MARKETING STRATEGIES OF BHARTI AIRTEL IN NORTHEAST SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULLFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (APPROVED BY AICTE, GOVT.OF INDIA) 2016-2018
SUBMITTED BY: XXXXXXXXXXX (BM-XXXXXXX)
INDUSTRY MENTOR:
FACULTY MENTOR:
XXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
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CERTIFICATE OF ORIGINALITY
I, XXXXXXXXX, student of PGDM from INSTITUTE OF MANAGEMENT STUDIES (IMS) hereby declare that I have completed summer internship on “Marketing Strategies of Bharti Airtel in Northeast” as part of the course requirement. I, further declare that the information presented in this project is true and original to the best of my Knowledge.
DATE:
XXXXXXXXXX Roll No – BM-XXXXXX PGDM (2016-2018)
PLACE:
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ACKNOWLEDGEMENT
This project has been a great learning experience for me & I would like to express my sincere gratitude to all the people who guide me through the project and without the valuable guidance and suggestions of these people the project would not have been completely successful. I owe enormous intellectual debt towards my industry mentor Mrs. XXXXXXX, Manager, Bharti Airtel, Guwahati, ASSAM and Faculty Mentor XXXXXXX Professor: Marketing Department at IMS Ghaziabad, for their continuous support & cooperation throughout my project without which the present work would not have been possible.
XXXXXXXXXXX Roll No: BM-XXXXX PGDM (2016-2018)
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PREFACE
In the present scenario marketing and sales is a major challenge for seasoned professional. And it is no surprise that Marketing is a tough concept to understand. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The project report consists of detailed Study of “MARKETING STRATEGIES OF BHARTI AIRTEL IN NORTHEAST” A sincere effort has been made to analyze working pattern of Mobile Services. The report further provides information regarding Bharti Airtel, its infrastructure with its product and services offered by them, which facilitate the buyer effectively. It is very important that trained marketing professionals who are able to communicate specific features of the services should sell the products. In the millennium all these activities would play a crucial role in the overall development and maturity of the organization.
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TABLE OF CONTENTS
1.
EXECUTIVE SYNOPSIS
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2.
NEED OF THE STUDY
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3.
INTRODUCTION
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4.
COMPANIES PROFILE
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5.
COMPETITORS PROFILE
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6.
MARKETING STRATEGY ADAPTED BY BHARTI
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7.
OBJECTIVE OF THE STUDYS
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8.
LITERATURE REVIEW
39
9.
RESEARCH METHODOLOGY
41
10.
FINDINGS
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11.
SWOT ANALYSIS
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12.
CONCLUSION
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13.
LIMITATION
56
14.
BIBLIOGRAPHY
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15.
ANNEXURE
58
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CHAPTER 1 EXECUTIVE SUMMARY
The present business scenario is totally customer oriented. Each company faces stiff competition from its competitors, each provides the best services at competitive rates. As a result customer has lot of choices to get the best with least cost. To face this competition, it is very important to know customer’s behavior towards different products and services. This project is aimed at understanding the Marketing strategies adopted by Airtel and its impact on the perception of Airtel Customers. Research has showed that it is far more costly to win a new customer than it is to maintain an existing one, and there is no better way to retain a customer than to exceed his expectations. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the measurement of customer satisfaction level for the services provided by Bharti Airtel. My job was to collect the feedback from the customers and also to get their suggestions about the other products. There can be no better opportunity to interact with the external as well as the internal customers of an organization. Finally the results of the research verify the fact that keeping the customer satisfied is the best strategy to not only retains the existing customers but also to expand the business to new horizons.
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CHAPTER 2 NEED OF THE STUDY In the recent years there were so many new telecom sectors has arise in the country who are giving services to their customers in many different ways. Airtel being the top most service provider for so many years proving their services through India and abroad also. The northeastern part of the country has long an untapped market for Airtel and service providers, in order to gain users in that region Airtel would need a different marketing strategy than it has been using for other areas. To find out what marketing strategy needs to be followed this study was needed.
