Ritesh Airtel Report

A

On

“CUSTOMER ACQUISITION & RETENTION OF AIRTEL CUSTOMER IN DELHI” Submitted in partial fulfillment of the requirement of the Degree of

MASTER OF BUSINESS ADMINISTRATION Submitted To: Dr. S.S.Paul Director(MBA) IIMT ENG. COLLEGE.

Submitted By: Ritesh Yadav MBA(3rd Sem) Roll No.

(Approved by AICTE, Affiliated to UTTAR PRADESH TECHNICAL UNIVERSITY LUCKNOW)

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COMPANY CERTIFICATE

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COLLEGE CERTIFICATE

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DECLARATION I RITESH KUMAR YADAV hereby declare that the project entitled “CUSTOMER ACQUISITION & RETENTION OF AIRTEL CUSTOMER IN DELHI” is my original work, done by me. Now it is an asset of IIMT ENGINEERING COLLEGE, Meerut All the rights for using this project report lie with the institute. Unauthorized copying, hiring, broadcasting, or rental of this project without permission from the institute will be considered illegal.

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DATE: PLACE:

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RITESH KUMAR YADAV

ACKNOWLEDGEMENT Presenting a Summer Training project of this type is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contribution made by various persons in this endeavor. I will remember all of them with gratitude. My sincere thanks towards Mr. ANAND PRIYA DE ASM -Airtel, DELHI), for giving me a chance to take this project and for her valuable guidance, which helped me on all those points, which I needed to include in, with full intensity , for his significant support extended for the successful completion of the project I am extremely gratified to Mr. RAHUL SINGH (T.L., Airtel), who was extremely helpful in offering his professional expertise and bestowing me practical knowledge in all spheres related to the whole organization working. I am very grateful to our Director Dr. S.S.Paul; H.O.D Mr. Sandeep Kumar, and all faculty members for their excellent guidance in the completion of my project work I am always beholden to my God, for always being with me and showing me the right ways, my family members, for always doing favors to me and my friends and colleagues consistently helped with encouragement and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitation and for realizing me my strengths and potential, specially my brother, as I did not always welcome her exhortation, “try again; you can do better.” But this project owes a great deal to it – and so do I.

RITESH KUMAR YADAV

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PREFACE It’s a thing of massive gratification for me to present this Summer Training Project Report on the topic “ Customer Acquisition & retention of airtel customer in Delhi ” completed in an unrivaled organisation ‘AIRTEL, at DELHI'. Mobile telephony adoption is on the rise and recent technological innovations have dramatically enhanced the capabilities of the wireless telephone. Leveraging the power of these new capabilities, various business sectors are working together to offer a wide array of services. Each sector is looking for the next "killer application," yet we are still learning about people's information and communication needs while "on the go." The goal of this two-months training is to bring together an international group of 5-8 practitioners and researchers from various sectors of the mobile communications industry. We will discuss the following topic areas and, prior to the workshop; invite participants to identify specific issues that they feel are particularly relevant and timely. I myself have for a long time deeply interested in studying consumer trends & behavior towards mobile industry. I know that even in the areas in which I have a little knowledge, I do not know enough. There are new tasks in these areas for which I am not yet equipped with tested, proven approaches and tools. New areas of challenge and new technology problems has arisen, where I have done 7 little work so far and where I have so far only ignorance rather than even a modicum of knowledge. This project attempts to identify and define areas related to consumer behavior regarding new connection services. It also attempts to develop at least first approach to these areas, to think through policies, principles, and practices to accomplish the new tasks and to satisfy the customer needs. By this practical training I am able to equip the manager with the

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understanding, the thinking, the knowledge, and the skills for todays and also for tomorrow’s market exigency. Initially I was just having the bookish knowledge about all Marketing policies, practices and functions, but after joining this organization, I got most of the practical knowledge. I have come to know, what actually happens in the organizations. Though it is not possible to have the information of all the spheres in market, in such a very short period, but I tried to get more and more about all functions and practices applied in practical working, I have particularly stresses on. This is the boom time for mobile industry. Youths are having keen flair for mobile communication. Now the mobile communications are the fastest growing industry. We can reach to anyone, anywhere across world through mobile connectivity. Just look in the areas they’re in; health, education, banking, insurance, travel, couriers, manufacturing, entertainment, government, computer helpdesks- the list goes on market is going on global, & so the need of communication is emerging day by day… I saw that though the times are hard but if same thing innovative is done, people will get more craze for that. We are fast becoming a part of a new era of management. No longer does a manager sit in an ivory tower and issue directives from a distance. This study, complex as it is, has acquired new dimensions with the dynamic social and technological changes of the past two decades. Changing technologies, cultural diversity, more educated work force and awareness of rights and privileges have prompted a new look at the entire organizational structures and systems.

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This project report has been painstakingly and thoroughly prepared to cover extensively various facets – both micro as well as macro – of the field of telecommunication marketing. Its coverage is broad and up to date and it is balanced in terms of concept and application. Since customers are the most important asset of any organization, there is increased emphasis on the need for understanding people in a manner to satisfy them through quality of services. The language of the presentation is highly communicative so that it becomes interesting and comprehensible.

This project is intended for a wide audience. It will be useful to not only the students of management, marketing management and consumer behavior, but also to the people in any other field and management practitioners who want to understand and enrich their understanding of consumer trends & effectively manage their sales.

RITESH KUMAR YADAV

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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 include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: ⇏

Lower tariffs and handset prices over time;

⇏

Growth in pre-paid customer category;

⇏

Greater economic growth and continued development of India's economy;

⇏

Higher quality mobile networks and services; and

⇏

Greater variety and usage of value added services

The project is based on the study of consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd. The study was conducted in Delhi with sample size of 50 and sample units were suppliers and Consumer of mobile connection

“TABLE OF CONTENTS”

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 CHAPTER – I  INTRODUCTION  COMPANY PROFILE  ORGANIZATIONAL STRUCTURE  CHAPTER – II  BUSINESS & MARKETING STRATEGIES  COMPANY PLANS.  CHAPTER – III  RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY RESEARCH DESIGN COLLECTION OF DATA  PRIMARY DATA  SECONDARY DATA  CHAPTER – IV  DATA ANALYSIS AND INTERPRETATION  SWOT ANALYSIS

 FINDINGS  SUGGESTIONS & RECOMMENDATIONS  CONCLUSION 

CHAPTER –V  APPENDIX BIBLIOGRAPHY &QUESTIONNAIRE - 12 -

CHAPTER 1

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INTRODUCTION TELECOM HISTORY SINCE 1842 TILL NOW With the dramatic changes in interpersonal communication over the past decade, Internet messaging has emerged as the primary medium for transferring information quickly, inexpensively, and reliably. However, the growing popularity of wireless telephones has added another dimension to the communications equation—mobility. As more Indians rely on cellular communication, this market is expected to see explosive growth over the forecast period. Let’s have a review of telecommunication History:-

