customers as of October 31, 2011; of whom

80,199,747 subscribe to our GSM services and 2,549,043 use our

Telemedia Services either for voice and/or broadband access delivered

through DSL.

We also offer an integrated suite of telecom solutions to our

enterprise customers, in addition to providing long distance connectivity

both nationally and internationally. We have recently forayed into media

by launching our DTH Services in October 2011. All these services are

rendered under a unified brand “Airtel”

. The company also deploys, owns and manages passive

infrastructure pertaining to telecom operations under its subsidiary Bharti

Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited.

Bharti Infratel and Indus Towers are the two top providers of

passive infrastructure services in India

Company shares are listed on The Stock Exchange, Mumbai (BSE)

and The National Stock Exchange of India Limited (NSE)

Partners

38

The company has a strategic alliance with SingTel. The investment

made by SingTel is one of the largest investments made in the world

outside Singapore, in the company.

The company’s mobile network equipment partners include

Ericsson and Nokia. In the case of the broadband and telephone services

and enterprise services (carriers), equipment suppliers include Siemens,

Nortel, Corning, among others. The Company also has an information

technology alliance with IBM for its group-wide information technology

requirements and with Nortel for call center technology requirements.

The call center operations for the mobile services have been outsourced

to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

Managing Director’s profile

Sunil Bharti Mittal

Chairman & Managing Director since October 2001

Board director since: July 1995 Age: 51 years

• Sunil Bharti Mittal is the Chairman & Managing Director of

Bharti Airtel Ltd. head quartered at New Delhi, India.

• Bharti Airtel, India’s leading private integrated telecom company,

has been at the forefront of the telecom revolution and has

transformed the telecom sector with its world-class services built

on leading edge technologies. Bharti has been a pioneering force

in the telecom sector and today enjoys a strong nationwide

presence.

• Sunil started his career at a young age of 18 after graduating from

Punjab University in India and founded Bharti, with a modest

capital, in the year 1976. Today, at 49 he heads a successful

enterprise, amongst the top 5 in India, with a market capitalization

of over US$ 40 billion and employing over 30,000 people

39

• Bharti has grown successfully in partnership with various leading

companies of the world - Singapore Telecom, Vodafone, Warburg

Pincus, British Telecom to name a few.

• The other businesses in the group are consumer electronics

(Beetel), life insurance with AXA of France (Bharti AXA), and a

joint venture with the Rothschild group to develop Indian

horticulture and export fruits and vegetables to the world

(FieldFresh)

• Bharti has recently entered into a JV with Wal-Mart for setting up

supply chain, logistics and cash and carry to support the

burgeoning retail market in India.

• Sunil is an alumnus of Harvard Business School, MA, USA.

• Sunil has been conferred one of the highest civilian award –

Padma Bhushan

• Sunil has been conferred the degree of Doctor of Science (Honoris

Causa) by the G B Pant University of Agriculture & Technology.

Awards and Recognitions

• August 7, 2011: Bharti Airtel adjudged the 'Best Cellular Service

Provider' and 'Best Broadband Service Provider' at the 2011 V&D

100 Awards.

• July 11, 2011: Bharti Airtel Limited voted as India 's most

innovative company , in a survey conducted by The Wall Street

Journal . Bharti Airtel was ranked as the most innovative in

responding to customer needs in a survey conducted to determine

Asia 's 200 most-admired companies.

• June 13, 2011: Sunil Bharti Mittal received U.S.-India Business

Council's 'Global Vision' Award. The prestigious award recognizes

his entrepreneurial zeal and contribution to Indian business.

40

• June 11, 2011: Airtel voted the 2nd Most Trusted Service Brand in

the Annual Economic Times-Brand Equity, Most Trusted Brands

survey

• June 2011: Airtel wins the Platinum Trusted Brand Award in the

Mobile Service provider category in the Reader's Digest Asia

Trusted Brands Survey .

• May 26, 2011: Airtel was honoured with the prestigious 'Wireless

Service Provider of the Year' award at the 2011 Frost & Sullivan

Asia Pacific ICT Awards.

• April 17, 2011: Bharti Airtel had the distinction of being amongst

20 companies worldwide and the only one in India , to be honoured

with the 'Gallup Great Workplace Award'.