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CHAPTER 3 INTRODUCTION
Industry Introduction: India's telecommunication network is the second largest in the world based on the total number of telephone users (both fixed and mobile phone). It has one of the lowest call tariffs in the world enabled by the mega telephone networks and hyper competition among them. It has the world's third largest Internet user base. According to the Internet and Mobile Association of India (IAMAI), the Internet user base in the country stood at 432 million at the end of December, 2016. Major sectors of the Indian telecommunication industry are telephony, internet and television broadcast Industry in the country which is in an ongoing process of transforming into next generation network, employs an extensive system of modern network elements such as digital telephone exchanges, mobile switching Centre’s, media gateways and signaling gateways at the core, interconnected by a wide variety of transmission systems using fiber optics or Microwave radio relay networks. The access network, which connects the subscriber to the core, is highly diversified with different copper pair, optic fiber and wireless technologies. DTH, a relatively new broadcasting technology has attained significant popularity in the Television segment. The introduction of private FM has given a fillip to the radio broadcasting in India. Telecommunication in India has greatly been supported by the INSAT system of the country, one of the largest domestic satellite systems in the world. India possesses a diversified communications system, which links all parts of the country by telephone, Internet, radio, television and satellite. Indian telecom industry underwent a high pace of market liberalization and growth since the 1990s and now has become the world's most competitive and one of the fastest growing telecom markets. The Industry has grown over twenty times in just ten years, from under 37 million subscribers in the year 2001 to over 1.05billonsubscribers in the year 2016
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Sectors in India Telecommunication: Major sectors of telecommunication industry in India are telephony, internet, Data centers and broadcasting. Telephony: The telephony segment is dominated by private sector and two state run Businesses. Most companies were formed by a recent revolution and restructuring launched within a decade,
directed
by
Ministry
of
Communications
and
IT,
Department
of
Telecommunications and Minister of Finance. Since then, most companies gained 2G, 3G and 4G licenses and engaged fixed line, mobile and internet business in India. On landlines, intracircle calls are considered local calls while intercircle are considered long distance calls. Foreign Direct Investment policy which increased the foreign ownership cap from 49% to 74%.Now it is 100%. The Government is working to integrate the whole country in one telecom circle. For long distance calls, the area code prefixed with a zero is dialed first which is then followed by the number (i.e., to call Delhi, 011 would be dialed first followed by the phone number). For international calls, "00" must be dialed first followed by the country code, area code and local phone number. The country code for India is +91. Several international fiber optic links include those to Japan, South Korea, Hong Kong, Russia, and Germany. Some major telecom operators in India include Airtel, Vodafone, Idea, Aircel, BSNL, MTNL, Reliance Communications, TATA Teleservices, Uninor and TATA DoCoMo. Wireless Internet: 2nd Generation Internet is the most prevalent in India in the Past Decade. Wireless ISPs in India use both CDMA and Edge technologies for 2G. India's wireless Internet frequencies are 2G: GSM 900 MHz, GSM 1800 MHz 3G: UMTS 2100 MHz 4G: TDLTE 2300-2400 MHz, FDLTE 1800 MHz
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Broadcasting: Television broadcasting began in India in 1959 by Doordarshan, a state run medium of communication, and had slow expansion for more than two decades. The policy reforms of the government in the 1990s attracted private initiatives in this sector, and since then, satellite television has increasingly shaped popular culture and Indian society. However, still, only the government owned Doordarshan has the license for terrestrial television broadcast. Private companies reach the public using satellite channels both cable television as well as DTH has obtained a wide subscriber base in India. In 2016, India had about 183 million TV homes of which 150 million has access to cable and satellite services.
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CHAPTER 4 COMPANY PROFILE
Airtel is a name that connects India with millions of people all over the world with millions of people in India. Today, this telecom giant is amongst the most trusted telecommunication brands in the world. The company’s modest journey from a regional operator limited to the city of Delhi to second largest mobile operator in the Asia Pacific region is nothing short of inspiring. Airtel has its roots in Bharti Telecom Limited. Founded in 1986 by Sunil Bharti Mittal, the company was the first in India to offer push button telephones, when the rest of the country was still using rotary phones. The first partnership they had was with Siemens AG of Germany, and they started making push-button landlines in India rather than importing it from Taiwan In 2003, Sunil Bharti Mittal rebranded all of his mobile telecom ventures under a single brand named Airtel Bharti Airtel is one of the leading alternative providers of telecommunications services in India and the first private telecom services provider with footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has 11
steered the course of the telecom sector in the country with its world class products and services. As one of Asians leading integrated telecom services providers with operations in 18 countries across Asia and Africa. Bharti Airtel since its inception has been at the forefront of technology and has pioneered several innovations in the telecom sector. The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business provides mobile & fixed wireless services using GSM technology across 23 Telecom circles and also in countries like Africa, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in89 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand. Airtel, in just ten years of operations, rose to the pinnacle to achievement and continues to lead. As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms, contributing to its economic resurgence. Airtel operates in India, Sri Lanka, Bangladesh, a few countries in African continent and the Channel Islands. They are one of the largest mobile operator networks in the world in terms of subscribers, and has a commercial presence in over 20 countries. Its area of operations includes: •
The Indian Subcontinent:
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Airtel India, in India
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Airtel Sri Lanka, in Sri Lanka
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Airtel Bangladesh, in Bangladesh
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Airtel Africa, which operates in 17 African countries:
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Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.
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The British Crown Dependency islands of Jersey and Guernsey, under the brand name Airtel-Vodafone, through an agreement with Vodafone.
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The Airtel Brand and its Logo
There has been no change in the brand name Airtel was born free, a force to unleash into the market with a relentless and unwavering determination to succeed. A spirit charged with energy creativity and team driven to seize the day with an ambition to become the most globally admired telecom service. The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn word mark.
The unique symbol is an interpretation of the 'a' in Airtel. The curved shape & the gentle highlights on the red color make it warm & inviting, almost as if it were a living object.
The logo represents a dynamic force of unparalleled energy that brings us and our customers closer," it added.
The "unboxed" having been freed of its rigid boundaries. Airtel calls the new logo youthful, international, inclusive and dynamic – representing the journey of the first Indian brand to go truly global. The new identity underlines Airtel’s willingness to embrace everything that is new. The red color, which is an integral part of the brand, continues to represent the energy and dynamism that has made Airtel the success it is today. The new curved addition to the logo is a symbol which will help ensure instant recognition across diverse international markets.