TELECOM HISTORY 1842: Wireless by conduction 1843: Early electromagnetic research, wireless by induction 1865: Induction and Dr. Loomis Early radio discoveries 1879: D.E. Hughes and the first radio-telephone reception 1880: The photo phone and the first voice radio-telephone call 1880 to 1900: Radio development begins in earnest 1910: The first car-telephone 1924: The first car-mounted radio-telephone 1937: Early conventional radio-telephone development

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The modern era begins 1946: The first commercial American radio-telephone service 1947: Cellular systems first discussed 1948: The first automatic radio telephone service 1969: The first cellular radio system 1973: The Father of the cell phone 1978: First generation analog cellular systems begin 1980: Growth of Japanese cellular development 1981: NMT -- the first multinational cellular system 1982: The rise of GSM 1990: North America goes digital: IS-54

Prehistory (Birth to Bell Labs, 1924)

While puzzling over the mysteries of radio, many inventors worked concurrently on power generation, telegraphs, lighting, and later, telephone. The thorough understanding of electricity required to produce a reliable, practical radio system took a long time and happened in different phases.

In 1820, Danish physicist Christian Ousted discovered electromagnetism, the science that could help generate electrical power and, if fully understood and applied, usher in the era of telecommunication.

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Michael Faraday - 1791 to 1867

In 1821 Michael Faraday reversed Oberstar’s experiment and in so doing discovered induction. This helped him build the world's first electricity generator. He worked on different electrical problems in the next ten years, eventually publishing his results on induction in 1831.

Joseph Henry - 1797 to 1878

In 1830 the great American scientist Professor Joseph Henry transmitted the first practical electrical signal; showing that electromagnetism could do more than just create current or pick up heavy weights -- it could communicate. In a stunning demonstration in his Albany Academy classroom, Henry created the forerunner of the telegraph. While Henry did not pursue electrical signaling, he did help someone who did. And that man was Samuel Finley Breese Morse.

Samuel Morse - 1791 to 1872

In 1837 Samuel Morse invented the first practical telegraph, applied for its patent in 1838 and was finally granted it in 1848. Joseph Henry helped Morse build a telegraph relay or repeater that allowed long distance operation. The telegraph brought the country closer and eventually the world. Morse also experimented with wireless, not by passing signals though the atmosphere but through the earth and water. Without a cable.

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Wireless by conduction

On October 18, 1842, Morse laid wires between Governor's Island and Castle Garden, New York, a distance of about a mile. Part of that circuit was under water. But before he could complete this demonstration a passing ship pulled up his cable, ending it seemed, his experiment. Undaunted, Morse proceeded without the cable, passing his telegraph signals through the water itself. This is wireless by conduction.

Over the next thirty years most inventors and developers concentrated on wire line telegraphy, that is, conventional telegraphy carried over wires suspended on poles. Few tinkered exclusively with wireless since a basic radio theory had not yet been worked out. Telegraphy, however, did produce a good understanding of wireless by induction since wires ran parallel to each other and often induced rogue currents into other lines.

Early electromagnetic research

In 1843 Faraday began intensive research into whether space could conduct electricity.

In 1864 Maxwell released his paper "Dynamical Theory of the Electromagnetic Field" which concluded that light, electricity and magnetism were all related and that all electromagnetic phenomena travelled in waves.

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Induction and Dr. Loomis

In 1865, a dentist Dr. Mahlon Loomis of Virginia may have been the first person to communicate through wireless via the atmosphere. Between 1866 and 1873 he transmitted telegraphic messages at a distance of 18 miles. At one location he even flew a metal-framed kite on a metal wire, perhaps taking inspiration from Benjamin Franklin. At another location a similar kite picked up these signals and noted them with a galvanometer.

Early radio discoveries Maxwell's 1864 conclusions were distributed around the world and created a sensation. But it was not until 1888 that Professor Heinrich Hertz of Bonn, Germany, could produce and detect radio waves consistently and reliably. On November 22, 1875, while working on acoustical telegraphy, a science close to telephony, Thomas Alva Edison noticed unusual looking electro-magnetic sparks. D.E. Hughes and the first radio-telephone reception From 1879 to 1886, London-born David Hughes discovered radio waves but was told incorrectly that he had discovered no such thing. Discouraged, he pursued radio no further. Hughes noticed a clicking noise in his home built telephone each time he worked using his induction balance, a device now often used as a metal detector. He transmitted signals from one room to another in his house in London. But since the greatest range there was about 60 feet, Hughes took to the streets with his telephone, intently listening for the clicking produced by his clockwork transmitter, gradually diminishing until it no longer could be heard.

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Alexander Graham Bell was the man who invented the telephone and made the first call on a wired telephone to Thomas Watson. Bell was also first with radio.

1888 onwards: Radio development begins in earnest In 1888 the German, Heinrich Hertz, conclusively proved Maxwell's prediction that electricity could travel in waves through the atmosphere. Unlike Hughes, the extensive and systematic experiments into radio waves that Hertz conducted were recognised and validated by inventors around the world. Jagadish Chandra Bose demonstrated electromagnetic waves in 1895 "by using them to ring a bell remotely and to explode some gunpowder".

Marconi established the first successful radio system. In 1901, his radio-telegraph system sent signals across the Atlantic Ocean. Ships were the first wireless mobile platforms. In 1901 Marconi placed a radio aboard a Thorny croft steam-powered truck, thus producing the first land-based wireless mobile transmitting data, not voice.

In December 24, 1906, Reginald Fessenden accomplished the first radio bandwave communication of human speech over a distance of 11 miles, from Brant Rock, Massachusetts, to ships in the Atlantic Ocean. Radio was no longer limited to telegraph codes, no longer just a wireless telegraph, but a means of verbal communication.

The first car-telephone From 1910 onwards, Lars Magnus Ericsson, the man who founded Ericsson in 1876, and his wife Hilda, regularly worked the first car telephone. Access was not by radio, instead there were two long sticks, like fishing rods, handled by Hilda. She would hook them

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over a pair of telephone wires, seeking a pair that was free. When they were found, Lars Magnus would crank the dynamo handle of the telephone, which produced a signal to an operator in the nearest exchange.

Around the same time, the triode tube was developed, allowing far greater signal strength to be developed both for wireline and wireless telephony. No longer passive like a crystal set, a triode was powered by an external source, which provided much better reception and volume.

Later, with Armstrong's regenerative circuit, tubes were developed that could either transmit or receive signals, were stable and powerful enough to carry the human voice and sensitive enough to detect those signals in the radio spectrum.

In 1919, three firms came together to develop a wireless company that one day would have a reach across the globe. Heavy equipment maker ASEA, boiler and gas equipment maker AGA and telephone manufacturer LM Ericsson, formed SRA Radio, the forerunner of Ericsson's radio division.

The first car-mounted radio-telephone Bell Laboratories claims to have invented the first version of a mobile in 1924. It was a two-way, voice-based radio-telephone and the adjoining photograph from their site certainly seems to confirm it.

