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Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers.
To make mobile communications a way of life and be the customers' first choice.
We will meet the mobile communication needs of our customers through: •Error-free service delivery •Innovative products and services • Cost efficiency • Unified Messaging Solutions
We will delight our customer with our simplicity, speed & innovation. We will honour our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace.
AIRTEL MOBILE COMMUNICATIONS LIMITED:
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004.
Bharti Tele-Ventures vision for its mobile business is “To make mobile communications a way of life and be the customers first choice”. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Company’s strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as of June 30, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as of June 30, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: ⇏ ⇏ 2 Lower tariffs and handset prices over time; Growth in pre-paid customer category;
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Greater economic growth and continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services.
Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-two telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited.
Public, Listed on BSE 1985
New Delhi, India
Founded Headquarters Key people
Sunil Mittal Telecom Mobile
and Fixed-Line Telecommunication operator
$60 Billion Express Yourself
History of Pre-Paid : 1986 Main GSM radio transmission techniques were chosen.
1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory
group signed the charter GSM (Grouped Spéciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991. The original French name Groupe Spéciale Mobile was changed to Global System for Mobile communications; but the original GSM acronym remains. In 1989, GSM responsibility was transferred to the European Telecommunication Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22 countries, with 25 additional countries like South Africa, Australia and many Middle and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers worldwide. The developers of GSM chose an unproven (at that time) digital system, as opposed to the then standard analog cellular systems like AMPS in the United States and TACS in the United Kingdom. They had faith in the advancements in compression algorithms and digital signal processors to allow the fulfillment of the original criteria and the continual improvement of the system in terms of quality and cost. The European Telecommunications Standards Institute (ETSI) defined GSM as the internationally accepted digital cellular telephony standard. GSM MOU was formally registered as an association registered in Switzerland with 156 members from 86 areas.
One of the majors. service differentiation and customer retention. A well demarcated value chain of MVAS seem to have evolved. 5 . first Indian company to provide comprehensive telecom services outside in India in Seychelles and first private sector service provider to launch National Long Distance Services in India. MVAS could be the way out. first private basic telephone service provider in the country. In a scenario where Telco ARPUs have been squeezed down to rock bottom and most users prefer to go prepaid. MVAS is now considered as a major tool for additional revenue. has been looking to MVAS to provide its next wave of growth. ranging from being the first mobile service in Delhi. The evolution of the MVAS market has come in parallel with the changes and advances that have taken place in the telecom industry.Airtel Pre-Paid service Airtel has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Mobile value-added services (MVAS) have led to the emergence of a fresh business ecosystem giving rise to supporting industries such as content development and aggregation. Bharti Airtel.
Airtel pre –paid mobile customers in smaller cities like Mangalore. downloads from Airtel App Central are being led by feature phones and not smart phones. 2010. Bharti Airtel. Director of Marketing and Communications at Airtel.. 5. Other popular categories included books. 6 .8%. The downloads from Airtel App Central have indicated that the Indian mobile applications model will be different from the global one. where subscribers expect more than just connectivity. customers have been making a big shift away from two-year contracts toward "prepaid" cell phone service.8% of its total revenues as on March 31.According to industry estimates.000 have taken the lead. it is a cost-effective option that is available for entertainment. had increased from 9. Mobile Services. for news and for any other information that one may require. For Bharti Airtel. While 25% of the apps are free to download. said. Thiruvananthapuram.5% to 11. Venkatesh V. Social networking and utility apps ranked highest on the popularity charts.” This year. entertainment and games. CEO. “Today. Karnataka Circle. which often costs less and does not require contracts. Pune and Udaipur with basic phones priced at less than Rs. the top five are subscription-based. VAS accounted for 11. Surat. This shift in consumer behavior.1% in the previous fiscal to 6%. This is happening even though contracts are needed to get popular phones such as the iPhone and the Droid. starting with My Name Is Khan. Non-voice revenues.” commented Shireesh Mukund Joshi. Occupying an average of not more than 2% of available space on the customer’s handset per app. Airtel Talkies. SMS revenues had risen from 4. has ensured that service providers are actively announcing various value-added services that will help retain customers. Airtel recently launched its own movie library. “Then came The Japanese Wife and the initiative has been extremely successful. Mobile VAS in India would account for 18% of the total revenues generated by operators from mobile services by end 2010. which are considered to be the core MVAS category. and followed it up with another product with pre-release audio promos of films. a prepaid mobile phone is not used solely for communication.
