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A

PROJECT REPORT

ON
“STUDY OF MARKETING STRATEGY
USED AT AIRTEL
FOR CUSTOMER SATISFACTION”

SUBMITTED
TO
UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF

BACHELOR IN BUSINESS ADMINISTRATION


(BBA)

SUBMITTED
BY
GAURAV PATHAK
TYBBA (MARKETING)
MARATHWADA MITRAMANDAL’S COLLEGE
OF COMMERCE
DECCAN GYMKHANA, PUNE: 411004
INDEX

TITLE 1
ACKNOWLEDGEMENTS 2
OBJECTIVE OF THE PROJECT 3
HYPOTHESIS 4
METHODOLOGY 5
CHAPTER 1:

INTRODUCTION :

ROLE OF MARKETING IN CUSTOMER


6-7
SATISFACTION

AN INSIGHT INTO THE WORLD OF AIRTEL 8 - 13

ORGANISATION STRUCTURE 1 14
ORGANISATION STRUCTURE 2 15
PRODUCTS AND SERVICES OF AIRTEL 16 - 20
MARKETING STRATEGIES OF AIRTEL 21 - 23
GROWTH OF AIRTEL 24 - 27
AWARDS FOR AIRTEL 28 - 30
FUTURE PROSPECTS OF AIRTEL 31 - 34
CORPORATE RESPONSIBILITY 35 - 36
CHAPTER 2 :

REASONS FOR SELECTING THE TOPIC 37


PURPOSE OF QUESTIONNAIRE 38
CHAPTER 3:

APPENDICES:

QUESTIONNAIRE ( FOR EMPLOYEES) 39 - 41


QUESTIONNAIRE ( FOR CUSTOMERS) 42 - 44
CHAPTER 4 :

STATISTICAL DATA 45-49


DATA INTERPRETATION 50
CHAPTER 5:

TESTING OF HYPOTHESIS 51
CONCLUSION / FINDINGS 52
CHAPTER 6:

BIBLOGRAPHY / REFERENCES 53
Acknowledgement

It gives me immense pleasure to thank everyone who has helped ,


supported, and guided me in completion of this project. It is them,
without whom the project would not have been completed. Thus I
would like to thank the following persons:

The extremely co operative customers of airtel who provided their


valuable feedback and helped in survey

I really would like to thank the student of T.Y. B.B.A .


Sharmishtha Joshi who has helped me a lot without whom this
project would not be completed .

Finally, and Above all I would like thank my parents and


family and God.
Objective of the project

 To study the marketing strategies of Airtel

 To study the role of marketing strategies in customer


satisfaction at Airtel

 To study the role of marketing strategies at Airtel to


create new customers and retain existing ones.

 To study the growth of Airtel

 To study future plans of Airtel

Hypothesis
Hypothesis is a tentative generalization the validity of
which remains to be tested.

The hypothesis for the project is as follows:

 Airtel is adopting many marketing strategies to increase


its customer base

 Inspite of the growth of Airtel , a certain section of


customers at Airtel are dissatisfied due to network
problems and lack of co-operation from Airtel’s customer
care executives.

Methodology
The methodology used for this project is:

 Primary data :

Collection of Primary data refers to the first hand


information i.e. the information is not taken from any
material source.
The preparation of this project report involves conducting
survey in different outlets of Airtel.

 Secondary data:

It involves collecting information from sources such as books,


internet, research papers, magazines. The secondary data used
for this project consists of the above material.

 Questionnaire:

Questionnaire is used to collect information from respondent. In


this study consist of both close ended & open-ended questions.

 Survey technique:

Survey research method is technique of investigation by direct


observation/respondent or by systematic gathering of data from
population. The survey for this project involves sampling
technique at different outlets of Airtel.

Role of Marketing in customer satisfaction


It takes careful planning and a comprehensive understanding of
the marketplace order to develop a business strategy that will
ensure success. The most successful businesses have undoubtedly
started with a marketing plan.

Marketing fulfills a vital function. A business owner must be


familiar with the business's customer base, as well as the strengths
and weaknesses of the business's competitors. These factors, and
others, should be identified in a well-prepared marketing plan.

A good plan will outline how a business can attract and retain
customers, how it will compete against its competitors, and the
budget needed to attain positive results. It should include market
research, business location, the target customer group,
competition, the product or service being sold, budget, and
advertising and promotion.

Market Research :

An effective marketing plan begins with conducting market


research. This will provide relevant data that will help you solve
any potential marketing problems. Often, the three most
pragmatic ways to conduct market research are by using a direct
mail survey, a telephone survey, or by conducting a focus group.

If using a direct mail survey, be sure to keep your questions short,


with a total length of no more than two pages. A consumer
probably won't voluntarily fill out and mail back a
long questionnaire without an incentive. In addition, you should
include a postage-paid envelope, so that the respondents don't
have to pay for the privilege of helping you. If your budget is
sufficient, send a reminder about two weeks after the initial
mailing. Keep in mind that direct mail is probably the most costly
form of research, with the printing of direct mail pieces,
envelopes, postage, and any incentives used, and usually has the
least favorable response rate.
Phone surveys are usually the most cost-effective manner in
which to conduct a survey, in that you don't have print or mailing
costs, and have a better chance of getting an individual to respond
than if you simply mail a survey. The main costs are the
interviewer's fee, phone charges, and preparation of the
questionnaire.

No matter what type of market research you do, your focus


should be on gathering enough information to determine who
your potential customers are, if there is a demand for your
product or service, if there are competitors in your area and, if so,
how successful they are
in the marketplace.

