Documentos de Académico
Documentos de Profesional
Documentos de Cultura
A
Project Report
On
Marketing Strategies of Airtel
Submitted for
In partial fulfillment of award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
(Rajasthan Technical University, Kota)
Session : 2015-2017
I acknowledge the sincere assistance provided to me from several rather unexpected quarters
during the course of execution of this study. It would be a mammoth task to place on record
my gratitude to each and every one of them but a whole hearted attempt would be made
nevertheless, least I be branded ungrateful.
Where the emotions are involved words cease to work. I am deeply in debt to MRS. NEHA
MATHUR (FACULTY DKSGOI) for her encouragement, affections, valuable advice and
guidance that helped me to complete this project successfully.
EXECUTIVE SUMMARY
The project aims at understanding the Marketing strategies at Airtel and its impact on the
TABLE OF CONTENTS
3. INTRODUCTION
4. TARIFF STRUCTURE
5. PROMOTIONAL STRATEGY
6. MARKET SITUATION
7. COMPETITIVE SITUATION
9. OBJECTIVE
11. LIMITATION
13. CONCLUSION
14. BIBLIOGRAPHY
15. QUESTIONNAIRE
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India.
With more than 33 million users (both CDMA and GSM), wireless is the principal growth
engine of the Indian telecom industry. Given the current growth trends, cellular connections
in India will surpass fixed line by late 2004/early 2005. Intense competition between the four
main private groups - Bharti, Vodafone, Tata and Reliance and with the State sector
incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been
almost 74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting
in a boom time for the consumers.
The Government has played a key enabling role by deregulating and liberalising the industry,
ushering in competition and paving the way for growth. While there were regulatory
irregularities earlier, resulting in litigation, these have all been addressed now. Customs
duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent.
The Indian government has merged the IT and Telecom Ministries to speed up reforms and
decision on the Communication Convergence Bill to enable the common regulation of the
Internet, broadcasting and telecoms will be taken after the new Government assumes
responsibilities in may this year. An independent regulatory body (TRAI) and dispute
settlement body (TDSAT) is fully functional.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Vodafone, which operates in only eighteen circles, is the third largest operator with a
subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates
in Mumbai and Delhi, BSNL has been a very aggressive player in the market. "Cellular
operators who expected BSNL to go the MTNL way, were taken by surprise and did not take
effective steps to counter it, till it was too late in the day," said a telecom analyst.
Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a
7.92% growth, the highest growth in any month so far, during March 2005. Year-on-year, the
cellular subscriber base in the country has almost doubled in March 2005, and is expanding
at the rate of 25% per year thereafter.
The cellular subscriber club expanded by 21.31 lakh last month. This is much higher than 5.9
lakh subscribers added in February 2005 and 2.13 lakh in January 2005. Idea, which operates
in Seven circles, is the fourth largest operator with a subscriber base of 17.80 lakh, higher
than BPL's 11.31 lakh subscribers across four circles. The subscriber numbers per operator
drop sharply with the sixth largest operator, Spice Communications, having a subscriber base
of 9.40 lakh, followed by Reliance Telecom's 8.9 lakh subscribers. MTNL is the ninth largest
operator, with a base of 8.32 lakh subscribers.
While the subscriber base-jumped by 3.38% to 44.39 lakh in the metros, subscriber base of
category A circles of Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu
jumped by 10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab, Haryana, Uttar
Pradesh (West), Uttar Pradesh (East), Rajasthan, Madhya Pradesh and West Bengal recorded
a jump of 10.69%, with a total base of 33.74 lakh subscribers. Circle C has reported 12.74 %
growth with subscriber numbers jumping to 5.08 lakh.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Among the metros, while Mumbai added 1,63,180 subscribers, higher than the 1,58,646
added by Delhi, the Capital's cellular subscriber base of over 80 lakh is still higher than
Mumbai's 66.89 lakh. While the cellular industry has been on roll for the first three quarters
of the previous financial year with an average of 16.75 lakh monthly additions in the third
quarter, the first two months of 2007 had seen the growth slowing down.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
With a population of around 1.1 billion growing at roughly 1.7 per cent a year, India is
potentially one of the most exciting GSM markets in the world. After two rather difficult
years, the past 12 months have seen the region's promise beginning to come to fruition. Much
of this success can be attributed to the stabilisation of the licensing and regulatory
environment.
India's telecommunications have undergone a steady liberalisation since 1994 when the
Indian government first sought private investment in the sector. More significant
liberalisation followed in 1996 with the licensing of new local fixed line and mobile service
providers. However, it has been the government's New Telecom Policy (1999) that has had
the most radical impact on the development of GSM services. 'The policy's mission statement
is 'affordable communications for all', There is a genuine commitment to creating a modern
and efficient communications infrastructure that takes account of the convergence of
telecom, IT and media. In addition, the policy places significant emphasis on greater
competition for both fixed and mobile services.'
Competition in the mobile sector has already had a visible impact on prices with calls
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
currently costing less than 9 cents per minute. This means that service costs have fallen by 60
per cent since the first GSM networks became live in 1995. It also helps explain why a recent
Telecom Asia survey revealed that more than 70 per cent of Indian mobile subscribers felt
that prices were now at a reasonable level.