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The color "Red is part of our heritage. It is the color of energy & passion that expresses the dynamism that has made Airtel the success it is today, in India, and now on the global stage.
BRAND AMBASSADORS USED BY AIRTEL In order to take the advantage of the growing number of youth in our country, Airtel introduced Sachin Tendulkar,Shahrukh khan, Saifali khan, Kareena Kapoor, GautamGambhir and many others as brand ambassadors to tap the potential.
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Airtel has taken the lead on many occasions. It has been the first
Launched Cellular service in Delhi on November, 1995.
Operator to revolutionize the concept of retailing with the inauguration of Airtel Connect (exclusive showrooms) in 1995.
To expand its network with the installation for second mobile switching center in April, 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. First to provide roaming facility in USA. Airtel has the largest automatic roaming service "SMART ROAM"- National in 400 cities in India and "SMART ROAM" International in over 60 countries and 95 networks all over the world.
It is also the first company to export its products to the USA.
Services Mobile Services 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. 3G: Airtel 3G services are available in 200 cities through its network and in 500 cities through intra-circle roaming arrangements with other operators. Airtel had about 5.4 million 3G customers of which 4 million are 3G data customers as of September 2012
4G Airtel launched 4G services using TD-LTE technology in Kolkata, becoming the first company in India to offer 4G services. Airtel had 20,000 4G subscribers as of March 2013. Smart Drive Smart Drive is navigation app exclusive to Airtel customers. The app features voice-based turn by turn navigation, real time information update on traffic, 15
approximate time of the travel on the basis of the traffic situation on the various routes and also lets users see their location on the map and plan the journey accordingly. It also suggests the subscriber an alternate route in case of traffic congestion on the normal route. Network Experience Centre Airtel has a Network Experience Centre (NEC) which observes end to end customer experience, in near real time, along with the standard network elements on Airtel's operations. The NEC is located in Manesar, Haryana and went live on 31 October 2012. It is the first such facility in India and will be able to monitor Airtel's network performance across mobile, fixed line, broadband, DTH, M-Commerce, enterprise services, International Cable Systems and internet peering points from a single location. It will monitor all Airtel and partner NOCs. In case of an emergency, the NEC will enable the operator to prioritize actions to restore normalcy and reduce resolution time. Instant Balance and Validity Enquiry 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. Recharge your Airtel Prepaid 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 that’s right for you, from a variety of tailor– made recharge coupons with different denominations, which are available at a number of 0utlets across your city. Simply follow the procedure mentioned below, to recharge your phone. Prepaid Roaming Airtel Prepaid comes pre activated 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 GPRS services while roaming in India as 16
you would in your own city. While traveling abroad you can receive calls & send or receive SMS. 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” for the last three months. Sort your calls between personal and official or analyze your usages, at the click of a button. Easy Payment Options. Anytime Anywhere You can choose from a host of convenient payment options only with Airtel. 1. Walk into any Airtel relationship center 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. 2. 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 centers. 3. Electronic Clearing System Fill an ECS form and mail, fax it to us or drop it any of our relationship centers to directly debit your bank account for your monthly Airtel bill. 4. Pay while roaming Airtel has introduced 'anywhere payment' that offers you the convenience of making payments while you roam. Walk in to any 17
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. Long Distance Calling Facilities Call long distance calls in India and Overseas with STD/ISD facility from your Airtel number 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 management Services 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 you’re 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. SMS (Short Messaging 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. 18
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 ring tones, games, wallpapers, videos and much more. You can also get news clips, watch live TV and download full songs on your 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".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. Hello Tunes Tired of that boring old ‘tringtring’ 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. 19
Copy a Hello Tune 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. Gift a Hello Tune 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 want to gift the Hello Tune to. You will get an SMS notification upon successful receipt of that gift. 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. Missed call alert 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. MMS (Multi-media Messaging Service) 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. GPRS (General Packet Radio Services) 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.
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Services that Airtel is providing to their customers
Airtel Money Airtel has started a new mCommerce platform called Airtel Money with collaboration with Infosys and Smart Trust (now Giesecke&Devrient). It was launched on April 5, 2012, in Infosys Campus of Bangalore, with the help of Airtel money, users can transfer money, pay bills and other financial transactions using mobile phone
Digital TV Services “Airtel Digital TV” service Launched in October 2008 as fifth operator providing Direct-to-Home (DTH) services in India. First Company in India which provides real integration of all the three screens ex. mobile, television and computer enabling our customers to record their favourite Television programs through mobile and webSubscriber base is 10.142 million subscribers. Digital TV service Present across 639 districts in India.Airtel Digital TV offers 470 channels including 30 HD channels, four international channels and three interactive services.Airtel Digital TV offers High Definition (HD) Set Top Boxes and Digital TV Recorders with 3D capabilities delivering superior customer experience Wi-Fi Airtel has plans to launch Wi-Fi services in India. It intends to start offering Wi-Fi services in Delhi NCR, Mumbai and Bangalore in initial phase. All plans will be on secure wireless broadband internet with unlimited usage and will besession or time based. Users can use the service by finding a hotspot, selecting Airtel Wi-Fi Zone', activating the voucher and then login to start browsing.Airtel intends to partner with establishments to set up hotspots which will be termed Wi-Fi Hangout for an establishment owner and WiFi Partner for the cafe and restaurant owners. Airtel Wi-Fi Partners can offer services at zero investments and can earn commission on every Wi-Fi session sold
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Awards in the last 5 years
Bharti Airtel secured the top spot in Brand Equity’s ‘50 Most Trusted Service Brands’ 2014.