Customer satisfaction can be achived by adopting proper


marketing trategies and giving due consideration to the customers
i.e. selling and marketing the products not just for the purpose of
increasing earnings or profit maximization but, also for the
satisfaction of customers.
ANALYSIS OF TELECOM SECTOR
Introduction;
What is telecom?
Systems used in transmitting messages over a distance
electronically or the branch of electrical engineering concerned
with the technology of electronic communication at a distance.
The telecom services have been recognized the world-over as an
important tool for socioeconomic development for a nation. It is
one of the prime support services needed for rapid growth and
modernization of various sectors of the economy. Indian
telecommunication sector has undergone a major process of
transformation through significant policy reforms, particularly
beginning with the announcement of NTP 1994 and was
subsequently reemphasized and carried forward under NTP 1999.
Driven by various policy initiatives, the
Indian telecom sector witnessed a complete transformation in the
last decade. It has achieved a phenomenal growth during the last
few years and is poised to take a big leap in the future also.
Status of Telecom Sector:
621 million connections as on 31st march 2010.
It is increasing at the growth rate of 45% in recent years.
India is 4th largest in Asia after china, Japan and South Korea.
India is 5th largest in world.
Its contribution in GDP is 2.1% as compared to 2.8% in
developed economics.
India is leading SMS user following Philippines.
World fastest growing telecom market -8 million plus
subscriber addition per month.
Millions of mobile phone is sold in a weak.
World cheapest handset was made in India –US$ 17.2 now
plans web enabled phone at US$ 12.
Worlds most affordable color phone made in India–$27.42.
Indian telecom market is 3rd largest in the world after CHINA
& USA
INDIAN MARKET SEGMENT

The country is broken into 4 segments- Metros, Circle A, Circle B


and Circle C.
These are further segregated as follows:
 Metros – Chennai, Delhi, Kolkata, Mumbai
 Circle A - Andhra Pradesh, Gujarat, Karnataka,
Maharashtra, Tamil Nadu
 Circle B – Haryana, Kerala, Madhya Pradesh, Punjab,
Rajasthan, Uttar Pradesh (E),Uttar Pradesh (W), West Bengal
and A & N Islands
 Circle C – Assam, Bihar, Himachal Pradesh, Jammu &
Kashmir, North East, Orissa
As such, the country is broken up to in to 23 service areas - 19
telecom circles and 4 metros.
Apart from the four metros, the Indian states/regions have been
divided into three circles
(Circle A, B & C), based on their economic development, with
Circle A being the relatively more developed regions while Circles
B and C are the lesser developed regions.
At the end of 2003, metros had a share of nearly 32% in the
country’s total GSM subscriber base. On the other hand, Circle A,
Circle B and Circle C had a share of 37%, 28%, and 2%
respectively. Five years later, the scenario completely changed.
Metros now have a share of about 15%, while Circle A, Circle B,
Circle C have a share of about 36%, 37% and 13% respectively.
While factors such as favourable demographics and higher
disposable income are reasons for strong growth in the lesser
developed states, one cannot ignore the fact that the low cost of
services (lower average revenue per user charged by the telecom
companies) coupled with low handset costs have added to the
growth in subscriber base. In addition, telecom operators
have entered and increased focus on less developed and rural
markets in recent times vis-à-vis metros and bigger cities.
List of Top Ten Telecom Companies in India
As on january,2011 INDIA-671.69 million

COMPONY NAME MARKET CAP IN MILLION

BHARTI AIRTEL 156 MILLION

VODAFONE ESSAR 127.36 MILLION

RELIANCE COMMUNICATION 100.2 MILLION

BSNL(STATE OWNED) 84.5 MILLION

IDEA CELLULAR 83.6 MILLION

TATA TELECOM LTD 60.01 MILLION

AIRCEL 51.8 MILLION

UNINOR 20.3 MILLION

MTNL 5.15 MILLION

VIDEOCON 3.6 MILLION


TOP 5 TELECOM COMPANIES OF
WORLD

RANK COMPONY NAME SUBSCRIBERS

1 CHINA MOBILE 522mln

2 VODAFONE GROUP 333mln

3 TELEFONICA 202mln

4 AMERICAN MOVIL 201mln

5 BHARTI AIRTEL 179mln


GOVERNMENT POLICIES
The government of India has adopted a new economic
policy for the telecommunication market in India. This
policy has been effective from 1994 and the Govt. of India
with the aim to accelerate India's growth in export
production and international market formulated it. The
national telecom policy as has been designed by the
government of India also ensures foreign direct
investment and exhilarating domestic investiture. This
national economic policy of telecom department demands
superior quality telecommunication services and therefore
the development of telecom services are to be given the
utmost importance to attain the peak of success. The
national telecom policy covers the following objectives:

Telephone should be made available everywhere


which will be in need of it.

All the villages should be entitled to universal telecom


services, that is, all the people should be able to enjoy the
telecom services at low-priced range.

The telecom services should be of global standard and


all the grievances from consumers, disputations and
public interface should be taken care of at the earliest
possible time.

India being one of the largest Country should


encompass a major manufacturing unit as well as exporter
of the telecom products across the globe.

The telecom department is also responsible for the


security issues of the country Policy Initiatives by Govt. of
India in the Telecommunication Sector also include the
new telecom policy which was formulated by the
government of India in 1999 has been designed by the
government of India with the aim to create an ambiance
that will attract foreign direct investment and will also
permit infrastructure for communication purposes by
making investments on technological development. The
following sectors in the telecommunication department
should be licensed:

All the telecommunication or telegraphed services


should be licensed that might cover any geographical
region by using any kind of technology:
21% 0%
11% 1% 1% 1% 0% 0% 0% 0%
AIRTEL
7%
RELIANCE
VODAFONE
BSNL
TATA
IDEA
AIRCEL
11%
UNITECH
MTNL
17% SISTEMA
LOOP
VIDEOCON
18% STEL
11%
HFCL
ETISALAT

CURRENT POSITION

BHARTI AIRTEL,India’s largest mobile operator with


156 million customer’s captures the maximum market
share in telecom sector. Operating in 19 countries it has
almost 360 million subscribers in the world making it the
5th largest operator world wide.
An Insight into the World of Airtel

Sunil Bharti Mittal (S.B. Mittal) laid the foundation of the New Delhi
based Bharti Group in the 1970s with a small bicycle-parts business.
In 1985, he entered the telecom business by establishing Bharti
Telecom Limited (BTL) that manufactured telephonic equipment. In
the same year, BTL entered into technical collaboration with Siemens
AG(Germany) for manufacturing electronic push button telephones.