That costs him $5 per month. people "refill" their accounts as needed.half of what it costs a customer with a contract on Verizon Wireless. About one-fifth of Americans with cell phones are on prepaid. At Tracfone. prepaid service appealed to a broader slice of the market. the largest independent provider of prepaid service.1 million new subscribers to the seven largest carriers in the quarter. He sends and receives up to 2. wireless carriers expanded their contract subscribers by just 230. according to the New Millennium Research Council. Now it's possible to make unlimited calls and text messages on a prepaid plan for Rs. attracted about 3. a Washington-based think tank. Together. Unlike contract plans that bill subscribers each month for the services they used the previous month. such plans were marketed primarily to people who did not have the credit to qualify for plans with contracts. Airtel Pre-paid : 7 .000 text messages.Now prepaid service looks like it will get even more attractive. But as the recession forced more people to cut costs. because he talks no more than 15 to 20 minutes on the phone each month. That's because wireless carriers have hit a wall when it comes to finding new customers who will sign contracts.000 people in the first quarter. customers pay an average of $11 per month. Finlay uses prepaid service from Airtel Mobile. prepaid services traditionally let subscribers buy minutes in advance for around 10 to 20 cents each. meanwhile. the seven largest U. and prepaid services responded by offering better deals. When the minutes are used up. Prepaid service. The popularity of text messaging is also making some people move away from contract plans that provide a big bucket of monthly minutes that may not get used. with further price cuts.45 a month .S. For years.. so he tacks on an unlimited-texting option for $20 per month.
300 worth of talk time for a month.. if you feel that you need Rs. Start thinking prepaid is our advice! So what exactly is this prepaid! It is simply a way of going cellular by paying for the talk time in advance. That’s because almost every one of us wants to be in control of our cellular expense. You will be surprised that today In India. Advantages of Pre-Paid: Some of the many advantages that you enjoy with Airtel Pre-Paid.. For e. we have a solution for you. 8 .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. you can buy a recharge coupon which gives you that much talk time on your cell phone. 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. Prepaid connections account for almost 60 to 70 percent of the total new entrants into cellular telephony.g.
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. thus giving you the choice to either reject or take the call. 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. 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 hefty deposits. It provides the added advantage of saving 9 . recharge you Airtel prepaid card anytime.
with the best service providers in the respective regions to ensure that you get uninterrupted coverage throughout. You can listen to your messages whenever you feel like. anytime anywhere! SMS based Information Services With Airtel's SMS based information services. So that the next time you want to call the same person. from anywhere in the world. with each message of two-minute duration. 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. Voice Mail can store up to 75 messages.both national and international. simply use your phone book. We currently provide roaming coverage in more than 10 . call hold and call divert – all with your Airtel prepaid card! Short Messaging Service (SMS) With Airtel’s Short Messaging Service (SMS).the incoming number directly in the Handset Phone Book. Call Divert. send messages and jokes to your friends and colleagues. Call Hold and Call Wait Avail of special services like call waiting. you don't need to retype his number. you can get up to-the-minute cricket scores. Airtel Out of Home Circle Service: We have established one of the most extensive roaming tie-ups .
20% of people opt Reliance services because of its cheaper rate and flexible schemes. Airtel Competitor's Airtel market % market% market% 40% 67% 36% 45% 38% 45% 60% 33% 64% 55% 63% 55% 45% 45% 42% 43% 43% 57% Competitor's Airtel Lapu Competitor's Market% % Lapu % 55% 55% 58% 57% 57% 43% 41% 45% 43% 40% 38% 29% 59% 55% 57% 60% 63% 71% 11 . results drawn that 40% of persons prefer to take BSNL because they believe in BSNL’s better coverage & cheaper rates after BSNL. Airtel is rich in attractive schemes and plans for business persons and persons related to corporate world. Survay of Airtel Pre-Paid market –Noida Outlet Name Careter’s meeting Pt. Airtel Pre-Paid User 30 25 20 15 10 5 0 preferen… When the preferences for mobile phone connections were asked. Aalamcomm. National Roaming: Our national roaming coverage currently spans across more than a 1000 cities across India. Tone & melodies Milan comm.1000 cities and major highways across India. then Airtel is only 25% but there is very high recommendation for its better connectivity. Final Touch Naaz photo comm. We also provide international roaming in 56 countries across 101 networks.
