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1. Projectsformba.blogspot.

com A Project rePort on BhArti

Airtel GrouP comPArAtive AnAlysis of mArKetinG
strAteGies of vodAfone & Airtel suBmitted for the PArtiAl
fulfillment of the requirement for the AwArd of deGree of
mAster of Business AdministrAtion suBmitted to :suBmitted By:- jAiPur
. , sincerely thankful to all those people who
have been giving me anykind of assistance in the making of
this project report.I express my gratitude to ,
who has through her vast experience andknowledge has
been able to guide me, both ably and successfully towards
thecompletion of the project. I express my gratitude to Sri
Balaji College of Engineering &Technology, JaipurI would
hereby, make most of the opportunity by expressing my
sincerest thanks to allmy faculties whose teachings gave me
conceptual understanding and clarity ofcomprehension,
which ultimately made my job more easy. Credit also goes to
all myfriends whose encouragement kept me in good stead.
Their continuous support hasgiven me the strength and
confidence to complete the project without any difficulty. Last
of all but not the least I would like to acknowledge my
gratitude to therespondents without whom this survey would
have been incomplete. I am also thankful to authority of
Airtel & Vodafone for providing me the information.
3. 3. Projectsformba.blogspot.comCONTENT 1.
Acknowledgement 2. Contents 3. Declaration 4. objectives
of the study 5. introduction of the topic Telecom sector in
India Airtel Vodafone Background Company profile of
Airtel The magic Comparison between marketing strategy
of Bharti Airtel and Vodafone 6. Research Methodology

Type of research methodology Data collection method

Method of collection 7. Data Analysis and Interpretation 8.
Swot analysis 9. Suggestion & Conclusion 10.
Recommendations 11. Bibliography 12. Questionnaire
4. 4. DeclarationI,
.. being a student of MBA 2 nd yr. of Sri
Balaji College ofEngineering & Technology, Jaipur.
(SBCET),. Hereby declares that the project reportunder title
Comparative Analysis of Marketing Strategies of Vodafone
& Airtel. Is myown work it is the analysis of the big scale
sector of communication. This projectinvolves the big scale
services involved in telecommunication sector provided by
Airteland Vodafone to its customers. The survey was
conducted so as to analyze the big scalesector prevailing in
the current industry and the improvement that can be made
upon it.All care has been taken to keep this report error free
and I sincerely regret for any unintendeddiscrepancies that
might have crept into this report. I shall be highly obliged if
errors (if any) bebrought to my attention.Thank You
STUDY Every organization has to achieve its organization
goals. For this it is very essential for an organization to know
about the view of consumers and their competitive products.
This survey research may be also aimed as to estimate
potential buyer for the product. The objective of the study is
as under:-1. To identify the difference between market
performance of Airtel industry and Vodafone.2. To study the
market of Airtel Industry and Vodafone on big scale
telecommunication sector.3. To compare various parameters
of marketing strategies, manufacturing process, technology
adopted production policy, advertising, collaboration, export

scenario, future prospect for the two companies and

government policies.4. To study customer buying behavior
and factors which influence the purchase decision
process.5. To know how the company has been successful
in encountering the aggressive marketing strategies of
6. 6. Projectsformba.blogspot.comTelecom Sector In IndiaThan
125 million telephones network is one of the largest
communication networks inworld, which continues to grow at
a blistering pace.The rapid growth in the telecom sector can
be attributed to the various pro-active andpositive policy
measures taken by the government as well as the dynamic
andentrepreneurial spirit of the various telecom service
providers both in private and publicsector. The telecom
sector has shown impressive growth during the past decade.
Today,moreTwo striking features of this growth viz.
increasing preference for mobile phones andhigher
contribution of private sector in the incremental growth have
predominated thetelecom sector. The share of mobile
phones (including WLL mobile) has overtaken theshare of
landlines with 62% in the total number of phones. The
private sectors contributionis also increasing rapidly.
Currently more than 30 lakh phones are being added each
monthand it is targeted that by the end of 2010 the total
number of phones may reach a level of350 million taking the
tele-density to more than 30% which is currently at 24.63%.
Network Expansion: The total number of telephone
subscribers has reached 281.62million at the end of January
2010 as compared to 232.87 million in July 2009. The
overallTeledensity has increased to 23.63% in January 2010
as compared to 21.20% in August2009.Wireless Service:

The wireless segment saw a surge of 78.77 million

subscribers lastmonth compared to 78.17 million in Mar.
2010. This pushed the total wireless subscribersbase to
282.40 million by Apr. 31 2010.
7. 7. Projectsformba.blogspot.comWire line Subscribers: The
wire line segment subscriber base stood at 39.73 million
witha decrease of 0.16 million at the end of Apr.
2010.Teledensity: The gross subscriber base reached
206.83 million at the end of March 2009.The Teledensity is
24.63%at the end of Apr. 2010 as compared to 18.31% at
the end ofMarch 2009, registering an increase of
6%.Increasing Role of Private Sector: The private sector has
played a significant role in thegrowth of telecom sector. The
share of private sector has risen to 85 per cent in
December2009 from 64.14 per cent in November 2008.Tariff
Rebalancing Measures: There has been a dramatic fall in
the tariffs due toincreased competition. The minimum
effective charges for local calls have fallenconsiderably in
recent months especially for cellular service. The long
distance domestic aswell as international charges have also
fallen considerably.Telecom Regulatory Authority of India
(TRAI): TRAI was established under theTelecom Regulatory
Authority of India Act, 1997 enacted on March 28,1997. The
goalsand objectives of TRAI are focused towards providing
a regulatory framework thatfacilitates achievement of the
objectives of New Technology Policy (NTP) 1999.TRAI has
endeavored to encourage greater corporation in the telecom
sector together withbetter quality and affordable prices.
8. 8. AIRTELAirtel is a brand of
telecommunication services in India operated by Bharti
Airtel.Airtel is the largest cellular service provider in India in