BTL also signed an agreement with Takacom Corporation (Japan) for


manufacturing telephone answering machines. Over the years, BTL
tied up with leading telephone equipment manufacturers from
countries such as South Korea and US. The group entered the
telecommunication (telecom) industry during the early-1990s (Refer
Exhibit I and II for a note on the Indian cellular telephony industry).

Bharti Tele-Ventures, a part of Bharti group, offered various telecom


services such as fixed line, cellular, V-SAT and Internet services. The
operations of Bharti Tele-Ventures were run by four wholly owned
subsidiaries. These were Bharti Cellular Ltd. (Cellular), Bharti Telenet
Ltd. (Access), Bharti Telesonic Ltd. (Long Distance) and Bharti
Broadband Networks Ltd. (Broadband Solutions). The flagship
services of the Bharti group included Airtel (cellular), Mantra (Internet
Services) and Beetel (telephone instruments).

In 1992, Bharti entered the cellular market by launching services in


Delhi. Over the next few years, it also entered other telecom circles. In
the early 2000s, Bharti invested heavily in the acquisitions and
alliances to expand its cellular market in India. As a part of this, Bharti
acquired JT Mobile
(Andhra Pradesh and Karnataka), SkyCell(Chennai) and Spice Cell
(Kolkata). It even announced plans to acquire Usha Martin, the
leading cellular service in Kolkata. It also entered into collaborative
agreements with BPL to gain seamless access in Mumbai,
Maharashtra, Chennai, Delhi, Kerala, Tamil Nadu, Andhra Pradesh
and Karnataka.

Bharti launched Airtel as a post paid cellular service in Delhi in


November 1995. Over the next few years, the company redefined the
way cellular services were being marketed in the country. This was
made possible due to its innovative marketing strategies, continuous
technological upgradations, new value added service offerings and
efficient customer service. Initially confined only to the Delhi circle,
Airtel’s services were soon extended to many other places.

Through the Airtel brand, Bharti set many benchmarks for the Indian
cellular industry. It was the first cellular operator to set up cellular
showrooms. The company opened its first showroom ‘Airtel
Connect’ in Delhi, in late-1995. Airtel Connect was a one stop cellular
shop where customers could purchase handsets, get new
connections, subscribe to various value-added services and pay their
mobile bills.

Bharti was also the first cellular company to install a second mobile
switching center in April 1997. The company was the first to provide
roaming cellular services and other value-added services such as
Smart mail, Fax, Call hold, Call waiting and Information services .

Bharti was the first company to launch an online e-commerce portal


that enabled customers to make online payments. It also provided
them with information regarding cellular services and the features of
handsets manufactured by various companies, along with their price.
On account of such initiatives, during the late-1990s, Airtel was
named the ‘Best Cellular Service’ in the country, and won the
‘Techies’ award for four consecutive years (1997-2000).

However, it was not very easy for the company to build Airtel brand.
The tariff rates charged by the government were quite high. Cellular
players has little choice but to impose high call charges on their
customers. Airtime rates were as high as Rs 16 per minute as against
Rs 1.20 for landline communication.

Thus, all players targeted the premium sector, which could afford the
rates. Airtel was also positioned in the premium category, aimed at
the elite class of the society.

Though industry observers felt that this limited its market and that
Bharti could have focused on increasing customer awareness (by
explaining to them the various advantages of cellular phones), Bharti
thought otherwise. As per a company source, the strategy might not
have worked as the value delivered by cellular phones during that
phase did not match the cost.

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,
broadband & telephone services (B&T) & enterprise services. The
mobile business provides mobile & fixed wireless services using
GSM technology across 23 telecom circles while the B&T business
offers broadband & telephone services in 94 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.

Bharti Telenet needs no introduction. With brands like 'Airtel' and


'Magic' in the cellular space, Bharti has been one of the most
prominent companies in telecom with interests in cellular, fixed line,
and Internet access. It has over 2,673,000 customers—nearly 2,293,700
mobile, 261,000 fixed line and 119,000 Internet customers.

Bharti Airtel was recently ranked amongst the top 10 best performing
companies in the world in the BusinessWeek IT 100 list. Bharti
Teletech is the country’s largest manufacturer and exporter of
telephone terminals. Bharti has a joint venture with ELRo Holdings
India Ltd. – ‘FieldFresh Foods Pvt. Ltd’ - for global distribution of
fresh fruits and vegetables. Bharti also has a joint venture - ‘Bharti
AXA Life Insurance Company Ltd.’ - with AXA, world leader in
financial protection and wealth management. Bharti has recently
forayed into the retail business under a company called Bharti Retail
Pvt. Ltd. It also has an MoU with Wal-Mart for the cash & carry
business.
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's partners in Airtel are Emtel, the premier GSM operator in


Mauritius, some private investors.

Registered as Telecom Seychelles Limited and operating under the


brand name of Airtel, the company is licensed to offer
comprehensive telecom services including GSM Cellular, PSTN
(Fixed Lines), Fax and Data, International Roaming, connectivity to
Internet Services, Maritime Telecom Services (INMARSAT) and
International Collect and Credit Card calling. Dominating the
market with its service and customer commitment - Airtel has
always been at the forefront of innovation and change in the
Telecom sector in Seychelles.