97% 64.Vijay electronics Aman comm.47% 66.73% 75. TOTAL 38% 42% 43% 45% 62% 58% 57% 55% 38% 40% 29% 43% 63% 60% 71% 57% 38% 38% 29% 37% 62% 62% 71% 63% Outlet name A 2 Z communication B. Khar Internationals Saif business Unique telecomm.50% 76.Marketing Santacruz mart Mobile villa Vakola Mall Matrix telecom Gupta Telecom Moon contacts Mobile city Konkan electronics TOTAL Airtel market Competitor's % market% 43% 64% 61% 68% 80% 37% 58% 74% 44% 58% 61% 57% 36% 39% 32% 20% 63% 42% 26% 56% 42% 39% Airtel market% 40% 50% 9% 27% 40% 50% 38% 42% 33% 38% 24% Competitor's market% 60% 50% 91% 73% 60% 50% 62% 58% 67% 62% 76% Airtel Competitor's Lapu % Lapu % 33% 40% 41% 44% 44% 30% 45% 53% 45% 43% 43% 67% 60% 59% 56% 56% 70% 55% 47% 55% 57% 57% Outlet Name Gala & sons Bharat telecom Praveen & sons Zarina general store Ravi communication Sai communication Quality inn Nirmals shop Andheri Shop Total Airtel Competitor's Airtel market % market% market% 75.00% 75.67% 72.00% 62.27% 25% 25% 29% 35% 27% 25% 38% 24% 33% 28% 53% 45% 56% 57% 55% 45% 52% 48% 50% 49% Competitor's market% 47% 55% 44% 43% 45% 55% 48% 52% 50% 51% Airtel Competitor's Lapu % Lapu % 60% 45% 56% 48% 48% 44% 56% 60% 43% 54% 40% 55% 44% 52% 52% 56% 44% 40% 57% 46% Outlet Name Nair Gallery Poonam Art Gallery Aman comm. Antique Airtel market % 55% 50% 63% 44% 26% 43% 54% Competitor's market% 45% 50% 38% 56% 74% 57% 46% Airtel market% 45% 44% 42% 33% 47% 36% 54% Competitor's market% 55% 56% 58% 67% 53% 64% 46% Airtel Competitor's Lapu % Lapu % 33% 43% 42% 31% 40% 67% 43% 67% 57% 58% 69% 60% 33% 57% 12 .K.00% 70. Rose comm.52% 72.
of People who are using Airtel. It seems that people are more aware of Airtel than any other brand.Communications Harmain Entp.. Airtel Pre-Paid-GSM Growth In India 13 . As the above graph clearly shows that customer services at Airtel Seems poor. which is a very small amount. Orpat watches Sindhi Mobiles TOTAL 56% 56% 45% 50% 44% 44% 55% 50% 42% 56% 40% 43% 58% 44% 60% 57% 43% 29% 38% 40% 57% 71% 62% 60% CUSTOMER SATISFACTION LEVEL: The above graph shows a slice of 50%. 10% of the people were fully dissatisfied with the customer services of Airtel. 35% of the people are dissatisfied with the customer services provided by Airtel. 10% of the people seemed partially satisfied with the customer services and only 45% seem to be fully satisfied with Airtel’s customer services. This could leave an impact on the mind of the consumer. He can even switch over his brand. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. These are the total no.
MILESTONE OF COMPANY 14 .
Bharti Airtel.” 7 8 9 Bharti Airtel crossed the 10 million customer mark in November 2004. This milestone highlights the emergence of India as one of the top telecom markets in the world and we are proud to have been at the forefront of this growth. Manoj Kohli. and hopes to reach 100 million subscribers by 2010. became the first Indian telecom company to serve 50 million customers last month. It underlines the strength of our unique business model and our vision to provide affordable services like lifetime prepaid to customers across the length and breadth of the country. Bharti Airtel added. Joint Managing Director. In July last year. It is a tribute to our commitment to provide best-in-class services to our customers and lead the market with exciting innovations. we are committed to expanding our telecom networks wider and deeper across the country and partner India’s growth story.” said Bharti Airtel president and CEO. today announced that it had crossed the 50 million customer mark. With this. we believe this growth momentum will remain intact and we are gearing towards the 100 million customers mark.200 census towns and over five lakh villages. covering 96 per cent of the Indian population. at a news conference this week. which puts Bharti Airtel amongst the top telecom companies in the world. The 50 million customer base covers mobile as well as broadband & telephone customers. 5 Bharti Airtel. Akhil Gupta.1 2 3 4 Mobile phone operator. The company added the next 25 million customers in just 14 months. Mr. it crossed the 25 million customer mark. Mr. Bharti Airtel has achieved the distinction of becoming the fastest private telecom company in world to achieve this landmark in a single country . according to company executives. and is now the world’s tenth largest wireless carrier. 6 Commenting on this major global landmark. I would like to thank our partners for having shared our vision. Bharti Airtel said. As the market gets ready for the next wave of growth. India’s leading telecommunication services provider. “We are delighted to have achieved this major landmark.within 143 months of start of operations. “This is a very proud moment for us and I would like to thank our 50 million customers for believing in Airtel. President & CEO. Going forward.” 15 . We are committed to create a world-class organization and benchmark it with the best in the world. “Our next 50 million will largely come from rural India as our plan is to reach 5. This is amongst the fastest rate of customer additions by any telecom company in the world. Manoj Kohli. Bharti has doubled its user base in the past 14 months alone.
