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Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers.
To make mobile communications a way of life and be the customers' first choice.
We will meet the mobile communication needs of our customers through: •Error-free service delivery •Innovative products and services • Cost efficiency • Unified Messaging Solutions
We will delight our customer with our simplicity, speed & innovation. We will honour our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace.
AIRTEL MOBILE COMMUNICATIONS LIMITED:
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004.
Bharti Tele-Ventures vision for its mobile business is “To make mobile communications a way of life and be the customers first choice”. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Company’s strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as of June 30, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as of June 30, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: ⇏ ⇏ 2 Lower tariffs and handset prices over time; Growth in pre-paid customer category;
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Greater economic growth and continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services.
Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-two telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited.
Public, Listed on BSE 1985
New Delhi, India
Founded Headquarters Key people
Sunil Mittal Telecom Mobile
and Fixed-Line Telecommunication operator
$60 Billion Express Yourself
History of Pre-Paid : 1986 Main GSM radio transmission techniques were chosen.
1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory
group signed the charter GSM (Grouped Spéciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991. The original French name Groupe Spéciale Mobile was changed to Global System for Mobile communications; but the original GSM acronym remains. In 1989, GSM responsibility was transferred to the European Telecommunication Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22 countries, with 25 additional countries like South Africa, Australia and many Middle and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers worldwide. The developers of GSM chose an unproven (at that time) digital system, as opposed to the then standard analog cellular systems like AMPS in the United States and TACS in the United Kingdom. They had faith in the advancements in compression algorithms and digital signal processors to allow the fulfillment of the original criteria and the continual improvement of the system in terms of quality and cost. The European Telecommunications Standards Institute (ETSI) defined GSM as the internationally accepted digital cellular telephony standard. GSM MOU was formally registered as an association registered in Switzerland with 156 members from 86 areas.
MVAS is now considered as a major tool for additional revenue. has been looking to MVAS to provide its next wave of growth. MVAS could be the way out. In a scenario where Telco ARPUs have been squeezed down to rock bottom and most users prefer to go prepaid. Bharti Airtel.Airtel Pre-Paid service Airtel has been a pioneering force in the telecom sector with many firsts and innovations to its credit. service differentiation and customer retention. 5 . A well demarcated value chain of MVAS seem to have evolved. ranging from being the first mobile service in Delhi. first private basic telephone service provider in the country. first Indian company to provide comprehensive telecom services outside in India in Seychelles and first private sector service provider to launch National Long Distance Services in India. One of the majors. The evolution of the MVAS market has come in parallel with the changes and advances that have taken place in the telecom industry. Mobile value-added services (MVAS) have led to the emergence of a fresh business ecosystem giving rise to supporting industries such as content development and aggregation.
Airtel Talkies. has ensured that service providers are actively announcing various value-added services that will help retain customers.8%. “Today. For Bharti Airtel.According to industry estimates. 6 . had increased from 9. Pune and Udaipur with basic phones priced at less than Rs. Director of Marketing and Communications at Airtel.” This year. said. Social networking and utility apps ranked highest on the popularity charts. Mobile Services. This is happening even though contracts are needed to get popular phones such as the iPhone and the Droid. CEO. it is a cost-effective option that is available for entertainment. SMS revenues had risen from 4. and followed it up with another product with pre-release audio promos of films. downloads from Airtel App Central are being led by feature phones and not smart phones. VAS accounted for 11. Occupying an average of not more than 2% of available space on the customer’s handset per app. Non-voice revenues. “Then came The Japanese Wife and the initiative has been extremely successful. While 25% of the apps are free to download. Thiruvananthapuram. Bharti Airtel. which often costs less and does not require contracts. 5.” commented Shireesh Mukund Joshi. This shift in consumer behavior. the top five are subscription-based. Surat. for news and for any other information that one may require. Airtel recently launched its own movie library. Airtel pre –paid mobile customers in smaller cities like Mangalore.000 have taken the lead. starting with My Name Is Khan. Karnataka Circle. Mobile VAS in India would account for 18% of the total revenues generated by operators from mobile services by end 2010. which are considered to be the core MVAS category.5% to 11. Other popular categories included books. a prepaid mobile phone is not used solely for communication.. entertainment and games. The downloads from Airtel App Central have indicated that the Indian mobile applications model will be different from the global one. customers have been making a big shift away from two-year contracts toward "prepaid" cell phone service.8% of its total revenues as on March 31.1% in the previous fiscal to 6%. 2010. where subscribers expect more than just connectivity. Venkatesh V.
