Project Report On Market Share Of Airtel

1111

Minor Project Report On

MARKET SHARE OF AIRTEL

Submitted in the degree of Bachalor of Business Administration (BBA) Submitted to:

Submitted by:

Asim sahore

Simranjeet kaur

(Project guide)

0631701707

TECNIA INSTITUTE OF ADVANCED STUDIES (Affiliated to Guru Gobind Singh Indraprastha University) 2A & 2B, Madhuban Chowk, Rohini, Delhi-110085

1110/12/2009 1111

11- 1111111111111 -111 22131

- 1 -1

2222

TABLE OF CONTENTS

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Acknowledgement Executive Summary Objective of Study Company Profile Market Research Wallet Share Research Methodology Data Analysis New retailers added Conclusion Limitations Recommendations Bibliography Annexure

2210/12/2009 2211

22- 2111111111112 -222 22131

- 2 -2

3333

ACKNOWLEDGEMENT My project work has been successfully accomplished due to cooperative efforts of many people. I would like to pay my sincere gratitude and thanks to those people, who directed me at every step in the project work. I would like to express my sincere gratitude to Mr. Asim Sahore (Project guide) for constantly guiding me and acting as my mentor during the course of my project and tackling variety of hurdles with implicit patience throughout my research project and whose deep involvement and interest in the project infused in me great inspiration and confidence in taking up this study in right direction. Without his overall guidance and help the project may not have seen to be completed. In the end, I also want to thanks my friends for their support and help during the project. Submitted by: SIMRANJEET KAUR

3310/12/2009 3311

33- 3111111111113 -333 22131

- 3 -3

4444

Executive Summary 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 includes 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 services provider, with an all India footprint covering all 23 telecom circles of the country. It has over 11 million satisfied customers. Project title is “Market Share of Airtel”. Main objective of the study was to find the share of Airtel in the allotted market and to know its potential market. In this, non telecom shops are targeted and their demand or requirement is understood. Their interest is being taken into consideration i.e. whether they are interested or not interested if given an option to them to keep Airtel connection for selling. Also for existing telecom shops; retailers are being questioned about their level of satisfaction from the business, whether they keep Airtel connection, overall performance of each telecom services providers and their feedback for Airtel. The method which was used to study the replies of the telecom and non telecom shops that may or may not be interested in having Airtel connections is through questionnaire. The questionnaires were filled by: - moving to each and every market which was being allotted. Markets allotted are Rohini sector 11 and 16, Rohini sector 15, 17 and 18 and Rohini sector 9, 13, 14 and Prashant Vihar. Existing telecom shops and non telecom shops like chemist, general stores, STD/ PCO, gifts shops are mainly focused. The questionnaires were filled there and then by the retailers and then analysis is being done. The questionnaire was bifurcated into different segments i.e. general information about the retailers containing name, address, age, shop address, whether they keep Airtel or not, if no then their interest on keeping it. Also overall comparative performance is being asked from existing telecom.

4410/12/2009 4411

44- 4111111111114 -444 22131

- 4 -4

5555

Objective The objective of the project was to:

To find the market share of Airtel in allotted markets.



To measure the amount of the consumers total spending for Airtel telecom services.



To know total amount of money non telecom shopkeepers can spend on our product in planning and managing sales and marketing.



To know how much Airtel has penetrated into the market.



To know the satisfaction level from the existing telecom shopkeepers.



To keep an eye on the competitors strengths and weaknesses.



To study the hindrances in increasing the sales and market share of Airtel in prepaid category.



To know which telecom operator is leading in the given market.

To study the comparative analysis of telecom operators according to dealers, retailers on a parameters like Value for money of which telecom operator.  Customer preference/ demand for which company’s connection.  Claim disbursement received by dealer/ retailer from various companies.  Number of activation per month.  Which company’s connection faced the highest decline in the past three months? In the end from the facts and observations collected, we came up with the conclusion, which helps Airtel to attract more customers to be the part of Airtel family and the corrective measures to be taken for filling up the loopholes and how the Airtel share can be increased which is eaten away by the other competitors.

5510/12/2009 5511

55- 5111111111115 -555 22131

- 5 -5

6666

6610/12/2009 6611

66- 6111111111116 -666 22131

- 6 -6

7777

Company Profile Market The unprecedented growth in the mobile is, perhaps, the most vivid facet of India’s economic transformation since the mid 1990’s. Mobile technology and services came to India less than a decade ago. In the early days, a mobile was seen to be a fashion statement for the rich. Today, it is expected as a basic communication medium for all socio- economic segments. As the pioneer and front runner, Airtel has been instrumental in leading and ushering in the mobile revolution in India. The Indian mobile market is, today, amongst the fastest growing and the most competitive in the world. There were 34.6 million mobile phone subscribers in the country as of April 2004 (source: cellular operators association of India and association of basic telecom operators) with approximately 7 million subscribers, Airtel commands nearly 20% of the share of the market- making is the number one brand in the country. Airtel’s world class service and innovative products have enabled it to establish this position of leadership.

About Airtel

Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. With more than 40 million subscriptions, the company is one of the world's fastest growing telecom companies. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal, 7710/12/2009 7711

77- 7111111111117 -777 22131

- 7 -7

8888 India's sixth richest man with a total worth of US$10 billion. The company is the only GSM operator to provide mobile services in all the 23 circles in India. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line and Internet Connectivity), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). Leading international telecommunication companies such as Vodafone and SingTel hold partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications licence in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications licence. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network.

8810/12/2009 8811

88- 8111111111118 -888 22131

- 8 -8

9999

Touchtel Until September 18, 2004, Bharti provided fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel" Forbes Global 2000 Ranking - 2007 The Forbes Global 2000 list for the year 2007 ranked Bharti at 1149. Awards and recognition 2006 •

Wireless service provider of the year 2005 at the Frost and Sulivan AsiaPacific ICT awards.

•

Competitive service provider of the year 2005 at the Frost and Sulivan AsiaPacific ICT awards

In News Recently Sunil Bharti's Airtel launched its calling card in America specially for the NRI (Non-resident Indians) and people calling from America to India at a cheaper rate as compared to the tariff offered by other providers. On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US $1.6 billion; and purchased a controlling stake in rival Hutchison Essar. In its monthly press release, following statistics have been presented for end of April 2007.

9910/12/2009 9911

99- 9111111111119 -999 22131

- 9 -9

10101010 •

Bharti Airtel added the highest ever net addition of 53 lakh customers in a single quarter (Q4-FY0607) and also the highest ever net addition of 1.8 crore total subscribers in 2006-07

•

The company will invest up to $3.5 billion this fiscal (07-08) in network expansion.