One of the challenges facing GSM operators in India is the diversity of the coverage regions
-from remote rural regions to some of the most densely populated metropolitan areas in the
world. India has more than 40 networks, which cover the seven largest cities, over 7000
towns and several Lacs villages. Such depth of coverage has required enormous investment
from India's operators. It is estimated that more than Rs200 billion had been invested in
India's GSM industry by mid-2000, a figure that is set to be supplemented by a further Rs.
300 billion over the next five years.
The good news is that subscriber growth is beginning to look healthy. With India's low PC
penetration and high average Internet usage -at 14-20 hours a month per user it is comparable
to the US -the market for mobile data and m-commerce looks extremely promising. WAP
services have already been launched in the subcontinent and the first GPRS networks are in
the process of being rolled out. In the year ahead, GSM India will work with its members to
realise the potential of early packet services in anticipation of the award of 3GSM licences.
But the potential to do much better exists as there is still huge demand in the sector.
Ramachandran said the sector was still losing money but declined to elaborate. Sales jumped
because of a doubling of the GSM (Global System of Mobile Communications) user base as
more people entered the flourishing market thanks to one of the lowest call rates in the world.
But the monthly average revenue per user, a key measure of profitability, declined 17.4
percent to 432 rupees in the fourth quarter compared with 523 rupees in the first quarter due
to a cut in tariffs and excessive competition among companies. Growth slowing, demand
untapped: The association has not included the financial performance and the GSM-user base
of state-run firms Bharat Sanchar Nigam Ltd, the second-ranked player, and Mahanagar
Telephone Nigam Ltd, Ramachandran said. There are 150 million GSM customers and more
than 96 million users of the rival CDMA-based mobile services in the country.
The pace of growth in monthly additions is slowing after just 1.25 million users took up the
service in April compared with
1.9 million in the previous month and 1.63 million in February. Ramachandran blamed the
slowdown on a majority of small GSM operators being unable to expand networks into rural
swathes where demand remained largely untapped.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Our surpluses are not enough to cover costs of network expansion and financing charges on
loans. We are making money only to cover operating expenses, he said. Carriers are now
subsidising handset costs to woo users into the underpenetrated industry forecast to have
more than 250 million customers by 2007. Roughly three percent of Indians own a mobile
phone compared with about 20 percent in China. About a dozen firms such as Bharti Airtel
Ltd, 28 percent owned by Singapore Telecommunications, Reliance Infocomm Ltd and the
Indian GSM-unit of Vodafone group battle in the hotly competitive sector.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
GSM operators are not the only ones who are worried about the rapid strides made by
CDMA mobile players Reliance Infocomm and Tata Indicom in the Indian cellular market?
The GSM suppliers both handset and equipment - who incidentally also have their other
foot firmly placed in the CDMA pie, are beginning to lose some sleep over what was earlier
termed as `niche and `minuscule data carriage market by the operators
Apart from the strong success of the two CDMA operators whose networks are based on
code division multiple access (CDMA), the miserable showing of the four global standard for
mobile (GSM) based networks that launched general packet radio service (GPRS) service for
data connectivity in last three years, has the vendors worried. Global mobile Suppliers
Association (GSA) now believes that even though India will primarily remain a voice traffic-
led market in next two-three years, the data traffic component will grow by 25-30 per cent,
an optimism that its trying to make GSM operators feel as well.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
EDGE holds the promise of delivering data speeds of around 170-180 kbps (as against the
theoretical speed of around 380 kbps) which, if achieved, promises the launch of many data
applications. The scalable cost of migrating from GPRS to EDGE is not too high and mainly
comprises software upgrades in case of a modern network such as Bharti and Hutch, claimed
chairman of GSA India chapter Rakesh Malik.
Besides, the automatic roaming provided by GSM networks in almost 200 countries is a
power that CDMA doesnt give you. We know for sure that almost 20-25 per cent of the
revenue for some GSM operators comes from roaming customers, he added. But CDMA is
no pushover with Korea and Philippines as the shining jewels in its crown. The first CDMA
2000 1X was commercially deployed in October 2000.
Already, 81 operators have launched 77 CDMA 2000 1X networks whereas nine have
launched services based on 1xEV-DO platform across Asia, the Americas and Europe. At
least, 16 new 1X and six 1xEV-DO networks are scheduled to be deployed in 2004,
according to CDMA Development Group. EV-DO and EV-DV are the next level of evolution
on the CDMA 2000 1X platform, capable of delivering services comparable to 3G WCDMA.
More importantly, WCDMA will spawn a whole new range of full motion audio-video
applications, including video telephony. GSM lobby may continue to remain gung ho over
the future of their technologies over that boosted by the American firms Qualcomm and
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Motorola, but Indian market could well throw an interesting scenario that industry experts
will do well to watch. In the coming months, Reliance plans to offer its CDMA subscribers
much more than what GSM players intend to deliver through their EDGE for their
subscribers.
Who succeeds in this battle for mobile customers eyeballs is most difficult to predict. A
Korea and Japan may not be waiting to happen in India, but India will probably be more like
the Chinese market with both standards co-existing. For now, GSM rules!