• April 8, 2011: Airtel adjudged as the 'Best Carrier India' at the

Telecom Asia Award 2011. The Telecom Asia Awards, constituted

by the Telecom Asia magazine, seek to recognize outstanding

performances of companies and individuals in the Asian

telecommunication industry based on criteria such as financials,

market standing, technology and corporate governance.

Shares

The equity shares of Bharti Airtel are currently listed on National

Stock Exchange of India Limited (NSE) and The Stock Exchange,

Mumbai, (BSE). Bharti Airtel offered 185,336,700 equity shares in the

initial public offering (IPO) and raised Rs 8,340.15 million through this

process. The shares were oversubscribed 2.56 times.

With this IPO, Bharti Airtel established certain important

landmarks in the history of the Indian capital market. Together with being

the first 100% book building process that this country has seen, the listing

was completed within a record time of ten working days. of the close of

41

the issue. Moreover the process of allotment and issue of shares was also

completed within one day of the last day of pay-in.

The book running lead managers for the IPO were JM Morgan

Stanley and DSP Merrill Lynch and the registrars to the issue was Karvy

Consultants Limited.

42

Area ProfileIntroduction

The unit deals with a detail study of the Salem city. It includes geographical location, surroundings, Population, Offices, industrial background.

Geographical Location Salem is located at average elevation is 278 m (912 ft).

The city of Salem lies in the north central part of Tamil Nadu and is

surrounded by hills on all sides viz. Nagaramalai to the

north, Jarugumalai to the south, Kanjamalai to the west, Godumalai to the

east and the Shevaroy Hills to the north east. The Kariyaperumal Hill is

situated within the city to the southwest. The Thirumanimuthar

river flows through the city, dividing it into 2 parts. The fort area is the

oldest part of the town. Salem local planning area extends up to 100 km2.

(39 sq. mi.) within the city.

Economy

Salem is one of the major producers of traditional silver anklets,

which are popular among women. It boasts large textile, steel,

automotive, poultry and sago industries. Salem also has one of the

largest magnetite deposits in India. Companies like Dalmia and

TANMAG have mines here. The Leigh Bazaar market is a large regional

market for agro products.

Silk and cotton fabrics from Salem are sold throughout Tamil Nadu

and are a big buy. The Indian Institute of Handloom Technology, the

second of its kind in India, is found here. Salem is one of the chief

producers of customary silver anklets, which are a rage with the women-

folk here. The Leigh Bazaar market is known for selling agricultural

produce and is usually abounding with visitors and shoppers. Fabric

exporting has been the oldest business in Salem, going back to the 30s.

43

Salem has always been known for exporting fabrics and clothes and is

still consistently doing so.

Special Economic Zones (SEZ)

Being one of the fastest growing tier II cities, the Tamil Nadu

government and ELCOT are planning to establish an IT park in Salem

covering about 160 acres (0.65 km2). SAIL is planning a Steel SEZ inside

the Salem Steel plant covering about 250 acres (1.0 km2)

There is an exclusive Electrical and Electronics Industrial Estate in

the Suramangalam area of Salem town. Coimbatore-Erode-Salem stretch

was well known for Industries and Textile processings and it is

announced as Coimbatore-Salem Industrial Corridor and further

development works are carried by SIPCOT Linking Scheme.

POPULAR IN SALEM

Salem is known as the Mango city in Tamil Nadu Salem is also

building, Hand loom weaving and Steel Plants. Salem is a Geologist's

paradise, surrounded by hills and the landscape dotted with hillocks.

Salem has vibrant culture dating back to the ancient Kongu Nadu. As a

district, Salem has its significance in various aspects.

Salem is one of the major textile centers in the country. Shevaroys

and Yercaud hills are famous tourist places in Salem District. Salem is an

important regional centre. It is well connected with most of the city by

rail and road networks.

44

Human Resource (HR)/ Remuneration Committee

Composition

In compliance with the non- mandatory requirements of Clause 49

of the Listing Agreement, Bharti Airtel has constituted a Remuneration

Committee (which is known as HR Committee). The HR Committee

comprises of following six non-executive directors, out of which four

members including the chairman of the committee are independent

directors.

ESOP Compensation CommitteeComposition of ESOP Compensation Committee

The ESOP Compensation Committee of the Board is constituted in

accordance with SEBI (Employee Stock Option Scheme and Employee

Stock Purchase Scheme) Guidelines, 1999. The Committee comprises of

following six members of whom four are independent and all are non-

executive.