AirTel has the largest automatic roaming service "SMART ROAM". Bharti airtel among the top 10 best performing Companies in the world according to Business week it 100 lists. thereby covering 95% of the country’s total population. In Broadband & Telephone SBU. with a sharp focus on the home and SME segments. Bharti Airtel will initiate large-scale deployments of broadband network infrastructure in 94 towns. 1995. • First to provide roaming facility in USA. It has been the first: • • • To launch Cellular service in Delhi on November. Operator to revolutionalize the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms)in 1995. Awards: Bharti airtel draws top honours at the miss Asia It excellence awards 2006.000 villages across India by 2010. It is also strengthening the corporate business towards becoming a preferred managed services partner for the top 2000 corporations. which is backed by wide national distribution. 11 In the Enterprise business.10 In the mobile business. Bharti Airtel will invest substantially in the long distance business to achieve the scale of a global carrier within next 2-3 years. ORGANIZATION STRUCTURE 16 . It is readying to offer triple play to its customers with the launch of its IPTV service. Airtel has taken the lead on many occasions. The company’s strategic focus will be on further strengthening the Airtel brand through best-in-class customer service. • It is also the first company to export its products to the US.National in 400 cities in India and "SMART ROAM" International in over 60 countries and 95 networks all over the world. 1997 and the first in Delhi to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. To expand it's network with the installation for second mobile switching centre in April. Bharti Airtel plans to make considerable investments in Network expansion to establish presence in all census towns and over 500.
which indicates that the company’s capability with respect to creating wealth for all its stakeholders is the highest.Partners The company has a strategic alliance with SingTel. among others. customers. equipment suppliers include Siemens. capitalefficient and long-term growth thereby maximising value for its shareholders. During the financial year 2003-04. which will ensure sustainable. while adopting sound Corporate Governance practices. Corning. and Teletech & Mphasis. PROMOTIONAL STRATEGY 17 . ‘Level 1’ rating by CRISIL. your Company was assigned highest Governance and Value Creation (GVC) rating viz. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call centre technology requirements. in the company. The company’s mobile network equipment partners include Ericsson and Nokia. The investment made by SingTel is one of the largest investments made in the world outside Singapore. The call centre operations for the mobile services have been outsourced to IBM Daksh. Corporate Governance Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner. Hinduja TMT. employees and society at large. This rating was reaffirmed by CRISIL on April 20. In the case of the broadband and telephone services and enterprise services (carriers). Company’s policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements are complied in ‘letter and spirit’ for effective Corporate Governance. Nortel. 2006.
when you need to be heard. Bharat Sanchar Nigam Limited (BSNL). with deeper penetration and wider usage of voice and data services. You need to go beyond all the rational identifiers . which included celebrity endorsements and attractive talk time schemes. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. on the other hand. The 18 .celebrity endorsements.and connect at a deeper level. discount coupons. service providers took new initiatives to woo customers. BSNL. (Refer Exhibit II). case . differentiating merely on network. and this helped it increase its subscriber base. We needed a strong differentiator in an increasingly commoditized and crowded market. AirTel enables you to make your point in the most expressive way.which are prerequisites in any. anytime. All the players except RIM offered services based on the Global System for Mobile (GSM) technology. the Indian cellular market witnessed a surge in cellular services. attracted the consumer through its low cost schemes. there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti). Idea relied heavily on its creative media advertising sans celebrities. Bharti TeleVentures. BSNL could cover rural areas. The most important consumer segments in the cellular industry were the youth segment and the business class segment. "In this context." Atul Bindal. Prominent among these were . the market has grown considerably. business solutions and talk time schemes. As competition in the telecom arena intensified. Over the last couple of years. Hutch implemented the celebrity endorsement strategy partially. anywhere. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers. coverage and SMS is just not enough. We found this differentiator in a core human truth that defines our category . relying primarily on its creative advertising for the promotion of its brand. By 2005. chief marketing officer. Expressing and communicating are perhaps two of the most basic emotions.After the liberalization of the Indian Telecom Sector in 1994. expands on this. Being a state owned player. accompanied by much higher competitive intensity. Hutchinson-Essar limited (Hutch). Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I). loyalty rewards. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy.which is that there are moments when you need to make your point. Reliance was another player that cashed on its innovative promotional strategies.
world leaders in Voice Quality technology. Magic led the market.' We believe 'Express yourself' allows us to connect at a deeper level and create a long-term platform for the brand. AIRTEL NEWS • : Bharti Airtel inks USD 400 million network expansion contract with NOKIA. data and payment platforms. However. as well as different voice. " In October 2002. in the past. was being driven in two different dimensions. Brand image. The VQE technology has been sourced from Tellabs of USA. the challenge also lay in presenting a unified 'face' to the consumer. doubts were being expressed regarding the ability of Bharti's marketing initiatives to help Magic retain its 'Magic' in the future AirTel launches VQE (Voice Quality Enhancer) for the first time in Kolkata Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata. 19 . which. adjusts speech levels in both directions and does away with low or distorted speech so that every word of your's can be heard clearly." observes Rediff's Prashant Godbole. "We will be taking the idea forward in many different ways in the forthcoming work. wherever you may be speaking from.campaign is towards owning this through 'Express yourself. Patel adds. VQE is a revolutionary new system that spectrally reduces background noise. business and corporate. "'Express yourself' enables the brand to unify and connect across the entire base of our existing and prospective customers. It eliminates acoustic echo. with 30% of the market share. given the increasing competitive pressure. "Brand AirTel is a category leader straddling completely different market segments such as consumer.and post-paid communication. That's what makes a good campaign idea. "The moment you have as broad a canvas as 'Express yourself'. who. along with creative partner Zarvan Patel." For AirTel. Bharti claimed that its strategies were one of the most ambitious experiments ever in the Indian pre-paid cellular telephony market. This is just the proverbial tip of the iceberg." he informs. had been treated very differently. it becomes easy for anyone working on the brand to come up with new ideas and executions. as a result. conceived the campaign." One of the most obvious benefits of owning a property such as 'candid expression' (and 'Express yourself') is the expansive nature of the thought." says Bindal. This assumes significance when viewed in the light of the company's pre.