Unlike contract plans that bill subscribers each month for the services they used the previous month. such plans were marketed primarily to people who did not have the credit to qualify for plans with contracts. When the minutes are used up. prepaid services traditionally let subscribers buy minutes in advance for around 10 to 20 cents each. Finlay uses prepaid service from Airtel Mobile. Prepaid service. That costs him $5 per month.half of what it costs a customer with a contract on Verizon Wireless. wireless carriers expanded their contract subscribers by just 230. with further price cuts. because he talks no more than 15 to 20 minutes on the phone each month. so he tacks on an unlimited-texting option for $20 per month. Together.. Now it's possible to make unlimited calls and text messages on a prepaid plan for Rs. At Tracfone. meanwhile. The popularity of text messaging is also making some people move away from contract plans that provide a big bucket of monthly minutes that may not get used. prepaid service appealed to a broader slice of the market. But as the recession forced more people to cut costs. the largest independent provider of prepaid service. the seven largest U.000 people in the first quarter. and prepaid services responded by offering better deals. people "refill" their accounts as needed.1 million new subscribers to the seven largest carriers in the quarter. For years.45 a month .S.000 text messages. He sends and receives up to 2. That's because wireless carriers have hit a wall when it comes to finding new customers who will sign contracts. attracted about 3. About one-fifth of Americans with cell phones are on prepaid. according to the New Millennium Research Council.Now prepaid service looks like it will get even more attractive. Airtel Pre-paid : 7 . customers pay an average of $11 per month. a Washington-based think tank.
That’s because almost every one of us wants to be in control of our cellular expense. Start thinking prepaid is our advice! So what exactly is this prepaid! It is simply a way of going cellular by paying for the talk time in advance. For e. 8 . You will be surprised that today In India. you can buy a recharge coupon which gives you that much talk time on your cell phone.g. 300 worth of talk time for a month.. Prepaid connections account for almost 60 to 70 percent of the total new entrants into cellular telephony. Advantages of Pre-Paid: Some of the many advantages that you enjoy with Airtel Pre-Paid. Prepaid allows you to be in control of your cellular expenses even while you are spending.Are you wary of committing yourself to a date for making your bill payments? Is it too much of a bother for you to remember dates for bill payments? Do you often end up paying late fees against your monthly utility services bills? Do you end up spending too much if you have the option to pay the bill later? Think over for if one of these represents you. if you feel that you need Rs. we have a solution for you. Once that money gets exhausted you can buy another recharge coupon for the same or different denomination depending on your future need..
STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel! Our STD/ISD facility allows you to make long distance calls in India and Overseas from your cellular phone! Instant Balance Inquiry Check your talk-time instantly by calling our toll-free number! 60 second pulse Airtel provides you with a 60-second pulse rate! Freedom for you to experience like never before! Instant Recharge Avail of instant recharge on your Airtel prepaid card with just a few simple steps! 24-hour recharge facility With our round-the-clock recharge facility. recharge you Airtel prepaid card anytime. It provides the added advantage of saving 9 . anywhere! Caller Line Identification: Call Line Identification gives you the power to know the phone number of the calling party even before you answer the call. thus giving you the choice to either reject or take the call. Total Cost Control Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as much as you feel the need to! Now that's what we call complete freedom! No Rentals Buy an Airtel prepaid card without having to pay any rentals! No deposits Your Airtel prepaid card comes without you having to pay hefty deposits.
from anywhere in the world. Airtel Out of Home Circle Service: We have established one of the most extensive roaming tie-ups . Call Hold and Call Wait Avail of special services like call waiting.the incoming number directly in the Handset Phone Book. you can get up to-the-minute cricket scores. call hold and call divert – all with your Airtel prepaid card! Short Messaging Service (SMS) With Airtel’s Short Messaging Service (SMS). you don't need to retype his number. with each message of two-minute duration.with the best service providers in the respective regions to ensure that you get uninterrupted coverage throughout. send messages and jokes to your friends and colleagues. So that the next time you want to call the same person. simply use your phone book. We currently provide roaming coverage in more than 10 . anytime anywhere! SMS based Information Services With Airtel's SMS based information services. You can listen to your messages whenever you feel like. order flowers as well as send couriers or check your daily horoscope! Voice Mail service Voice Mail lets you receive messages even when your handset is switched off or when you are outside the coverage area.both national and international. Call Divert. Voice Mail can store up to 75 messages.
Survay of Airtel Pre-Paid market –Noida Outlet Name Careter’s meeting Pt. Final Touch Naaz photo comm.1000 cities and major highways across India. Airtel is rich in attractive schemes and plans for business persons and persons related to corporate world. National Roaming: Our national roaming coverage currently spans across more than a 1000 cities across India. Tone & melodies Milan comm. Airtel Pre-Paid User 30 25 20 15 10 5 0 preferen… When the preferences for mobile phone connections were asked. results drawn that 40% of persons prefer to take BSNL because they believe in BSNL’s better coverage & cheaper rates after BSNL. 20% of people opt Reliance services because of its cheaper rate and flexible schemes. then Airtel is only 25% but there is very high recommendation for its better connectivity. Airtel Competitor's Airtel market % market% market% 40% 67% 36% 45% 38% 45% 60% 33% 64% 55% 63% 55% 45% 45% 42% 43% 43% 57% Competitor's Airtel Lapu Competitor's Market% % Lapu % 55% 55% 58% 57% 57% 43% 41% 45% 43% 40% 38% 29% 59% 55% 57% 60% 63% 71% 11 . Aalamcomm. We also provide international roaming in 56 countries across 101 networks.