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History of cellular mobile telephony: 1982 to 2001 1980 - First cellular phones began to appear 1982 - Nordic Mobile Telephony (NMT) standard 1983 - American Mobile Phone System (AMPS) standard 1986 - Nordic Mobile Telephony (NMT) 900 MHz 1991 - Commercial launch of the GSM service 1993 - Coverage of main roads GSM services start outside Europe 1994 - Japanese Digital Cellular (JDC) 1996 - USA Personal Communications Systems (PCS) 1982 - The beginning During the early 1980s, analog cellular telephone systems experienced rapid growth in Europe, particularly in Scandinavia and the United Kingdom, but also in France and Germany. Each country developed its own system, which was incompatible with those of others, in equipment and operation. This was an undesirable situation, because not only was the mobile equipment limited to operation within national boundaries, but also limited to the market for each type of equipment. This scenario in a unified Europe was undesirable.

The Europeans realized this early on, and in 1982, the Conference of European Posts and Telegraphs (CEPT) form a study group called the Group Special Mobile (GSM) to study and develop a pan-European public land mobile system. The proposed system had to meet certain criteria, which included:

1. Good subjective speech quality. 2. Low terminal and service cost. - 21 -

3. Support for international roaming. 4. Ability to support handheld terminals. 5. Support for a range of new services and facilities. 6. Spectral efficiency 7. ISDN compatibility. Nordic Telecom and Netherlands PTT proposed to the CEPT the development of a new digital cellular standard that would cope with the ever-burgeoning demands on European mobile networks. The European Commission (EC) issued a directive which required member states to reserve frequencies in the 900 MHz band for GSM to allow for roaming.

1986 Main GSM radio transmission techniques were chosen.

1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory group signed the charter GSM (Groupe Spéciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991. The original French name Groupe Spéciale Mobile was changed to Global System for Mobile communications; but the original GSM acronym remains.

GSM SPECIFICATIONS WERE DRAFTED. 1989 – 1998 In 1989, GSM responsibility was transferred to the European Telecommunication Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22 countries, with 25 additional countries like South Africa, Australia and many Middle and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers worldwide. - 22 -

The developers of GSM chose an unproven (at that time) digital system, as opposed to the then standard analog cellular systems like AMPS in the United States and TACS in the United Kingdom. They had faith in the advancements in compression algorithms and digital signal processors to allow the fulfillment of the original criteria and the continual improvement of the system in terms of quality and cost.

The European Telecommunications Standards Institute (ETSI) defined GSM as the internationally accepted digital cellular telephony standard.

1990 Phase 1 GSM 900 specifications were frozen DCS adaptation started. Validation systems implemented. First GSM World congress at Rome had 650 participants.

1991 First GSM specification was demonstrated. DCS specifications were frozen. GSM World Congress at Nice had 690 participants.

1992 January - The first GSM network operator was Oy Radiolinja Ab in Finland. December 1992 - 13 networks were on air in 7 areas. GSM World Congress at Berlin had 630 participants.

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1993 GSM was demonstrated for the first time in Africa at Telkom '93 in Cape Town. Roaming agreements between several operators were established. By December 1993, 32 networks were on air in 18 areas. GSM World Congress at Lisbon progressed with 760 participants. Telkom '93 was held in Cape Town. First GSM systems were shown.

1994 First GSM networks in Africa were launched in South Africa. Phase 2 data /fax bearer services were launched. Vodacom became the first GSM network in the world to implement data/fax. GSM World Congress at Athens drew 780 participants. December 1994 -- 69 networks were on air in 43 areas.

1995 GSM MOU was formally registered as an association registered in Switzerland with 156 members from 86 areas. GSM World Congress at Madrid attracted 1400 participants. December 1995 - 117 networks were on air in 69 areas. Fax, Data and SMS roaming started. GSM phase 2 standardisation was completed, including adaptation for PCS 1900. First PCS 1900 network was shown live 'on air' in the USA. Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data via GSM. Namibia goes on-line. Ericsson 337 wins GSM ‘phone of the year’. US FCC auctioned off PCS licenses.

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1996 December 1996 - 120 networks were on air in 84 areas. GSM World Congress was held in Cannes. GSM MOU Plenary was held in Atlanta GA, USA. 8K SIM was launched. Pre-paid GSM SIM cards were launched. Bundled billing was introduced in South Africa. Libya goes on-line. Option International launches the world's first GSM/Fixed-line modem.

2001 Feb -- GSM Conference held in Cannes. By May 2001 there were 500m GSM 900/1800/1900 users worldwide. 16 billion SMS messages were sent in April 2001. By April, 500 million people are GSM users.

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COMPANY PROFILE Airtel comes to you from Bharti Cellular Limited - a part of

the biggest private

integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers.

VISION: To make mobile communications a way of life and be the customers' first choice.

MISSION: We will meet the mobile communication needs of our customers through: •Error-free service delivery •Innovative products and services • Cost efficiency • Unified Messaging Solutions

CORE VALUE: We will delight our customer with our simplicity, speed & innovation. We will honours our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace.

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AIRTEL MOBILE COMMUNICATIONS LIMITED

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004.

Bharti Tele-Ventures vision for its mobile business is “To make mobile communications a way of life and be the customers first choice”. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Company’s strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as of June 30, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as of June 30, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner.

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Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: ⇏

Lower tariffs and handset prices over time;

⇏

Growth in pre-paid customer category;

⇏

Greater economic growth and continued development of India's economy;

⇏

Higher quality mobile networks and services; and

⇏

Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-two telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited. As of June 30, 2004, approximately 92% of India's total mobile subscriber market resided in the Company's sixteen mobile circles, which collectively covered only 56% of India's land mass.

AIRTEL DISTRIBUTION SYSTEM DISTRIBUTION SYSTEM A proper distribution system is very important for every company because now a days the customer wants full service without any pain. Airtel has a deep penetration in the market of prepaid cards, coupons, easy recharge and postpaid cards. I also seen in the market the happy faces of customers and retailers of Airtel because of the easy availability of Airtel cards and coupons. BENEFITS OF GOOD DISTRIBUTION SYSTEM 1. Easy availability 2. Satisfied customers 3. Competitive advantage 4. Better market reputation 5. Saves time - 28 -

DISTRIBUTION SYSTEM OF AIRTEL 1. Organisation (C&FA's) 2. Distributor 3. Retailer 4. Customer

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O r g a n is a tio n C & FA

D is tr ib u to r S e v e ra l F O S FO S

D iffe r e n t R e ta ile r s

FO S

D iffe r e n t R e ta ile r s

D is tr ib u to r

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FO S

D iffe r e n t R e ta ile r s

ORGANIZATION STRUCTURE

Organisation of AIRTEL provides services through FSO (Full Service Outlets) and DSA (Direct Sales Agent)

“MANAGEMENT HIERARCHY AT AIRTEL”

"M A N A G E M E N T H IE R A R C H Y " C H IE F S A L E S A N D M A R K E T IN G O F F IC E R V IC E P R E S ID E N T M A R K E T IN G S T R A T E G Y

V IC E P R E S ID E N T S A L E S P L A N N IN G

C H IE F G E N E R A L M A N A G E R

C IR C L E S A L E S & M A R K E T IN G H E A D D IS T R IC T O P E R A T IO N H E A D

P R E P A ID H E A D C IR C L E

M A R K E T IN G H E A D

C H A N N E L O P E R A T IO N M A N A G E R

P R E P A ID M A N A G E R

M A R K E T IN G S U P P O R T M A N A G E R -A M A R K E T IN G S U P P O R T M A N G E R -B

THREE TYPES OF SALES: 1. Primary Sales - Organisation to Distribution of Prepaid, Postpaid Cards, Coupons, easy recharge etc.