terms of number ofsubscribers. Bharti Airtel owns the Airtel

brand and provides the following servicesunder the brand
name Airtel: Mobile Services (using GSM Technology),
Broadband& Telephone Services (Fixed line, Internet
Connectivity(DSL) and Leased Line),Long Distance
Services and Enterprise Services (Telecommunications
Consultingfor corporates). It has presence in all 23 circles of
the country and covers 71% of thecurrent population (as of
FY07).Leading international telecommunication companies
such as Vodafone and SingTelheld partial stakes in Bharti
ESSARVodafone Essar, previously Hutchison Essar is a
cellular operator in India that covers 16telecom circles in
India Despite the official name being Vodafone Essar, its
products aresimply branded Vodafone. It offers both prepaid
and postpaid GSM cellular phonecoverage throughout India
and is especially strong in the major metros.Vodafone Essar
provides 2G services based on 900 MHz and 1800 MHz
digital GSMtechnology, offering voice and data services in
16 of the countrys 23 license areas.Vodafone Essar,
previously Hutchison Essar is a cellular operator in India that
covers 16telecom circles in India . Despite the official name
being Vodafone Essar, its products aresimply branded
Vodafone. It offers both prepaid and postpaid GSM cellular
phonecoverage throughout India and is especially strong in
the major metros.Vodafone Essar provides 2G services
based on 900 MHz and 1800 MHz digital GSMtechnology,
offering voice and data services in 16 of the countrys 23
license areas.

10. Projectsformba.blogspot.comintroduction of the
project is an extensive report on how the Airtel Company
markets its strategies andhow the company has been able in
tackling the present tough competition and how it isscooping
up by the allegations of the quality of its products. The report
begins with thehistory of the products and the introduction of
the Airtel Company. This report alsocontains the basic
marketing strategies that are used by the Airtel Company
ofmanufacturing process, technology, production policy,
advertising, collaboration, exportscenario, future prospect
and government policies. The report includes some of the
keysalient features of market trend issues.In todays world of
cutthroat fierce competition, it is very essential to not only
exist butalso to excel in the market. Todays market is
enormously more complex. Hence forth,to survive in the
market, the company not only needs to maximize its profit
but alsoneeds to satisfy its customers and should try to build
upon from there.
12. Projectsformba.blogspot.comCOMPANY PROFILE
13. Projectsformba.blogspot.comVision"As we spread
wings to expand our capabilities and explore new horizons,
the fundamental focusremains unchanged: seek out the best
technology in the world and put it at the service of
ourultimate user: our customer."These are the premise on
which Bharti Enterprises has based its entire plan of
action.Bharti Enterprises has been at the forefront of
technology and has revolutionizedtelecommunications with
its world-class products and services.Established in 1985,

Bharti has been a pioneering force in the telecom sector.

With many firsts andinnovations to its credit, ranging from
being the first mobile service in Jaipur, first private
basictelephone service provider in the country, first Indian
company to provide comprehensive telecomservices outside
India in Seychelles and first private sector service provider
to launch NationalLong Distance Services in India. Bharti
had approximately 3.21 million total customers nearly2.88
million mobile and 334,000 fixed line customers.Its services
sector businesses include mobile operations in Andhra
Pradesh, Chennai, Jaipur,Gujarat, Haryana, Himachal
Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh
circle,Maharashtra circle, Mumbai, Punjab, Tamil Nadu and
Uttar Pradesh (West) circle. In addition, italso has fixed-line
operations in the states of Madhya Pradesh and
Chhattisgarh, Haryana, Jaipur,Karnataka and Tamil Nadu
and nationwide broadband and long distance
networks.Bharti has recently launched national long
distance services by offering data transmission servicesand
voice transmission services for calls originating and
terminating on most of Indias mobilenetworks.The Company
is also implementing a submarine cable project connecting
Chennai-Singapore forproviding international
bandwidth.Bharti Enterprises also manufactures and exports
telephone terminals and cordless phones. Apartfrom being
the largest manufacturer of telephone instruments, it is also
the first telecom companyto export its products to the
USA.Bharti Tele-Ventures strategic objective is to capitalize
on the growth opportunities that theCompany believes are
available in the Indian telecommunications market and
consolidate its

14. position to be the
leading integrated telecommunications services provider in
key markets in India, with a focus on providing mobile
services. The Company has developed the following
strategies to achieve its strategic objective: Focus on
maximizing revenues and margins; Capture maximum
telecommunications revenue potential with minimum
geographical coverage; Offer multiple telecommunications
services to provide customers with a "one-stop shop"
solution; Position itself to tap data transmission
opportunities and offer advanced mobile data services;
Focus on satisfying and retaining customers by ensuring
high level of customer satisfaction; Leverage strengths of its
strategic and financial partners; and Emphasize on human
resource development to achieve operational efficiencies.
15. Businesses Bharti
Tele-Ventures current businesses include - Mobile services
Fixed-line National and international long distance services
VSAT, Internet services and network solutions Broadband
services with DSL and Wi-Fi network Competitive Strengths
Bharti Tele-Ventures believes that the following elements will
contribute to the Companys success as an integrated
telecommunication services provider in India and will
provide the Company with a solid foundation to execute its
business strategy: Nationwide Footprint - approximately
92% of Indias total mobile subscribers resided in the
Companys fifteen mobile circles. These 15 circles
collectively accounted for approximately 56% of Indias land
mass; Focus on telecommunications to enable the
Company to better anticipate industry trends and capitalize
on new telecommunications-related business opportunities.