45

‘COMPANY’S PLANS’

Prepaid Plans

Are you wary of committing yourself to a date for making your bill

payments? Is it too much of a bother for you to remember dates for bill

payments? Do you often end up paying late fees against your monthly

utility services bills? Do you end up spending too much if you have the

option to pay the bill later?

Think over for if one of these represents you, we have a solution

for you. Start thinking prepaid is our advise!

So what exactly is this prepaid! It is simply a way of going cellular

by paying for the talk time in advance. For eg if you feel that you need Rs

300 worth of talktime for a month, you can buy a recharge coupon which

gives you that much talktime on your cellphone. Once that money gets

exhausted you can buy another recharge coupon for the same or different

denomination depending on your future need.

Prepaid allows you to be in control of your cellular expenses even

while you are spending. You will be surprised that today In India, Prepaid

connections account for almost 60 to 70 percent of the total new entrants

into cellular telephony. That’s because almost everyone of us wants to be

in control of our cellular expense.

46

Some of the many advantages that you enjoy with Airtel Pre-Paid...

Total Cost Control

Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-

charge as much as you feel the need to! Now that's what we call complete

freedom!

No Rentals

Buy an Airtel prepaid card without having to pay any rentals!

No deposits

Your Airtel prepaid card comes without you having to pay heafty

deposits!

STD/ISD facility till the last rupee

Now experience complete freedom like never before with Airtel! Our

STD/ISD facility allows you to make long distance calls in India and

Overseas from your cellular phone!

Instant Balance Inquiry

Check your talk-time instantly by calling our toll-free number!

60 second pulse

Airtel provides you with a 60-second pulse rate! Freedom for you to

experience like never before!

Instant Recharge

Avail of instant recharge on your Airtel prepaid card with just a few

simple steps!

24-hour recharge facility

With our round-the-clock recharge facility, recharge you Airtel prepaid

card anytime, anywhere!

Caller Line Identification

Call Line Identification gives you the power to know the phone number

of the calling party even before you answer the call, thus giving you the

choice to either reject or take the call. It provides the added advantage of

47

saving the incoming number directly in the Handset Phone Book. So that

the next time you want to call the same person, you don't need to retype

his number, simply use your phone book.

Call Divert, Call Hold and Call Wait

Avail of special services like call waiting, call hold and call divert – all

with your Airtel prepaid card!

Short Messaging Service (SMS)

With Airtel’s Short Messaging Service (SMS), send messages and jokes

to your friends and colleagues, anytime anywhere!

SMS based Information Services

With Airtel's SMS based information services, you can get upto-the-

minute cricket scores, order flowers as well as send couriers or check

your daily horoscope!

Voice Mail service

Voice Mail lets you receive messages even when your handset is switched

off or when you are outside the coverage area. You can listen to your

messages whenever you feel like, from anywhere in the world. Voice

Mail can store up to 75 messages, with each message of two-minute

duration.

Post-paid Plan

Airtel welcomes you to a vibrant world of unlimited opportunities.

More exciting, innovative yet simple new ways to communicate, just

when you want to, not just through words but ideas, emotions and

feelings. To give you the unlimited freedom to reach out to your special

people in your special way.

Airtel Out of Home Circle

We have established one of the most extensive roaming tie-ups -

both national and international- with the best service providers in the

48

respective regions to ensure that you get uninterrupted coverage

throughout. We currently provide roaming coverage in more than 1000

cities and major highways across India. We also provide international

roaming in 56 countries across 101 networks.

National Roaming

Our national roaming coverage currently spans across more than a

1000 cities across India. To subscribe to National Roaming, you have to

pay the following:

Security Deposit- Rs 1500 Monthly Rental- Rs 49

Customer Care

Do you need any clarifications on your bills? Do you have any

feedback or query on our Products & services? You can call us, send us

an E-mail or meet us in person. We shall be glad to help you out in every

possible way.

Contact us by phone

If you are on Airtel, just call us on 121 your Airtel Prepaid phone.

If you are on Airtel postpaid, just call us on 9897012345 or toll free 121

from yourAirtel Postpaid phone.These toll free numbers however, cannot

be dialed when you are roaming.