Antique Airtel market % 55% 50% 63% 44% 26% 43% 54% Competitor's market% 45% 50% 38% 56% 74% 57% 46% Airtel market% 45% 44% 42% 33% 47% 36% 54% Competitor's market% 55% 56% 58% 67% 53% 64% 46% Airtel Competitor's Lapu % Lapu % 33% 43% 42% 31% 40% 67% 43% 67% 57% 58% 69% 60% 33% 57% 12 .67% 72.97% 64.52% 72.Marketing Santacruz mart Mobile villa Vakola Mall Matrix telecom Gupta Telecom Moon contacts Mobile city Konkan electronics TOTAL Airtel market Competitor's % market% 43% 64% 61% 68% 80% 37% 58% 74% 44% 58% 61% 57% 36% 39% 32% 20% 63% 42% 26% 56% 42% 39% Airtel market% 40% 50% 9% 27% 40% 50% 38% 42% 33% 38% 24% Competitor's market% 60% 50% 91% 73% 60% 50% 62% 58% 67% 62% 76% Airtel Competitor's Lapu % Lapu % 33% 40% 41% 44% 44% 30% 45% 53% 45% 43% 43% 67% 60% 59% 56% 56% 70% 55% 47% 55% 57% 57% Outlet Name Gala & sons Bharat telecom Praveen & sons Zarina general store Ravi communication Sai communication Quality inn Nirmals shop Andheri Shop Total Airtel Competitor's Airtel market % market% market% 75.47% 66. Rose comm.73% 75. TOTAL 38% 42% 43% 45% 62% 58% 57% 55% 38% 40% 29% 43% 63% 60% 71% 57% 38% 38% 29% 37% 62% 62% 71% 63% Outlet name A 2 Z communication B.27% 25% 25% 29% 35% 27% 25% 38% 24% 33% 28% 53% 45% 56% 57% 55% 45% 52% 48% 50% 49% Competitor's market% 47% 55% 44% 43% 45% 55% 48% 52% 50% 51% Airtel Competitor's Lapu % Lapu % 60% 45% 56% 48% 48% 44% 56% 60% 43% 54% 40% 55% 44% 52% 52% 56% 44% 40% 57% 46% Outlet Name Nair Gallery Poonam Art Gallery Aman comm.00% 75.50% 76.00% 70.K. Khar Internationals Saif business Unique telecomm.00% 62.Vijay electronics Aman comm.
He can even switch over his brand. This could leave an impact on the mind of the consumer. which is a very small amount. These are the total no. 35% of the people are dissatisfied with the customer services provided by Airtel. It seems that people are more aware of Airtel than any other brand.Communications Harmain Entp. Orpat watches Sindhi Mobiles TOTAL 56% 56% 45% 50% 44% 44% 55% 50% 42% 56% 40% 43% 58% 44% 60% 57% 43% 29% 38% 40% 57% 71% 62% 60% CUSTOMER SATISFACTION LEVEL: The above graph shows a slice of 50%. As the above graph clearly shows that customer services at Airtel Seems poor.. 10% of the people seemed partially satisfied with the customer services and only 45% seem to be fully satisfied with Airtel’s customer services. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. Airtel Pre-Paid-GSM Growth In India 13 . of People who are using Airtel. 10% of the people were fully dissatisfied with the customer services of Airtel.
MILESTONE OF COMPANY 14 .
Manoj Kohli. This is amongst the fastest rate of customer additions by any telecom company in the world. It is a tribute to our commitment to provide best-in-class services to our customers and lead the market with exciting innovations. 5 Bharti Airtel. Bharti Airtel has achieved the distinction of becoming the fastest private telecom company in world to achieve this landmark in a single country .200 census towns and over five lakh villages. Bharti has doubled its user base in the past 14 months alone. it crossed the 25 million customer mark. This milestone highlights the emergence of India as one of the top telecom markets in the world and we are proud to have been at the forefront of this growth. The 50 million customer base covers mobile as well as broadband & telephone customers.within 143 months of start of operations. Joint Managing Director. which puts Bharti Airtel amongst the top telecom companies in the world. 6 Commenting on this major global landmark. With this. The company added the next 25 million customers in just 14 months. according to company executives. “We are delighted to have achieved this major landmark.” 15 . became the first Indian telecom company to serve 50 million customers last month. and is now the world’s tenth largest wireless carrier. at a news conference this week. Akhil Gupta. As the market gets ready for the next wave of growth. today announced that it had crossed the 50 million customer mark. we believe this growth momentum will remain intact and we are gearing towards the 100 million customers mark. covering 96 per cent of the Indian population.” 7 8 9 Bharti Airtel crossed the 10 million customer mark in November 2004. Mr. “This is a very proud moment for us and I would like to thank our 50 million customers for believing in Airtel.1 2 3 4 Mobile phone operator. India’s leading telecommunication services provider. Bharti Airtel. and hopes to reach 100 million subscribers by 2010. Going forward. Bharti Airtel said. President & CEO. Mr. we are committed to expanding our telecom networks wider and deeper across the country and partner India’s growth story. We are committed to create a world-class organization and benchmark it with the best in the world. Bharti Airtel added. It underlines the strength of our unique business model and our vision to provide affordable services like lifetime prepaid to customers across the length and breadth of the country. I would like to thank our partners for having shared our vision. Manoj Kohli. “Our next 50 million will largely come from rural India as our plan is to reach 5. In July last year.” said Bharti Airtel president and CEO.