•

It has an installed base of 40,000 cellsites and 59% population coverage

•

After the proposed network expansion, an additional 30,000 towers will result in the company achieving 70% population coverage

•

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

•

It has set a target of 125 million subscribers by 2010

•

Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from 82.7% a year ago

•

ARPU has dropped to Rs 406

•

Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of the previous year

•

Blended monthly minutes of usage per customer in Q4 was at 475 minutes

•

Has completed 100% verification of its subscribers and in the process disconnected three lakh subscribers

Market News Market Capitalization Approx. Rs. 1,670 billion Closing BSE share price = Rs. 880.75 •

Sales :

•

Profits :

101010/12/2009 101011

02.62 Billion $ 00.46 Billion $

1010- 10 1111111111110 -101010 22131

- 10 -10

11111111

Mobile Services  Post-paid Services  Airtel Prepaid  Roaming  Value Added Services  Coverage Bharti's partners in Airtel are Emtel, the premier GSM operator in Mauritius, some private

investors.

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

in

the

Telecom

sector

in

Seychelles.

Airtel's Head Office is in Providence & Anse Royale, Mahe. Airtel also has showrooms in Victoria, Mahe and Grand Anse, Praslin, that serve as one-stop shops for

customers.

Airtel provides the whole range of telecom services, from GSM Mobile services, Airtel Prepaid Mobile Cards available at a string of outlets, International Roaming with 157 operators in 65 countries, a host of Value Added Services, Fixed Cellular services

and

a

fast

growing

Fixed

Line

network

as

well.

All this, of course, comes to you with the distinct Airtel advantage of excellent Tariffs, the best GSM Coverage on the islands, world class Technology from industry leaders like Ericsson and Scientific Atlanta and 24-hour Customer Care. In addition to telecom services, Airtel also recently acquired a 4-star luxury 124bedroom hotel in Seychelles, called Le Meridien Barbarons Beach Hotel.

111110/12/2009 111111

1111- 11 1111111111111 -111111 22131

- 11 -11

12121212 AIRTEL VISION "To provide global telecom services and delight customers." AIRTEL MISSION They will meet the mobile communication needs of customers through: •

Error- free service delivery

•

Innovative products and services

Bharti Enterprises Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri business, insurance and retail. Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Airtel Limited is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 44 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bharti’s successful foray into the Customer Management Services business, Bharti Enterprises’ dynamic diversification has continued with the company venturing into telecom software development. Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA. Bharti also has a joint venture - ‘Bharti AXA Life Insurance Company Ltd.’ - with AXA, world leader in financial protection and wealth management. Bharti has recently forayed into retail business under a company called Bharti Retail Pvt. Ltd. It also has an MoU with Wal-Mart for the cash & carry business.

121210/12/2009 121211

1212- 12 1111111111112 -121212 22131

- 12 -12

13131313

Bharti Tele-Ventures When EM Warburg Pincus went to invest in India the summer of 2001, it zeroed in on Bharti Televentures, a mobile telecom services company with fewer than 800,000 customers. The N.Y buyout firm, which invested $300 million in the Delhi enterprise, chose well. Today, Bharti has 11.4 million cell-phone subscribers, its stock has grown fivefold since listing early in 2002, and its valuation is $10 billion. Warburg has made more than $1 billion on the deal and still owns 5.8%. Chairman and Managing Director Sunil Mittal aims to maintain Bharti's 25% share of the Indian cellular market, which is forecast to reach 180 million customers in 2008.

Company Snapshot Bharti Tele-Ventures Limited, through its subsidiaries, provides telecommunications services in India. The company offers mobile, fixed line, national, and international long distance services, very small aperture terminal-based voice and data transmission services, Internet services, and network solutions. Bharti offers Internet and various Internet-related services, including dedicated leased line, virtual private networks, Web hosting and server collocation, and Internet mailing services to both residential and corporate customers. The company provides broadband connectivity for various end uses, including data, information technology-enabled services, and other high bandwidth services. It offered its services to approximately 11.05 million customers, including approximately 10.24 million mobile and 815,000 fixed line customers, as of January 31, 2004. Bharti Tele-Ventures was founded in 1995 and is based in New Delhi, India

Business Profile Bharti Airtel (formerly Bharti Tele-Ventures), a part of Bharti Enterprises, works through three individual SBUs -mobile services, broadband and telephone services 131310/12/2009 131311

1313- 13 1111111111113 -131313 22131

- 13 -13

14141414 and enterprise services. The company, established in 1995, is a public limited company and is headquarted in New Delhi, India. The company provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 15 circles. The enterprise services group has two sub-units - carriers (long distance services) and services to corporates. Bharti Airtel is the largest mobile telephony operator in the GSM space with around 27 per cent market share in FY05. The company, apart from being the largest player in the mobile segment with subscribers in all the 23 telecom circles of the country, also provides varied services like fixed line, broadband and retail internet access. The company is also one of the fastest growing fixed line and long distance (DLD as well as ILD) operators in the country. It offers broadband and other data oriented services to corporate clients. The company has a strategic alliance with Singtel, the largest of its kind made by SingTel outside Singapore. The company also has a strategic alliance with Vodafone, which is one of the largest single foreign investments made in

the

Indian

telecom

sector.

Bharti Airtel plans to foray into the retail segment, through a joint venture, which would be finalised depending on the kind of infrastructure required for the retail foray.

Financials Bharti Airtel registered a 151.71% growth in net profits to Rs 12,868.40 million for the quarter ended March, 2007 from Rs 5,112.40 million for the quarter ended March, 2006. Net sales rose 59.58% to Rs 52,187.30 million for the quarter ended March, 2007 compared with Rs 32,703.60 million for the quarter ended March, 2006. Total income rose 59.58% to Rs 52507.7 million in the quarter ended March, 2007, from Rs 32,904.1 million for the quarter ended March, 2006.

141410/12/2009 141411

1414- 14 1111111111114 -141414 22131

- 14 -14

15151515 The earnings per share (EPS) of the company stood at Rs 6.79 in the quarter ended March, 2007.

About Idea As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11 circles. With a customer base of over 10 million, IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and over 50% of the potential telecom-market.As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is the first cellular company to launch music messaging with 'Cellular Jockey', 'Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of Mobile Email Services.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, with 'Super Power', 2 Minutes Outgoing Free, Lifelong offer and other segmented offerings like Women's Card. 'Lifetime Idea' is the first and only loyalty program,

for

pre

paid

customers,

introduced

by

a

Cellular

brand.

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. The latest feather in the IDEA cap is the GSM Association Award for Bill Flash, it has recently won making it the first cellular operator in India to win an award on this platform. Idea Cellular is part of the Aditya Birla Group, which is India's first truly multinational corporation. Global in vision, rooted in Indian values, the group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The combined holding of the Aditya Birla Group companies in Idea stands at 98.3 per cent. Mr Kumar Mangalam Birla has been named the Chairman of the company. The other directors on the board are: Mrs. Rajashree Birla, Chairperson, Aditya Birla 151510/12/2009 151511

1515- 15 1111111111115 -151515 22131

- 15 -15

16161616 Centre for Community Initiatives and Rural Development; Mr. Sanjeev Aga, Managing Director, Aditya Birla Nuvo; Mr. Debu Bhattacharya, Managing Director, Hindalco; Mr. Saurabh Misra, Director, Aditya Birla Management Corporation Ltd. and CEO, UltraTech; and Mr. M. R. Prasanna, Group Executive President (Legal), Aditya

Birla

Group.