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
INTRODUCTION
Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in
telecommunications services. Its subsidiaries operate telecom services across India. Bharti
Airtel is India's leading private sector provider of telecommunications services based on a
strong customer base consisting of 50 million total customers, which constitute, 44.6 million
mobile and 5.4 million fixed line customers, as of March 31, 2007.
Airtel comes to us from Bharti Airtel Limited - a part of the biggest private integrated
telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which
include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also
manufactures and exports telephone terminals and cordless phones. Apart from being the
largest manufacturer of telephone instruments in India, it is also the first company to export
its products to the USA. Bharti has also put its footsteps into Insurance and Retail segment in
collaboration with Multi- National giants. Bharti is the leading cellular service provider, with
a footprint in 23 states covering all four metros and more than 50 million satisfied customers.
S E R V I C E S
Airtel Prepaid
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises,
India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a
new way of life. With a host of great features, also simple to use, Airtel Prepaid makes
everything that you dreamt and believed, possible.
Your account balance is updated on the screen of your handset at the end of each chargeable
call. You can also call 123 from your mobile phone and listen to the voice announcement or
simply dial *123#, press 'OK' or 'YES' button and your account balance will be displayed on
the screen of your handset.
Recharging is Easy. The calling value on your card keeps reducing as you make calls or use
any other chargeable service. Choose the Airtel Prepaid Recharge Coupon thats right for
you, from a variety of tailor made recharge coupons with different denominations, which
are available at a number of outlets across your city. Simply follow the procedure mentioned
below, to recharge your phone.
Prepaid Roaming
Airtel Prepaid comes preactivated with 'National Roaming', so you stay connected no matter
wherever you are. You can also send or receive MMS, check your email and access other
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
GPRS services while roaming in India as you would in your own city. While traveling abroad
you can receive calls & send or receive SMS.
Other Services
Airtel brings you, a wide range of Services that will change the way you communicate. Try
them and discover a whole new world of fun and excitement.
Call waiting, call hold, call divert and Caller Line Identification Presentation all with your
Airtel prepaid connection.
Voice Mail
When your handset is switched off, or youre too busy to answer the phone, Airtel Voicemail
will answer your calls and record a message. The best part is that there's no extra monthly
cost for setting up Voicemail - you just pay for the phone call when you use the service.
Send messages quickly and easily using text, if it's too noisy to talk or you don't have much
time. It's the way to share those interesting one-liners, important reminders and rib-tickling
jokes, with anyone, anytime, anywhere in the world.
Subscription Alerts
Get regular alerts on news, jokes, business, health and films on your Airtel mobile phone
with Subscription Services. SMS <SUB NEWS> to 3333 for News, <SUB JOKE> for Jokes,
<SUB BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU> for
Vaastu tips.
Airtel Live!
Make your mobile the most happening entertainment destination with Airtel Live! Airtel
brings you the latest in entertainment and information services, right on your phone!
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Airtel Live! WAP Services: Download the latest ring tones, games, wallpapers, videos and
much more. You can also get news clips, watch live TV and download full songs on you
phone. To get Airtel Live! settings on your phone, SMS 'Live' to 56465 and save the settings
that you receive as your preferred connection. Airtel Live! Portal can be accessed from you
GPRS enabled phone, by sending a SMS 'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465, and name the service. For e.g. say ring tones to
download your favorite ring tones. You can also choose a variety of content options like Live
Cricket Commentary, latest National / International News, Movie Reviews or Stock Market
Updates.
Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket,
stocks, on your phone at the touch of a few buttons with Airtel Live! SIM based Services on
your SIM card menu. To download new services on your Airtel SIM, choose the "What's
new" option under the "Airtel services" menu.
Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword as an
SMS to 56465! Choose Astrology / Horoscope, Cricket, Bollywood / Hollywood / Indi Pop
Ring tones. In case you need assistance SMS, Help to 56465.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Hello Tunes
Tired of that boring old tring tring on your phone? Well now when a friend calls, you can
make them groove to the hottest new tracks burning up the music charts with Hello Tunes
from Airtel! You get a wide choice of songs in the Popular & New Arrivals categories that are
updated regularly. What's more you can directly call the number for your kind of music, e.g.
call 678005 for English New and 678001 for Hindi New. This would directly take you to
your favorite artist's Hello Tunes listing.
Get the tune you want, all you have to do is call 55055 and follow the simple voice
instructions to copy your favorite Hello Tunes. Once inside the copy feature, just key in the
10-digit Airtel mobile number you want to copy the Hello Tune from and you get the same
Hello Tune assigned to your number.
Buying your favorite Hello Tune or Ring tone is as simple as recharging your phone with talk
time. Simply walk into your nearest Airtel Shop and walk out with your favorite song.
Choose from Bollywood Hits to Indipop Remixes, Hard Rock to Gujrati Garba, Bhajans to
Jazz, Bhangra Beats to foot tapping Tamil Hits from a list of more than 18000 songs.
In case you need assistance, dial '121' - our toll-free number, accessible from anywhere in the
country, even while roaming. You can also send us an SMS to 121 or mail us at
121@airtelindia.com.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
*In case of email, mention your mobile no. like, 9810012345, in the subject of the mail for a
quicker response.
Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative
yet simple new ways to communicate, just when you want to, not just through words but
ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special
people in your special way.
Easy Billing
Enjoy a host of rich features only with Airtel e-bill. Register free on My Airtel section and
view your monthly bill with call details for last three months. Sort your calls between
personal and official or analyze your usage, at the click of a button. To change your tariff
plan call our IVR at 121 and leave a request.
You can choose from a host of convenient payment options only with Airtel. Walk into any
Airtel relationship centre and make your payments by cash or credit card. Drop a cheque at
any of the drop boxes for making payments or simply log on to My Airtel section and pay
instantly through your credit card. You can also opt for easy payment options like:
Standing Instructions
You can give us standing instructions to debit your credit card account for your monthly
Airtel bills. All you have to do is fill the Standing Instruction Form and mail, fax it to us or
drop it any of our relationship centres.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Fill an ECS form and mail, fax it to us or drop it any of our relationship centres to directly
debit your bank account for your monthly Airtel bill.
Airtel has introduced 'Anywhere payment' that offers you the convenience of making
payments while you roam. Walk in to any Airtel Relationship Centre in the country, make
payments by cash or credit card and enjoy uninterrupted Airtel Services.
Credit limit
Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges
in control, keeps track of your usage and ensures that your mobile phone is not misused.
Should you exceed your credit limit, you will be informed via a voice or a non-voice
message to make an interim payment and reduce your account balance below your credit
limit. You may also choose to pay us an additional refundable deposit to enhance your credit
limit or opt for our convenient payment method of Credit Card Standing instruction .You can
also make use of ECS facility.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Enjoy complete clarity when calling with Airtel .It offers you world class technology and
unbreakable network coverage that spans over 23 circles across the country.
GPRS - Roaming
Use Airtel Postpaid's GPRS services, while roaming, to access the internet and office mails
(eg. BlackBerry services), from almost anywhere in India and abroad.
Say it. In more than just words, with Services from Airtel
Airtel brings you a wide range of Services that will change the way you communicate. Try
them and discover a whole new world of fun and excitement.
Conference call
You can hold a teleconference with 5 people simultaneously with Call Conferencing service
from Airtel. In fact, you can set up a conference even when the other five are using a landline
phone. To know more, call customer service at 121.
A missed call alert is a SMS that you will receive for all the calls that you missed. The SMS
will detail the CLI and the time when the call was made. To activate, dial *135*2# then press
the call button and wait for the request to be completed.
Voice Mail
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
When your handset is switched off, or youre too busy to answer the phone, Airtel Voicemail
will answer your calls and record a message. The best part is that there's no extra monthly
cost for setting up Voicemail - you just pay for the phone call when you use the service.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Send messages quickly and easily, using text, if it's too noisy to talk or you don't have much
time. It's the way to Share those interesting one-liners, important reminders and rib-tickling
jokes, with anyone, anytime, anywhere in the world.
Subscription Alerts
Get regular alerts on news, jokes, business, health and films on your Airtel mobile phone
with Subscription Services. SMS <SUB NEWS> for News, <SUB JOKE> for Jokes, <SUB
BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastu tips
to 3333.
Jazz up your messages with pictures, images and video clippings, with MMS from Airtel! To
activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.
Airtel Live!
Make your mobile the most happening entertainment destination with Airtel Live! Airtel
brings you the latest in entertainment and information services, right on your phone!
Airtel Live! WAP Services: Download the latest ringtones, games, wallpapers, videos and
much more. You can also get news clips, watch live TV and download full songs on you
phone! To get Airtel Live! settings on your phone SMS 'Live' to 56465 and save the settings
that you receive as your preferred connection. Airtel Live! Portal can be accessed from you
GPRS enabled phone, by sending a SMS 'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465 and say the name of the service. For e.g. say
Ring tones to download your favourite ring tones. You can also choose a variety of content
options like Live Cricket Commentary, latest National / International News, Movie Reviews
or Stock Market Updates.
Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket,
stocks, on your phone at the touch of a few buttons with Airtel Live! SIM based Services on
your SIM card menu. To download new services on your Airtel SIM, choose the "What's
new" option under the "Airtel services" menu.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword as an
SMS to 56465 ! Choose Astrology / Horoscope, Cricket, Bollywood / Hollywood / Indi Pop
Ring tones. In case you need assistance SMS Help to 56465.
Log on to the internet, with GPRS that allows data transmission at a higher speed. Access e-
mails and internet across Airtel's pan-India presence using 'Mobile Office' with your phone or
a phone and laptop both.
Browse the internet on your mobile phone with Airtel's EDGE services. Enjoy live TV,
enhanced WAP experience and Airtel Data Cards on our high speed network.
Hello Tunes
Tired of that boring old tring tring on your phone? Well now when a friend calls, you can
make them groove to the hottest new tracks burning up the music charts with Hello Tunes
from Airtel! You get a wide choice of songs in the Popular & New Arrivals categories that are
updated regularly. What's more, you can directly call the number for your kind of music, e.g.
call 678005 for English New and 678001 for Hindi New. This would directly take you to
your favourite artist's Hello Tunes listing.