Bharti Airtel secured the second position in the ‘BrandZ Top 50 Most Valuable Indian Brands 2014’.
Bharti Airtel ranked first in a listing of 100 emerging market multinational companies by Transparency International on corporate transparency and reporting. According to the study, the Company topped the list with a cumulative score of 7.3 out of 10.
Bharti Airtel was ranked among the top three in a listing of the Top 100 BSE listed companies in FTI Consulting’s ‘India Disclosure Index 2015’ Report with a composite score of 10 out of 10.
Bharti Airtel’s e-Shakti (Madhya Pradesh) bagged the ET Telecom Award as the best initiative in the ‘Use of Telecom for Social Good’ category.
Bharti Airtel was recognised for excellence in internal auditing at the ‘Innovation Award 2016’ by the Institute of Internal Auditors (IIA), Delhi.
Bharti Airtel has been recognised as an ‘Innovator & Disruptor in HR Technology Practices’ by the Society for Human Resource Management (SHRM).
Bharti Airtel’s e-Shakti (Andhra Pradesh) won ‘Telecom Service Provider’ Award from the Government of Andhra Pradesh for women empowerment.
Bharti Airtel was recognised for ‘Legal Finesse, Innovation & Accomplishments: In-House Team’ at the Legal Era Awards 2015-16.
Bharti Airtel won ‘India’s Top Mobile Service Operator’, ‘Top Internet Services Operator’ and ‘Top Broadband Wireless Access Operator’ at the annual Cyber media ICT Awards 2015.
Bharti Airtel won the ‘Firm of the year – Telecommunication’ Award at the CNBC TV18 India Risk Management Awards 2015 held in New Delhi.
Bharti Airtel honoured with the ‘Golden Peacock Award for Sustainability 2015’ at the London Global Convention on Corporate Governance & Sustainability held in London, UK
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Bharti Airtel won the ‘Operator Excellence Award’ in the ‘Business Innovation in Risk Management’ category at Subex User Conference held in Prague, Czech Republic.
Bharti Airtel won the ‘Top Treasury Team (Asia) Award’ at the Adam Smith Asia Awards 2015.
Bharti Airtel won the ‘Data Security Council of India (DSCI) Excellence Award’ for security in Telecom at the NASSOCM-DSCI Annual Information Security Summit 2015.
Bharti Airtel honoured with ‘Company of the Year for Sustainability Telecommunication India & South Asia’ Award at the IAIR Awards 2015
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CHAPTER 5 Competitors Vodafone
Vodafone, previously Hutchison is a cellular operator in India that covers 16 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and post-paid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23license areas. Company profile: In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a license to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's23 license areas and following the completion of the acquisition of BPL that number increased to 16. In2006, it announced the acquisition of company that held license applications for the seven remaining license areas. In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India – in Cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to 24
establish a robust network, well-known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and highend post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide.
IDEA CELLULAR
Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a join venture between the Tata’s, Aditya Birla Group and AT&T by merging Tata Cellular and Birla AT&T Communications. Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR).The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP25
West, Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 23 million, IDEA Cellular footprint currently covers approximately 60% of India's telecom population A frontrunner in introducing revolutionary tariff plans; IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea has received international recognition for its pathbreaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 Consecutive years. IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by an extraordinary force of over 100,000 employees belonging to 25 different nationalities, over 50% of its revenues flow from its overseas operations. With ambitious future plans, the company is poised for rapid growth across the whole country. The Brand Idea It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are the company values and vice versa. The Brand Vision It goes without saying that the brand vision of idea mirrors the Company’s vision The brand mission statement is to be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time& space
RELIANCE JIO
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Reliance JioInfocomm Limited, or Jio, is an LTE mobile network operator in India. It is a wholly owned subsidiary of Reliance Industries headquartered in NaviMumbai, Maharashtra that provides wireless 4G LTE service network (without 2G/3G based services) and is the only 'VoLTE-only' (Voice over LTE) operator in the country which lacks legacy network support of 2G and 3G, with coverage across all 22 telecom circles in India. The services were first beta-launched to Jio's partners and employees on 27 December 2015 on the eve of 83rd birth anniversary of late DhirubhaiAmbani, founder of Reliance Industries,and later services were commercially launched on 5 September 2016. Company profile: RJIL is a subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, is the first telecom operator to hold pan India Unified License. This license authorizes RJIL to provide all telecommunication services except Global Mobile Personal Communication by Satellite. Company holds Universal Service License and is the only pan India operator with Broadband Wireless Access (‘BWA’) spectrum for commercial Long-Term Evolution (LTE) services across 22 circles capable of offering fourth generation (4G) LTE wireless services across India. Reliance Jio is setting up a pan India telecom infrastructure to provide fourth generation 4G LTE TDD high speed wireless internet and mobile communication services which may be launched by June 2015. The company is in process to set-up the 4G LTE infrastructure which will also be an enabler for a portfolio of rich multimedia digital services including education, health-care, entertainment, payment and cloud services for millions of individuals, homes and businesses across India. RJIL is setting up a pan India telecom network to provide to the highly underserviced India market, reliable (4th generation) high speed internet connectivity, rich communication services and various digital services on pan India basis in key domains such as education, healthcare, security, financial services, government citizen interfaces and entertainment. RJIL aims to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into global leadership in digital economy
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RJIL is also deploying an enhanced packet core network to create futuristic high capacity infrastructure to handle huge demand for data and voice. In addition to high speed data, the 4G network will provide voice services from / to non-RJIL networks. Reliance Jio is part of the “Bay Of Bengal Gateway” Cable System, planned to provide connectivity between South East Asia, South Asia and the Middle East, and also to Europe, Africa and to the Far East Asia through interconnections with other existing and newly built cable systems landing in India, the Middle East and Far East Asia.