Aditya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd. 44.9 per cent, Grasim

7.5

per

cent,

and

Hindalco

10.1

per

cent

in

Idea.

With ambitious future plans, the company is poised for rapid growth.

Hutch Essar Hutch is the fourth largest cellular operator in India that covers most of the country.It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. The company is often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hi stands out visibly though it uses only black letters on white background. Another recent successful ad campaign in 2003 featured a dog following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. Hutch Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. Vodafone and the Essar group have reached an agreement on the management of the company, which will be renamed Vodafone Essar in the near future. In Mumbai it was earlier known by the name Orange. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros.

161610/12/2009 161611

1616- 16 1111111111116 -161616 22131

- 16 -16

17171717

171710/12/2009 171711

1717- 17 1111111111117 -171717 22131

- 17 -17

18181818

Marketing Research Research is the scholarly or scientific practice of gathering existing or new information in order to enhance one's knowledge of a specific area. Research has many categories, from medicine to literature. Marketing Research, or Market Research, is a form of business research and is generally divided into two categories: consumer market research and business-to-business (B2B) market research, which was previously known as Industrial Marketing Research. Consumer marketing research studies studies the buying habits of individual people while business-tobusiness marketing research investigates the markets for products sold by one business to another. Consumer Marketing Research is a form of applied sociology that concentrates on understanding the behaviours, whims and preferences, of consumers in a marketbased economy. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. Market research and marketing research are often confused.’ Market' research is simply research into a specific market. It is a very narrow concept. 'Marketing' research is much broader. It not only includes 'market' research, but also areas such as research into new products, or modes of distribution such as via the Internet. Here are a couple of definitions: "Marketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications." 181810/12/2009 181811

1818- 18 1111111111118 -181818 22131

- 18 -18

19191919 American Marketing association -Official Definition of Marketing Research Obviously, this is a very long and involved definition of marketing research. "Marketing research is about researching the whole of a company's marketing process." This explanation is far more straightforward i.e. marketing research into the elements of the marketing mix, competitors, markets, and everything to do with the customers.

The Marketing research Process. Marketing research is gathered using a systematic approach. An example of one follows: 1. Define the problem. Never conduct research for things that you would 'like' to know. Make sure that you really 'need' to know something. The problem then becomes the focus of the research. For example, why are sales falling in New Zealand? 2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group? 3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample? 4. How will we analyze any data collected? What software will we use? What degree of accuracy is required? 5. Decide upon a budget and a timeframe. 6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain approval, then move on to step seven. 7. Go ahead and collect the data. 8. Conduct the analysis of the data. 9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes. 10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation. 191910/12/2009 191911

1919- 19 1111111111119 -191919 22131

- 19 -19

20202020

Sources of Data - Primary and Secondary There are two main sources of data - primary and secondary. Primary research is conducted from scratch. It is original and collected to solve the problem in hand. Secondary research, also known as desk research, already exists since it has been collected for other purposes.

Marketing research methods Methodologically, marketing research uses the following types of research designs

Based on questioning: •

Qualitative marketing research - generally used for exploratory purposes small number of respondents - not generalizable to the whole population statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques

•

Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents examples include surveys and questionnaires

Based on observations: •

Ethnographic studies -, by nature qualitative, the researcher observes social phenomena in their natural setting - observations can occur cross-sectionally (observations made at one time) or longitudinally (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces

•

Experimental techniques -, by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors, then

202010/12/2009 202011

2020- 20 1111111111120 -202020 22131

- 20 -20

21212121 manipulates at least one of the variables - examples include purchase laboratories and test markets Researchers often use more than one research design. They may start with secondary research to get background information, then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client.

212110/12/2009 212111

2121- 21 1111111111121 -212121 22131

- 21 -21

22222222

222210/12/2009 222211

2222- 22 1111111111122 -222222 22131

- 22 -22

23232323

Market Share The total amount of money a customer can spend on a certain product category is a vital piece of information for planning and managing sales and marketing efforts. This amount is usually referred to as the customer’s wallet (also called opportunity) for the product category. There are many possible uses for wallet estimates, including straightforward targeting of sales force and marketing actions towards large wallet customers and prospects. In a more sophisticated sales and marketing environment, the combination of classical propensity models for a particular product category with the knowledge of the wallet for the same category can direct the sales efforts: it allows a company to market not only to customers or potential customers with a large wallet, but also to those with a high probability of buying specific products in the category. By combining the customer wallet estimates with the data on how much they spend with a particular seller, we can calculate the share-of-wallet that the seller has of each customer for a given product category. This information allows the seller to target customers based on their growth potential, a combination of total wallet and shareof-wallet. The classical approach of targeting customers that have historically generated large amounts of revenue for the company (known as lifetime value modeling) does not give enough importance to customers with a large wallet, but small share-of-wallet, which are the ones with presumably the highest potential for revenue growth. Share-of-wallet is also important for detecting partial defection or silent attrition, which occurs when customers increase their spending in a given category, without increasing the amount purchased from a particular company. In certain industries, customer wallets can be easily obtained from public data. For example, in the credit card industry, the card issuing companies can calculate the wallet size and respective share-of-wallet using credit records from the three major credit bureaus. For most industries, however, no public wallet information is available at the customer level. 232310/12/2009 232311

2323- 23 1111111111123 -232323 22131

- 23 -23

24242424

In this case, there are two approaches used in practice for obtaining wallet estimates: 1. Top-Down: starts from a public aggregate estimate for the overall industry opportunity in a given country and splits this estimate across the individual customers using heuristics based on the customer characteristics. For example, if the customers are companies, the overall opportunity could be divided among the companies proportionally to their number of employees. 2. Bottom-Up: estimates the wallet directly at the customer level, using heuristics or predictive models based on customer information. A common approach is to obtain actual wallet information for a random subset of customers/prospects through primary research. A model is then developed based on this data to predict the wallet for the other customers/prospects Many people, even marketing professionals, consider share of wallet a calculation of “frequency” and “amount” of purchases. Real share of wallet measures the amount of the customers’ total spending you are capturing in any particular category.

Factors The key to increasing share of wallet is to understand what factors influence purchasing behavior among your customer base. Your task is to find out why your customers divide their purchases over multiple outlets, and how they choose who they purchase from. Regardless of your industry, you have “points of contact” with your customers; they aren’t limited to but ultimately coincide with a purchase. Use that contact opportunity to gather loyalty data. This may require an incentive (especially in retail sectors and e-commerce) to prompt customer participation.