It is also strengthening the corporate business towards becoming a preferred managed services partner for the top 2000 corporations. In Broadband & Telephone SBU. It is readying to offer triple play to its customers with the launch of its IPTV service. with a sharp focus on the home and SME segments. The company’s strategic focus will be on further strengthening the Airtel brand through best-in-class customer service. 1995.10 In the mobile business. Bharti Airtel plans to make considerable investments in Network expansion to establish presence in all census towns and over 500. ORGANIZATION STRUCTURE 16 . Operator to revolutionalize the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms)in 1995. thereby covering 95% of the country’s total population. 11 In the Enterprise business. Airtel has taken the lead on many occasions. 1997 and the first in Delhi to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. • It is also the first company to export its products to the US. • First to provide roaming facility in USA. Bharti airtel among the top 10 best performing Companies in the world according to Business week it 100 lists. Awards: Bharti airtel draws top honours at the miss Asia It excellence awards 2006. AirTel has the largest automatic roaming service "SMART ROAM". which is backed by wide national distribution. To expand it's network with the installation for second mobile switching centre in April. Bharti Airtel will invest substantially in the long distance business to achieve the scale of a global carrier within next 2-3 years. It has been the first: • • • To launch Cellular service in Delhi on November.National in 400 cities in India and "SMART ROAM" International in over 60 countries and 95 networks all over the world.000 villages across India by 2010. Bharti Airtel will initiate large-scale deployments of broadband network infrastructure in 94 towns.
In the case of the broadband and telephone services and enterprise services (carriers). Company’s policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements are complied in ‘letter and spirit’ for effective Corporate Governance. The company’s mobile network equipment partners include Ericsson and Nokia. which indicates that the company’s capability with respect to creating wealth for all its stakeholders is the highest. and Teletech & Mphasis. among others. ‘Level 1’ rating by CRISIL. customers. 2006. Nortel. while adopting sound Corporate Governance practices. your Company was assigned highest Governance and Value Creation (GVC) rating viz.Partners The company has a strategic alliance with SingTel. which will ensure sustainable. Hinduja TMT. The investment made by SingTel is one of the largest investments made in the world outside Singapore. PROMOTIONAL STRATEGY 17 . Corning. equipment suppliers include Siemens. in the company. employees and society at large. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call centre technology requirements. During the financial year 2003-04. The call centre operations for the mobile services have been outsourced to IBM Daksh. This rating was reaffirmed by CRISIL on April 20. capitalefficient and long-term growth thereby maximising value for its shareholders. Corporate Governance Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner.
By 2005. differentiating merely on network. which included celebrity endorsements and attractive talk time schemes. AirTel enables you to make your point in the most expressive way. Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I). Over the last couple of years. business solutions and talk time schemes. All the players except RIM offered services based on the Global System for Mobile (GSM) technology. and this helped it increase its subscriber base.which are prerequisites in any. anywhere.After the liberalization of the Indian Telecom Sector in 1994. chief marketing officer. attracted the consumer through its low cost schemes. Idea relied heavily on its creative media advertising sans celebrities. Bharti TeleVentures. service providers took new initiatives to woo customers. The 18 . Prominent among these were . Being a state owned player. there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti). Bharat Sanchar Nigam Limited (BSNL). You need to go beyond all the rational identifiers . Hutch implemented the celebrity endorsement strategy partially.celebrity endorsements. loyalty rewards. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. the market has grown considerably. We found this differentiator in a core human truth that defines our category . relying primarily on its creative advertising for the promotion of its brand. BSNL. anytime. on the other hand. "In this context. when you need to be heard. expands on this. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. discount coupons. BSNL could cover rural areas. accompanied by much higher competitive intensity. (Refer Exhibit II). Hutchinson-Essar limited (Hutch)." Atul Bindal. with deeper penetration and wider usage of voice and data services. As competition in the telecom arena intensified.and connect at a deeper level. the Indian cellular market witnessed a surge in cellular services. Expressing and communicating are perhaps two of the most basic emotions.which is that there are moments when you need to make your point. coverage and SMS is just not enough. Reliance was another player that cashed on its innovative promotional strategies. The most important consumer segments in the cellular industry were the youth segment and the business class segment. We needed a strong differentiator in an increasingly commoditized and crowded market. case . The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers.