BHARAT SANCHAR NIGAM LTD.COMPANY OVERVIEW
Bharat Sanchar Nigam Limited provides telecommunications services in India. Its services include wire line and cellular services, as well as other value added services, such as voice mail service, short message service (SMS), group messaging, national and international roaming, call forwarding, corporate virtual private network, call conferencing, friend and family talk, call waiting, and call holding services. The company also provides3G; wireless in local loop (WLL)mobile telephone; Internet; Web-hosting; Web co-location; SMS and bulk SMS; and broadband services. In addition, it offers managed network services; multi-protocol label switching based virtual private network (VPN) services; integrated services digital network (ISDN) services; data communication services; intelligent network services consisting of toll free phone service, universal access number, voice VPN, tele-voting, and virtual calling cards; and video, audio, and Web conferencing services. Further, the company 28
provides fleet management solution comprising track, an on-line tracking system to manage fleet, such as trucks, car carriers, trailers, tankers, containers, or vehicles carrying hazardous and specialty explosive chemicals; net services for use in various applications, including electronic mail services, corporate communications, information retrieval, database services, remote job applications, credit card verifications, travel reservations, and Internet connectivity; telex/telegraph services;PABX/EPABX services; and DSPT services, as well as offers VSAT, voice over Internet protocol, and IN services. Bharat Sanchar Nigam Limited was founded in2000 and is based in New Delhi, India.
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CHAPTER 6
MARKETING STRATEGY ADOPTED BY BHARTI AIRTEL 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 all over the country. 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 differentiatorBrand 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 country,' 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. 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.). 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 30
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. 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 realized 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 organized 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 advertisements, attacking advertisements and tactical advertisements.
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Product
Offer a basic
Offer value added
Increase in number
product/ service.
services
of value added services.
Price
Charge cost- plus
Distribution
Price to penetrate
Price to match or
market
best competitors
Build selective
Build Intensive
Build more
distribution
distribution.
intensive distribution.
Advertising
Build product
Build awareness
Stress brand
awareness among
and interest in the
differences and
early adopters and
mass market
benefits.
Use heavy sales
Increase to build
Increase to
promotion to entice
and maintain
encourage brand-
people to subscribe.
relationships with
switching.
dealers. Sales Promotion
customers.
MARKET SEGMENTATION Segmentation is beneficial because of better predictability of the target consumer group, minimization of risk exposure, better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income. In evaluating different market segments the company looks at two factors The overall attractiveness of the segments and the company's objectives & resources The present market for Cellular phones, pagers and conventional phones is as follows
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Premium
Middle
Economy
Upper
Lower
Upper
Lower
Upper
Lower
Cellular Phones
X
X
X
-
-
-
Pager
X
X
X
X
-
-
Conventional
X
X
X
X
X
-
Phones
X Market Segment Targeted
TARGET MARKET SEGMENT Airtel has targeted the premium and upper middle class. The rationale behind it is that only those segments should be targeted who value time and have the paying capacity. It is also planning to target the business tourists during their stay in the capital. About 60% of the clientele are top executives of corporate houses. About 15% are foreign organisations and the rest are professionals and small businessmen. During the introduction stage there was intense pressure to get consumers across to hook up with their brand, because getting them to switch brand loyalty later would be hard So far Airtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has beer) built up and prices have declined to a certain extent they are planning to venture further 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 cell phone is an expensive means of communication and drive home the point that the cell phone is actually a day-to-day utility
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PRODUCT POLICY AND PLANNING The product or service is the heart of the marketing mix. Without a product or a service customers' needs cannot be satisfied. The basic product promise by Airtel is mobility. Airtel's main marketing strategy is to be a first mover all the time. It has recognized the significance of making the first move-- because in the field of Communication & Information Technology changes occur at a tremendous pace. Effective product segmentation has to be carried on continuously because basic services can be and will be copied and in time become expected component of the product. Airtel seeks to carry out this segmentation through provision of new information services and making new facilities available. The product policy and planning depends on the stage of the product life 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 optimize 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 2. Short Message Service The short message service is like a two-way pager. It gives an option of sending and receiving text messages directly from one mobile phone to another without the intervention of an operator. 3. Mobile Fax 1 Data Service 34
This service helps the subscriber to send and receive Faxes, access E-mail, download computer files from other systems and remotely log on to another computer and surf the Internet. 4. Cash Card 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. AIRTEL'S MARKETING ORIENTATION. Since this is a high- involvement expensive product, the service provider has to fully take care of the customers. a) They take personal responsibility to "get" the answer for any problem faced by the customer b) They anticipate customers' problems and take pro-active steps to prevent them 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 realizes 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. PRICE AND PRICING POLICY AIRTEL has realized that the Indian market is price sensitive. Therefore it care of the has come up with various innovative tariff schemes to take needs of different category of customers- Generally, the cellular services are more expensive than the land line based telephone services.