The strong brand name recognition and a reputation for

offering high quality service to its customers; Quality
management team with vision and proven execution skills;
and The Companys strong relationships with international
strategic and financial investors such as SingTel, Warburg
Pincus, International Finance Corporation, Asian
Infrastructure Fund Group and New York Life Insurance.
16. Projectsformba.blogspot.comBrand
Architecture:Bharti is working on a complex three-layered
branding architecture to: Create specific brands for each
service, Build sub-brands within each of these services and
Use Bharti as the mother brand providing the group its
corporate identity as well asdefining its goal to become a
national builder of telecoms infrastructure.
TOUCHTEL INDIA ONE (Cellular (Basic Service (National
Long Operations) Operations) Distance)Airtel - The flagship
brand for cellular operations all across the
Indiancountry.Touchtel - The brand earmarked for basic
service operations.India One - The brand for national long
distance (NLD) telephonyThough the costs of creating new
brands are heavy but the group wants tocreate distinct
independent brands to address different customers
18. Projectsformba.blogspot.comBrand Strategy:To
understand the brand strategy, lets first look at the brand
building exercise associated withAirtel a brand that had to
be repositioned recently to address new needs in the
market.When the brand was launched seven years ago,
cellular telephony wasnt a mass market by anymeans. For
the average consumer, owning a cellular phone was

expensive as tariff rates (at Rs 8 aminute) as well as

instrument prices were steep sometimes as much as
buying a second-handcar.Bharti could have addressed the
customer by rationally explaining to him the economic
advantageof using a mobile phone. But Sachdev says that
such a strategy would not have worked for thesimple reason
that the value from using the phone at the time was not
commensurate with the cost.Instead of the valueproposition model, we decided to address the sensory
benefit it gave to thecustomer as the main selling tack. The
idea was to become a badge value brand, he explains.So
the Airtel leadership series campaign was launched
showing successful men with theirlaptops and in their deluxe
cars using the mobile phone. In simple terms, it meant Airtel
waspositioned as an inspirational brand that was meant for
leaders, for customers who stood out in acrowd.Did it work?
Repeated surveys following the launch showed that there
were three core benefits thatwere clearly associated with the
brand leadership, dynamism and performance.These
were valuable qualities, but they only took Airtel far enough
to establish its presence in themarket. As tariffs started
dropping, it became necessary for Airtel to appeal to a wider
audience.And the various brand-tracking exercises showed
that despite all these good things, there was noemotional
dimension to the brand it was perceived as cold, distant
and efficient.Sachdev and his team realized that in a
business in which customer relationships were the core
thiscould be a major weakness. The reason with tariffs
identical to competitor Vodafone telecomm androughly the
same level of service and schemes, it had now become

important for Bharti tohumanize Airtel and use that

relationship as a major differentiation.
19. Projectsformba.blogspot.comThe brand had
become something like Lufthansa cold and efficient.
What they needed was tobecome Singapore Airlines,
efficient but also human. A change in tack was important
because thiswas a time when the cellular market was
changing.The leadership series was okay when you were
wooing the crme de la crme of society. Once youreached
them you had to expand the market so there was need to
address to new customers.By that time, Bharti was already
the leading cellular subscriber in Jaipur with a base of 3.77
lakh(it now has 1.8 million customers). And with tariffs
becoming more affordable as cellcompanies started
cutting prices it was time to expand the market.How could
Bharti leverage this leadership position down the value
chain? Surveys showed that theconcept of leadership in the
customers minds was also changing. Leadership did not
meandirecting subordinates to execute orders but to work
along with a team to achieve commonobjectives it was,
again, a relationship game that needed to be reflected in the
Airtel brand.Also, a survey showed that 50 per cent of the
new customers choose a mobile phone brand mostlythrough
word-of-mouth endorsements from friends, family or
colleagues. Thus, existing customerswere an important tool
for market expansion and Bharti now focused on building
closerrelationships with them.That is precisely what the
brand tried to achieve through its new positioning under the
AirtelTouch Tomorrow brand campaign. This set of
campaigns portrayed mobile users surrounded bycaring
family members. Says Sachdev: The new campaign and

positioning was designed tohighlight the relationship angle

and make the brand softer and more sensitive.As it looks to
expand its cellular services nationwide to eight new circles
apart from the seven inwhich it already operates Bharti is
now realizing that there are new compulsions to rework
theAirtel brand, and a new exercise is being launched to this
effect. Right now, the company isunwilling to discuss the
new positioning in detail. But broadly, the focus is on
positioning Airtel asa power brand with numerous regional
sub-brands reflecting customer needs in various parts of
20. Projectsformba.blogspot.comIf Airtel is becoming
more humane and more sensitive as a brand, Bharti has
also understood thatone common brand for all cellular
operations might not always work in urban markets that are
nowgetting increasingly saturated.To bring in new
customers, the company decided that it needed to segment
the market. One suchexperiment, launched last year, is
Youtopia, a brand aimed at the youth in the 14 to 19 age
bracketand for those who are young at heart. With its
earlier positioning, Airtel was perceived as abrand for the
well-heeled older customer; there was nothing for younger
people. With Youtopia,Airtel hoped to reverse that.In order to
deliver the concept, Airtel offered rock bottom tariff rates (25
paise for 30 seconds) atnight to Youtopia customers a
time when they make the maximum number of calls. It also
setup merchandising exercises around the scheme like a
special portal for young people to buythings or bid for
goods.The company is now looking at offering other
services at affordable prices to this segment whichinclude
music downloads on the mobile and bundling SMS rates

with normal calls to make itcheaper for young people to

use.The other experiment that Bharti has worked on is to go
in for product segmentation through theTango brand name.
The brand was created to offer mobile users Internetinterface services or whatis known as WAP (Wireless
Application Protocol).The idea was to bring Internet and
mobile in perfect harmony. The name was chosen from
thepopular movie title It Takes Two to Tango: basically, you
need the two services to tango to offercustomers a new
choice, says Sachdev.This, however, had less to do with the
branding exercise as with inefficiency of service
(accusinglyslow download speeds) and the limited utility of
WAP services.Subsequently, the ads were withdrawn, but
the company re-iterated that the branding exercisecould be
revived because Tango will be the brand to offer GPRS
services or permanent Internetconnectivity on the mobile
phone which Airtel is expected to launch soon.
21. The Magic Perhaps
the more ambitious experiment has been with Magic the
pre-paid card. The idea was to make the brand affordable,
accessible and, most importantly, feasible as a means of
expanding the market even faster. PHASE I Magic was
aimed at bringing in infrequent users of a mobile phone into
the market and assure him that he would have to pay only if
he made a call. Such a customer used the phone sparingly
mostly for emergencies and was not willing to pick up
a normal mobile connection with its relatively high rentals
(pre-paid cards do not include rental charges). To achieve its
objectives Bharti did three things. One, the product was
made available at prices ranging from Rs 300 to Rs 3,000
with no strings attached and was simple to operate. Two,