which.' We believe 'Express yourself' allows us to connect at a deeper level and create a long-term platform for the brand.campaign is towards owning this through 'Express yourself. in the past. Bharti claimed that its strategies were one of the most ambitious experiments ever in the Indian pre-paid cellular telephony market. "'Express yourself' enables the brand to unify and connect across the entire base of our existing and prospective customers. along with creative partner Zarvan Patel. data and payment platforms." he informs. who. 19 . the challenge also lay in presenting a unified 'face' to the consumer. The VQE technology has been sourced from Tellabs of USA. Patel adds. This is just the proverbial tip of the iceberg. This assumes significance when viewed in the light of the company's pre. given the increasing competitive pressure." One of the most obvious benefits of owning a property such as 'candid expression' (and 'Express yourself') is the expansive nature of the thought. AIRTEL NEWS • : Bharti Airtel inks USD 400 million network expansion contract with NOKIA.and post-paid communication. conceived the campaign. " In October 2002. That's what makes a good campaign idea. "Brand AirTel is a category leader straddling completely different market segments such as consumer. as well as different voice. Magic led the market. it becomes easy for anyone working on the brand to come up with new ideas and executions. doubts were being expressed regarding the ability of Bharti's marketing initiatives to help Magic retain its 'Magic' in the future AirTel launches VQE (Voice Quality Enhancer) for the first time in Kolkata Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata. with 30% of the market share. "The moment you have as broad a canvas as 'Express yourself'. world leaders in Voice Quality technology. adjusts speech levels in both directions and does away with low or distorted speech so that every word of your's can be heard clearly. However. "We will be taking the idea forward in many different ways in the forthcoming work. Brand image." observes Rediff's Prashant Godbole. wherever you may be speaking from. business and corporate. was being driven in two different dimensions." For AirTel. VQE is a revolutionary new system that spectrally reduces background noise." says Bindal. It eliminates acoustic echo. had been treated very differently. as a result.
Overall.” The ringtone which is also the jingle for AirTel’s TV commercial. • • • • Bharti Airtel to Observe Silent period from October 1.• Bharti Airtel limited: Q2 cash profit exceeds Rs. “It gives the user a chance to go back to the AirTel product and acts as a strong reminder medium. he explains. it is a great advertising product for AirTel and works like a “walking. Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE. has given AirTel a chance to enter the “mind of the user” irrespective of which service he opts for. talking brand ambassador. Orange and Dolphin as well! “We did expect the tune to catch up but this has really exceeded our expectations. But the interesting part is that the ringtone is being flaunted not just by AirTel customers but by customers of rival service providers like BPL. Cellular service provider AirTel seems to have hit the right note with its new commercial starring musician A R Rahman. Cellular users have been “forwarding” the tune to one another.600 crores.” admits Bharti Cellular’s chief marketing officer (western region) Pratik Pota. 2006. 1. Marketing professionals like Samsika Marketing Consultants’ managing director Jagdeep Kapoor point to the usage of an “audio celebrity” as something that is significant. The commercial which is currently on air has a beat which also doubles up as a ringtone which is ostensibly available only to AirTel users. 20 . PBT crosses Rs. Bharti Airtel is amongst India’s Most Admired Knowledge enterprises in 2006. “The normal practice is to opt for film stars and sportsmen rather than an audio personality” he says. It is not very clear what this means for the other cellular operators.” he explains.000 crores. which according to Mr Pota. 1. is proving to be a potent advertising tool for the company. Notice of postal ballot for seeking consent of the shareholders on scheme of amalgamation of Satcom Broadband Equipments Limited and Bharti Broadband Limited with Bharti Airtel Limited.
While none of them commented on AirTel’s strategy and its impact on their own subscriber base. seem to be doing their own homework on this brand of advertising. Pota highlights the fact that the usage of the tune by other operators means “free advertising” for AirTel and the users having a positive disposition towards the product. the nature of reaction from competition remains unclear. Being the latest entrant in the Mumbai circle. While Mr. AirTel has had to find ways of cutting through the clutter. first Indian company to provide comprehensive telecom 21 . though seemingly unfazed by the phenomenon. He anticipates a situation where the new entrant (AirTel) will continue to be more aggressive.Rivals. Kapoor.” AirTel will have try to find ways to attract new customers and convert the existing ones. one advertising professional working with a rival service provider opines that the tune is “transient” and not likely to have any long term impact as a brand building tool. LITERATURE REVIEW: Airtel has been a pioneering force in the telecom sector with many firsts and innovations to its credit.” Explaining that the usage of an audio celebrity was more “strategic than tactical”. first private basic telephone service provider in the country. he adds that non-AirTel users will have the AirTel “brand experience” in spite of not using the service. Says Mr. “Competition will not do well to adopt a knee jerk reaction and will have to come out with advertising that is well thought out” explains Mr. Kapoor. ranging from being the first mobile service in Delhi.