During the late-1990s, many international players such as ‘Orange’


announced plans to enter the Indian market. The global telecom
market was getting saturated and these companies were searching
for countries with untapped potentials to increase their markets.
India being one of the fast developing nations with a vast
population base was being seen as a high potential market.
Apart from international players, many domestic players also
entered the segment. This increased the competition in the sector. In
the light of these changes, Bharti realized the need for repositioning
Airtel to increase its market share. Rather than focusing on the value
(delivered by the services), the company chose to address the visual
benefits delivered to the customers. In the words of Hemant
Sachdev, Director (Marketing), Bharti Group, “Instead of the value-
proposition model, we decided to address the sensory benefit it
gave to the customer as the main selling tack. The idea was to
become a badge value brand.”
MERGER AND ACQUITIONS

BHARTI AIRTEL WITH MTN on July 31 2010


Bharti Airtel and South Africa's MTN would be India's
biggest-ever M&A deal. The potential value of the Bharti
Airtel-MTN deal would amount to $23 billion. As per the
exploring agreement, MTN and its shareholders would
acquire around 36 % economic interest in Bharti Airtel, of
which 25% would be held by MTN with the remainder
held directly by MTN shareholders while, the Sunil
Mittal-promoted Bharti Airtel would acquire 49 %stake in
South African telecom giant MTN. the two companies
have agreed to discuss the potential transaction
exclusively by July 31 this year. If materialized, the
combined entity would have revenues of over $20 billion
and a subscriber base of over 200 million. Bharti would
have substantial participatory and governance rights in
MTN enabling it to fully consolidate the accounts of MTN.
Organisation Structure – 1

As an outcome of a restructuring exercise conducted within the


company; a new integrated organizational structure has emerged;
with realigned roles, responsibilities and reporting relationships of
Bharti’s key team players.

With effect from March 01, 2006, this unified management structure
of 'One Airtel' will enable continued improvement in the delivery of
the Group’s strategic vision.
Organization Stracture - 2
Products and Services of Airtel

 Mobile :

Experience total cost control, no rentals and easy billing with


Airtel’s postpaid and prepaid services.

 Voice based services:

Voice mail ,Call conference ,Dial a service

 Sms – based services:

Sms games , text messaging, information service, net 2 cell,


mobile messenger, mobile chat, ringtones and logos, star
peep, flash and blink sms, vernacular sms, traffic update.

 Call management services:

Call line identification (CLI), call waiting / hold / divert

 Other services:

Std / ISD , airtel roaming, airtel roaming lite, 32k sim card,
easy roam east.
 Home phones :

Airtel welcomes you to the world of telephony services for your


home. Experience a world class service and cutting edge
technology with Airtel landline and our feature rich Wireless
fixed line.

What’s more, calling is made more fun & convenient with


services and entertainment on Airtel. With Airtel you get to
experience superior voice clarity on our fiber-optic framework
more than an ordinary telephone line.

You can also get connected to the world of entertainment with a


free dial-up connection. Charges are applicable as per the pulse
rate. Choose any plan that suits your needs, have fun and keep in
touch with friends and family with Airtel Landline.

 Broad band services :

Airtel Broadband Services, India's most preferred high-speed


Internet service, redefines your Internet experience. It is fast, fun,
convenient and cost effective
 BlackBerry :

BlackBerry from Airtel is an 'always connected' wireless solution


providing easy and secure access to your email and data.

 Send emails and Receive emails instantly :

All the emails you've read, deleted or moved to a


folder will show on both your handset device and
your desktop. It uses over-the air technology so
there's no need to manually synchronise your
message activity.

You can see more of each individual email - with up


to 32kb downloaded in one go.You can also create
personal email 'distribution lists' and send emails to a
predefined group of contacts.

 Email services

Want to access information on your mobile? Airtel brings you


Email on the go.

You can choose from BlackBerry and Windows Mobile 5.0


depending upon the usage patterns, requirement and suitability.
 Calling cards :

Airtel’s calling card services connect you to the world from India
and allow a better way to call back India.

These services connect you to your friends and friends in India


a cost effective and reliable manner. Choose from the options
below and stay connected.

 Calling Cards include :

Great savings on calling anywhere in India or across the


world.Even if your phone is not STD/ISD enabled, go ahead and
talk to your loved ones.

 Wireless internet :

With Airtel’s Wireless Internet, you have the freedom to access the
Internet anytime, anywhere across India.

It enables Internet, Email, and Office applications with real-


timesecure VPN access to corporate applications whilst on the
move.
Therefore following are the services provided by Airtel-

 MOBILE

 HOME PHONE

 BROADBAND INTERNATE

 BLACKBERRY

 EMAIL ON THE GO

 CALLING CARDS

 WIRELESS INTERNATE

 NUMBER PORTABILITY
Marketing Strategies of Airtel

In late-2002, Airtel, India's largest cellular telephone company


released a television commercial (TVC), which despite using the 'oft-
repeated' celebrity endorsement route was unusual in terms of its
celebrity selection. Instead of using the usual movie stars/sports
celebrities, it chose one of the country's most successful music
composers, A.R Rahman (Rahman) to promote its brad.

The campaign attracted considerable media attention because this was


the first time Rahman had agreed to do a television commercial and
also because, Rahman had been paid Rs 10 million for the campaign, a
sum usually unheard of, for celebrity endorsers in India. The
campaign received brickbats as well as bouquets in the media, both
for the selection of Rahman and the TVC's execution.

However, Airtel claimed to have scored an ace in terms of getting


Rahman to compose five exclusive symphonies downloadable as ring
tones for Airtel users. The TVC was a part of the brand repositioning
and restructuring efforts for Airtel, as part of which, Bharti changed
the brand's tagline in early-2002 from 'Touch Tomorrow' to 'Live
Every Moment.'
The company also decided to undertake a comprehensive
brand building program for the company and chose the
slogan 'Unlimited Freedom' for the same. Commenting on
these changes, company sources said, "Airtel's brand
identity and campaign will now have a new younger and
international look and feel that builds on the earlier
positioning."

Bharti's (Airtel) massive media expenditure plans were no


surprise, considering the fact that it was the largest cellular
telecom company in the country - reaching over 600 million
people in 16 (out of 29) states of India. The company posted
revenues of Rs 8.48 billion and a net loss of Rs 1 billion in
the financial year 2000-01.

The Airtel brand (and the pre-paid card service brand,


Magic) had top-of-the-mind recall amongst cellular phone
users and enjoyed a leadership position in most markets.
Industry observers primarily attributed it to Bharti's strong
brand building and positioning strategies.

The other brand ambassadors for Airtel are the Indian team’s cricket
sensation Sachin Tendulkar and superstar Shahrukh Khan.