which according to Mr Pota. he explains. Orange and Dolphin as well! “We did expect the tune to catch up but this has really exceeded our expectations. Cellular users have been “forwarding” the tune to one another. it is a great advertising product for AirTel and works like a “walking. PBT crosses Rs. It is not very clear what this means for the other cellular operators. 1. 2006. Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE.000 crores.” admits Bharti Cellular’s chief marketing officer (western region) Pratik Pota.600 crores. “The normal practice is to opt for film stars and sportsmen rather than an audio personality” he says. Marketing professionals like Samsika Marketing Consultants’ managing director Jagdeep Kapoor point to the usage of an “audio celebrity” as something that is significant. Cellular service provider AirTel seems to have hit the right note with its new commercial starring musician A R Rahman. Notice of postal ballot for seeking consent of the shareholders on scheme of amalgamation of Satcom Broadband Equipments Limited and Bharti Broadband Limited with Bharti Airtel Limited. Bharti Airtel is amongst India’s Most Admired Knowledge enterprises in 2006. 20 . But the interesting part is that the ringtone is being flaunted not just by AirTel customers but by customers of rival service providers like BPL. “It gives the user a chance to go back to the AirTel product and acts as a strong reminder medium. 1.” The ringtone which is also the jingle for AirTel’s TV commercial. • • • • Bharti Airtel to Observe Silent period from October 1. Overall.• Bharti Airtel limited: Q2 cash profit exceeds Rs.” he explains. talking brand ambassador. has given AirTel a chance to enter the “mind of the user” irrespective of which service he opts for. is proving to be a potent advertising tool for the company. The commercial which is currently on air has a beat which also doubles up as a ringtone which is ostensibly available only to AirTel users.
Says Mr. While none of them commented on AirTel’s strategy and its impact on their own subscriber base. Kapoor. first private basic telephone service provider in the country. “Competition will not do well to adopt a knee jerk reaction and will have to come out with advertising that is well thought out” explains Mr. Being the latest entrant in the Mumbai circle. he adds that non-AirTel users will have the AirTel “brand experience” in spite of not using the service. Pota highlights the fact that the usage of the tune by other operators means “free advertising” for AirTel and the users having a positive disposition towards the product. While Mr. though seemingly unfazed by the phenomenon. first Indian company to provide comprehensive telecom 21 . Kapoor. He anticipates a situation where the new entrant (AirTel) will continue to be more aggressive.” Explaining that the usage of an audio celebrity was more “strategic than tactical”. the nature of reaction from competition remains unclear. ranging from being the first mobile service in Delhi. LITERATURE REVIEW: Airtel has been a pioneering force in the telecom sector with many firsts and innovations to its credit. seem to be doing their own homework on this brand of advertising. AirTel has had to find ways of cutting through the clutter.” AirTel will have try to find ways to attract new customers and convert the existing ones. one advertising professional working with a rival service provider opines that the tune is “transient” and not likely to have any long term impact as a brand building tool.Rivals.
Mobile value-added services (MVAS) have led to the emergence of a fresh business ecosystem giving rise to supporting industries such as content development and aggregation. 22 . downloads from Airtel App Central are being led by feature phones and not Smartphone’s. Pune and Udaipur with basic phones priced at less than Rs. A well demarcated value chain of MVAS seem to have evolved.000 have taken the lead.services outside in India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Thiruvananthapuram.” commented Shireesh Mukund Joshi. Director of Marketing and Communications at Airtel. The downloads from Airtel App Central have indicated that the Indian mobile applications model will be different from the global one. According to industry estimates. Airtel pre –paid mobile customers in smaller cities like Mangalore. SMS revenues had risen from 4. “Then came The Japanese Wife and the initiative has been extremely successful. VAS accounted for 11.1% in the previous fiscal to 6%. Bharti Airtel. entertainment and games. Non-voice revenues.5% to 11. service differentiation and customer retention. Mobile VAS in India would account for 18% of the total revenues generated by operators from mobile services by end 2010. Occupying an average of not more than 2% of available space on the customer’s handset per app. While 25% of the apps are free to download. and followed it up with another product with pre-release audio promos of films. Airtel recently launched its own movie library. Social networking and utility apps ranked highest on the popularity charts. Surat. MVAS is now considered as a major tool for additional revenue. For Bharti Airtel. the top five are subscription-based.8% of its total revenues as on March 31. 2010.8%. One of the majors. In a scenario where Telco ARPUs have been squeezed down to rock bottom and most users prefer to go prepaid. 5. The evolution of the MVAS market has come in parallel with the changes and advances that have taken place in the telecom industry. has been looking to MVAS to provide its next wave of growth. had increased from 9. Other popular categories included books. which are considered to be the core MVAS category. starting with My Name Is Khan. MVAS could be the way out. Airtel Talkies.