Bharti Airtel. For Bharti Airtel.1% in the previous fiscal to 6%.8%. Director of Marketing and Communications at Airtel. Airtel recently launched its own movie library. which are considered to be the core MVAS category.5% to 11. One of the majors. the top five are subscription-based. Surat.services outside in India in Seychelles and first private sector service provider to launch National Long Distance Services in India. In a scenario where Telco ARPUs have been squeezed down to rock bottom and most users prefer to go prepaid. has been looking to MVAS to provide its next wave of growth. While 25% of the apps are free to download.000 have taken the lead. Airtel Talkies. 5. starting with My Name Is Khan. Occupying an average of not more than 2% of available space on the customer’s handset per app. had increased from 9.8% of its total revenues as on March 31. Mobile VAS in India would account for 18% of the total revenues generated by operators from mobile services by end 2010. service differentiation and customer retention. The evolution of the MVAS market has come in parallel with the changes and advances that have taken place in the telecom industry. and followed it up with another product with pre-release audio promos of films. SMS revenues had risen from 4. VAS accounted for 11. MVAS is now considered as a major tool for additional revenue. The downloads from Airtel App Central have indicated that the Indian mobile applications model will be different from the global one. downloads from Airtel App Central are being led by feature phones and not Smartphone’s. 2010. A well demarcated value chain of MVAS seem to have evolved. Social networking and utility apps ranked highest on the popularity charts. Mobile value-added services (MVAS) have led to the emergence of a fresh business ecosystem giving rise to supporting industries such as content development and aggregation. Thiruvananthapuram. Non-voice revenues.” commented Shireesh Mukund Joshi. Other popular categories included books. According to industry estimates. Pune and Udaipur with basic phones priced at less than Rs. “Then came The Japanese Wife and the initiative has been extremely successful. MVAS could be the way out. Airtel pre –paid mobile customers in smaller cities like Mangalore. entertainment and games. 22 .
according to the New Millennium Research Council. a prepaid mobile phone is not used solely for communication. CEO. Karnataka Circle. This year. where subscribers expect more than just connectivity. for news and for any other information that one may require. Now it's possible to make unlimited calls and text messages on a prepaid plan for $45 a month . About one-fifth of Americans with cell phones are on prepaid. Now prepaid service looks like it will get even more attractive. a Washington-based think tank. That's because wireless carriers have hit a wall when it comes to finding new customers who will sign contracts. But as the recession forced more people to cut costs. prepaid service appealed to a broader slice of the market. This is happening even though contracts are needed to get popular phones such as the iPhone and the Droid. This shift in consumer behavior.” (daily express. and prepaid services responded by offering better deals." said Jeff Finlay. 23 . For years. people "refill" their accounts as needed. "I would love to have an iPhone. by subhankar kundu). has ensured that service providers are actively announcing various value-added services that will help retain customers. When the minutes are used up. Bharti Airtel.half of what it costs a customer with a contract on Verizon Wireless. with further price cuts.. customers have been making a big shift away from two-year contracts toward "prepaid" cell phone service. “Today. prepaid services traditionally let subscribers buy minutes in advance for around 10 to 20 cents each. said. a 45-year-old stay-at-home dad in San Antonio who uses a prepaid plan.Venkatesh V. Mobile Services. such plans were marketed primarily to people who did not have the credit to qualify for plans with contracts. customers pay an average of $11 per month. Unlike contract plans that bill subscribers each month for the services they used the previous month. I just can't swallow the $70 or more bill that would come with it. At Trachoma. the largest independent provider of prepaid service. it is a cost-effective option that is available for entertainment. which often costs less and does not require contracts.
. So a study on customer 24 . attracted about 3. the seven largest U.S. That costs him $5 per month. 15 may 2010) Customer satisfaction: Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. wireless carriers expanded their contract subscribers by just 230. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customer’s expectations. by Peter Svensson. because he talks no more than 15 to 20 minutes on the phone each month. Prepaid service. He sends and receives up to 2.000 people in the first quarter.1 million new subscribers to the seven largest carriers in the quarter. Every organization tries to know the customer satisfaction about their products. meanwhile. Together.( Lubbock Avalanche-Journal.. Customer satisfaction is one of the main objectives of any organization. so he tacks on an unlimited-texting option for $20 per month.000 text messages. Finlay uses prepaid service from Airtel Mobile.The popularity of text messaging is also making some people move away from contract plans that provide a big bucket of monthly minutes that may not get used.
satisfaction is a function of perceived performance and expectations.satisfaction helps the organization as well as me to gain a vast knowledge over the real world tastes and preferences of customer. If the performance matches the expectations. the customer is satisfied. Customers are recognized as key partners in shaping service. High satisfaction or delight creates an emotional bond with the brand. the customer is highly satisfied or delighted. Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer’s expectations. If the performance exceeds expectations. Why is it important? There are a number of reasons why customer satisfaction is important in Airtel: • Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. If the performance falls short of expectations. Customers have a right to quality services that deliver outcomes. 25 . Objective of the study 1. not just a rational preference. the customer is dissatisfied. 2.paid mobile users in noida and their satisfaction level. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. • • Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. In general satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. What factors influence the consumer for opting airtel pre-paid mobile. Those who are highly satisfied are much less ready to switch. The result is high customer loyalty. As this definition makes clear. To study and understand the consumer behavior of Airtel pre.
Physical activities involved in the study are: 26 .3. Research Methodology is a step by step study of a problem. What are various motivation factors involved? 4. It may be understand as a science of studying how research is done scientifically. What is the perception and learning of those customers towards airtel pre-paid mobile which are not using this service. RESEARCH METHODOLOGY Methodology is a way to systematically solve the research problem.