Telecom major Bharti Televentures announced batting maestro


Sachin Tendulkar as its another brand ambassador besides unveiling
a brand campaign -- Express Yourself -- for its mobile service brand
AirTel.

"Sachin and AirTel both are leaders having similar values and
personality traits like trustworthiness, friendliness, youthfulness and
trend-setters," Manoj Kohli, president (mobility), Bharti Televentures,
said in New Delhi.

Kohli said actor Shah Rukh Khan and music director A R Rehman
would continue to be AirTel's brand ambassadors.

He declined to comment on the fees paid to Tendulkar for being the


brand ambassador. However, it is rumoured that the master blaster
has signed the endorsement deal for a whopping Rs 10 crore (Rs 100
million).

Through the 'Express Yourself' campaign, AirTel's vision is to make


mobile communication a way of life in the country. The new
campaign exhorts customers to freely express themselves anytime
anywhere, Kohli said.

Sachin Tendulkar and Shahrukh Khan : Brand Ambassadors

For Airtel.
Growth of Airtel
Bharti Telenet needs no introduction. With brands like 'Airtel' and
'Magic' in the cellular space, Bharti has been one of the most
prominent companies in telecom with interests in cellular, fixed
line, and Internet access. It has over 2,673,000 customers—nearly
2,293,700 mobile, 261,000 fixed line and 119,000 Internet
customers.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited


(BTVL) is among India's largest mobile phone and Fixed Network
operators. With more than 140 million subscriptions as of January
2011, the company is one of the world's fastest growing telecom
companies.

It offers its mobile services under the Airtel brand and is headed by
Sunil Mittal, India's sixth richest man with a total worth of US$10
billion. The company is the only GSM operator to provide mobile
services in all the 23 circles in India. The company also provides
telephone services and Internet access over DSL in 14 circles

Although Bharti Airtel is the largest mobile service provider, BSNL,


the state run mobile and wireline service provider is the market
leader as of 31 December 2006 customer's base.

Bharti was the first company to launch an online e-commerce portal


that enabled customers to make online payments. It also provided
them with information regarding cellular services and the features of
handsets manufactured by various companies, along with their price.
On account of such initiatives, during the late-1990s, Airtel was
named the ‘Best Cellular Service’ in the country, and won the
‘Techies’ award for four consecutive years (1997-2000).
However, it was not very easy for the company to build Airtel brand.
The tariff rates charged by the government were quite high. Cellular
players has little choice but to impose high call charges on their
customers. Airtime rates were as high as Rs 16 per minute as against
Rs 1.20 for landline communication.

The campaign was reportedly successful and resulted in a marginal


improvement in Airtel’s performance. By 1999, Bharti had become
the leading cellular player in Delhi (its major market) with a
subscriber base of over 0.38 million. However, the growth was still
much below the company’s expectations

In early-2000, in its attempt to understand the customer’s psyche,


Airtel conducted many brand tracking exercises. These exercises
revealed that though the Leadership campaign had been effective, it
failed to attract more customers, as it had failed to add an emotional
dimension to the brand. Analysts perceived the brand to be distant,
efficient and cold. In words of Preet Bedi, Director, Lowe India, “The
brand had become something like Lufthansa — cold and efficient.
What they needed was to become Singapore Airlines, efficient but
also human.”

In August 2000, Bharti launched its new ‘Touch Tomorrow’, which


aimed at strengthening its relationship with its customers. Bharti’s
advertisement expenditure for the year amounted to Rs 450 million.
The advertisements spanning the print, electronic and outdoor media
(for these campaign) featured cellular users surrounded by caring
family members. Commenting on the rationale behind the new
campaign, Sachdev said, “The new campaign and positioning was
designed to highlight the relationship angle and make the brand
softer and more sensitive.”

Recently Sunil Bharti's Airtel launched its calling card in America


specially for the NRI (Non-resident Indians) and people calling from
America to India at a cheaper rate as compared to the tariff offered
by other providers.

On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to
AirTel for US $1.6 billion; and purchased a controlling stake in rival
Hutchison Essar.

In its monthly press release, following statistics have been presented


for end of April 2007.

 Bharti Airtel added the highest ever net addition of 53 lakh


customers in a single quarter (Q4-FY0607) and also the highest
ever net addition of 1.8 crore total subscribers in 2006-07
 The company will invest up to $3.5 billion this fiscal (07-08)
n network expansion.
 It has an installed base of 40,000 cellsites and 59%
population coverage

 After the proposed network expansion, an additional 30,000


towers will result in the company achieving 70% population
coverage

 Bharti has over 39 million users as on March 31, 2007


 It has set a target of 125 million subscribers by 2010
 Prepaid customers account for 88.5% of Bharti’s total subscriber
base, an increase from 82.7% a year ago
 ARPU has dropped to Rs 406

 Non-voice revenues, (SMS, voice mail, call management,


hello tunes and Airtel Live) constituted 10% of total revenues
during Q4, lower than 10.7% in the Q4 of the previous year

 Blended monthly minutes of usage per customer in Q4


was at 475 minutes
 Has completed 100% verification of its subscribers and in the process
disconnected three lakh subscribers .

Market Capitalisation (as on July 13, 2007)Approx. Rs. 1,670 billion

Closing BSE share price = Rs. 880.75

 Sales :  02.62 Billion $


 Profits :  00.46 Billion $
 Assets :    04.46 Billion $
 Market Value :  41 Billion $
Awards for Airtel

Airtel's efforts in enabling faster and more affordable communications


has been recognized not just in this country but across the world and
this is manifested in a series of awards that Bharti has received. Some
of the recent awards include:

 BHARTI TELE (Airtel) wins SILVER TROPHY at the CII NATIONAL SIX
SIGMA AWARDS (28-09-05)

Bharti Tele-Ventures Limited, India’s leading private sector provider


of telecommunication services has won the top honour for quality
amongst all ‘service’ companies at the CII National Six Sigma Awards.
On an overall basis the company ranked second thereby winning
silver at the award function. CII National Six Sigma awards are a part
of CII’s annual National Convention on Six Sigma.