it is a cost-effective option that is available for entertainment. and prepaid services responded by offering better deals. “Today. for news and for any other information that one may require. which often costs less and does not require contracts. CEO. has ensured that service providers are actively announcing various value-added services that will help retain customers. with further price cuts. Bharti Airtel. Now it's possible to make unlimited calls and text messages on a prepaid plan for $45 a month . This shift in consumer behavior. where subscribers expect more than just connectivity. said. This is happening even though contracts are needed to get popular phones such as the iPhone and the Droid." said Jeff Finlay. "I would love to have an iPhone. That's because wireless carriers have hit a wall when it comes to finding new customers who will sign contracts. I just can't swallow the $70 or more bill that would come with it. Karnataka Circle.” (daily express.. 23 .half of what it costs a customer with a contract on Verizon Wireless. But as the recession forced more people to cut costs. people "refill" their accounts as needed. This year. Unlike contract plans that bill subscribers each month for the services they used the previous month. customers have been making a big shift away from two-year contracts toward "prepaid" cell phone service. Mobile Services. according to the New Millennium Research Council. About one-fifth of Americans with cell phones are on prepaid. For years. a prepaid mobile phone is not used solely for communication. When the minutes are used up. Now prepaid service looks like it will get even more attractive.Venkatesh V. customers pay an average of $11 per month. the largest independent provider of prepaid service. such plans were marketed primarily to people who did not have the credit to qualify for plans with contracts. At Trachoma. a 45-year-old stay-at-home dad in San Antonio who uses a prepaid plan. by subhankar kundu). prepaid services traditionally let subscribers buy minutes in advance for around 10 to 20 cents each. a Washington-based think tank. prepaid service appealed to a broader slice of the market.
by Peter Svensson. so he tacks on an unlimited-texting option for $20 per month. He sends and receives up to 2. wireless carriers expanded their contract subscribers by just 230. Finlay uses prepaid service from Airtel Mobile. That costs him $5 per month.S.000 people in the first quarter.( Lubbock Avalanche-Journal. . The level of satisfaction is determined not only by the quality and type of customer experience but also by the customer’s expectations. 15 may 2010) Customer satisfaction: Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency.The popularity of text messaging is also making some people move away from contract plans that provide a big bucket of monthly minutes that may not get used.. Every organization tries to know the customer satisfaction about their products. Prepaid service. meanwhile. Together. Customer satisfaction is one of the main objectives of any organization.000 text messages. So a study on customer 24 .1 million new subscribers to the seven largest carriers in the quarter. attracted about 3. because he talks no more than 15 to 20 minutes on the phone each month. the seven largest U.
not just a rational preference. Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer’s expectations. If the performance matches the expectations. If the performance exceeds expectations.satisfaction helps the organization as well as me to gain a vast knowledge over the real world tastes and preferences of customer. Customers have a right to quality services that deliver outcomes. If the performance falls short of expectations. Objective of the study 1. To study and understand the consumer behavior of Airtel pre. Why is it important? There are a number of reasons why customer satisfaction is important in Airtel: • Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. As this definition makes clear. • • Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector.paid mobile users in noida and their satisfaction level. the customer is highly satisfied or delighted. the customer is satisfied. 2. In general satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. High satisfaction or delight creates an emotional bond with the brand. What factors influence the consumer for opting airtel pre-paid mobile. The result is high customer loyalty. the customer is dissatisfied. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. 25 . Customers are recognized as key partners in shaping service. Those who are highly satisfied are much less ready to switch. satisfaction is a function of perceived performance and expectations.
Research Methodology is a step by step study of a problem. RESEARCH METHODOLOGY Methodology is a way to systematically solve the research problem. Physical activities involved in the study are: 26 .3. It may be understand as a science of studying how research is done scientifically. What is the perception and learning of those customers towards airtel pre-paid mobile which are not using this service. What are various motivation factors involved? 4.