The questionnaire method was applied for this exercise. The Research design was a blend of descriptive and exploratory research design. data collection and statistical tools used for analyzing the collected data. O= Observed set of frequencies E= Expected set of frequencies 27 . The questionnaire designed had closed question to find the respondents actual feeling as well as their opinion rating about the satisfaction regarding the product. sample design. questionnaire design. Get the questionnaire filled by the customers in the place through personal interaction. Optimum respondents as a sample size are chosen for the activity to resemble the entire population. The methodology followed for conducting the study includes the specification of research design. The Research exercise has been accomplished with the sample size of 100 customers. The Chi-Square test which shows the magnitude of discrepancy between observed and expected frequency can be expressed symbolically as. In this research questionnaire is framed in such a way management wants to know how the customers are taking things that they had done to them and to find out the expectation of the customers thus it will impact in policy making of the firm in the current fiscal year. Where. Chi-square test The Chi-Square test has been taken up as the selection criteria for the above mentioned data. The respondents have been selected through Random sampling method.
RESEARCH DESIGN: The research design is the conceptual structure within which research is conducted. Sample size: The research was conducted in noida with 100 respondents. The researcher has collected both of the above data. so that a study of the sample and an understanding of its properties or characteristics would make it possible for us to generalize such properties or characteristics to the population elements. Descriptive research This study is descriptive in nature where the data is collected through well structured questionnaire and from the information taken from the customers. Primary data: 28 . It constitutes the blueprint for the collection. The sampling design used in this study is probability sampling. Population: Population for this research is set as costumers who are using AIRTEL pre paid mobile. technically called the universe to be studied. The data collected constitutes both primary and secondary data. Sampling Design/Techniques: Sampling is the process of selecting a sufficient number of elements from the population. measurement and analysis of data. Sampling technique used is Simple Random sampling. Data Collection Methods: Collection of data includes both primary and secondary data. Sampling design is to clearly define set of objects.
Data Analysis and Interpretation: 29 . and finally by distributing questionnaire to the employees using Random sampling technique the employees are selected to fill the questionnaire. Secondary Data: Secondary datum is collected from the official record to obtain information’s regarding the rate of absenteeism and the various reasons for absenteeism.Primary datum are collected through observation. direct communication with respondent.
Table showing the view on airtel pre paid connection 30 . So customer’s satisfaction level is more than dissatisfaction level.Table showing the satisfaction level of consumer towards service of airtel pre paid mobile Satisfaction level Number Respondents Yes of 87 No 13 Total 100 100% 80% 60% 40% 20% 0% Num of ber R pondents es Y es No tota l Interpretation : From this I interpret that 87% customers of airtel pre paid mobile are satisfied with their service and 13% customers are not satisfied.
So we can say that most of the customers are in positive view. Some 19 % has ranked it as very good.Ranking Poor Fair Good Very good Excellent Total No. Only 3% has ranked it as poor. 25% of the customers have ranked it as fair. Table showing how Promotional schemes affect the consumers Ranking Strongly agree 31 No. of respondents 3 25 45 19 8 100 Percentage 3 25 45 19 8 100 Very good 19% Excellent 8% Poor 3% fair 25% Poor fair Good Very good Excellent Good 45% Interpretation :The interpretation is that 45 % of the customer has ranked Airtel pre paid connection as good. of respondents (%) 55 .
Agree neither Partially agree Don’t agree at all. of res pondents Total Interpretation: This analysis shows that the promotional schemes are very good tool to attract the customer. 21% agree. Partially agree 16%. Table showing about those consumers who collect information before purchase Information Number Respondents Yes of 74 No 26 Total 100 32 . Total 100 80 60 40 20 0 21 6 16 2 100 S trong ag ly ree ag ree neither P artially ag ree D on’t ag at ree all. neither 6% and those who are not agreed at all are 2%. 55% customers are strongly agreed on this statement. No. So we can see that the customers give the importance to promotional schemes.
So the information about the product is important factor in consumer buying decision. Set up a suitable significance level.100 90 80 70 60 50 40 30 20 10 0 Y es No Total Num of ber R espondents Interpretation: In this graph we can see that 74% of the customer always collects the information about the airtel pre paid mobile before their purchase decision. Selection of criterion Computation 33 Decision making . Hypothesis testing: Procedure in hypothesis testing: Formulation of a hypothesis. Some of customers are not giving the importance of information about the product. 26% customer neglecting it.