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2. Secondary Sales - Distributor to Retailers 3. Tertiary Sales - Retailer to Customer.

PROCEDURE OF ACTIVATION OF PREPAID CONNECTION: Dealer (Confirms on 570) FOS (Saw that the form is completed and has Accessory papers Distributor (Activates the card)

PROCEDURE OF ACTIVATION OF POSTPAID CONNECTION: Dealer (Collects of Cash and facilitates in Competition) FOS (Collects the Form) Distributor (Activates the card)

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MOBILE FOOTPRINT The map below depicts the location of, and provides certain information for, Bharti TeleVentures' existing mobile circles in India:

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SOURCE: (1) Population estimates are as per National Census, 2001 and are as of March 1, 2001. The population for Uttar Pradesh (West) circle is approximately 37% of the total population for the state of Uttar Pradesh. (2) Mobile subscriber statistics are as of June 30, 2004 and are based on data released by COAI. Mobile market size comprises the total number of mobile subscribers of all the service providers in a circle. (3) Demographics of Maharashtra and Tamil Nadu do not include demographics of state capitals (metros) Mumbai and Chennai respectively. (4) Demographics of Haryana does not include Faridabad & Gurgaon as they are included in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) & Uttaranchal does not include Noida & Delhi as they are included in Delhi NCR. The significant growth in the Company's mobile business has been through a combination of organic growth and acquisitions of additional licenses and has been summarized below. The information given below is for the total market and is not representative of our market share or network coverage. 1)

Comprises

the

circles

of

Maharashtra

and

Goa.

2)

Comprises the circles of Delhi, Himachal Pradesh, Karnataka and

Andhra Pradesh.

3)

Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and Chennai.

4) 5)

Comprises

the

sixteen

operational

circles

of

Bharti

Tele-Ventures.

Based on data released by the COAI on the total number of persons subscribing to mobile services in our licensed areas.

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CHAPTER 2

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BUSINESS & MARKETING STRATEGIES

Some Marketing And Business Tools Adopted By AIRTEL As To Promote Its Activities: Seminars: seminars are conducted at different places by the expert time by time to make people aware. Publicity: publicity is done through various media. Stalls at famous places: they conduct their stall after a particular period of time on the famous and public place to attract them towards themselves. DSA (Direct Sales Agency) Print media Hoarding Banners Advertisement Leaflets •

Follow ups

•

By KNOP

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Mobile Strategy Capture

maximum

telecommunications

revenue

potential

with

minimum

geographicalcoverage to maximise its revenues and margins.Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new Circles. Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles. Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.

Key highlights of Jan-04 are as follows:

Industry additions were up from the last month's 12.71 Lacks to 13.69 Lacs this month. In percentage terms, this translates to a increase of 8 % in net adds over last month. The number of subscribers moved up from 21.99 Mn at the end of Dec-03 to 23.36 Mn at the end of Jan-04, a growth of 6.22 %. All India monthly growth in subscriber numbers was 6.13 %. The growth elsewhere was : · Metros – 5.28 % · A circles – 6.22 % · B circles – 7.75 % · C circles – 3.43 %

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· All Circles Total – 6.67 % · Airtel – 6.39 % B Circle category has shown the highest growth in subscriber base on an individual basis this month. At Airtel, we have always sought to enhance value for you as a customer by providing you the most relevant and easy to use services through innovation and by harnessing the latest developments in technology. In line with this strategy, we have constantly introduced innovative products and services to suit your unique needs and wants.

Our services range from CLI to Music Messaging to Lost Call Alerts –

all to serve you

better. Move your mouse over any service from the following menu to get a brief description on what it is all about. SMS ASTROLOGY RINGTONES VOICE-MAIL DAIL-A-RINGTONE LOGOS CALLER TUNES MUSIC MESSAGING FLASH MESSAGES BLINKING MESSAGES JOKES LOVE JOKES

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YAHOO! MESSAGING YAHOO! MAIL NEWS UPDATES SPORTS CALLER IDENTIFICATION

“TRENDS IN MOBILE COMMUNICATIONS” The growth and penetration of sophisticated digital communication systems, infrastructures, and services, has been increasing constantly over the last decade. Examples of these services are the Internet, electronic mail, multimedia, pagers, PDA's, and mobile telephony. From marginal penetration 15 years ago, these systems and services are becoming a commodity in both professional and consumer markets worldwide. The developments in these fields are still going strong. In particular, rapid advances - both in technology and services - can currently be observed in wireless and mobile systems that support the communication of different media, such as data, speech, audio, video and control. Current wireless network and mobile phone services roll-out is centered around four available technologies, namely WAP, UMTS, Bluetooth, and mobile positioning systems. The wireless application protocol (WAP), initially carried by second generation GSM and in the future by third generation UMTS wireless networks, will turn the mobile phone into a networked smart-phone capable of low to medium data rate Internet functionalities. Bluetooth will allow for short-range data communication between consumer appliances in a domestic environment. Positioning systems will become integral part of mobile phones such that services can be made dependent on the location of the user in the network. When projecting the progress in mobile networks and services into the future, three developments are of importance. In the first place, we can observe that more and more

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mobile phone-like devices start to include accessories such as a small keyboard, a display, and a speech interface. Such communication and information-oriented systems are emerging as hybrids between the mobile phone and the wireless laptop personal computer. With higher bit rates supporting more advanced services, the integration of the personal computer and personal communication devices will be pushed even further. In the second place, we observe that computing resources are becoming ubiquitously - that is everywhere and at all time - available. We will soon live in an environment that supports us by providing ubiquitous Computing for a wide variety of tasks and services. Daily life consumables, durable products and services already contain an ever-increasing number of sensors, actuators, processing units, and (embedded) software. The personal computer has entered daily life as a necessary commodity, and the development of sophisticated communication systems in today's society relies heavily on the availability of computation resources. Finally, we observe that communication and computing is becoming increasingly personal. The device (and therefore the user) is always on-line, the user is identifiable, the device can be personalized, and the system knows about the user’s position.