242410/12/2009 242411

2424- 24 1111111111124 -242424 22131

- 24 -24

25252525 You want to dig deeper than the traditional “what is your satisfaction level” type questions. Find out why they buy from you, who else they buy from and what tips their scale. A question we ask when conducting marketing research for our clients is: “if you had to decide between purchasing from two different stores or companies, what is the most important factor in that decision?” This always reveals great insight.

Strategies Once you understand the factors that drive purchasing behavior, you can adjust your marketing approach to line up with those factors. Following are a few examples of strategies that effectively increased share of wallet. • Most airlines jumped on the “frequent flyer” bandwagon, which commoditized the concept and made it mundane. So, Hawaii Airlines began allowing its points to be redeemed for rental cars, hotels and golf. This strategy distinguished its program and appeals to different behavior-based segments of the market. • Consider the Capital One advertising slogan: “What’s in your wallet?” This is the ultimate definition of share of wallet. They were leaders in offering balance transfers (from competing cards) to support their lower interest rate “value” proposition. • Frito-Lay launched Tostitos Chips in 1981. Ten years later they introduced Tostitos Salsa. This increased their share of wallet through a “product relationship” strategy by selling dip to their chip customers—two products that often are purchased at the same time. As you develop your “wallet” strategy, keep in mind that the three most important factors that increase wallet share are: distinction, value and product relationship.

252510/12/2009 252511

2525- 25 1111111111125 -252525 22131

- 25 -25

26262626

262610/12/2009 262611

2626- 26 1111111111126 -262626 22131

- 26 -26

27272727

Research Methodology On defining the objective of the project, a plan was developed to gather information most efficiently. Decisions were taken on the data sources, sampling plan, research tools and contact methods. Data Sources: - Primary and secondary data was gathered. 1. Primary Data:- was gathered by carrying out a market survey of various telecom and non telecom shops in the Rohini markets for example- Rohini sector 11 and 16, Rohini sector 15, 17 and 18 and Rohini sector 9, 13, 14 and Prashant Vihar. Current perceptions of existing retailers is been taken to judge their expectations from Airtel and its services. Also non telecom shops are been captured so as to know their interests in keeping Airtel. Tools used for market survey are: Questionnaires for retailers. Questionnaires were given to approximately 150 shopkeepers.  Visited three markets: - Rohini sector 11 and 16, Rohini sector 15, 17 and 18 and Rohini sector 9, 13, 14 and Prashant Vihar. The dimensions addressed in the questionnaire were:o Linking about their business. o Whether they are telecom shops or non telecom shops. o Do they keep Airtel connections? o How many connections of each telecom services are sold per month? o Are non telecom shops interested in having Airtel connections? o What kind of services they want- activation, recharge or both. o Overall performance of each telecom services. o Satisfaction level of retailers. 272710/12/2009 272711

2727- 27 1111111111127 -272727 22131

- 27 -27

28282828 o Feedback from existing retailers. 2. Secondary Data: - The researcher would have to decide which sort of data he would be using for his study and accordingly he will have to select one or other method of data collection. Information was gathered from the internet, media and print so as to obtain relevant information such as industry background and also public perception of Airtel, Hutch and Idea. Secondary data is very carefully used in research process because it is just possible that the secondary data may be unsuitable or may be inadequate in the content of the problem which we want to study. The data used in research is reliable according to our research needs. Data should be suitable and adequate. Internet Airtel has its own site in which all details are given www.airtelworld.com www.coai.com www.hutch.co.in www.idea.com www.google.com Are the main sites which are been used for collection of data in our research. 3.

Target Respondents Shopkeepers of each and every market visited.

4.

Sampling Sample size of 260 individuals relatively covering Rohini under the distributor was taken. The areas covered were

282810/12/2009 282811

2828- 28 1111111111128 -282828 22131

- 28 -28

29292929 5. Execution After collection of relevant data and sample planning done, the questionnaires were filled by the retailers by personally interviewing them.

292910/12/2009 292911

2929- 29 1111111111129 -292929 22131

- 29 -29

30303030

DATA ANALYSIS Area 1: Rohini sector 11 and 16 SAMPLE SIZE: 94 Q1 Do you keep TELECOM connections?

Reply of respondent Yes No

No. of respondents 74 20

Percentage of respondents 79% 21%

Do you keep TELECOM connections

Yes No

Conclusion: Majority 79% out of 94 keeps the telecom connections available in sector 11 and 16 and rest 21% don’t have the telecom connections services available in their shops.

303010/12/2009 303011

3030- 30 1111111111130 -303030 22131

- 30 -30

31313131

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers? Reply of respondent

No. of respondents

Airtel Hutch Reliance Tata Dolphin Idea

74 74 55 43 37 74

Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers

Airtel Hutch Reliance Tata Dolphin Idea

Conclusion: Airtel, Hutch and Idea’s activation sims are kept by all the existing retailers whether telecom or non telecom but tata, reliance and dolphin are kept mostly by telecom shops.

313110/12/2009 313111

3131- 31 1111111111131 -313131 22131

- 31 -31

32323232

Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:-

S. No. SERVICES 1: 2: 3: 4:

0-125

AIRTEL HUTCH IDEA TATA INDICOM RELIANCE MTNL

5: 6:

125-

250-

375-

500-

250

375

500

725

725-875 851 729

677 279 428 130

no. of connections

level of activation per month fo r each availab le services 1000 800 600 400 200 0

0-125 125-250 250-375 AIR TE L

HUTC H

IDE A

TATA R ELIANC E MTNL IND IC O M

Se rv ice s

375-500 500-725 725-875

Conclusion: Airtel is ruling in sales as compared to others with range 725- 875 but through better promotions, schemes and less claims issues Hutch and Idea is emerging as second and third respectively and may soon surpass Airtel in sales due to extensive advertising in this area. Reliance has pretty decent sales as compared to Tata Indicom and MTNL.

323210/12/2009 323211

3232- 32 1111111111132 -323232 22131

- 32 -32

33333333

Q4 If no, then are you interested in having AIRTEL connections with you now?

Reply of respondent

No. of respondents

Percentage of respondents

Yes

5

25%

No

15

75%

Are you interested in having AIRTEL connection

Yes No

Conclusion: Out of the 20 respondents who don’t keep Airtel connection in their shop, only 5 are interested to keep Airtel connection i.e. 25% rest are still reluctant to keep it.

333310/12/2009 333311

3333- 33 1111111111133 -333333 22131

- 33 -33

34343434

Q5 If yes, are you interested in having:a)

Activation

b)

Recharge

c)

Both

Reply of respondent

No. of respondents

Percentage of respondents

Activation

1

20%

Recharge

1

20%

Both

3

60%

If yes then are you interested in having activation, recharge or both

Activation Recharge Both

343410/12/2009 343411

3434- 34 1111111111134 -343434 22131

- 34 -34

35353535

Conclusion: Out of these 5 who are ready to keep Airtel connection 60% said they will keep both i.e. activation and recharge coupons, rest 20% each said that they want to keep activation and recharge only.