Chi-square test The Chi-Square test has been taken up as the selection criteria for the above mentioned data. Optimum respondents as a sample size are chosen for the activity to resemble the entire population. O= Observed set of frequencies E= Expected set of frequencies 27 . Get the questionnaire filled by the customers in the place through personal interaction. The Research exercise has been accomplished with the sample size of 100 customers. Where. The Research design was a blend of descriptive and exploratory research design. The respondents have been selected through Random sampling method. sample design. The Chi-Square test which shows the magnitude of discrepancy between observed and expected frequency can be expressed symbolically as. In this research questionnaire is framed in such a way management wants to know how the customers are taking things that they had done to them and to find out the expectation of the customers thus it will impact in policy making of the firm in the current fiscal year. The questionnaire method was applied for this exercise. questionnaire design. The methodology followed for conducting the study includes the specification of research design. data collection and statistical tools used for analyzing the collected data. The questionnaire designed had closed question to find the respondents actual feeling as well as their opinion rating about the satisfaction regarding the product.
Primary data: 28 . Sampling design is to clearly define set of objects. technically called the universe to be studied. The researcher has collected both of the above data. Sampling technique used is Simple Random sampling. The sampling design used in this study is probability sampling. It constitutes the blueprint for the collection. measurement and analysis of data. The data collected constitutes both primary and secondary data. Sample size: The research was conducted in noida with 100 respondents. Descriptive research This study is descriptive in nature where the data is collected through well structured questionnaire and from the information taken from the customers.RESEARCH DESIGN: The research design is the conceptual structure within which research is conducted. so that a study of the sample and an understanding of its properties or characteristics would make it possible for us to generalize such properties or characteristics to the population elements. Population: Population for this research is set as costumers who are using AIRTEL pre paid mobile. Data Collection Methods: Collection of data includes both primary and secondary data. Sampling Design/Techniques: Sampling is the process of selecting a sufficient number of elements from the population.
Data Analysis and Interpretation: 29 .Primary datum are collected through observation. direct communication with respondent. and finally by distributing questionnaire to the employees using Random sampling technique the employees are selected to fill the questionnaire. Secondary Data: Secondary datum is collected from the official record to obtain information’s regarding the rate of absenteeism and the various reasons for absenteeism.
Table showing the satisfaction level of consumer towards service of airtel pre paid mobile Satisfaction level Number Respondents Yes of 87 No 13 Total 100 100% 80% 60% 40% 20% 0% Num of ber R pondents es Y es No tota l Interpretation : From this I interpret that 87% customers of airtel pre paid mobile are satisfied with their service and 13% customers are not satisfied. Table showing the view on airtel pre paid connection 30 . So customer’s satisfaction level is more than dissatisfaction level.
Some 19 % has ranked it as very good. of respondents 3 25 45 19 8 100 Percentage 3 25 45 19 8 100 Very good 19% Excellent 8% Poor 3% fair 25% Poor fair Good Very good Excellent Good 45% Interpretation :The interpretation is that 45 % of the customer has ranked Airtel pre paid connection as good.Ranking Poor Fair Good Very good Excellent Total No. of respondents (%) 55 . Table showing how Promotional schemes affect the consumers Ranking Strongly agree 31 No. Only 3% has ranked it as poor. So we can say that most of the customers are in positive view. 25% of the customers have ranked it as fair.
No. 55% customers are strongly agreed on this statement. 21% agree. Table showing about those consumers who collect information before purchase Information Number Respondents Yes of 74 No 26 Total 100 32 . So we can see that the customers give the importance to promotional schemes. neither 6% and those who are not agreed at all are 2%. Total 100 80 60 40 20 0 21 6 16 2 100 S trong ag ly ree ag ree neither P artially ag ree D on’t ag at ree all. of res pondents Total Interpretation: This analysis shows that the promotional schemes are very good tool to attract the customer.Agree neither Partially agree Don’t agree at all. Partially agree 16%.
Set up a suitable significance level. So the information about the product is important factor in consumer buying decision. 26% customer neglecting it. Selection of criterion Computation 33 Decision making . Hypothesis testing: Procedure in hypothesis testing: Formulation of a hypothesis.100 90 80 70 60 50 40 30 20 10 0 Y es No Total Num of ber R espondents Interpretation: In this graph we can see that 74% of the customer always collects the information about the airtel pre paid mobile before their purchase decision. Some of customers are not giving the importance of information about the product.
We formulate the hypothesis as following: H(o) Null Hypothesis: : Factors which are not significantly influencing the customers for opting airtel pre paid mobile are brand image. say 1 per cent. Set up a suitable significance level: The confidence with which a null hypothesis is rejected or accepted depends upon the significance level used for the purpose. A significance level of. 34 . Selection of test criterion: We can easily test our hypothesis through Chi-square test.Formulation of hypothesis: The conventional approach to hypothesis testing is not to construct a single hypothesis about the population. but rather to set up two different hypotheses. say 5 per cent. Thus. implies that researcher is running the risk of being wrong in accepting or rejecting the hypothesis is 1 out of every 100 occasions. significance level provides greater confidence to the decision than a 5 per cent significance level.: These are the factors which significantly influencing the customers for opting airtel pre paid mobile. a 1 per cent. These hypotheses must be so constructed that if one hypothesis is accepted. the other is rejected and vice-versa these two hypotheses are: Assuming a null hypothesis to be H (o) and the alternative hypothesis as H (a). means that in the long run. value added services. the risk of making the wrong decision is about 5 out of every 100 occasions. A significance level of. low entry cost and strong connectivity. H (a) Alternative Hypothesis: . At 5% level of significance we test the above mentioned hypothesis as per the results obtained.