“CELLULAR

MOBILE

PRICING

STRUCTURE

AND

TRENDS” Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile relates to fixed networks. Accordingly, it is necessary for regulatory authorities to review current frameworks in those instances where regulation might impede the offering of certain pricing structures, such as calling party pays. This issue is critical in putting fixed and mobile networks on an equal footing, so the potential for competition between networks can be exploited. Testing the demand for new pricing structures can be left to the market. Successful growth and diffusion of mobile communication services is focusing - 40 -

greater attention on how mobile communication relates to the Internet and electronic commerce. This report reviews and benchmarks the pricing of emerging services such as short message services. These services are the harbingers of ? Third generation ? Information services over mobile networks, and policy makers need to review current regulatory frameworks to enhance pricing innovation and competition in the provision of these services.

- 41 -

INDIVIDUAL CUSTOMIZATION An important trend in our society is agility or mass individualization. Consumer behavior is much more volatile, much less predictable and increasingly concerned with instant gratification. The expectation is that in due course this trend towards individualization will become a more important factor in the emerging markets too, particularly in the urban areas. As well as setting quality standards for products, this attitude also demands delivery at the right time and in the right place. At any moment, wherever the consumer may be, it has to be possible to satisfy his or her requirements; it is a question of the consumer as a "moving target" and how we can increase our chances of "scoring a hit". In modern thinking about categories of consumers, every consumer has something of this instant consumer in his or her make-up, alongside other possible descriptions, such as "rational", "social" and "responsible". What's more, this can vary according to the product category. One moment, moreover, this instant consumer will be demanding products on the basis of flavor, convenience or cheapness, and in the next breath will be voicing concerns about the environment, animal welfare or his or her own health. The likelihood is that in the long term health, the environment and animal welfare will be significant factors in the concept of quality, as safety already is. Changes in consumption patterns are an important factor in this development. While the retail trade is evolving from supermarket to household service provider in response to mass individualization, consumers are increasingly also obtaining their food through other outlets: company canteens, take-away meals, snack bars, old people's homes etc. "Young couples" in Europe are rapidly moving towards the situation that already exists in the United States, where 50% of the food consumed is prepared outside the home. This places different demands on products in terms of keeping qualities (shelf life), convenience and presentation.

Consumer-driven technology development - 42 -

These trends in the market and among consumers generate a demand for a more differentiated and more rapidly changing product range and also call for a different approach to technology development (dedicated production systems). In the future there will have to be product development that takes the dynamic of the market and the divergent wishes of the consumers as its starting point and uses the technologies of the future: biotechnology, separations technology, sensor technology and modern information technology (IT). To achieve this, product development will have to be tackled in a more structured way, and knowledge deriving from different areas of research will have to be integrated more effectively. The development of sensor technology in the agro sector, for instance, requires the integration of materials technology, biotechnology and process technology. New scientific developments also provide interfaces through which the sector may respond to wishes relating to health: both the information about genetic aspects and the new insights into bioactive components substances that, in low concentrations, affect human health - offer interesting prospects of made-to-measure food! In the future, "made-to-measure food" will also mean "food produced in a way that the public finds socially acceptable". Such aspects as the environment, animal welfare etc. will play a major role. This will have to be specifically taken into account in the development of technology.

From chains to flexible networks As well as imposing requirements in terms of technology development, trends such as mass individualization call for a responsive answer to a sharply fluctuating market demand. This places considerable demands on the organization of agricultural production chains. The full vertical integration of links in a chain can mean a loss of flexibility. It would appear to be more efficient to opt for a continuation of the development of the chain concept; leading to

- 43 -

responsive networks that combine the advantage of co-ordination with the flexibility of more loosely linked organizations. These independent organizations work closely together in the flow of goods along the chain in order to achieve the desired "customer value" at the lowest possible cost.

- 44 -

‘COMPANY’S PLANS’ PREPAID PLANS Are you wary of committing yourself to a date for making your bill payments? Is it too much of a bother for you to remember dates for bill payments? Do you often end up paying late fees against your monthly utility services bills? Do you end up spending too much if you have the option to pay the bill later? Think over for if one of these represents you, we have a solution for you. Start thinking prepaid is our advise! So what exactly is this prepaid! It is simply a way of going cellular by paying for the talk time in advance. For e.g. if you feel that you need Rs. 300 worth of talktime for a month, you can buy a recharge coupon which gives you that much talktime on your cellphone. Once that money gets exhausted you can buy another recharge coupon for the same or different denomination depending on your future need. Prepaid allows you to be in control of your cellular expenses even while you are spending. You will be surprised that today In India, Prepaid connections account for almost 60 to 70 percent of the total new entrants into cellular telephony. That’s because almost every one of us wants to be in control of our cellular expense.

Advantages of prepaid: Some of the many advantages that you enjoy with Airtel Pre-Paid... •

Total Cost Control Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as

- 45 -

much as you feel the need to! Now that's what we call complete freedom!

No Rentals Buy an Airtel prepaid card without having to pay any rentals!

No deposits Your Airtel prepaid card comes without you having to pay heafty deposits!

STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel! Our STD/ISD facility allows you to make long distance calls in India and Overseas from your cellular phone!

Instant Balance Inquiry Check your talk-time instantly by calling our toll-free number!

60 second pulse Airtel provides you with a 60-second pulse rate! Freedom for you to experience like never before!

Instant Recharge Avail of instant recharge on your Airtel prepaid card with just a few simple steps!

24-hour recharge facility With our round-the-clock recharge facility, recharge you Airtel prepaid card anytime, anywhere!

Caller Line Identification Call Line Identification gives you the power to know the phone number of

- 46 -

the calling

party even before you answer the call, thus giving you the choice to

either reject or

take the call. It provides the added advantage of saving the

incoming number directly

in the Handset Phone Book. So that the next time you

want to call the same person, you don't need to retype his number, simply use your phone book.

Call Divert, Call Hold and Call Wait Avail of special services like call waiting, call hold and call divert – all with your Airtel prepaid card!

Short Messaging Service (SMS) With Airtel’s Short Messaging Service (SMS), send messages and jokes to your friends and colleagues, anytime anywhere!

SMS based Information Services With Airtel's SMS based information services; you can get up to-the-minute cricket scores, order flowers as well as send couriers or check your daily horoscope!

Voice Mail service Voice Mail lets you receive messages even when your handset is switched off or when you are outside the coverage area. You can listen to your messages whenever you feel like, from anywhere in the world. Voice Mail can store up to 75 messages, with each message of two-minute duration.

POST-PAID PLAN 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

- 47 -

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.