the product was made accessible and distributed through

small stores, telephone booths and even kirana shops so
that the offering was well within arms reach. Third, to make
the product more approachable to the customer, the
company came with vernacular ad campaigns Like Magic
Daalo Say Hello which appealed to local sensibilities.
22. Projectsformba.blogspot.comThis apart, the
company roped in Karisma Kapoor and Shah Rukh Khan for
a major ad campaignall across Jaipur, a ruse that saw the
number of subscribers go up from 5.47 lakh to 1.2
milliontodasy, overtaking Essars branded pre-paid card
Speed, which was launched much ahead ofMagic. The
company is now re-working its Magic strategy even
further.Earlier, the branding strategy was aimed at roping in
only interested customers that is,customers who were
already inclined to opt for mobile services. But now, with
basic serviceproviders having been allowed limited mobility
at far cheaper rates, mobile service providers couldfind
themselves under threat again.That is why the new exercise
is aimed at co-opting non-adopters. While the exact strategy
is underwraps, insiders say the new branding strategy would
be aimed at offering them value which theyhad not
perceived would be available from using a pre-paid card.
23. PHASE II - Bharti
used Airtel Magic to build a strong value proposition and
accelerate market expansion through Indias first national
pre-paid card TV brand campaign First time ever in India any pre-paid card brand goes on TV A combination of the
film genre exposed through the TV medium designed to
connect with the masses of India Youth based - romance
driven strategy platform makes the value proposition of Airtel

Magic - Mumkin Hai come alive All elements - user

imagery, context, tone & language created to connect the
category to the lives of the SEC B & SEC C segment the
middle class non-mobile user. Airtel Magic positions itself
on the platform of being excellent for emergency situations increasing productivity as a part of everyday life. Sharukh
Khan makes everything in life possible while romancing
pretty Kareena Kapoor with Airtel Magic, Indias leading prepaid mobile card. Airtel today unveiled its strategy for market
expansion with the launch of its new Airtel Magic pre-paid
card brand campaign Magic hai to Mumkin hai. The
strategy is targeted at the non- user segment defined as
young adults, 15-30 years of age; in the Sec B & C segment
is aimed at accelerating market expansion. The value
proposition is centered around a persons desire to make all
his / her dreams, ambitions & aspirations instantly possible.
The new campaign for Airtel Magic is all about empowering
millions of Indians to be on top of their lives. The brand is
positioned to be relevant to the mass-market who want to
make all their dreams, hopes & desires come alive
instantly. (At just Rs.300/- per month Airtel Magic is so easy
to buy.) Improving productivity, letting you befriend the world
and opening up new horizons. It gives you the freedom to
control your life in a way never possible before. Indeed,
anything that you think is possible is possible with Airtel
Magic. The new brand slogan Magic hai to Mumkin hai has
been specially created to capture this effectively.
24. Projectsformba.blogspot.comThis strategy is
designed to help us talk to this segment directly in the tone,
manner & language ofthe masses. The Mumkin hai value
proposition will help us expand the market and gain a

higherpercentage of market shares in the process.The brand

ambassadors Shahrukh Khan and Kareena Kapoor embody
this can do or MumkinHai spirit (infact that is the reason
they were selected as brand ambassadors). Sharukh rose
froma TV actor to become Indias top film star and national
heartthrob. Kareenas success is due to herattitude, talent,
hard work and the sheer ability to make a mark in such a
short time. Both thesestars have said Mumkin hai and
made it happen for themselves.The genre of this new
strategy & campaign is Hindi cinema led. This genre
connects millionsacross India. The spirit of romance,
dancing the Indian cinema, well known to most
asBollywood, holds millions of Indians together as one.The
new TV campaign of Airtel Magic crafted in the Hindi film
idiom, magnifies the empoweringoptimism of Mumkin Hai,
in the endearing situation of a boy-girl romance. Where
SharukhKhan, sets his eyes on Kareena Kapoor and wins
her love with the help of Airtel Magic.(Poignantly conveying
that special feeling we all get when a dream is made
possible and a victoryof the heart is won).The strategy &
new brand campaign is targeted at the large untapped base
of intending mobilecustomers from Sec A, B & C. The
estimated addressable market of such customers in the
nexttwo years is around 25 million in Airtels 16 states. The
new strategy aims at correcting theperception that the
mobile category is useful mainly for business or work
related scenarios.The new strategy, brand positioning &
brand slogan is an outcome of an extensive
nationwideresearch and is an integral part of Airtel Magics
new multi-media campaign. The campaign hasbeen created
by Percept Advertising.

25. PHASE III - Bharti
used Airtel Magic to build a strong value proposition and
accelerate market expansion through Indias first national
pre-paid card TV brand campaign First time ever in India any pre-paid card brand gives such freedom to recharge any
value A combination of the film genre exposed through the
TV medium designed to connect with the masses of India
Youth based - romance driven strategy platform makes the
value proposition of Airtel Magic - Aisi azaadi aur kahan?
come alive Sharukh Khan Makes everything in life possible
Airtel today unveiled its strategy for market expansion with
the launch of its new Airtel Magic pre-paid card brand
campaign Magic Hai to Mumkin Hai. . The value
proposition is centered on a persons desire to make all his /
her dreams, ambitions & aspirations instantly possible. The
new campaign for Airtel Magic is all about empowering
millions of Indians to be on top of their lives. The brand is
positioned to be relevant to the mass-market who want to
make all their dreams, hopes & desires come alive
instantly .At a amount of your choice you can recharge your
account with available validity time .Improving productivity,
letting you befriend the world and opening up new horizons.
It gives you the freedom to control your life in a way never
possible before. Indeed, anything that you think is possible
is possible with Airtel Magic. The new brand slogan Aisi
azadi aur kahan has been specially created to capture this
26. Other Brand Building
Initiatives:- The main idea is to stay ahead of competition for
at least six months. Working on the above game plan Bharti
is constantly coming up with newer product offerings for the