Group Links of Bharti

Bharti Airtel

Bharti Teletech

Telecom Seychelles

Bharti Telesoft

Bharti Del Monte India

Bharti Retail

Bharti AXA General Insurance

Bharti AXA Life Insurance

49

Bharti AXA Investment Managers

Bharti Learning Systems

Jersey Airtel

Guernsey Airtel

Bharti Foundation

Bharti Realty

50

CHPTER – III

REVIEW OF LITERATURE

MARKET ANALYSIS

A sound marketing is programmed should start with a careful

analysis of the market demand for a product r service. A market is usually

thought of as the total number of prospective customers for products n a

country. The marketer, often use terms like, available markets, served and

penetrated markets.

MARKET AND MARKETING

The root word in the term marketing is market. Market is a group

of potential customers for a particular product who are willing and able to

spend money or exchange other resources to obtain the product.

Marketing is focused on the market place. Infect the shoppers of post

generations, the words marketing meant to buy groceries. Function of

marketing activities is to bring buyers and sellers together.

Consists of consumer oriented mix of business activities planned

and implemented by the marketer to facilitate the exchange or transfer of

goods, services, and ideas, so that both parties profit in some way.

A market is a group of potential customers for a particular product

who are willing and able to spend money or exchange other resources to

obtain the product. Good or service is a consumer product sold in the

consumer market organization is buying an organizational or business.

Market conditions more conducive the sale prospects. The transport work

and its expansion are necessary for the easy flow of goods for the market.

Market, can be classified into Rural market, Agricultural market, primary

village market, primary whole sale market etc., Consumer market refers

to the market for goods and services purchased by individual and

households to satisfy their consumption desires.

51

The term market does not mean any particulars market place in

which things are bought and sold but the whole of any region in which

the buyers and sellers are in such inter course with one another that the

prices of the same goods tend to be equalized easily and quickly. It is the

process of planning executing the conception, pricing, promotion and

distribution of ideas and services to crate exchange will satisfy individual

and organizational objectives keeping customers and building

relationship. Marketers want customers for life. Effective marketers work

to build long term relationships with their customers. Marketing as an

activity involved in getting and keeping customers.

MARKET ANALYSIS

The term market analysis includes the market demand and Market

segmentation.

Market Demand for any product or service three factors to be

considered as

a) People with a satisfied wants.

b) People with money to spend.

c) People with Willingness to Spend Money.

52

The size of the demand can be represented by considering these factors.

M=P1xP2xP3

M = Market Demand

P1 = Purchasing Pattern

P2 = Purchasing Power

P3 = Population patterns

The market analysis market demand for a product is the total

demand that would be bought by a defined marketing environment under

a defined marketing programmed.

The market demand is influenced by many factors. In a competitive

market, the lower the product prices, the more be the consumers demand

for when price drops, the quantity sold goes up. If there is a change in

demand, the supply and price both are affected. Changes id amend caused

due to social or economic factor. The increase in demand results in higher

prices and an increase in supply.

In order to find out the probable market demand for a particular

product, the formula can be used.

Market potential = N x R x P

N = Number of people in a specific market for the product

R = Average quantity of purchase per person

P = Average price per product unit.

Definition of 'Market Segmentation'

A marketing term referring to the aggregating of prospective

buyers into groups (segments) that have common needs and will respond

similarly to a marketing action. Market segmentation enables companies

to target different categories of consumers who perceive the full value of

certain products and services differently from one another. Generally

three criteria can be used to identify different market segments:

53

1) Homogeneity (common needs within segment)

2) Distinction (unique from other groups)

3) Reaction (similar response to market)

Market Segmentation

The purpose for segmenting a market is to allow your

marketing/sales program to focus on the subset of prospects that are

"most likely" to purchase your offering. If done properly this will help to

insure the highest return for your marketing/sales expenditures.

Depending on whether you are selling your offering to individual

consumers or a business, there are definite differences in what you will

consider when defining market segments.

Category of Need

The first thing you can establish is a category of need that your

offering satisfies. The following classifications may help.

54

For businesses:

Strategic - your offering is in some way important to the enterprise

mission, objectives and operational oversight. For example, a service that

helped evaluate capital investment opportunities would fall into this

domain of influence. The purchase decision for this category of offering

will be made by the prospect's top level executive management.

Operations - your offering affects the general operating policies and

procedures. Examples might be, an employee insurance plan or a

corporate wide communications system. This purchase decision will be

made by the prospect's top level operations management.

Functional - your offering deals with a specific function within the

enterprise such as data processing, accounting, human resources, plant

maintenance, engineering design, manufacturing, inventory control, etc.