Post paid Plan: New Airtel 150

- 48 -

ONE TIME CHARGES (Rs.) Activation Charges

250

Membership Fee

250 (converts into security after 24 months)

Security Deposit

NA

MONTHLY CHARGES (FIXED) (Rs.) Bill Plan Charge

150

MONTHLY CHARGES (OPTIONAL) (Rs.) CLIP

50 Airtel

Other GSM / Landline CDMA (10 WLL Digit)

LOCAL RATES (Rs. / Min)

1

1

1

STD RATES (Rs. / Min)

1.5

1.5

1.5

ISD (Rs. / Min) USA, Canada, Europe (Fixed 6.4 Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Gulf, Europe (Mobile), 9.2 SAARC countries, Africa & Rest of the world Cuba, Sao Tome & Principe, 40 Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS (Rs.) Local

1

CDMA

1

National

1.5

International

5

VAS

3.00

- 49 -

/

New India Home 299

- 50 -

ONE TIME CHARGES (Rs.) Activation Charges

250

Membership Fee

250 ,converts into security deposit after 24 mnths

Security Deposit

0

MONTHLY CHARGES (FIXED) (Rs.) Bill Plan Charge

Rs.299

MONTHLY CHARGES (OPTIONAL) (Rs.) CLIP

0 Airtel

Other GSM / Landline CDMA (10 WLL Digit)

LOCAL RATES (Rs. / Min)

1Per Minute

2 1

1

STD RATES (Rs. / Min)

1Per Minute

1 1Per 1 Minute

1Per Minute

ISD (Rs. / Min) USA, Canada, Europe (Fixed 6.4 Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Gulf, Europe (Mobile), 9.2 SAARC countries, Africa & Rest of the world Cuba, Sao Tome & Principe, 40Rs Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS (Rs.) Local

1

CDMA

1

National

1

International

5

VAS

3

- 51 -

/

1

Airtel 175 Plan

- 52 -

AirtelTIME Out CHARGES of Home Circle ONE (Rs.) Activation Charges

Rs.250

Membership Fee

Rs.250(converts to security deposit post 24 mnths)

Security Deposit

NA

MONTHLY CHARGES (FIXED) (Rs.) Bill Plan Charge

175

MONTHLY CHARGES (OPTIONAL) (Rs.) CLIP

0 Airtel

Other GSM / Landline CDMA (10 WLL Digit)

LOCAL RATES (Rs. / Min)

0.75

0.75

0.75

STD RATES (Rs. / Min)

1.5

1.5

1.5

ISD (Rs. / Min) USA, Canada, Europe (Fixed 6.4 Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Gulf, Europe (Mobile), 9.2 SAARC countries, Africa & Rest of the world Cuba, Sao Tome & Principe, 40 Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS (Rs.) Local

1

CDMA

1

National

1.5

International

5

VAS

3

- 53 -

/

We have established one of the most extensive roaming tie-ups - both national and international- with the best service providers in the respective regions to ensure that you get uninterrupted coverage throughout. We currently provide roaming coverage in more than 1000 cities and major highways across India. We also provide international roaming in 56 countries across 101 networks.

To get more information on our roaming coverage, click on the respective links: National Roaming Our national roaming coverage currently spans across more than a 1000 cities across India. To subscribe to National Roaming, you have to pay the following:

Security Deposit­ Rs 1500  Monthly Rental­ Rs 49 National Roaming Tariffs:

Distance(K Service category

Location

Charges(Rs.) m)

Outgoing Within   the   roamed  Circle  M 2 M / PSTN / WLL Any Outside   the   roamed  Circle (STD) 

- 54 -

1.99

M2M  M 2 PSTN/WLL

ISD Incoming

0 ­ 200 > 200 0 ­ 200 200 ­ 500 > 500

Gulf Rest of the World  Any source

1.99 2.99 2.99 3.99 4.99 15.99 15.99

Any distance 1.99

SMS Mobile Originated Mobile Terminated

3  0 

Customer Care Do you need any clarifications on your bills? Do you have any feedback or query on our Products & services? You can call us, send us an E-mail or meet us in person. We shall be glad to help you out in every possible way.

Contact us by phone If you are on Airtel, just call us on 121 your Airtel Prepaid phone. If you are on Airtel postpaid, just call us on 121 from your Airtel Postpaid phone These toll free numbers however, cannot be dialed when you are roaming.

- 55 -

Airtel launches “Music Messaging” service Customers can dedicate songs along with their voice messages; Airtel, one of the leading cellular operators in Maharashtra, Goa, and Daman & Due and today announced the launch of a new innovative service called “Music Messaging”. The service will allow music lovers to listen to the various songs and then dedicate the same to any other Airtel mobile subscriber along with a personalized voice message.

For using the service, the customer simply needs to dial 646 from his mobile and follow the voice prompts. This will lead him to the options Hindi and English songs. There are 10 songs under each option and the customer can either go on to listen to the song clippings of 90 seconds each or move on to the next or previous song. While listening to the song, the subscriber may choose to dedicate the song to some other Airtel Subscriber after recording a 10 second long personalized voice message. The music message will then be received by the person to whom it has been dedicated as a Voice Message with the CLI of the sender. Once delivered, the message begins with the sender’s voice message followed by a 30 second clip of the song that has been dedicated. The charge for the service is just Rs 7/minute for a 60 second pulse. Announcing the launch of the service, Mr. N.F.Aibara, COO, AirtelMaharashtra said “The mobile phone today is no longer just a communication device. Rather it is a driver of self-identity and creative pursuits especially for the youth segment which constitutes about 70 % of the new customers that we enrol every month. We have always sought to provide our customers with new and exciting services that have been made possible through innovation and use of latest technology. The launch

- 56 -

of this new service is another step in the same direction as it enables customers to add a musical edge to their messages-nothing can be more powerful than a message in one’s own voice along with a song to suit the situation. I am sure this service will be liked by all our customers and more specially the youth”

BHARTI CELLULAR FOOTPRINT Bharti is to first achieve critical mass, then drill deep instead of spreading thin. Thereafter, it is ready for controlled expansion.

In keeping with this, the company has been providing excellent service to its subscribers in various states. It controls a portfolio of India's most attractive and contiguous telecom geographies, including the states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh and Delhi (inclusive of NCR). With a footprint dominating the map of India, Airtel Cellular accesses over 45% of India's

total telephony potential. With the objective of critical mass achieved, Airtel Cellular turned to drilling deep.

- 57 -

CHAPTER 3

- 58 -

OBJECTIVE OF THE STYDY o To study the consumer trends in telecommunication sector. o To study consumer decision-making & preferences. o To study marketing strategies adopted by Airtel. o To study the level of customer satisfaction in Airtel. o To study the market potential. o To study customer purchase decision behaviour. o To understand the needs of different consumer segments. o Comparative study of different mobile companies. o To know why some retailers don’t sell new connections of Airtel.

- 59 -

RESEARCH METHODOLOGY: Research problem: To study consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd. The study was conducted in Delhi with sample size of 50 and sample units were suppliers and Consumer of mobile connection

Research Objectives: o To study the consumer trends in telecommunication sector. o To study consumer decision-making & preferences. o To study marketing strategies adopted by Airtel. o To study the level of customer satisfaction in Airtel. o To study the market potential. o To study customer purchase decision behaviour. o To understand the needs of different consumer segments. o Comparative

study

of

different

mobile

companies.