 BHARTI TELE-VENTURES (Airtel) adds another first by winning the prestigious


‘MIS ASIA IT EXCELLENCE AWARD 2005’

 The first Indian telecom company to win this award


 Wins ‘Best Change Management’ category award for its IT COP
(Community of Practice) transformation over 3 years culminating in a
strategic “on demand” outsourcing partnership with IBM

Bharti Tele-Ventures Limited continued to add to its impressive list of


accolades and recognition, winning the coveted MIS Asia IT
Excellence Award for the year 2005 at the MIS Asia IT Summit 2005,
Singapore.Bharti won the award in the ‘Best Change Management’
category and is the only Indian Telecom Company ever to win this
award.
The ‘Best Change Management Category’ award recognizes and
highlights the three-year IT transformation journey undertaken by
the IT Community of Practice team at Bharti.

 Airtel “Express Yourself” campaign wins two “Silvers” at the


prestigious AAAI awards for Brand Campaign of the Year and Best
Advertising Film, amidst stiff competition from 37 advertising
agencies.

 The Advertising Agencies Association Of India (AAAI), is an apex


body of top 80 member agencies controlling 75% of total advertising
business in India

 Best advertising film

 Airtel Express Yourself being the brand campaign of the year

 In addition, Airtel also won a bronze for its


“Smiley” Ad. Campaign

 Airtel’s Express Yourself had earlier also struck a chord with the
international audience when it won the “World Communications
Best Brand of the Year’ award in October ’04 in London

 Bharti Tele (Airtel) draws top honours at the NDTV Profit Business
Leadership Awards 2007

 Sunil Bharti Mittal chosen as the ‘Business Leader of the Year’


 Bharti Airtel chosen as the top telecom company for second
year in a row

Sunil Bharti Mittal has been chosen as the NDTV Profit Business Leader
of the Year 2007. The award is yet another tribute to his leadership,
vision and entrepreneurial spirit that has seen Bharti emerge as one
of the top business groups in the country. The award was given away
by the Union Finance Minister, Mr. P Chidambaram.

In addition, Bharti Airtel was adjudged as the top company in the


telecom category for second year in succession. The honour
underlines the Company’s focus on providing world-class services to
customers and leading the telecom revolution in the country. The
award was received by Akhil Gupta on behalf of Bharti Airtel.Airtel.

The awards not only honour business organizations that have shown
exceptional ability in business performance but are also a recognition
of the business houses which have fuelled the Indian economy to
currently being among the fastest growing economies in the world.

The NDTV Profit Business Leadership Awards followed a stringent


six stage nomination and selection process. The distinguished jury
for the awards comprised of respected names from the industry such
as Dr. Amit Mitra, Secretary General, FICCI; Ms. Anu Aga, Director
on theThermax’s Board of Directors; Mr. N.R. Narayana Murthy,
Chairman Emeritus, Infosys; Mr. Kiran Karnik, President,
NASSCOM; and NDTV's Chairman, Dr. Prannoy Roy.
Future prospects of Airtel

In August 2000, Bharti launched its new ‘Touch Tomorrow’, which


aimed at strengthening its relationship with its customers. Bharti’s
advertisement expenditure for the year amounted to Rs 450 million.
The advertisements spanning the print, electronic and outdoor
media featured cellular users surrounded by caring family
members. Commenting on the rationale behind the new campaign,
Sachdev said, “The new campaign and positioning was designed to
highlight the relationship angle and make the brand softer and more
sensitive.”

Bharti also created a new logo for the Airtel brand, which had red,
black and white colors with ‘Airtel’ enwrapped in an eclipse. The
tagline ‘Touch Tomorrow’ was placed below in a lower case
typography to convey a warm and informal style. Which is shone in
following fig.

THE NEW AIRTEL LOGO AFTER THE TOUCH TOMORROW CAMPAIGN

The campaign was first rolled out in the states of Karnataka,


Madhya Pradesh, Himachal Pradesh and Chennai. As a part of this
campaign, Airtel also shifted its focus from SEC, audiences to SEC B
audiences. The company also increased its Touch Point network.
While the Touch Tomorrow campaign was still running, Bharti
announced a major brand restructuring exercise at the corporate
level. This was done in order to facilitate its entry into new areas of
the telecom sector and establish itself as a global telecom brand.

 Bharti Airtel Gears Up to launch Mobile services in Sri Lanka

 Plans to invest USD 200 million in the next five years


 World class 2G and 3G services to be launched by end of
FY 2007-08
 Mobile services to be launched under Airtel brand

The customers in Sri Lanka can look forward to a host of innovative


products and services at affordable prices from Airtel’s vast
portfolio. Bharti Airtel Lanka Private Limited, a subsidiary of Bharti
Airtel Limited, one of Asia’s leading integrated telecom services
companies, today announced its plans to launch world class 2G and
3G services in Sri Lanka by the end of the current financial year
(2007-08). The company also announced its plans to invest
approximately USD 200 million in the Sri Lankan market. The
mobile services from Bharti Airtel will be launched under the Airtel
brand in the Island nation.

According to Mr. Sanjay Kapoor, President, Mobile Services, Bharti


Airtel :
“We are  committed to offering world-class and affordable 2G and
3G services to customers in Sri Lanka. With mobile penetration of
around 30% and growing at a rate of approximately 2 million
mobile users per annum, we are excited about our entry into this
market. Our plans for Sri Lanka clearly demonstrate our
commitment to the market and also our confidence in the potential
that this market holds in Airtel’s overseas expansion journey.”

 Bharti Enterprises and Wal-Mart join hands in wholesale cash-


and-carry to serve small retailers, manufacturers and farmers

 Business-to-business wholesale cash-and-carry joint venture to set


up world-class modern supply chain and back-end logistics
infrastructure

 Driving efficiencies across the supply chain will help minimize


wastage and provide small retailers quality merchandise at
competitive wholesale prices.