Q6

Rank your choice of telecom service providers in with respect to their

performance (1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.Pnot preferred at all):ATTRIBUTES

Airtel

Idea

Hutch

Tata

Reliance

Max customer demand is for Value for money F.O.S service Activation complaints Claim disbursement

34

16

28

Indicom 12

4

31 26 14

20 20 17

23 38 13

14 6 26

6 4 24

18

20

36

14

16

353510/12/2009 353511

3535- 35 1111111111135 -353535 22131

- 35 -35

36363636 R a n k in g o f te le c o m s e rv ic e p ro v id e r w.r.t th e ir p e rfo rm a n c e 40 30 20 10 0

A irte l Id e a H utc h Ta ta R e lia nc e Ind ic o m s e rv ic e s

Ma x. cu s to m e r d e m a n d is Va fo rlu e fo r m o n e yF.O .S s e rvice Activa tio n co m p la in tsC la im d is b u rs e m e n t

Conclusion: This data provide us with the overall view of the performance of all telecom connections in this market area. As it is clearly observed that Airtel is ranked 1 in maximum customer demand and value for money and ranked 2 in F.O.S service. Airtel close competitor is observed to be Hutch in maximum customer demand and value for money and though hutch ranked 1 in F.O.S service. But in case of activation complaints Airtel ranked 4 due to the more activation complaints in this area. In claim disbursement Airtel is also lacking behind as compared to Idea and Hutch and Hutch is considered to be no. 1 in claim disbursement followed by Idea. Area 2: Rohini sector 15,17 and 18 SAMPLE SIZE: 81

Q1 Do you keep TELECOM connections?

Reply of respondent

No. of respondents

Percentage of respondents

Yes

56

69%

No

25

31%

363610/12/2009 363611

3636- 36 1111111111136 -363636 22131

- 36 -36

37373737

Do you keep TELECOM connections

Yes No

Conclusion: Majority 69% out of 81 keeps the telecom connections available in sector 15,17 and 18 and rest 31% don’t have the telecom connections services available in their shops

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers?

Reply of respondent

No. of respondents

Airtel Hutch Reliance Tata Dolphin Idea

373710/12/2009 373711

56 56 34 43 24 56

3737- 37 1111111111137 -373737 22131

- 37 -37

38383838

Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers 60 50 40 30 20 10 0

Airtel Hutch Reliance Tata Dolphin Idea

No. of respondents

Conclusion: Airtel, Hutch and Idea’s activation sims are kept by all the existing retailers whether telecom or non telecom but tata, reliance and dolphin are kept mostly by telecom shops.

Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:-

S. No. 1:00 2:00 3:00 4:00 5:00 6:00

SERVICES AIRTEL HUTCH IDEA TATA INDICOM RELIANCE MTNL

383810/12/2009 383811

0-125

125-250

250-375

375-500 477

500-725

725-875 822

657 279 230 95

3838- 38 1111111111138 -383838 22131

- 38 -38

39393939

no. of connections

le v e l o f a c tiv a tio n p e r m o n th fo r e a c h a v a ila b le s e rv ic e s 1000 800 600 400 200 0

0-125 125-250 250-375 AIR T E L H UT C H

ID E A

T AT A R E LIANC E MT NL IN D IC O M

S e r v ice s

375-500 500-725 725-875

Conclusion: Hutch is ruling in sales as compared to others with range 725-875 and on the other hand in this area Airtel is on number 3 due to better schemes of hutch and idea in his area. And other major reason of airtel become number 3 is activations complaint and claim disbursements. Tata indicom and reliance have pretty descent sales in this area

Q4 If no, then are you interested in having AIRTEL connections with you now?

Reply of respondent

No. of respondents

Percentage of respondents

Yes

5

20%

No

20

80%

393910/12/2009 393911

3939- 39 1111111111139 -393939 22131

- 39 -39

40404040

Are you interested in having AIRTEL connection

Yes No

Conclusion: Out of the 25 respondents who don’t keep Airtel connection in their shop, only 5 are interested to keep Airtel connection i.e. 20% rests are still reluctant to keep it.

Q5 If yes, are you interested in having:d)

Activation

e)

Recharge

f)

Both

404010/12/2009 404011

4040- 40 1111111111140 -404040 22131

- 40 -40

41414141

Reply of respondent

No. of respondents

Percentage of respondents

Activation

0

0%

Recharge

1

20%

Both

4

80%

If yes then are you interested in having activation. recharge or both

Activation Recharge Both

Conclusion: Out of these 5 who are ready to keep Airtel connection 80% said they will keep both i.e. activation and recharge coupons, and 20% said that they want to keep recharge only.

Q6 Rank your choice of telecom service providers in w.r.t their performance (1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P- not preferred at all):-

414110/12/2009 414111

4141- 41 1111111111141 -414141 22131

- 41 -41

42424242 ATTRIBUTES

Airtel

Idea

Hutch

Tata Reliance Indicom

Max. customer demand is for

13

24

26

11

7

Value for money 15 F.O.S service 20 Activation 27 complaints

23 25 12

27 25 13

11 6 21

5 5 10

Claim disbursement

25

31

7

4

14

R anking of telecom serv ice w .r.t their perform ance 40 30 20 10 0

A irtel Id ea

H utch Tata Relia nce Indicom se rvices

M ax. custom er dem a nd is for V alue for m oneyF .O .S service A ctivation com pla intsC laim d isbursem e nt

Conclusion: This data provide us with the overall view of the performance of all telecom connections in this market area. As it is observed that hutch and idea is ruling as compared to Airtel in maximum customer demand and value for money. Reasons for airtel lacking behind in this area is maximum activations complaint and less claim disbursement . F.o.s service of Airtel is pretty fine in this area. In claim disbursement also hutch is ranked number 1. Retailers in this are happy to sell hutch and idea due more margin cuts(profits) Area 3: Rohini sector 9, 13, 14 and Prashant vihar SAMPLE SIZE: 85 Q1 Do you keep TELECOM connections?

424210/12/2009 424211

4242- 42 1111111111142 -424242 22131

- 42 -42

43434343

Reply of respondent

No. of respondents

Percentage of respondents

Yes

61

72%

No

24

28%

Do you keep TELECOM connections

Yes No

Conclusion: Majority 72% out of 85 keeps the telecom connections available in sector 9, 13, 14 and prashant vihar and rest 28% don’t have the telecom connections services available in their shops

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers?

Reply of respondent Airtel 434310/12/2009 434311

No. of respondents 61

4343- 43 1111111111143 -434343 22131

- 43 -43

44444444 Hutch Reliance Tata Dolphin Idea

61 35 43 24 61

Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers 80 no of 60 responden 40 ts 20 0

Airtel Hutch Reliance Tata No. of respondents Services

Dolphin Idea

Conclusion: Airtel, Hutch and Idea’s activation sims are kept by all the existing retailers whether telecom or non telecom but tata, reliance and dolphin are kept mostly by telecom shops.

Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:-

444410/12/2009 444411

4444- 44 1111111111144 -444444 22131

- 44 -44

45454545 S. No. 1:00 2:00 3:00 4:00

SERVICES AIRTEL HUTCH IDEA TATA INDICOM

5:00 6:00

RELIANCE MTNL

0-125

125-250

250-375

375-500

500-725 670 720

725-875

800 340 477 120

no of connection

L evel o f activatio n per m o nth for each availab le service 1000 800 600 400 200 0

0-125 125-250 250-375 AIRTEL

HUTCH

IDEA

TATA RELIANCE MTNL INDICO M

Se rv ice s

375-500 500-725 725-875

Conclusion: Idea is ruling in sales as compared to others with range 725- 875 whereas hutch and airtel is at number 2, 3 with number of connection is in range 500725 respectively. In this area airtel is lacking behind hutch and idea due to increase in service complaints and on the other hand, Claim disbursement is given on time by hutch and idea in this area. Mtnl has the lowest number of selling connection in this area. Reliance has pretty descent sales

Q4 If no, then are you interested in having AIRTEL connections with you now?

454510/12/2009 454511

4545- 45 1111111111145 -454545 22131

- 45 -45

46464646

Reply of respondent

No. of respondents

Percentage of respondents

Yes

8

33%

No

16

66%

Are yo u in terested in h avin g AIR T E L co n n ec tio n

Y es No

Conclusion: Out of the 24 respondents who don’t keep Airtel connection in their shop, only 8 are interested to keep Airtel connection i.e. 33% rest are still reluctant to keep it.

Q5 If yes, are you interested in having:g)

Activation

464610/12/2009 464611

4646- 46 1111111111146 -464646 22131

- 46 -46

47474747 h)

Recharge

i)

Both

Reply of respondent Activation Recharge Both

No. of respondents 0 2 6

Percentage of respondents 0% 25% 75%

If yes then are you interested in activation, recharge or both

Activation Recharge Both

Conclusion: Out of these 8 who are ready to keep Airtel connection 75% said they will keep both i.e. activation and recharge coupons, rest 25% said that they want to keep recharge only. Q6 Rank your choice of telecom service providers in w.r.t their performance

474710/12/2009 474711

4747- 47 1111111111147 -474747 22131

- 47 -47

48484848 (1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P- not preferred at all):-

ATTRIBUTES

Airtel

Idea

Hutch

Tata Indicom

Reliance

Max. customer 14 demand is for

23

21

1

1

Value for money 12 F.O.S service 15 Activation 26 complaints

22 20 5

21 23 7

3 2 10

2 1 13

Claim disbursement

20

21

4

3

12

R a n k i n g o f t e le c o m s e r v i c e p r o v i d e r w . r . t t h e i r p e r f o r m a n c e 30 20 10 0

A i r te l

Id e a

H u tc h T a t a In d i c Ro me li a n c e S e r v ic e s

M a x . c u s t o m e r d e mV aanlud e i sf ofor mr Fo n. Oe .S y s e r vAi ccet i v a ti o n c o m Cp la i mn tsd i s b u r s e m e n t

Conclusion: This data provide us with the overall view of the performance of all telecom connections in this market area. As it is clearly observed that idea and hutch are leading in maximum customer demand and value for money . Airtel is only number 1 in activation complaints. Due more numbers of activation complaints airtel is lacking behind in maximum customer demand and value for money as compared to hutch and idea in this particular area. In this area , airtel is ranked number 3 in all major attributes. On the other hand tata indicom and reliance are very less in demand in this area Area 1: Rohini sector 11 and 16 SAMPLE SIZE: 94 484810/12/2009 484811

4848- 48 1111111111148 -484848 22131

- 48 -48

49494949

Type of shops (out of 94) Type Chemist General Store STD/PCO Telecom Others Stationary

Total number 5 7 12 57 6 7

Percentage 5% 7% 13% 62% 6% 7%

Type of shops

Chemist General Store STD/PCO Telecom Others Stationary

Conclusion: Majority of the shops covered are the telecom shops at around 62%, next are the STD/PCO with 13%, and then general stores and stationary with 7% each and with least share are the chemist with 5%.As

Detailed description A. Chemist (out of 5)

494910/12/2009 494911

4949- 49 1111111111149 -494949 22131

- 49 -49

50505050 Reply of respondents Have activation Interested to have Not interested

No. of respondents

Percentage of respondents 1 0 4

20% 0% 80%

Chemist

Have actrivation Interested to have Not interested

Conclusion: Majority of chemists is not interested in investing on selling Airtel connection with 80% and the remaining already has Airtel.

B. General store (out of 7) Reply of respondents Have activation Interested to have

505010/12/2009 505011

No. of respondents

Percentage of respondents 4 1

5050- 50 1111111111150 -505050 22131

57% 14%

- 50 -50

51515151 Not interested

2

29%

General stores

Have activation Interested to have Not interested

Conclusion: Majority already has Airtel connection and only 14%of total 7 shops are interested in keeping Airtel for selling.

C. STD/PCO (out of 12) Reply of respondents Have activation Interested to have

515110/12/2009 515111

No. of respondents

Percentage of respondents 5 1

5151- 51 1111111111151 -515151 22131

42% 8%

- 51 -51

52525252 Not interested

6

50%

STD/PCO

Have activation Interested to have Not interested

Conclusion: Majority of the STD/PCO i.e. 50 %are not interested in investing on selling Airtel connection. Out of 12,5shops already provide with Airtel connection service.

D.Others (out of 6) Reply of respondents Have activation

525210/12/2009 525211

No. of respondents

Percentage of respondents 2

5252- 52 1111111111152 -525252 22131

33%

- 52 -52

53535353 Interested to have

1

17%

Not interested

3

50%

Others

Have activation Interested to have Not interested

Conclusion: In other category shops like gift shops etc. majority is in favor of not keeping Airtel connection i.e. 50%. And only 17% are interested to keep Airtel connection with them out of 6.

E. Telecom (out of 57) Reply of respondents Have activation

535310/12/2009 535311

No. of respondents

Percentage of respondents 50

5353- 53 1111111111153 -535353 22131

88%

- 53 -53

54545454 Interested to have Not interested

5 2

9% 3%

Telecom

Have activation Interested to have Not interested

Conclusion: Majority of telecom retailers i.e. 88%already have Airtel connection with them and 9% are interested to have while the remaining 3% showed no interest in keeping the connection.

F. Stationary ( out of 7) Reply of respondents

545410/12/2009 545411

No. of respondents

5454- 54 1111111111154 -545454 22131

Percentage of respondents

- 54 -54

55555555 Have activation Interested to have Not interested

4 0 3

57% 0% 43%

Stationary

Have activation Interested to have Not interested

Conclusion: in this category 57% already had Airtel connection and the remaining were not interested to keep i.e. 43%.