This is the most likely domain for a product or service, but you must

recognize that the other domains may also get involved if the purchase of

the product or service becomes a high profile decision. This purchase

decision will be made by the prospect's functional management.

55

SWOT ANALYSIS OF AIRTEL

STRENGTHS

1. Strong Brand Image.

2. Good Network Connectivity.

3. Wide Network Coverage.

4. Attractive Promotional Schemes.

5. Good Value Added Services.

6. Operating In 65 Countries With 157 Operators.

WEAKNESS

1. Perceived As An Expensive Brand.

2. Absence In The Rural And Interior Areas.

OPPORTUNITY

1. Poor Network Connectivity of Its Competitors.

2. Large Chunk Of Dissatisfied Customer.

3. Though Being The 4th Entrant, They Are Operating At 900

Frequencies.

THREATS

1. Strong Visibility of Competitors.

2. Sour Experience With Airtel By Few Can Lead To Bad Word Of

Mouth.

3. Continuous Improvement In Competitor’s Services.

56

CHAPTER – IV

DATA ANALYSIS AND INTERPRETATION

The data collected by the researcher were analyzed thoroughly and

they were also interpreted by applying statistical tools. The interpretation

of all the table were given as follows.

TABLE 4.1

CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR

GENDER

Gender No. of respondents Percentage

Male 50 40

Female 75 60

Total 125 100

Source: Primary data

The above table clearly shows that 40% percentage of the

respondents is male and remaining 60% percentage of the respondents are

female.

CHART 4.1

CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR

GENDER

57

58

TABLE 4.2

CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR

AGE

Age group No. of respondents Percentage

Below 20 8 6%

20 - 30 27 22%

30 - 40 40 32%

40 - 50 23 18%

Above 50 27 22%

Total 125 100%

Source: Primary data

The above table clearly shows that 6% of the respondents fall

under the age group of below 20 years old., 22% each of the respondents

fall under the age group of 20-30 years and 32% of the respondents 30 to

40 years old. 18% of the respondents 40-50years old and other 22% of the

respondents above 50 years old.

59

CHART 4.2(a)

CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR

AGE

60

TABLE 4.3

CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR

OCCUPATION

OCCUPUTION No. of respondents Percentage

Business 50 40%

Professional 13 11%

Government

Employee12 9%

Student 50 40%

Total 125 100%

Source: Primary data

The above table clearly shows that 40% of the respondents

Business, 11% each of the respondents Professional 9% of the

respondents government employees and 40% of the respondents are

students.

61

CHART 4.3(a)

CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR

OCCUPATION

62

TABLE 4.4

RESPONDENTS USING MOBILE CONNECTION STATUS

63

Mobile

ConnectionNo. of respondents Percentage

Yes 120 96

No 5 4

Total 125 100

Source: Primary data

The above table clearly shows that 96% percentage of the

respondents is have a mobile connection and remaining 4% percentage of

the respondents are have not any mobile or telephone.

64

CHART 4.4

RESPONDENTS USING MOBILE CONNECTION STATUS

65

TABLE 4.5

KNOWN THE NO. OF TELE COMPANIES

Companies In Number Percentage

6 75 60%5 37 30%4 5 4%

Not confirm 8 6%Total 125 100

Source: Primary data

The above table clearly shows that 60% of the respondents known

6 nos. of the mobile connecting companies. 30% respondents known 5

nos. of the mobile connecting companies. 4% of the respondents known

4 nos. of the mobile connecting companies. Other 6% of the respondents

don’t know or not confirm.

66

CHART 4.5

KNOWN THE NO. OF TELE COMPANIES

67

TABLE 4.6

Company Name In Number PercentageAirtel 40 32%Idea 19 15%

Reliance 9 7%Vodafone 40 32%

BSNL 17 14%Total 125 100

RESPONDENTS USING COMPETITIVE MOBILE SERVICE

Source: Primary data

The above table clearly shows that 32% of the respondents using

Airtel service both 32% of the respondents using vodafone, 15% of the

respondents Idea, 14% of the respondents BSNL service and 7% of the

respondents Reliance service.

More respondents using Airtel and Vodafone service providers.

68

CHART 4.6

RESPONDENTS USING COMPETITIVE MOBILE SERVICE

Table: 4.7IMPORTANCE REGARDING SERVICE

In Number PercentageConnectivity 15 12%Coverage 31 25%Roaming 26 21%Local Call 19 15%All 34 27%Total 125 100%

Source: Primary data

The above the table shows 12% respondent using the airtel mobile

network connectivity service only. 25% of the respondents are using

coverage packs, 21% of the respondents use roaming service, 15% of the

69

respondents use only local call services and another 27% of the

respondents taking all service packages.