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

service. To make the service simpler for customers using
roaming facilities, Airtel has devised common numbers for
subscribers across the country for services like customer
care, food services and cinema amongst others. It will also
launch a unified billing system across circles so, customers
moving from one place to another do not have to close and
then again open new accounts at another place. To assist
customer care personnel to deal with subscriber queries, a
storehouse of 40,000 frequently asked questions and their
answers have been stored on the computers. Bharti
expects that most of its new customers (one estimate is that
it would be 60 to 70 per cent of the total new subscriber
base) would come from the pre-paid card segment. So, they
must be given value-added products and services which
competitors dont provide. Bharti, for the first time for a
cellular operator, has decided to offer roaming services even
to its pre-paid customers, but the facility would be limited to
the region in which they buy the card. To ensure that
customers dont migrate to other competing services (which
is known as churn and ranges from 10 to 15 per cent of the
customer base every month), the company is also working
on a loyalty program. This will offer subscribers tangible
cash benefits depending upon their usage of the phone.
The loyalty program will not be only for a badge value, it will
provide real benefits to customers. The idea is to create an
Airtel community. Another key area which Bharti is
concentrating its attention upon is a new roaming service
launched in Jaipur under which calls of a roaming subscriber
who is visiting the city will be routed directly to his mobile
instead of traveling via his home network.

27. The company also
offers multi-media messaging systems under which
customers having a specialized phone with a in-built camera
can take pictures and e-mail it to friends or store it in the
phone. The cost per picture is between Rs 5 to Rs 7. Bharti
is also aware that it has to make owning a ready-to-use
cellular service much easier than it is today. A key area is to
increase the number of activation centers. Earlier Bharti had
250 Airtel Connect stores which were exclusive outlets (for
its services) and about 250 Airtel Points which were kiosks
in larger shops. Now activation can be done by all of them,
and not only by Connect outlets, all within 15 to 20 minutes.
In comparison, the competition takes two to four hours. Prepaid cards are really catching up with the mobile phone
users and it is actually helping the market to increase. First,
they are easier to obtain and convenient to use. Unlike postpaid, one need not pay security deposits for picking up a
pre-paid card. It is often available even with paanwalas. As
befits a fast-moving consumer service, the game is now
moving beyond price to expanding distribution reach and
servicing a well-spread-out clientele with technology and
strategic alliances. Bharti is focusing on two factors to make
pre-paid cards more attractive. Keeping the entry cost low
for consumers and making recharging more convenience.
Bharti is in the process of launching a new system in
alliance with Mumbai-based Company Venture InfoTech
which will enable a pre-paid card user to renew his
subscription by just swiping a card. The system will not only
save users the hassle of going out and buying a card every
time it expires but also enable mobile companies to reduce
the cost of printing and distributing cards. Bharti

Televentures has tied up with Waiter on wheels, a company

delivering food at home, to reach its Magic pre-paid cards to
subscribers doorsteps. The company is also joining hands
with local grocery shops which will enable users to recharge
their cards by just making a phone call to the shop. Apart
from improving the convenience of recharging, mobile
operators are beefing up their distribution channels. The
company is constantly innovating to enhance the value
proposition for its pre-paid service. They are leveraging
technology to expand their distribution network and deliver
round-the-clock recharge options to its MOTS (Mobile on the
Spot) subscribers. Bharti Cellular has also launched a
special service, CareTouch, for high-value, corporate
customers, providing them with instant, single-point access
for any assistance they require. Customers can dial 777 and
enjoy a slew of services, which includes easier payment of
bills, service on priority basis, and value-added services
without any additional paper work. Bharti
28. Cellular is offering a
range of services without going through an interactive voice
recorder ensuring that they save time. Dedicated
CareTouch executives are expected to assist customers
with any service on priority basis. Besides the regular
proactive reminder calls for bill payment, customers can also
call CareTouch for bill payments at free of cost. Airtel
presented MTV Inbox; the first on-air SMS based
interactive music dedication show exclusively for Airtel and
Airtel Magic customers. Highly interactive VJ based show
with real-time feedback mechanism. Both brands joined
hands to target the high growth youth segment.

29. Projectsformba.blogspot.comBhartis View on its
Branding strategy:-First, brand building efforts in todays
context have to be seen in a more holistic manner.Delivering
value on a sustained basis is perhaps the most potent key to
build a brand that lasts.Unflinching orientation to customer
needs is the second key success factor. Customers (be it
forindustrial products or consumer goods and services)
across the world are more informed and, at thesame time,
becoming more individualistic in their needs and far more
demanding with the passageof time.Pro-active tracking of
shifts in consumer behavior, anticipating redefined or
emerging customerneeds, and then reacting in real-time
are essential to attract and retain customer loyalty a
keyelement of creating brand equity in the present
situation.Customizing the product (and communication of its
benefit) to meet the specific needs of
variousconsumer/customer sub-segments is the third
element in creating brand appreciation.As far as allocation
of time and financial resources are concerned, too many
companies mistakenlyallocate a disproportionate amount on
mere advertising and promotion. This is not to say
thatadvertising and promotion are less relevant. On the
contrary, with more choices and higher mediaclutter,
businesses need to budget for an increasingly higher spend
on their brand promotion butthis has to be undertaken in
tandem with enterprise-wide reengineering of the
businessphilosophy and core design, production, and
delivery operations for the product itself.The positive spin to
this argument is that by first addressing the fundamentals,
the enterprise itselfbecomes more competitive. This can be
the beginning of a virtuous cycle wherein brand