Like a tune you want, all you have to do is call 55055 and follow the simple voice
instructions to copy your favourite Hello Tunes. Once inside the copy feature, just key in the
10-digit Airtel mobile number you want to copy the Hello Tune from and you get the same
Hello Tune assigned to your number.
Forget gifting chocolates, flowers and greeting cards. Say it with a song instead! Gift a Hello
Tune to that special someone. Just call 55055 and choose the song that you want to gift.
Follow the simple voice instructions and key in the 10-digit Airtel mobile number that you
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
want to gift the Hello Tune to. You will get an SMS notification upon successful receipt of
that gift.
Buying your favourite Hello Tune or Ringtone is as simple as recharging your phone with
talktime. Simply walk into your nearest Airtel Shop and walk out with your favourite song.
Choose from Bollywood Hits to Indipop Remixes, Hard Rock to Gujrati Garba, Bhajans to
Jazz, Bhangra Beats to foot tapping Tamil Hits from a list of more than 18000 songs.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
In case you need assistance, dial '121' - our toll-free number, accessible from anywhere in the
country, even while roaming. *In case of email, mention your mobile no. like 9810012345 in
the subject of the mail for a quicker response.
TARIFF STRUCTURE
Prepaid Tariffs
Airtel Prepaid Ready Cellular Card and Recharge Cards are available, all over the city at over
retail outlets including 24-hour outlets. Airtel Prepaid Ready Cellular Card and Recharge
Cards are available, all over the city at over retail outlets including 24-hour outlets.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Other Details
POSTPAID
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Airtel Postpaid allows you to choose from a variety of affordable talk plans, convenient
payment options and host of rich features. So get set to enjoy a world of limitless
possibilities!
This Bill Plan is also available under Advance Rental of Rs. 799 for 2 years.
Local Pack
Airtel to other local mobiles (non Airtel) At Rs 1 / min
Monthly rental Rs 25 per months/-
STD Pack
Airtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 / min.
Monthly rental Rs 75 per month/-
Special offer for Airtel Telephone service customers for availing Airtel Mobile
services
If you already have Airtel Telephone service, you can buy a new Airtel Mobile
connection under Airtel One Standard 150 Plan.
Benefits:
Non security deposit.
No membership / activation fee
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
You also get FREE alert subscription worth Rs 30 / alert or 3 months on:
News
Astrology
Health Tips
PROMOTIONAL STRATEGY
Airtel to Touch Tomorrow with a new brand vision
The Bharti Mobile promoted AirTel cellular service will go in for repositioning of its brand
image. The new brand ethos is portrayed in two distinct fashions - the tag line "Touch
Tomorrow", which underscores the leading theme for the new brand vision, followed by "The
Good Life", which underscores a more caring, more customer centric organization. Aimed at
re-engineering its image as just simply a cellular service provider to an all out information
communications services provider, Touch Tomorrow is meant to embrace the new generation
of mobile communication services and the changing scope of customer needs and aspirations
that come along with it
The new communication is about a new dimension in the cellular category that goes beyond
the Internet, SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless digital
broadband services that will constitute tomorrows cellular services. The new campaign is in
two phases - the first of which will communicate overall brand philosophy and the second
products and services. According to Mr. Jagdish Kini, Chief Operating Officer, Bharti Mobile
Limited, Karnataka "We are adopting a new brand- platform - Touch Tomorrow - not only to
reflect our corporate ethos but also business strategy".
The new identity will have the logo in Red, Black and White colours along with lower case
typography to convey warmth. AirTel will incorporate the latest branding in all of its
communication and will soon be going in for an enhanced promotional drive to establish the
brand's presence.
PRE-PAID card users need not worry anymore about recharging their coupons every month.
Company has launched a plan that allows users to take a pre-paid connection with lifetime
validity for a one time payment of Rs. 999. Subscribers availing themselves of this scheme
will also get full talk time for the recharge coupon they purchase and also have the option to
buy Taiwanese manufactured Bird mobile handsets for as low as Rs. 1,399.
The move is aimed at stopping the churn in the pre-paid subscriber base. Once a subscriber
takes this plan, he will always be an Airtel subscriber whether the mobile is being used or
not.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
MARKET SITUATION
COMPETITIVE SITUATION
Airtel launched its services before Essar and skimmed the market picking up the bulk of the
high usage premium clients. This is a very competitive industry with the two companies
differentiating either on value-added services or price. Airtel is perceived as the high quality
provider and has a premium image. Essar, on the other hand, is perceived as the lower end
service provider. Airtel positions itself as the market leader on the basis of the number of
subscribers. Essar is trying to counter this by emphasising on the reach of its network and
the quality of its service. However, Essar is somewhat not been very successful largely due
to the inconsistency in advertising
To promote themselves, both the players have been dependent on tactical advertising
However, they have restrained from using comparative advertising Hoardings have been a
very popular medium for carrying the advertisements Airtel has also been advertising on
television using the Bharti Telecom name.
SALES DEPARTMENT AND STRATEGY
A. Major Accounts (Direct Channel)
Handles corporate (named and famed) accounts
Forecasting of sales
Mapping the accounts
Providing after sales support to the subscribers.
Maintaining call reports for records.
Providing Feedback to the marketing department regarding the requirement of the
market.