Research Design The following methodology was adopted for the study purpose:

Type of research: Descriptive and qualitative research design were used while conducting the project. Sampling Design was taken by the researcher as the Research design.

- 60 -

The major purpose of the study is to describe the state of affairs as it exists at present. The study was based on the facts or information already available, & analysis of this available information make a critical evaluation of the material.

Research Method/Technique: In the project report the researcher used following techniques while conducting his study: •

Analysis of documents

•

Survey Method: A market survey was done on life insurance companies.

•

Interview (Personal): Both open and closed ended (unstructured) questions were asked while taking some information from the users of the cellular at DELHI.

•

Questionnaire (Structured): A structured designed comprehensive questionnaire was framed and pretested for data collection from the customer of mobile

Research Data Data is the key activity of marketing research. The design of the data collecting method is backbone of research design. Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. Data can be obtained from two important sources, namely: 1. Primary Data 2. Secondary Data

Primary Data:

- 61 -

Primary data are gathered for the specific purpose or for a specific research project, consist of original information for the fulfilment of project objective. When the data are required for the particular study can be found neither in the internal record of the enterprises nor in published sources. In some cases it may become necessary to collect original data. Primary data can be collected in four ways:1. Observation 2. Survey

Secondary Data: Secondary data are the data, which already exists somewhere. Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types: 1. Internal data 2. External data When researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc. Internal data are reports and memos generated within an organisation to facilitate its operations and annual report. External data are those specially produce for outside consumption.

Sources from which the researcher has taken the secondary data are as under:

- 62 -

1. Direct observation 2. Airtel website 3. Books for marketing management 4. Surveys and customer data & report 5. Airtels customers care office 6. Airtel’s Brouchers

SAMPLE DESIGN Area of Sample: •

The areas covered up in this survey was DELHI

Selection of units under study Sampling Units from DELHI were suppliers and Consumer of mobile connection

Source list (Sampling Frame) SUPPLIERS: 10 CUSTOMERS: 40 Sample size: 50 Sampling Procedure: Probability Sampling (Simple Random Sampling)

- 63 -

LIMITATIONS OF THE STUDY

While working on this project I have to face some difficulties while conducting the survey. People were not interested in giving there actual information about their family income and airtime, as they were extremely scared about the income tax some people have difficult to take them in confidence so that they can give correct information. Some of the limitations are:

Not at home Refusal to co-operate Respondent bias

- 64 -

CHAPTER 4

- 65 -

 “DATA ANALYSIS  AND INTERPRATION”     (1)

Do you have own mobile connection?

A. Yes  B. No. 

14 Having Mobile Not having mobile

86

- 66 -

The data shows that the total sample size of 50 people taken for  research out of which 86% of persons keep mobile with them. Sample size ­ 50

Having mobile Yes No

- 67 -

Respondent 43 7

(2)

Which kind of phone you would like use? 

Land line Mobile

The data shows that the total sample size of 50 people taken for  research out of which 50% of persons like to use land line phone and 30%  person like to use mobile and rest 20% person like to use WLL. Sample size ­ 50

CONNECTION  LANDLINE  MOBILE WLL

- 68 -

Respondent 25 15 10

(3) Which age group you belong to? (a) 15­20 (b) 20­25 (c) 25­35 (d) 35­ above

15-20 20-25 25-35 35-above

The analysis shows that 14% people from 15­ 20 age group, 8% persons  from 20­25 age group, 36% persons from 25­35 age group, and 42% of  people from 35­above age group keep mobile with them.  Sample size ­ 50

Age 15­20 20­25 25­35 35­above 

- 69 -

Respondent 7 4 18 21

(4)  What occupation do you have? (a) Business (b) Professional (c) Government Employee (d) Student

The data shows that 50 persons are from, 23 persons are professionals, 16 persons are  Private   and   5   persons   are   found   retirement   6     person   are   government   employee   to  consume mobiles. Occupation  Professional Private  Retirement  Government

- 70 -

Sample size ­ 50 Respondent  23 16 5 6

 (5) Which connection would you prefer?  (a) MTNL (b) Airtel (c) Orange/ Hutch (d) BPL  (e) Reliance

When the preferences for mobile phone connections were asked, results  drawn that 40% of persons prefer to take BSNL because they believe in  BSNL’s better coverage & cheaper rates after BSNL, 20% of people opt  Reliance services because of its cheaper rate and flexible schemes, then  Airtel is only 25% but there is very high recommendation for its better  connectivity.   Airtel   is   rich  in  attractive  schemes  and plans  for  business  persons and persons related to corporate world.  Sample size: 50 Phone Connections  Airtel BPL MTNL OTHERS

- 71 -

Respondent 20 8 12 10

(6) You would like to take prepaid connection or Post paid connection? a. Prepaid  b. Post paid 

The research study shows that almost people from the selected segment give  priority to Post Paid connection, because of the flexibility and attractive plans  for this market segment. Sample size: 50 Connection  Pre paid  Post paid 

- 72 -

Respondent 40 10

Airtel Competitor's market % market%

Airtel market%

Competitor's Airtel Lapu Market% %

Competitor's Lapu %

Careter’s meeting Pt. Final Touch Naaz photo comm. Tone & melodies Milan comm. Aalamcomm. Vijay electronics Aman comm. Rose comm.

40% 67% 36% 45% 38% 45% 38% 42% 43%

60% 33% 64% 55% 63% 55% 62% 58% 57%

45% 45% 42% 43% 43% 57% 38% 40% 29%

55% 55% 58% 57% 57% 43% 63% 60% 71%

41% 45% 43% 40% 38% 29% 38% 38% 29%

59% 55% 57% 60% 63% 71% 62% 62% 71%

TOTAL

45%

55%

43%

57%

37%

63%

- 73 -

Outlet name A 2 Z communication B.K.Marketing Santacruz mart Mobile villa Vakola Mall Matrix telecom Gupta Telecom Moon contacts Mobile city Konkan electronics TOTAL

- 74 -

Airtel market Competitor's % market% 43% 64% 61% 68% 80% 37% 58% 74% 44% 58% 61%

57% 36% 39% 32% 20% 63% 42% 26% 56% 42% 39%

Airtel market%

Competitor's market%

40% 50% 9% 27% 40% 50% 38% 42% 33% 38% 24%

60% 50% 91% 73% 60% 50% 62% 58% 67% 62% 76%

Airtel Competitor's Lapu % Lapu % 33% 40% 41% 44% 44% 30% 45% 53% 45% 43% 43%

67% 60% 59% 56% 56% 70% 55% 47% 55% 57% 57%

Airtel Competitor's Airtel market % market% market% Gala & sons Bharat telecom Praveen & sons Zarina general store Ravi communication Sai communication Quality inn Nirmals shop Andheri Shop Total