equitycontinues to increase as the enterprise sustains

delivery of an appropriate product or service at anever
increasing value.It is, however, crucial to note that in the
years to come, not only will the cost of building a regionalor
a national (or an international) brand will continue to rise but
also the time taken to do so will belonger and will need
sustained and focused efforts.
30. Projectsformba.blogspot.comComparison of
marketing strategies between Bharti Airtel and Vodafone.
31. Since its launch Vodafone has been adopting
aggressive marketing strategies. Vodafone is the second
largest player and share holder in Communication sector.
However, Vodafone has been giving tough competition to
Bharti Airtel. Bharti Airtel holds the lion share of market of
communication sector. Bharti Airtel is the leader in
Purpose of comparison The sub main purpose of this report
is to compare the marketing Strategies adopted by Bharti
Airtel and its rival Vodafone The comparison shows how
both of the companies have been challenging each other to
gain market shares. Why comparison with vodafone
32. Vodafone making and changing the strategies to
capture the market shares Vodafone odafone. Today deals
in every business of communication sector. With a different
technology Vodafone creates its own market. The
comparison shows how Hutchison Essar Telecom. Captured
22% market share in one month of its first launch of
postpaid subscription in
33. Geographical segment
( Brand

positioning by Bharti Airtel Market segmentation & Peopl

People age group of 20 to 28 year Target marketing
Demographic segment - middle income groupscities India)
Businessmen Youngsters in big cities. Poor or middle
income group people.e who living in cities and towns.
34. Creating brands (Sharukh Positioning &
Promotion for study of poor childrens. Ads and
promotionsSachin Tendulker)
35. Promotion: various schemes for pre-paid and postpaid Product: verities available for various groups Place:
maximum outlets and service centers Price: low price Marketing mix
36. Projectsformba.blogspot.comMARKETING
37. Projectsformba.blogspot.comVodafone target the
rural IndiaThe main targeted customers of Vodafone are
from rural India.By offering cheap and light mobile sets
Vodafone attracts most of the customers of small
villagesand towns.Offering cheap handsetsVodafone offers
cheap and free connections to all customers.The cost for
these sets was Rs-799-849-1099set and onward.Free
support and servicesIn every district and big towns
Vodafone opens its service centers to provide better support
andservices.Strong logistics and supply chainVodafone has
a strong logistic and supply all over India.In every small town
the potential customers can easily purchase the Vodafone
SIM & Sets.Targeting youngsters in metropolitansVodafone
attracts youngsters by offering colorful handset at very low

38. Projectsformba.blogspot.comBRAND
39. Promotion: various schemes for pre-paid and postpaid Product : verities available for various groups
Place : maximum outlets and service centers Price : low
price strategy Ads and promotions Marketing mix
Creating brands Businessmen Positioning Youngsters in
big cities. Poor and middle income groups. People living
in small towns and villages. Demographic segment middle income groups Target marketing Geographical
segment (rural India) Market
40. Services provided by
Bharti Airtel Mobile services with GSM technology Fixedline connections National and international long distance
services VSAT, Internet services and network solutions
Broadband services Services provided by Vodafone.
mobile services with GSM technology fixed-line telephone
services Universal Internetworking VoIP (Voice over
Internet Protocol) Interactive Television Visual
Communication Broadband Portal Telecommuting
METHODOLOGYAchieving accuracy in any research
requires a deep study regarding the subject. The
primeobjective of the project is to compare Airtel with the
existing competitor (Vodafone) in the marketand the impact
of WLL on Airtel.The research methodology adopted is
basically based on primary data via which the most
recentand accurate piece of first hand information could be
collected. Secondary data has been used tosupport primary
data wherever needed.Primary data was collected using the

following techniquesQuestionnaire MethodDirect Interview

Method andObservation MethodThe main tool used was, the
questionnaire method. Further direct interview method,
where a face-to-face formal interview was taken. Lastly
observation method has been continuous with
thequestionnaire method, as one continuously observes the
surrounding environment he works in.
42. Type of Research
SECONDARY DATA Primary data was collected using the
following techniques Questionnaire Method Direct Interview
Method and Observation Method The main tool used was,
the questionnaire method. Further direct interview method,
where a face- to-face formal interview was taken. Lastly
observation method has been continuous with the
questionnaire method, as one continuously observes the
surrounding environment he works in. DATA USED FOR




46. Scope of the study
To conduct this research the target population was the
mobile users, Who are using GSM technology. Targeted
geographic area of Jaipur/ NCR. Sample size of 50 persons
was taken. To these 50 people a questionnaire was given,
the questionnaire was a combination of both open ended
and closed ended questions. The date during which
questionnaires were filled. Some dealers were also
interviewed to know their prospective. Interviews with the
managers of GSM service providers were also conducted.
Finally the collected data and information was analyzed and
compiled to arrive at the conclusion and recommendations
given.Sources of secondary dataUsed to obtain information
on, Bhartis history, current issues, policies, procedures etc,
whereverrequired. Internet Magazines Newspapers
Journals Bharti Circulars Store Bharti News Letters
Vodafone Store Vodafone Ministore
47. Projectsformba.blogspot.comData analysis
48. Subscriber numbers
in (mn) held by Vodafone and Airtel June-05 Sep-06 Dec-07
Mar-08 Dec-08 Mar-09Airtel 3.19 4.62 5.50 6.54 10.98
14.07Vodafone 1.82 4.19 6.24 7.26 10.45 12.99Source
TRAI: 18 16 14 12 10 Airtel 8 Vodafone 6 4 2 0 Dec-06 Jun05 Dec-05 Jun-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