B. IDC (indirect Channel)
Handling distribution
Maintaining records and level check of the channel partner
Liaisoning between the channel partner and the company.
Target achievement
Training the executives of the channel
C. Distribution Support
1. Logistics
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Monitor handset and SIM card requirements of channel partners and co-
ordinate with stores
Settle areas of concerns such as incentive claims of channel partners
2. Rental
Provide cellular services (SIM cards) on rent.
Provide cellular phones on rent
Useful for people visiting Delhi for a short interval.
3 Telesales
Call customers and generate sales lead.
Follow up with the customers, if they need any assistance
Pass on the sales lead to the channel department.
4 Audit
POSITIONING
The product is sought to be positioned as a business efficiency tool. a lifestyle revolution and
a status symbol The emphasis is to remove misconception that the cellphone is an expensive
means of communication and drive home the point that the cellphone is actually a day-to-day
utility
cycle. At present the cellular phone market has reached the maturity stage. Since, the
premium segment is nearing saturation the company targeting the upper middle and middle-
middle class. In order to do so Airtel is trying to optimise the price performance package by
offering suitable "product bundling".
This involves the selection of the suitable hardware (handset) and its software (its services.)
with reasonable price in order to deliver maximum price performance to its customers. In
addition, it offers free Airtime services and other concessions to make the prices and thus the
product more attractive. It has also opened a 24 hours customer service.
Only price doesn't serve as an effective differentiator, value added services become the
effective differentiator.
The "Value Added Services" provided from Airtel are:-
1). Voice Mail service
This system is similar to the answering machine - if the user is not able to answer a call for
some reason the caller can leave messages in the voice mail box which can be later retrieved
by the user
The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time in
advance. All it requires is the payment of an initial amount. This is a useful service for
people who travel to Delhi often and those who want to control the expenses on their calls.
v) Caller ID
Displays calling person's number.
vi) Outgoing call restriction
To prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude one
or several countries, or any geographical region, to permit only local calls, or to limit the
outgoing calls to a listed number.
viii) Call forward
Incoming calls can be forwarded to another fixed or mobile phone.
Besides these some other services provided by Airtel are - Call conferencing, Call Broadcast
et cetera.
It is in the operators -Interest that they not only get many subscribers but also get them to use
the mobile facility frequently. In the early stages getting increases to subscribe may be easier
than getting them to talk since they will find it costlier to use the mobile phone as compared
to a conventional phone [if is believed that initially cellphones would be used buy]
viii) Roaming Facility
Roaming facility is available while the subscriber is travelling. The billing is done in the
home network (Delhi). Roaming facility is available manually* as well as semi-
automatically. Once a subscriber is In any other city or country, where a GSM network is
available, simply insert the SIM card of the local operator Into your handset and start talking.
* Manual Roaming means a separate SIM card is provided for each city
** Semi automatic roaming means one card has the facility for different cities.
c) They give answers to the questions & requests, quickly & efficiently.
d) They have a positive tone & manner while interacting with customers.
e) They end the interaction on a positive or a humorous note-making the last 30 seconds
count.
Airtel realises that attracting people 'Is easy but converting them into loyal customers is hard,
hence emphasis is on maintaining a 'Smiling and a Friendly Atmosphere' to please and retain
the customer.
MARKETING STRATEGY
ADOPTED BY BHARTI
Bharti has spent a considerable amount on advertising its mobile phone service, Airtel.
Besides print advertising, the company had put up large no of hoardings and kiosks in and
around Delhi.
The objective behind designing a promotion campaign for the Airtel services is to promote
the brand awareness and to build brand preferences.
It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. Since
the cellular phone category itself is too restricted, also the fact that a Cellular phone is a high
involvement product, price doesn't qualify as an effective differentiator. The image of the
service provider counts a great deal. Given the Cell phone category, it is the network
efficiency and the quality of service that becomes important. What now the buyer is looking
at is to get the optimum price-performance package. This also serves as an effective
differentiator
Brand awareness is spread through the' campaigns and brand preference through brand
stature. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the
city,' bearing just the company's name and without explaining what Airtel was. In the next
phase the campaign associated Airtel with Cellular only thereafter was the Bharti Cellular
connection brought up. Vans with Airtel logos roamed the city, handing out brochures about
the company and its services to all consumers. About 50,000 direct callers were sent
out. When the name was well entrenched in the Delhiitess mind, the Airtel campaign began
to focus on the utility of Cellphone. In the first four months alone Airtei's advertisement
spend exceeded Rs. 4 crores.
As of today the awareness level Is 60% unaided. This implies that if potential or
knowledgeable consumers are asked to name a Cellular phone service provider that is on the
top of his/her mind 60% of them would name Airtel. As for aided it -is 100% (by giving
clues and hints etc.).
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Brand strength of a product or the health of a brand is measured by the percentage score of
the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy
and a thriving brand.
Every company has a goal, which might comprise a sales target and a game plan with due
regard to Its competitor. Airtel 's campaign strategy is designed keeping in mind its
marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey
the image of a market leader in terms of its market share. It tries to portray the image of
being a "first mover every time" and that of a "market leader".
The status of the product in terms of its life cycle has just reached the maturity stage in India.