New Delhi, August 6, 2007:


2007 Bharti Enterprises and Wal-Mart Stores,
Inc. today announced that they have signed an agreement to
establish Bharti Wal-Mart Private Limited, a joint venture for
wholesale cash-and-carry and back-end supply chain management
operations in India, in line with Government of India guidelines. 
Under the agreement, Bharti and Wal-Mart will hold a 50:50 stake in
Bharti Wal-Mart Private Limited.

The first wholesale cash-and-carry facility is targeted to open by the


end of next year. Over the next seven years, the venture is expected
to open 10 to 15 wholesale cash-and-carry facilities and employ
approximately 5,000.  A typical facility will stand between 50,000
and 100,000 square feet and sell a wide range of fruits and
vegetables, groceries and staples, stationery, footwear, clothing,
consumer durables and other general merchandise items.
The wholesale cash-and-carry venture will invest in setting up an
efficient supply chain. This will link farmers and small manufacturers
directly to retailers, thereby maximizing value for farmers and
manufacturers on the one end and retailers, and in turn, consumers on
the other. The venture will support farmers and small manufacturers
who have limited infrastructure and distribution strength, and the
supply chain will enable minimum wastage, particularly of fresh
foods and vegetables.

Wholesale cash-and-carry operations provide small retailers and


business owners a wide range of quality products at competitive
wholesale prices that help them enhance their businesses and
profitability.

The Bharti Wal-Mart business-to-business (B2B) wholesale cash-and-


carry joint venture will serve kirana stores, fruit and vegetable
resellers, restaurants and other business owners.  It also will serve
other retailers such as Bharti Retail, which is setting up a chain of
stores in India that are 100 percent owned and operated by Bharti.
Corporate Responsibility at
Bharti (Airtel)
At Airtel, 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:

 To be responsive to the needs of our customers


 To trust and respect our employees
 To continuously improve our services – innovatively and
expeditiously
 To be transparent and sensitive in our dealings with all
stakeholders

Airtel encourage their 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
Airtel practice their 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


environmentBharti Airtel sensitizes its employees towards CSR issues
at various forums. We feel that it is important that each employee
should understand the importance of environmental, social and
economical aspects while taking business decisions.

At Airtel, each employee is sensitized towards CSR issues and thus


operations at the ground level are influenced. Such sensitization
exercises have resulted in many socially and environmentally
sensitive decisions on the ground.

For example, Confidence Plan for hearing impaired people, covers


noise-making DG sets at extra cost, investing in consumer awareness
campaigns to ensure safe use of mobile are some examples of the
above.
Reasons for selecting the topic

Life without communication is almost impossible and Airtel has


become a leading name in the field of communication. And
connectivity. Airtel has been providing its services to all sections of
the society Since 1985 and has created a huge customer base. This
Airtel chairman, Sunil Mittal was awarded “Asia’s Businessman Of
The Year”.

This year Bharti enterprises entered into a joint venture with retail
giant “Wal-Mart”

This astonishing growth of Airtel , inspite of innumerable


competitors such as Reliance communications ( Rcom), Tata Tele
services ltd. ( Tata indicom) has encouraged and in a way compelled
me to select it as a topic for study.

The growing client base and also the growing mergers and
acquisitions of Bharti has created a curiosity in me to know the
reasons for such growth and customer satisfaction.

Purpose of Questionnaire
Questionnaire is used to collect information from respondent
through use of survey techniques. The purpose of this
questionnaire is to know the problems of customers as well as
the employees of Airtel.

This questionnaire will also help inunderstanding the


growth pattern and the various marketing strategies used to
satisfy its customers.

It has also helped to know that Airtel provides its services


not only to a specific segment of society but also to the
lower strata of the society. Questionnaire helps to gather
first-hand information or practical experience And provides
a strong base for a good survey and research study.

QUESTIONNAIRE
- NAME OF THE EMPLOYEE :

- ADDRESS :

- DESIGNATION :

- DURATION OF EMPLOYMENT WITH AIRTEL :

- MOST PREFFERED SERVICES BY CONSUMERS :

 MOBILE:
 HOME PHONES:
 CALL CARD:
 BROADBAND:
 WIRELESS INTERNET:
 BLACKBERRY:
 EMAIL SERVICES

- WHICH CONNECTION DO CONSUMERS PREFER ?

 PRE PAID ( )

 POST PAID ( )

- DOES AIRTEL PROVIDE CUSTOMER-CARE SERVICES ?


YES / NO

- WHAT CUSTOMER-CARE SERVICES DOES AIRTEL


PROVIDE ?
___________________________________________________________
___________________________________________________________
______________________________________

- WHO ARE THE TARGET CUSTOMERS ?


 CHILDREN ( )
 ADULTS ( )
 COLLEGE STUDENTS ( )
 OTHERS ( )

- WHO ARE YOUR TARGET CUSTOMERS ( BASED ON


INCOME GROUP) ?

 LOWER INCOME GROUP ( )


 MIDDLE CLASS ( )
 HIGHER INCOME GROUP ( )

- DO YOU EXPERIENCE JOB SATISFACTION AT AIRTEL ?


YES / NO

- WHAT MEASURES DOES AIRTEL ADOPT FOR EMPLOYEE


SATISFATION ?

_________________________________________________________
_________________________________________________________
__________________________________________

- WHAT MARKETING STRATEGIES DOES AIRTEL ADOPT TO


SATISFY ITS CUSTOMERS?

 CREATING A BRAND NAME USING POPULAR BRAND –


AMBASSADORS ( )

 CONDUCTING AND ORGANIZING VARIOUS CONTESTS AND


COMPETITIONS THROUGH WHICH AWARENESS IS
CREATED AMONG CUSTOMERS REGARDING THE
PRODUCTS ( )

 COMPETING WITH THE DIFFERENT CALL RATES OF


TELECOM COMPANIES BY CHANGING THE CALL RATES TO
MAKE THEM MOST AFFORDABLE FOR THE
CUSTOMERS( )

 DISTRIBUTING FREE SIM CARDS ( )


- WHAT MEASURES DOES AIRTEL ADOPT TO RETAIN ITS
CUSTOMERS ?