Area 2: Rohini sector 15, 17 and 18 SAMPLE SIZE: 81

555510/12/2009 555511

5555- 55 1111111111155 -555555 22131

- 55 -55

56565656

Type of shops (out of 81) Type Chemist General Store STD/PCO Telecom Others Stationary

Total number 9 8 4 48 10 2

Percentage 11% 10% 5% 59% 12% 3%

Type of shops

Chemist General Store STD/PCO Telecom Others Stationary

Conclusion: Majority of the shops covered are the telecom shops at around 59%, next are the others, chemist and general stores with 12%, 11% and 10%respectively and next are the Std/PCO with 5% and with least share are the stationary with only 3%.

Detailed description A.Chemist (out of 9) Reply of respondents Have activation

565610/12/2009 565611

No. of respondents

Percentage of respondents 3

5656- 56 1111111111156 -565656 22131

33%

- 56 -56

57575757 Interested to have Not interested

1 5

11% 56%

Chemists

Have activation Interested to have Not interested

Conclusion: Majority of chemists are not interested in investing on selling Airtel connection. Only 11%are interested in keeping Airtel for selling.

B. General stores (out of 8) Reply of respondents Have activation Interested to have Not interested

575710/12/2009 575711

No. of respondents

Percentage of respondents 3 2 3

5757- 57 1111111111157 -575757 22131

38% 24% 38%

- 57 -57

58585858

General stores

Have activation Interested to have Not interested

Conclusion: Majority of them are not interested in investing on selling Airtel connection. Only 24%are interested in keeping Airtel for selling.

C. STD/PCO (out of 4) Reply of respondents Have activation Interested to have Not interested

585810/12/2009 585811

No. of respondents

Percentage of respondents 1 1 2

5858- 58 1111111111158 -585858 22131

25% 25% 50%

- 58 -58

59595959

STD/PCO

Have activation Interested to have Not interested

Conclusion: As there are only 4 STD/PCO in this area. So 1 of them is already having Airtel connection and 1 is interested in keeping it and other 2 are not.

D.Telecom (out of 48) Reply of respondents Have activation

No. of respondents

Percentage of respondents 40

84%

Interested to have

3

6%

Not interested

5

10%

595910/12/2009 595911

5959- 59 1111111111159 -595959 22131

- 59 -59

60606060

Telecom

Have activation Interested to have Not interested

Conclusion: Majority of telecom retailers i.e. 84% already have Airtel connection with them. Out of remaining 5 are not interested while 3 are interested to keep Airtel connection with them.

E. Others (out of 10) Reply of respondents

No. of respondents

Percentage of respondents

Have activation

5

50%

Interested to have

1

10%

Not interested

4

40%

606010/12/2009 606011

6060- 60 1111111111160 -606060 22131

- 60 -60

61616161

Others

Have activation Interested to have Not interested

Conclusion: In this category only one shop was interested in having Airtel connection. Out of 10, 5 already had Airtel connection and the remaining 4 were not interested.

F. Stationary (out of2) Reply of respondents

No. of respondents

Have activation

1

50%

Interested to have

0 1

0% 50%

Not interested

616110/12/2009 616111

6161- 61 1111111111161 -616161 22131

Percentage of respondents

- 61 -61

62626262

Stationary

Have activation Interested to have Not interested

Conclusion: In this area out of 2 stationeries, 1 already had Airtel connection while the other was not interested.

Area 3: Rohini sector 9, 13, 14 and Prashant Vihar SAMPLE SIZE: 85

Type of shops (out of 85) Type Chemist General Store 626210/12/2009 626211

Total number 6 4 6262- 62 1111111111162 -626262 22131

Percentage 7% 5% - 62 -62

63636363 STD/PCO Telecom Others Stationary

13 47 9 6

15% 55% 11% 7%

Type of shops

Chemist General Store STD/PCO Telecom Others Stationary

Conclusion: Majority of the shops covered in this area also are the telecom shops at around 55%, next are the STD/PCO and others with 15% and 11% respectively, next are chemists and stationary with 7% each and with least share are the general store with 5%.

Detailed description A.Chemist (out of 6) Reply of respondents Have activation Interested to have Not interested

636310/12/2009 636311

No. of respondents

Percentage of respondents 3 1 2

6363- 63 1111111111163 -636363 22131

50% 17% 33%

- 63 -63

64646464

Chemist

Have activation Interested to have Not interested

Conclusion: 50% i.e. 3 out of 6 already had Airtel connection and 2 responded negatively while 1 was interested to have the Airtel connection.

B. General store (out of 4) Reply of respondents Have activation Interested to have Not interested

646410/12/2009 646411

No. of respondents

Percentage of respondents 0 3 1

6464- 64 1111111111164 -646464 22131

0% 75% 25%

- 64 -64

65656565

General stores

Have activation Interested to have Not interested

Conclusion: Majority of them i.e. 75% were interested in selling Airtel connection while the remaining shops were already selling Airtel connection.

C. STD/PCO (out of 13) Reply of respondents

No. of respondents

Percentage of respondents

Have activation

8

62%

Interested to have

2

15%

Not interested

3

23%

656510/12/2009 656511

6565- 65 1111111111165 -656565 22131

- 65 -65

66666666

STD/PCO

Have activation Interested to have Not interested

Conclusion: 62% already have Airtel connection in this category and 23% are not interested to keep Airtel connection and the remaining 15% showed interest.

D.Telecom (out of 47) Reply of respondents Have activation Interested to have Not interested

666610/12/2009 666611

No. of respondents

Percentage of respondents 35 3 9

6666- 66 1111111111166 -666666 22131

74% 7% 19%

- 66 -66

67676767

Telecom

Have activation Interested to have Not interested

Conclusion: Majority of the telecom shops i.e. 74% already have activation and from the remaining 19% were not interested while 7% were interested to have the Airtel connection.

E. Others (out of 9) Reply of respondents

No. of respondents

Percentage of respondents

Have activation

4

45%

Interested to have

2

22%

Not interested

3

33%

676710/12/2009 676711

6767- 67 1111111111167 -676767 22131

- 67 -67

68686868

Others

Have activation Interested to have Not interested

Conclusion: 4 out of 9 i.e. 45% were already selling Airtel connection while other 33% were not interested to have and the remaining 2 were interested to have the connection.

E. Stationary ( out of 6) Reply of respondents Have activation Interested to have Not interested

686810/12/2009 686811

No. of respondents

Percentage of respondents 4 0 2

6868- 68 1111111111168 -686868 22131

67% 0% 33%

- 68 -68

69696969

Stationary

Have activation Interested to have Not interested

Conclusion: 67% of stationary in this area were already having Airtel connection while the remaining 33% were not interested.