It is still on the rising part of the product life cycle curve in the maturity stage.
The diagram on the left hand side shows the percentage of the users classified into heavy,
medium and low categories. The right hand side shows the revenue share earned from the
three types of users.
Airtel, keeping in mind the importance of the customer retention, values its heavy users the
most and constantly indulges in service innovation. But, since heavy users comprise only 15
- 20% of the population the other segment cannot be neglected.
The population which has just realised the importance of cellular phones has to be roped in.
It is for this reason that the service provider offers a plethora of incentives and discounts.
Concerts like the "Freedom concert" are being organised by Airtel in order to promote sales.
The media channel is chosen with economy in mind. The target segment is not very concrete
but, there is an attempt to focus on those who can afford. The print advertisements and
hoarding are placed in those strategic areas which most likely to catch the attention of those
who need a cellular phone. The product promise (which might cost different 1 higher) is an
important variable in determining the target audience.
Besides this, other promotional strategies that Airtel has adopted are .
(i) People who have booked Airtel services have been treated to exclusive premiers of
blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles
on the German airlines frequent flier's programs.
(ii) There have been educational campaigns, image campaigns, pre launch
advertisements, launch advertisements, congratulatory advertisements, promotional
advertise-ments, attacking advertisements and tactical advertisements.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
DISTRIBUTION
Company
Franchisee Distributor
Dealers
Dealer
Customer Customer
The- company whose operations are concentrated in and around Delhi. It 27 Franchisees and
15 Distributors- They also have 8 'instant access cash card counters- Each franchises or
distributor can have any number of dealers under him as long as the person is approved by
the Airtel authority. Each franchises has to invest Rupees Ten Lakhs. to obtain a franchise
and should employ an officer recruited by Airtel. This person acts as an liaison between the
company and the franchises. The franchises can it any number of dealers as long as their
territories do not overlap. But unfortunately Airtel has not been very successful in
controlling territorial overlaps of dealers. The franchises can carry out his 1 her own
promotional strategy. For this the. company contributes 75% of the money and the franchises
contributes 25% of the money. The dealers under the franchisee receive the same
commission. The franchises and the dealer obtain the feedback from the customers and they
are sent through the liaison officer on a day-to-day basis to Airtel. The dealer has to invest
Rupees. One Lakh as an initial investment. The dealer of Airtel are not allowed to provide
any other operators' service.
Target set for distributors and the dealers is 100 -150 activations per month. Hence the
dealers can also go for their own promotions like banners and discounts on festivals etc. The
dealer provides service promptly. The consumer on providing the bill of purchase for the
handset and proof of residence has only to wait an hour before getting connected. The staff of
the dealers and the franchisees are provided training by the Airtel personnel.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
The complaints encountered by the franchisees and dealers are either handset being non-
functional or the SIM Card not getting activated. Anything more complicated is referred to
the main Airtel office in Delhi.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
The pattern of cellphone subscriber growth observed elsewhere in the world reveals that the
growth in the market is Initially slow followed by a sharp acceleration, but so far that has not
happened in India. As far as the Product Life Cycle is concerned. Indians are at the
beginning of the maturity stage.
MARKETING OBJECTIVES
Objectives:
To understand the various Marketing Strategies which Airtel has adopted to survive in
highly competitive cell phone industry.
RESEARCH METHODOLOGY
The methodology adopted for this project is exploratory in nature since there is no hypothesis
that has to be tested. The conclusions have been drawn by exploratory research work.
a) Primary Sources
I have met retailers of the Airtel of the company and have been able to get first hand
information regarding the product, its features and the buying patterns of the product. Their
input has been valuable.
b) Secondary Sources
Secondary source has played a vital role to play in this report. A good amount of data has
been collected from various published articles and reports found in magazines and journals.
Another vital source has been the Internet and particularly the companies own website.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
LIMITATIONS
Every attempt will be taken to obtain the error free and meaningful result but as nothing in
this world is 100% perfect I believe that there will still the chance for error on account of
following limitations-
(1) Respondents unavailability.
(2) Time pressure and fatigue on the part of respondents and interviewer.
(3) Courtesy bias.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
FINDINGS
1. Do you believe that India is potentially one of the most exciting mobile service
providers in the world?
Company Yes No
Airtel 4 1
Vodafone 4 1
Idea 4 1
MTNL 4 1
As according to the above table 16 (80%) out of the total 20 interviewed people in all the
above four specified Indian mobile service providers are of belief that India is potentially one
of the most exciting mobile service providers in the world, whereas some 4 (20%) of them do
not agree to this view.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
No 1 1 1 1
Ye s 4 4 4 4
0 2 4 6 8 10 12 14 16 18
2. Do you
find that the governments telecom policy has had the most radical impact on the
development of mobile service providers?
Company Yes No
Airtel 4 1
Vodafone 3 2
Idea 3 2
MTNL 5 --
As according to the above table 15 (75%) out of the total 20 interviewed people in all the
above four specified Indian mobile service providers find that the governments telecom
policy has had the most radical impact on the development of mobile service providers,
whereas some 5 (25%) of them deny this.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
4.5
3.5
1.5
0.5
0
Yes No
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
3. Do you believe that one of the challenges facing mobile operators in India is the
diversity of the coverage regions?