Set up a suitable significance level: The confidence with which a null hypothesis is rejected or accepted depends upon the significance level used for the purpose. Selection of test criterion: We can easily test our hypothesis through Chi-square test. a 1 per cent. value added services.Formulation of hypothesis: The conventional approach to hypothesis testing is not to construct a single hypothesis about the population.: These are the factors which significantly influencing the customers for opting airtel pre paid mobile. These hypotheses must be so constructed that if one hypothesis is accepted. the risk of making the wrong decision is about 5 out of every 100 occasions. Thus. 34 . At 5% level of significance we test the above mentioned hypothesis as per the results obtained. significance level provides greater confidence to the decision than a 5 per cent significance level. A significance level of. H (a) Alternative Hypothesis: . means that in the long run. say 1 per cent. but rather to set up two different hypotheses. implies that researcher is running the risk of being wrong in accepting or rejecting the hypothesis is 1 out of every 100 occasions. the other is rejected and vice-versa these two hypotheses are: Assuming a null hypothesis to be H (o) and the alternative hypothesis as H (a). We formulate the hypothesis as following: H(o) Null Hypothesis: : Factors which are not significantly influencing the customers for opting airtel pre paid mobile are brand image. A significance level of. say 5 per cent. low entry cost and strong connectivity.
= Chi-square O = Observed value E = Expected value : 35 .For our calculations. Chi Square = Where. we take the significance level of: 5 per cent.
COMPUTATION: Summary of Observed Data: Factors Connectivity Cost Brand image Service package Discount schemes Value added services Total Agree 87 90 72 90 89 92 520 Disagree 13 10 28 10 11 8 80 total 100 100 100 100 100 100 600 Degree of Freedom= (c-1) (r-1)= (2-1) (6-1)= 5 Expected value (agreed) = 520*100/600= 69.3 Expected value (disagree)= 80*100/600= 13.3 36 .
3 Disagree 13.3 82.Summary of Expected Data: Factors Connectivity Cost Agree 69.3 13.8 495.6 69.3 13.3 82.3 13.3 82.3 82.6 69.6 415.3 13.6 37 .8 79.3 total 82.3 13.6 69.6 69.6 Brand image Service package Discount schemes Value added services Total 69.3 82.
7 -3.3 -3.97 7.76 0.9 28.7 -0.7 2.09 10.001 0.3 69.3 69.51 6.18 1.18 0.29 428.11 0.7 20.0 10.3 13.3 13.43 .8 216.15 0.4 136.7 11.8 52.7 22.0 (O-E)^2/E 4.3 69.10 6.Calculation of chi square value: O 87 90 72 90 81 92 13 10 28 10 11 8 E 69.3 13.3 -5.3 69.2 428.7 20.3 (O-E)^2 313.3 13.3 13.3 -2.3 69.4 7.15 3.20 38 .8 515.2 .40 34.3 (O-E) 17.3 14.3 13.
value added services.20 The table chi-square value with5 [(2-1)(6-1)] degree of freedom at the significance level of 0.070 . Since the calculated chi-square value 34. 39 .070. It falls in the rejection region.= 34.20 is more than the table chi-square value 11. low entry cost and strong connectivity. Hence H(o) was rejected and H(a) was accepted. Decision making Thus it is clear from test of hypothesis with the help of chi-square test that “: Factors which influencing the customers for purchasing the airtel pre paid mobile are brand image.05 is 11.
• • • • • Most of the people are satisfied with the services of airtel pre paid mobile. I came to know about the how much they give the importance of brand image. In this I came to know about the consumers need and expectation levels regarding airtel pre paid mobile and ascertainable levels of consumer satisfaction. Promotional schemes affect the consumer in purchasing decision. In this I have tried to find out consumer’s cost association with the product. 40 . The perception of consumers towards the airtel pre paid mobile is very good.FINDINGS • Consumer research deals with consumer and their problems and solution to the problems.
because mostly people get attracted through promotional schemes. 41 . Focus on discount schemes because consumer always attracted through discount schemes.SUGGESTIONS AND RECOMMENDATIONS Company should concentrate more on promotional schemes. People are unsatisfied with the cost and service packages of airtel pre paid mobile so companies should concentrate in this regard also. They should focus on their value added services to retain most of the customers.
42 . Since the researcher selected 100 sample sizes it is not sufficient to cover opinion of entire population. Time duration in conducting the research is very low.Limitations The study is restricted only to Airtel pre paid mobile. noida respondents. The view of their other areas is not taken Respondents concentrated where the customers of Airtel pre paid mobile only.
43 . strong connectivity.Conclusion The main objective of my analysis was to find whether the customers are satisfied with the airtel pre paid services or not. So I find out here that the consumers of airtel pre paid mobile are highly satisfied with their services and promotional schemes are very attractive to retain the customers. How the promotional schemes affect the consumer buying behaviour. So the consumer perception and learning towards the airtel pre paid mobile is in positive view. The consumers are highly associated with brand image. There are various factors involved which influence the consumer for opting the airtel pre paid mobile. cost and service packages.
in/airtel.wikipedia.customersatisfaction.org/customer/satisfy. Web sites: www.com/ Magazines: 44 .H Kazmi.L.com http://managementhelp. & bitta delia consumer behavior ( tata Mc. 12th edition).htm http://airtelprepaid.in/Home http://www. 4th edition ) ► Satish K Batra And S. marketing management. ► Louden D.Bibliography Books: ► Kotler Philip.in/wps/wcm/connect/airtel. (Pearson education.H. Graw hill.
• • Business world Business today 45 .
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