49. Operator Market
share Market share Aug05 June10 Bharti Airtel 19.06 22.49
Vodafone 21.81 16.96 Vodafonecomm 17.03 16.01 Idea
Cellular 10.45 8.49252015 Bharti Airtel vodafone10
Reliance infocomm Idea Cellular50 Market share Aug05
Market share June10
50. Projectsformba.blogspot.comFINDINGS AND
ANALYSISAge Group GraphAs we can see from the above
graph, the people who are in the age group of 21-28 years
are theones who are the maximum users of mobile phones.
This segment is the one which givesmaximum business to
the mobile operators. This segment constitutes the young
executives andother office going people. They are 65% of
the total people who were interviewed. The next agegroup
are thepeople who are 28-35 years old. They are 20% of the
total. They are those who are at home orhave small
business units etc. And the next age group is the youngest
generation who are 15-21
51. Projectsformba.blogspot.comyears old. They are
school and college going students and carry mobile phones
to flaunt. They are15% of the total interviewed
people.Occupation Graph OCCUPATION 10% 15% 20%
OTHERSAs the above graph shows that 55% of the total
people interviewed are working. So, these peopleare the
ones who are the maximum users of mobile phones. They
are the young executives,managers, Tele - callers etc. who
require mobile for their official purposes. The next category
isthe households, who are either housewife, small units
which operate from their homes etc. Theyare 20% of the
whole. The next segment is the students. They are 15% of

the whole. And 10% ofthe whole is categories who are the
52. Projectsformba.blogspot.comService Provider
GraphThese are the total market share of mobile user or
people captured by the mobile providercompany. There two
major company in mobile phone service sector Vodafone
and Airtel whorespectively hold the market share with other
company as 17% and 20% of total market usersegment of
mobile customer.
53. Projectsformba.blogspot.comCustomer Service At
DISSATISFIEDAs the above graph clearly shows that
customer services at Airtel seems poor. 60% of the
peopleare dissatisfied with the customer services provided
by Airtel. They are the ones who have themaximum share in
the market but they are lagging behind in the customer
services. 10% of thepeople were fully dissatisfied with the
customer services of Airtel. This could leave an impact
onthe mind of the consumer. He can even switch over his
brand. 20% of the people seemed partiallysatisfied with the
customer services and only 10% seem to be fully satisfied
with Airtels customerservices, which is a very small amount.
54. Projectsformba.blogspot.comType Of Card
GraphCash cards seemed quite popular among the people
interviewed. 85% of the total mobile userswere having cash
card connections. This means that the cash cards should be
easily and readilyavailable in the local markets. Airtel should
make sure that Magic is available in each and everynook
and corner of the market. 15% of the people were having
sim connections which is theregular bill.

55. Projectsformba.blogspot.comMonthly expense
graphPeople on an average spend RS 500 per month as
their mobile phone expense. 64% people spend Monthly
Expense 12% 24% Rs 600 Rs 450 Rs 200 64%this amount.
24% people spend RS 300 per month as their monthly
mobile expense. And theremaining 12% had an expense
more than RS 1000, they could the ones having sim
connections orhaving cash cards and having a lot of
business calls on their mobiles.
56. Projectsformba.blogspot.comAwareness About
WLL GraphWLL seemed to be a new word for many of the
people. 45% of the people were not at all aware ofsuch a
technology. So, in order to get the answer for this question
they were first explained theconcept. Only, 55% people
knew what WLL is all about.
57. Projectsformba.blogspot.comAwareness of WLL
Players Graph 80% 70% 60% 50% Vodafone 40% Airtel
30% 20% 10% 0%Vodafone was the brand which was
popular amongst the interviewed people. As Vodafone
haddone so much advertising and has it banners and
hoarding spread all over Jaipur. So, this could beone the
reasons of its popularity. Tata was hardly a known brand in
this new field. Possibly,because of less promotions done by
them as compared to Vodafone.On the basis of analysis of
the questionnaire I have found that the maximum no. of
people whouse mobile phones is in the age group of 20 to
28. Who are the young executives and other officegoers?
They spend a maximum of RS 500 as their mobile
expense.There is more no. of prepared cards than post paid
cards. The mobile users want to spend moneyside by side
than to spend money at the end of the month on a big

bill.Now when I compared Airtel with its competitor from the

point of view of the consumer I foundthat on the basis of
Tariff plan, value added services and billing accuracy Airtel
is at par or ahead
58. Projectsformba.blogspot.comof its competitor but in
the case of customer care and availability they lag behind
therecompetitors. As, Airtel has a hold in the market
because it has the maximum no. of connections, soit must
improve upon it customer services. As far as WLL is
concerned people are aware about itbut not many people
are aware about Tata. They only know more about
Vodafone. People at thispoint of time are not interested to
switch over from GSM to WLL
59. Projectsformba.blogspot.comCustomer Response
towards Questionnaire
60. Idea TATA Reliance Vodafone Which Brand you, prefer
61. More than 10 years Consumers response shown
in chart for usage 5-10 Years 2-5 Years 0-2 How long you have
been using this Product?
62. No 33% YES NO 67% Here are the customer
responses about the use of the Airtel product and other
product rather than Airtel. in this segment of survey 67 % of
customer are aspire with Airtel and 33 % shown interest in
other telecom products in urban areas. Are you using other
product with Airtel?
63. Projectsformba.blogspot.comDo you collect any
information search before makingpurchase? 70% 66% 60%

50% 40% 34% information 30% search 20% 10% 0% YES

Strengths Being one of the largest companies in India the
company has achieved a degree of focus in its core
business of its products. It has a strong brand name,
superior quality products and an enviable distribution
network. It has a clear and well-defined organization
structure and limits of financial authority. Increase in
advertisement spends affect the companys margins. The
companys bottom line falls victim to the bloated and highly
paid workforce, which affects its margins. Weakness: Little
efforts over the Advertising of products. Distribution channel
is not accurately categorized. Premium priced products,
hence cant compete in low price segment. No separate
strategy for rural market. Opportunities: The companys
financial performance can receive a major boost from its
cost reduction efforts. There is a lot of scope of product and
market diversification. Exports of products will also have
huge chances in the coming years. Airtels business has
ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring
about growth.
65. Threats The
slowdown in the economy has restricted topline growth of
most FMCG majors and for Airtel also it will be difficult to
maintain historical growth rates in such a depressed
scenario. Companys major raw materials are influenced by
government policies / controls as well as vagaries of the
monsoons. Fluctuations in the prices of raw materials would
have significant impact on costs and margins of the