__________________________________________________________
__________________________________________________________
________________________________________

- IN YOUR OPINION, ARE THE AIRTEL CUSTOMERS


SATIFIED ? YES / NO

- ARE THE CUSTOMERS OF AIRTEL GROWING ?


YES / NO

- IS AIRTEL GROWING IN COMPARISON WITH OTHER


TELECOM COMPANIES ? YES / NO

- CHANGES YOU WOULD LIKE TO SEE IN AIRTEL ?


__________________________________________________________
__________________________________________________________
________________________________________
QUESTIONNAIRE

- NAME OF THE CUSTOMER :

- ADDRESS :

- AGE:

- INCOME GROUP:

- MOST PREFERED SERVICES BY YOU :

 MOBILE:
 HOME PHONES:
 CALL CARD:
 BROADBAND:
 WIRELESS INTERNET:
 BLACKBERRY:
 EMAIL SERVICES

- WHICH CONNECTION YOU ARE USING ?

 PRE PAID ( )

 POST PAID ( )

- DOES AIRTEL PROVIDE CUSTOMER-CARE SERVICES ?


YES / NO

- ARE THE CUSTOMER-CARE EXECUTIVE CO-OPERATIVE ?


YES / NO
- WHAT CUSTOMER-CARE SERVICES DOES AIRTEL PROVIDE ?
______________________________________________________________
____________________________________________________________
__________________________________________________________

- REASONS FOR SATISFACTION /DISSATISFACTION OF


CUSTOMERS:

______________________________________________________________
______________________________________________________________
______________________________________________________________

- WHICH SCHEME IS MOST PREFERED BY YOU ?

______________________________________________________________
______________________________________________________________
______________________________________________________________

- WHY DO YOU PREFER AIRTEL OVER OTHER CONNECTIONS ?

______________________________________________________________
______________________________________________________________
______________________________________________________________

- DURATION OF YOUR ASSOCIATION/ USAGE WITH AIRTEL ?

 LESS THAN 6 MONTH’S ( )


 6 MONTHS – 1 YEAR ( )
 1 YEAR OR MORE ( )

- DO YOU USE INTERNET SEVICES OF AIRTEL ? YES/NO

- HOW DO YOU FIND THE SPEED OF INTERNET


SEVICES PROVIDED BY AIRTEL ?
 FAST ( )
 SLOW ( )
 AVERAGE ( )

- WHAT ARE THE PROBLEMS FACED WHILE USING


AIRTEL SERVICES ?
____________________________________________________
____________________________________________________
___________________________________________

- ARE YOU SATISFIED WITH THE SERVICES PROVIDED


BY THE COMPANY ? YES/NO

- CHANGES YOU WOULD LIKE TO SEE IN AIRTEL ?


____________________________________________________
____________________________________________________
_________________________________________________
Statistical Data

lower middle-class

higher middle class

youth

CUSTOMER-BASE OF AIRTEL
Dissatisfie
d
customers
Satisfied
customers

SATISFACTION OF CUSTOMERS
90

80

70

60

50

40

30

20

10

pre po
s

User Classification at Airtel


Internet BlackBerry
16% 16%

mobiles
69%

Most preferred services at Airtel


free SIM card

call rates

brand ambassador

organizing competitions

0 20 40 60 80 100 120 140 160 180

Marketing strategies used for customer satisfaction


Data interpretation

The survey conducted using questionnaire and through statistical data depicts
that :

 The customer base of Airtel is growing tremendously


and airtel has customers from all sections of society but
majority of customers of Airtel consist of the youth
while the lower middle-class and higher middle-class to
consume a considerable part of the customer base.

 Most of the customers of Airtel are satisfied with Airtel


and its services provided but Airtel too has few
dissatisfied customers.

 The number of pre-paid customers at Airtel is more than


number of post-paid customers.

 Airtel provides many services such as BlackBerry,


internet and mobile service, but the mobile service
provided by Airtel is indeed most popular.

Testing of Hypothesis
 Airtel has a huge market capitalization and has
indeed defeated its competitors like Reliance
Communication, Idea, Tata indicom

 Use of questionnaire technique has been done which has


proved that Airtel provides its services to all sections of
society be rich or poor.

 The Airtel customers are indeed large in number but airtel


has to face the wrath of dissatisfied customers.

 The Airtel customers have to face a major problem


of network and also lack of co-operation from customer
care executives.

 Bharti Tele is the only Indian company or rather the only


telecom company who has entered into a joint collaboration
with Retail giant WAL-MART and has thus entered into the
retal sector but, even after this collaboration the telecom
business of the company is not hampered

 Airtel is adopting many marketing strategies such as


providing competitive rates, distributing free calling cards,
signing popular celebrities as brand ambassador to increase
its customer base.

 Thus the hypothesis for the project is proved and is null


hypothesis.

Conclusion
In 1985, Sunil Mittal entered the telecom business by establishing
Bharti Telecom Limited (BTL) that manufactured telephonic
equipment. In the same year, BTL entered into technical collaboration
with Siemens AG (Germany) for manufacturing electronic push
button telephones. It was the first cellular operator to set up cellular
showrooms. The company opened its first showroom ‘Airtel
Connect’ in Delhi, in late-1995.

Problems faced by Bharti Tele (Airtel) :

 Customers of Airtel have to face a major problem of poor


network.

 Complaints regarding poor customer-care services and


lack of co-operation form customer-care executives is common.

Measures adopted by Airtel to overcome the problems :

 The customer-care executives at Airtel are provided with


proper training related to successful handling of customers needs
by the Human Resource Department.

 Airtel is adopting latest techniques and is also trying to


improve its network rapidly.

Thus, inspite of facing innumerable problems ; Airtel is striving


towards maintaining its market position.

Biblography
www.google.com

www.bhartitele.com

www.airtelforyou.com

www.icfai.com

www.wikeipedia.com

Marketing management : S.S. Sherlekar

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