= Chi-square O = Observed value E = Expected value : 35 .For our calculations. Chi Square = Where. we take the significance level of: 5 per cent.
COMPUTATION: Summary of Observed Data: Factors Connectivity Cost Brand image Service package Discount schemes Value added services Total Agree 87 90 72 90 89 92 520 Disagree 13 10 28 10 11 8 80 total 100 100 100 100 100 100 600 Degree of Freedom= (c-1) (r-1)= (2-1) (6-1)= 5 Expected value (agreed) = 520*100/600= 69.3 36 .3 Expected value (disagree)= 80*100/600= 13.
3 82.3 13.3 82.6 37 .6 Brand image Service package Discount schemes Value added services Total 69.6 69.3 82.3 13.6 69.3 total 82.8 495.6 69.3 82.8 79.3 Disagree 13.6 69.3 13.6 415.3 13.3 82.Summary of Expected Data: Factors Connectivity Cost Agree 69.3 13.
8 515.7 2.3 13.20 38 .3 -2.97 7.0 10.18 1.4 7.15 0.15 3.3 -3.7 22.3 -5.18 0.3 13.09 10.2 428.8 52.3 (O-E) 17.9 28.43 .40 34.7 -0.51 6.11 0.7 -3.7 20.3 69.76 0.7 11.8 216.001 0.3 69.3 13.4 136.10 6.3 69.3 14.3 13.0 (O-E)^2/E 4.3 69.3 13.Calculation of chi square value: O 87 90 72 90 81 92 13 10 28 10 11 8 E 69.3 13.3 69.29 428.7 20.2 .3 (O-E)^2 313.
070 .20 The table chi-square value with5 [(2-1)(6-1)] degree of freedom at the significance level of 0.070. Hence H(o) was rejected and H(a) was accepted. value added services. It falls in the rejection region. Decision making Thus it is clear from test of hypothesis with the help of chi-square test that “: Factors which influencing the customers for purchasing the airtel pre paid mobile are brand image.05 is 11.20 is more than the table chi-square value 11. low entry cost and strong connectivity. 39 . Since the calculated chi-square value 34.= 34.
• • • • • Most of the people are satisfied with the services of airtel pre paid mobile. 40 .FINDINGS • Consumer research deals with consumer and their problems and solution to the problems. I came to know about the how much they give the importance of brand image. In this I came to know about the consumers need and expectation levels regarding airtel pre paid mobile and ascertainable levels of consumer satisfaction. Promotional schemes affect the consumer in purchasing decision. In this I have tried to find out consumer’s cost association with the product. The perception of consumers towards the airtel pre paid mobile is very good.
because mostly people get attracted through promotional schemes. People are unsatisfied with the cost and service packages of airtel pre paid mobile so companies should concentrate in this regard also. They should focus on their value added services to retain most of the customers.SUGGESTIONS AND RECOMMENDATIONS Company should concentrate more on promotional schemes. 41 . Focus on discount schemes because consumer always attracted through discount schemes.
Since the researcher selected 100 sample sizes it is not sufficient to cover opinion of entire population. Time duration in conducting the research is very low. noida respondents. 42 . The view of their other areas is not taken Respondents concentrated where the customers of Airtel pre paid mobile only.Limitations The study is restricted only to Airtel pre paid mobile.
The consumers are highly associated with brand image. 43 . strong connectivity. cost and service packages. How the promotional schemes affect the consumer buying behaviour. So I find out here that the consumers of airtel pre paid mobile are highly satisfied with their services and promotional schemes are very attractive to retain the customers. So the consumer perception and learning towards the airtel pre paid mobile is in positive view.Conclusion The main objective of my analysis was to find whether the customers are satisfied with the airtel pre paid services or not. There are various factors involved which influence the consumer for opting the airtel pre paid mobile.
org/customer/satisfy.htm http://airtelprepaid.H.com http://managementhelp.in/Home http://www. 12th edition).in/wps/wcm/connect/airtel. (Pearson education.com/ Magazines: 44 .in/airtel. Web sites: www.wikipedia.L.Bibliography Books: ► Kotler Philip. 4th edition ) ► Satish K Batra And S.H Kazmi. & bitta delia consumer behavior ( tata Mc. Graw hill. marketing management.customersatisfaction. ► Louden D.
• • Business world Business today 45 .
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