company. Moreover, inordinate hike in Broad Band Internet

products would also increases companys production and
distribution cost.
project is without limitations and it becomes essential to
figure out the various constraints thatwe underwent during
the study. The following points in this direction would add to
our totaldeliberations:-1. During the study, on many
occasions the respondent groups gave us a cold shoulder.2.
The respondents from whom primary data was gathered any
times displayed completeignorance about the complete
branded range, which was being studied.3. Lack of time is
the basic limitation in the project.4. Some retailers/whole
sellers refuse to cooperate with the queries.5. Some
retailers/wholesalers gave biased or incomplete information
regarding the study.6. Money played a vital factor in the
whole project duration.7. Lack of proper information and
experience due to short period of time.8. Some retailers did
not answer all the questions or do not have time to answer.
SUGGESTIONSFollowing are the few suggestions to
AIRTEL for improving the market share and image of
theproducts concerned.1. PRODUCT*Modification must be
brought about in AIRTEL, in terms of quality. Its demand
should beincreased.2. PLACE* The brands must be made
available easily in, PCO & general stores.3.
PROMOTION*Company must undertake extensive
promotional activities like advertisements must be
releasedin different Medias to create brand awareness.*Free
samples should be distributed among the prospects. Sales
promotion tools like gifts, contestsand coupons must be

given to retailers as well as customers and prospects.*

Catalogues should be distributed among customers.4.
PRICE* Price should be as competitive as other company
maintains* Distribution of new connection should be in reach
of customer pocket
analyzing the findings of the research, I can conclude that
Airtel lagged behind itscompetitors as far as customer
service and availability is concerned. The maximum no. of
peoplewho use the mobile is in the age group of 20 to 28.
Cash cards are the most popular type of mobileconnections,
as they are consumer friendly and recharging the connection
is not a problem.Maximum no. of people spends RS 500 on
their connections. As Airtel is the only company havingthe
maximum no of mobile connections so it must seriously look
into the loop holes of the existingcustomer service
department.As we know that now Airtel has already
launched its product with logo Aisi azaadi aur kahanhas
already became popular in market. So we can say that in
spite of so many competitors in themarket Airtel is having a
good position just because every time, it tries its best to
understand theneed of its important customers.From the
comparison and deep analysis of every aspect of business
of both the companies we canconclude that bharti Airtel has
to more work in every field of communication business.It is
the time not only to survive but to sustain in the market for a
long time.For this Airtel has to work on its all marketing
strategies, marketing, promotion, brand image.etc.Airtel has
to take Vodafone. Very seriously and update its own
strategies from time to time andwhen the need arises.With
aggressive marketing strategies Airtel has to target rural

India as 70% of population of Indialives in these areas.The

other segment may be costumers of all age groups.
RECOMMENDATIONS I have made following
recommendation to the company after doing the summer
training there: The company should modify its credit policy
as they only target the cash paying customers who are not
easy to trace. The company should emphasis more on the
quality of Pharmaceuticals Products it was mostly claimed
by the exporters that their receipts from company doesnt
matches with the samples quality shown before giving
orders. The company should make its marketing strategy
flexible enough in order to face competition. The company
should keep an eye on the proper delivery of the goods to
exporter on time, as it has been recommended by exporters
to make the delivery on time. The company rate policy must
be flexible enough to catch new customers because if
company offers lower price to a new customer then he may
continue buy the goods and can be a permanent customer
for the company. The company should offers such rate in
the market so that it may able to catch a bigger market share
and it should be able to compete with the local traders and
commission agents while having a brand name. The
company should take the opinion of exporters from time to
time to know what problems they are facing from the
companys side. And if any change they require in present
supplying condition?
this project report, while finalizing and for analyzing quality
problem in details the followingBooks, Magazines/Journals
and Web Sites have been referred. All the material detailed

belowprovides effective help and a guiding layout while

designing this text report.Books :Principles of Marketing
Philip Kotler & Kevin keller edi. 12Market Research D.D.
SharmaResearch Methodology C.R. KothariWebsites:
2004062602180700.htm, Mumbai, June 25,
1104_stop-roaming.htm, 4 November 2003 Domain, Missed
Call, at http://www.domainb
71. Projectsformba.blogspot.comMagazines:Airtel (2
July to 10 July 2004)Airtel India page of HT paper (Thursday
1December 2004)Cowards India (26 December to 4 Jan.
72. Idea Q.2 How long you have been using this
Product? TATA Reliance Vodafone Airtel Idea Q. 3
Among them, which Brand you, prefer most? TATA
Reliance Vodafone Airtel Idea Q.2 which mobile
company services you are using now a days? TATA
Reliance Vodafone
QUESTIONNAIRE Dear Sir/Madam, I Shakun Chugh
student of MBA of Sri Balaji College of Engineering and
Technology, Jaipur. I am doing my project on Comparative
analysis of marketing strategy of Vodafone and Airtel.
Please give your precious time for filling these details. Q.1
Name those companies which provide telecom services now
a days?
73. Add on features or ergonomics of design Vehicle
performance Value for money After sales services and
parts, network Price and Discount Brand credibility No
Q.8 What are the features you look for in a product before

making purchase decision? Give preferences (1-Highest, 6least) Yes No Q.5 Do you collect any information search
before making purchase? Yes More than 10 years Q.3 Are
you using other product instead of Airtel? 5-10 Years 2-5
Years 0-2
74. Product as per expectation Maintenance After
Sale service 24 hrs call center services Q.12 How would
you rate Airtel performance as your expectation on 5 points
scale (5 Highest?) 1 2 3 4 5 By Camp By Ad Films
Customer Care Projectsformba.blogspot.comQ.10 If you
have to purchase a new connection or product in near
future, which Brand will you go for and why?
_ Q.11 Are you aware of various promotional activities being
run by Airtel, if yes then how? Are you satisfied with these
promotional activities? Very Satisfied Somewhat Not
Satisfied Satisfied satisfied
75. Projectsformba.blogspot.comQ.13 What are you
suggestions for improving the product quality, service
availability and parts availability?