70

Chart: 4.7

IMPORTANCE REGARDING SERVICE

Table: 4.8

FEATURE OF AIRTEL FORCED PEOPLE SERVICE

In Number PercentageAdvertisement 44 35%Connectivity 25 20%Schemes 12 10%Goodwill 44 35%Total 125 100%

Source: Primary data

The above the table shows 35% respondent using the airtel mobile

network good advertisement. 20% of the respondents are using

71

connectivity, 10% of the respondent’s use schemes, 35% of the

respondents use to their goodwill attract.

72

Chart : 4.8

FEATURE OF AIRTEL FORCED PEOPLE SERVICE

73

Table: 4.9

FEATURE OF AIRTEL IS BETTER THAN THE PEOPLE’S

PREVIOUS CELLULAR SERVICE

In Number PercentageAdvertisement 31 25%Connectivity 75 60%Schemes 19 15%Total 125 100%

Source: Primary data

The above the table shows 25% respondents using the airtel mobile

network compare previous good advertisement. 60% of the respondents

are using compare previous connectivity, 15% of the respondent’s use

compare previous schemes.

74

Chart: 4.9

FEATURE OF AIRTEL IS BETTER THAN THE PEOPLE’S

PREVIOUS CELLULAR SERVICE

Table 4.10

TYPE OF ADVERTISEMENT MOSTLY LIKE BY PEOPLE IN

AIRTEL

In Number PercentageAudio Visual 106 85%Audio 16 13%Print 3 2%Total 125 100%

Source: Primary data

The above the table shows 85% respondents attractive airtel audio

visual advertisement. 13% of the respondents are attractive airtel audio

advertisement. another 2% of the respondent’s only attractive their print

advertisement.

75

Chart: 4.10

TYPE OF ADVERTISEMENT MOSTLY LIKE BY PEOPLE IN

AIRTEL IS

76

TABLE 4.11

CELEBRITY LIKED BY PEOPLE VERY MUCH IN AIRTEL

In Number PercentageSachin 69 55%Sharukh 47 38%A.R.Rahman 6 5%Kareena 3 2%Total 125 100%

Source: Primary data

The above the table shows 55% respondents attractive airtel

advertisement using cricket hero Sachin. 38% of the respondents are

attractive airtel advertisement using bollywood hero Sharukh. 5% of the

respondents attractive Airtel ad. world famous musician A.R.Rahman

another 2% of the respondent’s only attractive Bollywood queen

Kareena.

77

CHART 4.11

CELEBRITY LIKED BY PEOPLE VERY MUCH IN AIRTEL

TABLE 4.12

PEOPLE TAKE BENEFITS OF SCHEMES OFFERED BY AIRTEL

In Number PercentageYes 106 85%No 16 13%Can’t Say 3 2%Total 125 100%

Source: Primary data

The above the table shows their respondents take benefits of

schemes offered 85% said yes. 13% of the respondents are said no. 2%

of the respondents said can’t.

78

79

CHART 4.12

PEOPLE TAKE BENEFITS OF SCHEMES OFFERED BY AIRTEL

TABLE 4.13

PEOPLE LIKE MOST IN AIRTEL PACKAGE

In Number PercentageNokia + Airtel 108 86%Airtel Magic 6 5%Airtel Post paid 10 8%Airtel Broadband 1 1%Total 125 100%

Source: Primary data

The above the table shows 86% of the respondents using Nokia

with Airtel, 5% of the respondents Airtel Magic service, 8% of the

respondents using post paid service and another 1% of the respondent

only airtel broad band service.

80

81

CHART 4.13

PEOPLE LIKE MOST IN AIRTEL PACKAGE

TABLE 4.14

PEOPLE LIKE THE AIRTEL PLANS

In Number PercentagePre paid 100 80%Post paid 25 20%Total 125 100%

Source: Primary data

The above the table shows 80% of the respondents would like use

Pre-paid connection, and other 20% of the respondents only use Post paid

connection.