696910/12/2009 696911

6969- 69 1111111111169 -696969 22131

- 69 -69

70707070

General Overview of Feedback  Customer diversification from Airtel is increasing in regular basis due to increase in service complaints.  Idea and Hutch giving better schemes and margin than Airtel.  Need quick services to increase sales. 707010/12/2009 707011

7070- 70 1111111111170 -707070 22131

- 70 -70

71717171  More and vast visibility of Hutch and Idea boards and advertisements which is improving their promotion and branding.  Many telecom retailers want the detailed description of incentives given to them i.e. on what basis and on how much activation. Here lot of comparison is being made with Hutch as they are providing with detailed description of when and why of incentives.  Customer demand is high for Airtel but due to services complaints, less advertisements and claims issues the retailers are diverting the customers to Hutch and Idea.  Airtel is still ruling in sales as compared to others but through better promotion, schemes and less claims issues. Hutch is emerging as second best. So need to take actions for it.  Customer diversification from Airtel is increasing in regular basis due to increase in activation complaints.  Network of Airtel is better than any other telecom services.  New schemes are not properly being conveyed to the retailers, so they are facing problem of no responses to customer queries.  Customer diversification from Airtel is increasing in regular basis due to increase in delay of retailer incentive.  Board and advertisements are required in many shops. It is been observed that many shop[s don’t even have normal banner of Airtel in their shop in spite of demanding of long.  Schemes in Airtel and tariff plans are expensive than other telecom services.  Lot of technical problems are complained here due to that retailers dissatisfaction is increasing, also immediate services are not provided by the department from Airtel.  There is different tariff plan for different connection in Airtel, that frustrates customers  There is large number of rejection rate for taking up any new kind of business in the non- telecom shops this is due to lack of awareness and scarcity of resources in this area. 717110/12/2009 717111

7171- 71 1111111111171 -717171 22131

- 71 -71

72727272  Idea is provided with better schemes and Idea sale services are quickest among all in this area.  Claim problem is the major issue in this area.  Mainly youth customers are attracted by H- card (Hutch) and I- card (of Idea) as compared to Yuva (Airtel) in this area.

727210/12/2009 727211

7272- 72 1111111111172 -727272 22131

- 72 -72

73737373

Limitations o The samples were taken on the basis of convenience sampling which may bring element of error. o Samples were only taken from Rohini area. o Survey times are as such that maximum shop owners or respected persons were not available for survey. So, through contact basis survey is done. 737310/12/2009 737311

7373- 73 1111111111173 -737373 22131

- 73 -73

74747474 o The sample size is very small and the result of research cannot be expralated to the entire population.

747410/12/2009 747411

7474- 74 1111111111174 -747474 22131

- 74 -74

75757575

Recommendations  Airtel should focus more on promotion and advertising part as areas which are surveyed have very less awareness about the schemes and all.  Working of sales department should be more flexible as complaints regarding incentives and claims are being observed.

757510/12/2009 757511

7575- 75 1111111111175 -757575 22131

- 75 -75

76767676  Major threat from hutch and Idea are seen as hutch is providing with quick sales facilities, excellent communication network and high promotion whereas Idea is giving very economical schemes and connectivity. So, to decrease customer diversification and to maintain the brand name of the company better communication network should be established between sales management and the retailers by attending their complaints properly, giving timely and verified incentives, increase in manpower, taking regular feedback.  By mismanagement on behalf of the distributor side also many retailers grievances are increasing, complete check on workings on distributors should be done.  Majority of STD/PCO shops showed interest in having Airtel connection. So priority should be given to them, all their needs and demands should be thoroughly taken into consideration.  Better schemes for dealers/ retailers so that they can be able to develop self interest and they could try their level best to make more and more sale which would lead benefit to dealers and company as well.  Brochures and catalogues should be made available.  More claim margins: the dealers have this issue that working in a small margins is not acceptable to them i.e. just 2.47% margin is not much it should be increased so that the dealers also be able to make some more profits.

767610/12/2009 767611

7676- 76 1111111111176 -767676 22131

- 76 -76

77777777

Conclusion The basic and to the point conclusion of the above discussed issue is that the company can make more and more profits only when it can satisfy all its customers,

777710/12/2009 777711

7777- 77 1111111111177 -777777 22131

- 77 -77

78787878 dealers and distributors in order to do that the company should agree with all their fair suggestions and make them happy. If workers will be happy and satisfy then they will make sincere efforts to achieve their targets and increase the sales of the company.

787810/12/2009 787811

7878- 78 1111111111178 -787878 22131

- 78 -78

79797979

Bibliography Books

797910/12/2009 797911

7979- 79 1111111111179 -797979 22131

- 79 -79

80808080  Marketing Research by Naresh K. Malhotra  Marketing Management by Philip Kotler Websites  www.google.com  www.hutch.co.in  www.wikepedia.com  www.coai.com Company information  www.airtel.com  www.airtelworld.com  Teleworld magazines  Pamphlets from various retailers

808010/12/2009 808011

8080- 80 1111111111180 -808080 22131

- 80 -80

81818181

QUESTIONNAIRE WALLET SHARE OF AIRTEL IN DELHI MARKET

818110/12/2009 818111

8181- 81 1111111111181 -818181 22131

- 81 -81

82828282 Dear Sir/ Madam, We believe that you are the spokesman for thousands of persons who are in telecom industry in Delhi and since we are interested in knowing the performance of AIRTEL in Delhi in that we ask for your help. We believe that this survey would help in evolving wallet share of AIRTEL in the market of Delhi. Would you please, therefore, answer the enclosed questionnaire? The information supplied by you will be treated as strictly confidential. NOTE: Please tick (√) the option, which you find appropriate This is the survey regarding the evaluation of wallet share of Airtel in Delhi

Q1 Do you keep TELECOM connections? Yes No Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers? Airtel

Tata

Hutch

Dolphin

Reliance

Idea

Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:S. No. 1: 2: 3: 4: 5: 6:

SERVICES 0-3 AIRTEL HUTCH IDEA TATA INDICOM RELIANCE MTNL

828210/12/2009 828211

3-7

8-15

8282- 82 1111111111182 -828282 22131

16-25

25-50

- 82 -82

50+

83838383

Q4 If no, then are you interested in having AIRTEL connections with you now? Yes No Q5 If yes, are you interested in having:j) k) l)

Activation Recharge Both

Q6 Rank your choice of telecom service providers in w.r.t their performance(1most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P- not preferred at all):ATTRIBUTES

Airtel

Idea

Hutch

Tata Reliance Indicom

Max customer demand is for Value for money F.O.S service Activation complaints Claim disbursement Q7 According to you, which company connection faced the highest decline in past three months? If it’s AIRTEL then why?

Q8 Please mention the area’s that you would like AIRTEL to improve on its product and services.

838310/12/2009 838311

8383- 83 1111111111183 -838383 22131

- 83 -83

84848484

PERSONAL DETAILS We would like to know you better: Name: Age: Contact no.

(Shop) (Mobile)

Shop Address: •

Cost efficiency

Date of visit: Type of shop:

848410/12/2009 848411

8484- 84 1111111111184 -848484 22131

- 84 -84