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Marketing Strategies in the Northeast In the Northeastcircle Airtel has been divided into 4 zones 1. Assam 2. Northeast 1 3. Northeast 2 4. Upper Assam
In Assam Zone it is subdivided into two zones 1.
Kamrup Metro
2. Kamrup Rural
In each of the 4 zones there are 4 Zonal Business Managers (ZBM) are appointed, with each ZBM there are several Zonal Sales Managers (ZSM) and under each ZSM various Treasure Manager works
TM looks reports to the ZSM about the new launched sites of 2g,3g or 4g and ZSM update it to their respective ZBM and the Airtel Head Office of the Northeast zone which is situated in Guwahati, ASSAM
In the time, where technology has always played vital roles for the companies in making aware of their products in the mind of customers by various ways like Advisement, Hoardings, etc. but in when it comes in the promoting the rural areas where still technology has just landed their feet there is always problems faced by the companies in promoting their products, where customers only knows the name of the brand but have no idea about it. To solve this problems and to promote the brands by organizing few road side stalls where they give details about their process .They also educated the retail shopkeepers about the offers which Airtel were providing so that the customers do not face any problem while availing the offers. Below some of the pictures of the road side stall.
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CHAPTER 7 OBJECTIVES OF THE STUDY
Objectives: To study the importance and development of telecommunication industry in today’s scenario. To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry
38
CHAPTER 8 Literature Review The growth in demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging; value added services, internet and global communication by satellite item (GMPCS) services. The agents of change, as observed from international perspective, have been broadly categorized into economic structure, competition policy and technology. Economic reforms and liberalization have driven telecom sector through several transmission channels of which these three categories are of major significance. The effective research cannot be accomplished without critically studying what already exists in the form of general literature and specific studies. Therefore, it is considered as an important pre-requisite for actual planning and execution of research project. This helps to formulate hypotheses and framework for further investigation. In this research, the survey of literature has been classified into two parts - studies related to telecom sector and studies related to marketing strategies. National Telecom Policy projected a target 75 million telephone lines by the year 2005 and 175 million telephone lines by 2010 has been set. Indian telecom sector has already achieved 100 million lines. With over 100 million telephone connections and an annual turnover of Rs. 61,000 crores, our present tele density is around 9.1%. The growth of Indian telecom network has been over 30% consistently during last 5 years. In the study of consumer behaviour, it is possible to conclude that perception is presented as one of personal factors determines consumer behaviour. A personal factor is the closest environment of a consumer, including everything that makes up the individual, his/her head and soul, which characterised his personality. Using sensory receptors and influenced by external factors, the person receives information, accepts and adapts it, forms his personal attitude, opinion, and motives that influence behaviour. Perception within this context is one of the principal personal factors, conditioning the nature of the consumer and his/her behaviour and other variables. This is based on the fact that an individual’s decisions and behaviours are not made solely by him/her, but rather are influenced by the opinions and recommendations of other important people. As a person is part of a social network, he/she normally 39
interacts with others in daily life and talks and shares with others on what he/she sees, thinks and experiences (Pedersen, 2005). That is why, for example, word of mouth is known as one of the most effective channels through which positive and negative ideas and perceptions and spread in a social setting. Today, for every firm a critical question for its success is that how it can maintain its current customers and how it can make them loyal to the brands.
Loyal customers play important role in building businesses by making different moves like buying more, by paying premium prices and most importantly providing companies different sets of new customers by positive word of mouth (Aydin and Ozer, 2004). In fact telecommunication companies lose their customer quite regularly. So it’s very challenging task for the mobile phone operators to retain existing customers as well as bringing new customers towards their brands and creating loyalty in them. It happens in almost every industry but especially in telecommunication services, it is said that when customers are connected to a particular service provider or operator then their long term relationship with the operator is of great importance for the success of the company in the competitive market.