82

CHART 4.14

PEOPLE LIKE THE AIRTEL PLANS

83

TABLE 4.15

RESPONDENTS PHONE BOOK IN AIRTEL USERS

In Number PercentageLess than 30% 75 60%30% to 70% 28 22%More than 70% 22 18%Total 125 100%

Source: Primary data

The above the table shows 60% of the respondent’s phonebook in

nos. less than 30% nos. only. 22% of the respondents phonebook in nos.

30% nos. to 70% nos., and another 18% of the respondents phonebook

nos. more than 70% airtel users.

84

CHART 4.15

RESPONDENTS PHONE BOOK IN AIRTEL USERS

85

TABLE 4.16

THE RESPONDENTS LIKE TO CHEAPEST AIRTEL SERVICES

Service No. of Respondents PercentageLow cost internet

service17 13.6%

Free ringtones 23 18.4%Low cost night time

call charges30 24%

Rate cutters 55 44%Total 125 100%

Source: Primary data

The above the table shows 13.6% of the respondent’s like to Airtel

cheapest internet service. 18.4% of the respondents like the company free

ringtones, 24% of the respondents like night time call cheaper charges

and another 44% of the of the respondents like airtel rate cutters..

86

TABLE 4.16

THE RESPONDENTS LIKE TO CHEAPEST AIRTEL SERVICES

87

TABLE 4.17

THE RESPONDENTS LIKE TO RECHARGE IN AIRTEL

SERVICES

Recharge type No. of Respondents PercentageFull talk time 50 40%SMS booster 39 31%Limited time full

talk time10 8%

Recharge cards 26 21%Total 125 100%

Source: Primary data

The above the table shows 40% of the respondent’s like to recharge

full talk time offers only. 31% of the respondents like recharge mostly

SMS booster, 8% of the respondents like recharges limited time offer

recharge and another 21% of the of the respondents like recharge use

recharge cards or easy recharge.

88

TABLE 4.17

THE RESPONDENTS LIKE TO CHEAPEST AIRTEL SERVICES

TABLE 4.18

RESPONDENTS OPINION IN AIRTEL SERVICE NO.1 IN INDIA

Opinion No. of Respondents PercentageYes 100 80%No 25 20%Total 125 100%

Source: Primary data

The above the table shows 80%the respondents feel best opinion

the Airtel service provider is No. 1 in India. Another 20% of the

respondents feel not in No.1, but Airtel performance some better.

89

CHART 4.18

RESPONDENTS OPINION IN AIRTEL SERVICE NO.1 IN INDIA

90

TABLE 4.19

RESPONDENTS OPINION IN AIRTEL CALL CHARGES

Opinion No. of Respondents PercentageHighly satisfied 34 27%Satisfied 70 56%Dissatisfied 22 17%Total 125 100%

Source: Primary data

The above the table shows 27%the respondents feel best opinion

the Airtel call charges highly satisfied. 56% of the respondents just

satisfied but still Another 17% of the respondents feel dissatisfied in

Airtel calling charges.

91

CHART 4.19

RESPONDENTS OPINION IN AIRTEL CALL CHARGES

92

TABLE 4.20

RESPONDENTS OPINION IN AIRTEL OFFERS

Opinion No. of Respondents PercentageHighly satisfied 58 46%Satisfied 47 38%Dissatisfied 20 16%Total 125 100%

Source: Primary data

The above the table shows 46%the respondents feel best opinion

the Airtel offers highly satisfied. 38% of the respondents just satisfied but

still Another 16% of the respondents feel dissatisfied in Airtel offers.

93

TABLE 4.20

RESPONDENTS OPINION IN AIRTEL OFFERS

94

CHPTER – V

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

The data shows that the total sample size of 125 people taken

randomly for the research, 120 person out of then taken mobile with

them. This segment comprise of professions, businessperson, service man

& students.

About awareness of Telecom Company in Salem Town the data

collected shows that 60% of the people knows about all the telephone

companies dealing in Salem Town market, 30% of person knows only

few companies, 5% of person knows only one company, 5% are not

knowing another company.

The segment belong to business like to have Post paid connection.

Whereas students, professional and service persons give their preference

to Prepaid connection.

When the preferences for mobile phone connections were asked,

results drawn that 40% of persons prefer to take AirTel because they

believe in AirTel’s better coverage & cheaper rates after AirTel, 20% of

people opt TATA indicom services because of its cheaper rate and flexible

schemes, then Reliance is only 25% . Airtel is rich in attractive schemes

and plans for business persons and persons related to corporate world.