Company Yes No
Airtel 2 3
Vodafone 3 2
Idea 3 2
MTNL 2 3
As according to the above table 10 (50%) out of the total 20 interviewed people in the mobile
service providers are of belief that one of the challenges facing mobile operations in India is
the diversify of the coverage regions, whereas interestingly another 10 (50%) of them deny
this.
2.5
0.5
0
Yes No
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
4. To what extent, does you find that mobile service providers is a very complex
standard?
Company To some extent To great extent
(1-5) (6-10)
Airtel 3 2
Vodafone 2 3
Idea 2 3
MTNL 3 2
As according to the above table 10 (50%) out of the total 20 interviewed people in all the
above four major the mobile service providers in Indian Cellular industry find only to some
extent that GSM is a very complex standard, whereas the another 10 (50%) respondents find
to great extent that mobile service providers is a very complex standard.
2.5
0.5
0
To some extent To great extent
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
CONSUMER LEVEL
1. Do you believe that mobile service providers comes close to fulfilling the
requirements for a personal communication system?
Company Yes No
Airtel 9 1
Vodafone 8 2
Idea 8 2
MTNL 5 5
As the above shows 30 (75%) out of total 40 respondents are of the belief that mobile service
providers comes close to fulfilling the requirements for a personal communication system,
whereas 10 (25%) of them are in no way to this belief.
2
No
2
3
Ye s
3
3
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
2. Do you find that mobile service providers as the most exciting and satisfying mobile
standard?
Company Yes No
Airtel 9 1
Vodafone 7 3
Idea 8 2
MTNL 8 2
As the above shows 32 (80%) out of total 40 respondents find that mobile service providers
as the most exciting and satisfying mobile standard, whereas the remaining 8 (10%)
respondents deny this.
No 1 3 2 2
Ye s 9 7 8 8
0 5 10 15 20 25 30 35
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
3. Do you believe that your service provider has a genuine commitment to creating a
modern and efficient communications?
Company Yes No
Airtel 10 --
Vodafone 8 2
Idea 10 --
MTNL 8 2
As the above shows 36 (90%) out of total 40 respondents are of the belief that their service
providers have a genuine commitment to creating a modern and efficient communications
whereas the remaining 4 (10%) respondents deny this.
0
No
2
10
Yes
8
10
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
SWOT ANALYSIS
STRENGTHS
Cost advantage
Current leaders in quality service
Largest distribution network
Ability to constantly innovate
Highly skilled workforce
Entrepreneurial zeal
Airtels increased equity and market cap.
WEAKNESSES
To prove credibility
Price pressures
Need for Government support
Awareness
Sales and Marketing
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
OPPORTUNITIES
To sustain passion and commitment
Airtels market share increasing at other service provider expense. Thus opportunity to
wipe it out.
Attain higher value services
Collaborative business needs to be explored
Vertical repeatable solutions.
Low penetration level in rural markets.
THREATS
Foreign investment
Global trends moving from GPS to WLL.
Lack of global parity in telecom tariff
Other competition
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
CONCLUSION
From above the details I conclude that 70% Airtel users preferred to remain with
Airtel. Also good no. of users who were willing to switch from their respective subscribers
showed interest in Airtel. Hence, these statistics imply a bright future for the company. Also
the company is now providing more services like the door to door services which is you dial
the Airtel customer care and would like to send someone flowers the Airtel company delivers
those flowers to the person concerned. Also Airtel is providing free text messaging service
and free voice mail service. Call conferencing is also another feature Airtel provides.
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
BIBLIOGRAPHY
Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal
Communication Services. IEEE Personal Communications. 1(1), 1994.
Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE
Communications Magazine. April 1993.
C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors,
Cellular Radio Systems, Artech House, Boston, 1993.
Vodafone
Airtel
Idea
MTNL
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
QUESTIONNAIRE
NAME: ____________________________________
ADDRESS: ____________________________________
OCCUPATION: ____________________________________
1. Do you believe that India is potentially one of the most exciting mobile service
providers in the world?
Company Yes No
Airtel
Vodafone
Idea
MTNL
2. Do you find that the governments telecom policy has had the most radical impact on
the development of mobile service providers?
Company Yes No
Airtel
Vodafone
Idea
MTNL
3. Do you believe that one of the challenges facing mobile operators in India is the
diversity of the coverage regions?
Company Yes No
Airtel
Vodafone
Idea
MTNL
4. To what extent, does you find that mobile service providers is a very complex
standard?
Company To some extent To great extent
(1-5) (6-10)
Airtel
Vodafone
Idea
MTNL
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
Naveen Kumar Goyal MBA-IV DKSGOI, JAIPUR
CONSUMER LEVEL
1. Do you believe that mobile service providers comes close to fulfilling the
requirements for a personal communication system?
Company Yes No
Airtel
Vodafone
Idea
MTNL
2. Do you find that mobile service providers as the most exciting and satisfying mobile
standard?
Company Yes No
Airtel
Vodafone
Idea
MTNL
3. Do you believe that your service provider has a genuine commitment to creating a
modern and efficient communications?
Company Yes No
Airtel
Vodafone
Idea
MTNL