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CHAPTER 9 RESEARCH METHODOLOGY
Research Methodology is considered is considered as the nerve of the project, without a proper well-organized research plan it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Research Design Descriptive Research: The type of research adopted for the study is Descriptive.Descriptive studies are undertaken in many circumstances when\the researches is interested to know the characteristic of certain group such as age, sex, education level occupation or income. Types of Data Collected There have been two sources of information collected: 1. Primary Sources I have met retailers of the Airtel company and have been able to get first-hand information regarding the sales of the product, number of up-gradation from 3g to 4g customers 2. 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 internet and particularly the companies own website Research Tool Questionnaire This the most popular tool for the data collection. Various customers were approached through goggle doc. Which was send through whatsapp and mails to fill the questionnaire designed which is attached in the report 41
Data Collection The data collection is done through random sampling. Sample Size The sample size for customer profile is 101
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CHAPTER 10 FINDINGS
GENDER
FEMALE, 35.6, 36%
MALE, 64.4, 64%
Interpretation From the above pie-chart we can say that about 64.4% of the total responses are male responders and the rest 35.6% are female responders
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AGE 33 Above 7%
18-22 15%
28-32 15%
23-27 63%
Interpretation As we can see from the above graph, the people who are in the age group of 23-27 years are the ones who are the maximum users of mobile phones. This segment is the one which give maximum business to the mobile operators. This segment constitutes the young executives and other office going people. They are 63.4% of the total people who were interviewed. The next age group are the people who are 18-22 and 28-35 years old. They are 14.9% of the total followed by 33 above age
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Which type of connection do you prefer postpaid 30%
Prepaid 70%
Prepaid
postpaid
Interpretation
The above data shows mostly prefer prepaid connection over postpaid because of offers they are getting in the prepaid connections and they are in demand as earlier only network was used for calls only and now it provides number of facilities like internet etc.
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Are you using any service provider instead of Airtel
No 44%
Yes 56%
Yes
No
Interpretation Here we can clearly see that most of the customers are using other service providers other than Airtel i.e. 56.4% where 43.6% of the total responses uses Airtel. To have more customers Airtel have to work with their marketing strategies to attract more and more customers
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IF YES, WOULD YOU LIKE TO USE AIRTEL SERVICE ? Yes
No
45%
55%
Interpretation
Here we can see that most of the respondents who were using other service providers want to avail the service of Airtel i.e. 55.4% and 44.6% still do want to change their service provider. To change the the mind of the rest 44.6% customers Airtel have to make new strategies to make it 100%.
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How long have you been using this connection of your service provider 10% 34% 23%
33%
less than 6 months
6-12 months
2-3 years
3-4 years
Interpretation People on an average spend RS 500 per month as their mobile phone expense. 64% people spend this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining 12% had an expense more than RS 1000, they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles.
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How much money do you spend per month? 9% 39%
22%
30%
100-200
200-300
300-400
400 Above
Interpretation People on an average spend Rs 400 and above per month as their mobile phone expense. 39.6% people spend this amount. 29.7% people spend Rs 300-400 per month as their monthly mobile expense. And the remaining 21.8% and 8.9% had an expense more than Rs 200-300 and Rs 100-200.
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Rate the following statements on your level of agreement on the scale of (Highly Satisfied to Highly Dissatisfied) 70 60
50 40
30 20 10 0 Brand Credibility
Price and Offers Highly Satisfied
After Sales Services Satisfied
Networks Neutral
Voice Clearity Dissatisfied
Value for Money
Value Added Services
Highly Dissatisfied
Interpretation From the above,
In the case of Brand Credibility 59% is satisfied with it followed by 25% who were highly satisfied and 15% and 2% are neutral and dissatisfied
In the case of Price and Offers 40% were satisfied and 40% are neutral 16% are highly satisfied and 4% and 1% are totally disappointed with it
In the case of After Sales and Services around 46% are satisfied with it where as 36% are like neutral
In the case of Network, more than 40% are satisfied with the network and around 35% are highly satisfied with it
In the case of Voice Quality, around 42% are satisfied and 29% are highly satisfied
In the case of Value for money 39% are satisfied and 36% they are like neither satisfied nor disappointed
In the case of Value Added Services. Around 42% are satisfies and 36% are neutral
From the above cases we can conclude that most of the customers are satisfied with services of the Bharti Airtel 50
Suggest features you think needs improvement VLAUE OF NET PACK INTERNET
1%
THE PRICE ARE TOO HIGH
1%
NETWORK
28.70%
TARIFF PLANS
14.90%
CALL CLARITY
15.80%
TRANSPARENCY IN BILLS
12.90%
SERVICES 0.00%
18.80% 5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Interpretation From the above we can say that most of the customers i.e. 52.5% think that Airtel should rethink about their tariff plans as their competitors are giving the same tariff plan at a less price. 28.7% thinks Airtel should improve their network issues as many customers faced networks issues, followed by service, call clarity, customer care transparency in bills and so on have to improve each of it to stay in the top of the cellular market
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CHAPTER 11 SWOT ANALYSISS
One of the top telecommunication companies in India, Airtel has spread across far and wide in the last 2 decades of its existence. The company is known for its availability and its smart range of value added services. Here we present you the SWOT analysis of Airtel to understand the strengths, weaknesses, opportunities and threats for the company. Strengths in the SWOT analysis of Airtel 1. Renowned Telecom company: With its 19+ years of rich experience in telecom industry this MNC had travelled far to become world’s 3 rd largest telecom operator overseas with operations in nearly 20 countries. 2. High Brand Equity: It is one of the pioneer brands in telecommunication having a high brand recall and with a whopping subscriber base. 3. Extensive infrastructure: With the formation of Indus tower & due to its partnership with Idea & Vodafone, the infrastructure of Airtel has extended in all parts of the country resulting into nationwide penetration. 4. Strategic Alliances: The Company has top notch stakeholders, namely Sony Ericsson, Nokia and singtel, and the recent one being Apple. Such strategic alliances boost the brand equity and the bottom line of the company. 5.