95

SUGGESTION

The Study was conducted in to very vast group of respondents and so

its reflections and interpretations provide a suggestion platform me as:

1. No charge for SMS advertising

2. Advertising should not be over contend, like Advertisements via e-

mail

3. Small jingle and funny massage must be used preferably

4. Approach of Advertising should not be like T.V. Advertising but it

must be in SMS Flash or in funny tone.

It these suggestion and limitations will entertained properly they

should be very brighter. SMS Advertising world semester, Innovative and

creative way of Advertising.

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CONCLUSION

Among its priorities it now counts new economic and social concerns

as the information society develops: national coverage is a major issue

and Airtel intends to play its part to protect the interests of all consumers.

To this backdrop, a new regulatory organisation is emerging. It must

supply regulatory activity with new tools to encourage lasting

competition in the telecommunications sector. It must also contribute to

the development of a more consistent UP west market that is better able

to face up to the challenges of the information society within the context

of globalisation.

After thorough analysis and interpretation of result obtained I studied

overall consumer trends in Airtel Telecommunication Ltd. How people

react to its services and schemes. How company attract its customer by

adopting effective strategies. In the last the conclusion is drawn through

this research that being the biggest and oldest network of mobile

telecommunication in Uttar Pradesh West, having good quality of service,

taking along a big part of people aware about Airtel, it is subsisting hard.

For Airtel connection most of customers are professional and business

segment.

“Good service is the way to retain clients”

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BIBLIOGRAPHY

William G. Zikmund Micheal.D Basic Marketing, Anico west

publishing company.

Richard J.Semenik Gary J.Bamossy A Global perpective,

Principles of marketing, College division south western publishing

company, 1998.

A.K.Phophalia, sarita Sharma, G.R.Bastia, Marketing management

Analysis planning and control, Kanislcha Publisher and

Distributers, New Delhi 1997.

www.airtel.in

www.airtelworld.com

www.researchandmarket.com

www.info-shop.com

www.smartmobs.com

www.yahoosearch.com

www.google.com

98

A STUDY ON AIRTEL MARKETING ANALYSIS IN SALEM

TOWN QUESTIONNAIRE

Name :

Address :

Gender :

1. Which age group you belong to?

(a)Below 20 (b)20-30 (c)30-40 (d)40-50 e) above 50

2. What occupation do you have?

(a)Business (b) Professional

(c)Government Employee (d) Student

3. Do you have any mobile connection?

a. Yes b. No

4. Do you know how many telecommunication companies exist in

Salem Town region?

(a) 6 (b) 5 (c) 4 (d) Not confirm

5. If you have to purchase mobile phone connection which company

you will prefer and why?

(a)Airtel (b) Reliance (c) TATA indicom (d)Vodafone

99

6. Which service in importance in Airtel?

(a) Connectivity (b) Coverage

(c) Roaming (d) Local Call e) All

7. Which feature of AIRTEL forced you to used AIRTEL?

a)Advertisements b) Connectivity

c) Schemes d) Goodwill

8. Which feature of AIRTEL is better than your previous cellular

service?

a) Advertisements b) Connectivity c) Schemes

9. Which type of advertisement you most like in AIRTEL?

a)Audiovisual b)Print c) Audio

10. Which celebrity you like very much in AIRTEL?

a) Sachin b) Shahrukh c) Kareena d) A.R. Rehman

11. Have you take benefits of any scheme offered by AIRTEL?

a) YES b)NO

12. Which you like most in AIRTEL?

a) NOKIA + AIRTEL b) AIRTEL MAGIC

c) Postpaid services d) Airtel Broadband

13. You would like to take prepaid connection or Post paid connection?

(a) Prepaid (b) Post paid

14. How many AIRTEL users in your phone book?

a) Less than 30% b)30% - 70% c) More than 70%

15. Which service you like most in AIRTEL?

a) Low cost Internet service b) Free Ringtones

c) Low cost night time call charges d) Rate cutters

16. Which type of recharge cards you like most?

a) Full talk time recharges b) SMS cards

100

c) Limited time full talk time d) Recharge cards

17. According to you is AIRTEL is #1 in India?

a) Yes b) No

18. Are you satisfied in Airtel call charges?

a) Highly satisfied b) Satisfied c) dissatisfied

19. Are you satisfied in Airtel Offers?

a) Highly satisfied b) Satisfied c) dissatisfied

20. Your Suggestion ------------------------------------------------------------

101