Torchbearer of the telecom Industry: With its number 1 spot due to its excellent services in developing economies, Airtel has interconnected the life of people in an highly efficient way. Thus, where Vodafone is an external entrant, Airtel is a leading nationwide player in India and the torchbearer of the telecom industry in India.
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Weaknesses in the SWOT analysis of Airtel 1. Outsourced Operations: Outsourcing operations helped Airtel in lowering its cost. But on the other hand, they are running the risk of being dependent on some other companies which may affect its operations. 2. Venturing into African operations: Although it’s been 4 years that Airtel has acquired Zain’s Africa business, but Airtel is still struggling to turn around the unit which was bought at 9 billion dollars. 3. High Debt: With its acquisitions turning out to bad investment, and credit being high and margins being low, Airtel group is under high debt. Airtel does not have as deep pockets as Vodafone. Opportunities in the SWOT analysis of Airtel
1. Strategic Partnership: Partnering with smart phone companies is going to be a smart strategy as far as MNP (mobile number portability in India) is concerned. This will ensure fixed cash flows in the future and a higher customer base. 2. Market Development: With fierce competition in the telecom industry & shrinking margins, venturing out in new markets/developing economies will prove fruitful for the company. 3. VAS: VAS (Value Added services) is going to future of the telecommunication industry & by specializing itself in this vertical Airtel can differentiate itself in highly competitive market. With introduction of unique services, Airtel can avail higher margins. 4. Untapped geography of the current market: Although it is currently providing 3G & 4G services, but these services are limited to specific geographical locations. Expansion of these services to most of its regions will help the company get more margins and customers. 5. LTE: The whole wireless world is moving towards LTE (long term evolution or 4G). LTE for mobile broadband can be a good solution for India where fixed broadband penetration is otherwise low. Airtel has taken the lead with this version of LTE in 4 53
cities, but deployment needs to catch up pace. Despite a weak LTE ecosystem in India, Airtel should portray itself as the embracer of that technology. The company lacks nationwide 3G license with spectrum in 13 out of 22 telecom service areas. Airtel’s LTE network for mobile broadband is still confined to only 4 cities in India.
Threats in the SWOT analysis of Airtel
1. Government Regulatory Framework: With the auction of spectrum & change in the government policies on a regular basis, it is a potential threat to the stability & existence of this industry thereby affecting the players. 2. Competition: Price war in the home market and declining margins due to this is adversely affecting the overall business of the group. 3. MNP (Mobile number portability): MNP gives the customer independence to change the service provider while retaining the number and as Airtel charges are premium over other service providers, it can see slump in subscriber base in the next fiscal year with PAN India MNP applicable from May 3 rd 2015.
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CHAPTER 12 CONCLUSION
From above the details I conclude that 46% 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. Provides internet access on the move as people are more dependent on it in their daily lives like wide network and good 3G and 4G services Airtel possesses congestion free & wide network, unique value added & customer services.Providing customer satisfaction is the most crucial step of the company as they are to be satisfied and provides Internet access on the move such as Wide network and good 3G and 4G services as they are important and technology advanced stuff required by almost everybody in today’s environment
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CHAPTER 13
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-
Respondent’s unavailability.
Time pressure and fatigue on the part of respondents and interviewer .
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CHAPTER 14 Bibliography
In this project report, while finalizing and for analyzing quality problem in details the following Web Sites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report.
Web sites:
www.wikipedia.com
http://managementhelp.org/customer/satisfy.htm
http://airtelbroadband.in/wps/wcm/connect/airtel.in/airtel.in/Home
http://www.slideshare.net/muskan19/airtel-brand-analysis
http://www.airtel.in/
http://www.slideshare.net/dpdas3/bharti-airtel
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CHAPTER 15 ANNEXURE
QUESTIONNAIRE
CONSUMERS BEHAVIOR TOWARDS BHARTI AIRTEL
1. Name _________________________________________
2. Gender Male Female 3. Age 18-22 23-27 28-32 33 Above 4.
Which connection do you preferred more? Prepaid Postpaid 58
5. Are you using any other service provider instead of Airtel?
Yes No 6. If yes, would you like to use Airtel service? Yes No 7. How long have you been using this connection of your service provider? Less than 6 months 6-12 months 2-3 Years 3-4 Years 8. How much money do you spend for mobile connection per month? 100-200 200-300 300-400 400 Above
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9. Rate the following statement on your level of agreement on the scale of (Highly Satisfied to Highly Dissatisfy) Highly
Satisfied
Neutral
Satisfied
Dissatisfy
Highly Dissatisfy
Brand and Credibility Price and Offers After Sales Services Networks Voice clarity Value for money Value added Services 10. Suggest features you think needs improvement Services Transparency in Billing Call Clarity Customer Care Tariff Plans Others ______________________________________ 60
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