- 75 -

75.00% 75.00% 70.97% 64.52% 72.73% 75.00% 62.50% 76.47% 66.67% 72.27%

25% 25% 29% 35% 27% 25% 38% 24% 33% 28%

53% 45% 56% 57% 55% 45% 52% 48% 50% 49%

Competitor's market% 47% 55% 44% 43% 45% 55% 48% 52% 50% 51%

Airtel Competitor's Lapu % Lapu % 60% 45% 56% 48% 48% 44% 56% 60% 43% 54%

40% 55% 44% 52% 52% 56% 44% 40% 57% 46%

Nair Gallery Poonam Art Gallery Aman comm. Khar Internationals Saif business Unique telecomm. Antique Communications Harmain Entp.. Orpat watches Sindhi Mobiles TOTAL

- 76 -

Airtel market %

Competitor's market%

Airtel market%

Competitor's market%

Airtel Competitor's Lapu % Lapu %

55% 50% 63% 44% 26% 43%

45% 50% 38% 56% 74% 57%

45% 44% 42% 33% 47% 36%

55% 56% 58% 67% 53% 64%

33% 43% 42% 31% 40% 67%

67% 57% 58% 69% 60% 33%

54%

46%

54%

46%

43%

57%

56% 56% 45% 50%

44% 44% 55% 50%

42% 56% 40% 43%

58% 44% 60% 57%

43% 29% 38% 40%

57% 71% 62% 60%

Airtel market %

competitor's market%

Airtel market%

competitor's market%

Airtel Lapu %

competitor's Lapu %

Magic gallery Photo world Baba Telecom Gift Point Gift 4 U Arco electronics Marlboro telecom Star comm. Malik comm. Highway international

46% 40% 42% 48% 36% 43% 38% 43% 43% 44%

54% 60% 58% 52% 64% 57% 63% 57% 57% 56%

40% 40% 63% 5% 45% 35% 38% 30% 37% 29%

60% 60% 37% 95% 55% 65% 62% 70% 63% 71%

31% 35% 36% 37% 29% 36% 36% 36% 39% 38%

69% 65% 64% 63% 71% 64% 64% 64% 61% 62%

TOTAL

43%

57%

38%

62%

35%

65%

- 77 -

Amar Golden enterprises tel. Airtel prepaid connection stock Competitor's stock Airtel coupon value Competitor's coupon value Airtel Lapu value Competitor's Lapu value

- 78 -

Bharat stores

Kapil comm.

Plus Point comm.

Plaza comm.

New Star Kumail comm. comm.

Juhu general store

67%

58%

63%

71%

75%

73%

56%

50%

56%

33% 42% 58% 45% 55%

42% 40% 60% 40% 60%

38% 33% 60% 50% 50%

29% 33% 67% 56% 44%

25% 42% 58% 48% 52%

27% 40% 60% 47% 53%

44% 60% 40% 42% 58%

50% 40% 60% 40% 60%

44% 50% 50% 38% 63%

SALES OF DIFFERENT RETAILERS S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

Ginny Telecom Sodhi Selection Krishna Enterprises Balajee Medical Store Pastry Palace Sutech Photostat Mobile Gallery E-Zone Vikas Teleco Skyline Communication Kohli Associates Amit Cellnet Sunrise Communication Gurunanak Telecom Lambawatch Service Shri Balajee Communication Bharija Telecom Chabra Sons Gupta Telecom Goodluck Telecom Arora Telecom Baboo Music House Rincle Electronics Honest Telecom Prince Communication Jyoti Telecom Hari Telecom Bansal Communication Verma Communication Sunny Sound Diksha Network

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Transforming Value 3000/a day 3000/a day 3000/a day 1000/a day 500/a day 1000/a day 2000/a day 4000/a day 1000/a day 1000/a day 5000/a day Don't Sell Lapu Don't Sell Lapu 3000/a day 5000/a day 500 / a day 1000/a day 1500 / a day 3000/a day 3000/a day 5000/a day 4000/a day 5000/a day 3000/a day 2000/a week 5000/a week 3000/a day 3000/a day 5000/a week 2000/a day Don't Sell Lapu

Doing (New Sim) 570 10 / a month 7 / a month 2 / a day Don't Sell Sim Don't Sell Sim Don't Sell Sim 12 / a month 10 / a month 5 / a month 5/ a month 12 / a month Don't Sell Sim Don't Sell Sim 15 / a month 4 / a day 15 / a month 4/ a month 10 / a month 3/a day 5/a day 2/a day 1/a day 2/a day 1/a day 2/a day 2/a day 1/a day 2/a day 1/a day 1/a day Don't Sell Sim

32. 33. 34.

Gogia Telecom Urvashi Sharma Telecom

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7000/a month 3000/a day 5000/a day

3/a month 2 /a day 1/a day

SOME OF THE OUTLETS THAT I HAVE COVERED S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

Your's Shop Gaba Communication Gosain Electronics Sant Bakers Unique Communication Sukh Communication Arora Communication Balajee Communication Dase Enterprises Gift Corner Deepak Communication Kalptaru Communication JMD Communication Hello Point Grover Communication Electronics Ways Com-Com Melhotra Telecom Grover Car Puneet Communication Digital Age Bhawna Communication Anand Communication Vicky Communication B.S. Telecom Raju Telecom Noble Communication Sun Communication Tele Voice Asian Electronics Fine Computers

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Transforming Value 8000 / a week 6000 / a week 20,000 / a week 10,000 / a week 3000 / a week 3000 / a week 3000 / a day 15000 / a week 7000 / a week 20000 / a week 2000 / a week 3000 / a week 3000 / a day 5000 / a week 5000 / a week 20,000 / a week 15,000 / a week 35,000 / a week Don't Sell Lapu 4000 / a week 3000 / a day 3000 / a week 3000 / a week 2000 / a day 3000 / a day 6000 / a week 9000 / a week 5000 / a week 3000 / a week 5000 / a week 5000 / a week

Doing (New Sim) 571 2 / a week 1 / a week 4 / a week 2 / a week 1 / a week 1 / a week 2 / a week 10 / a week 3 / a week 5 / a week Don't Sell Sim 4 / a week 3 / a week 2 / a week 1 / a week 15 / a week 7 / a week 7 / a week Don't Sell Sim Don't Sell Sim 2 / a week 1 / a week 1 / a week 1 / a week 2 / a week 3 / a week 6 / a week 1 / a week 2 / a week 4 / a week 1 / a week

32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52.

Kundan Property Air Communication Melody Style Communication Apna Store Jaishree harmilap Monu Studio Crazy Communication Chawla Telecom Bhola Telecom Broadway Music Cellular Hut Feeling Gift Point Jai Ambe Fancy Store Kiran STD Kundan Properties Ambika Telecom Manpreet Communication Naveen Corner Neha Enterprises Royal Amar Watch

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Don't Sell Lapu 5000 / a week 7000 / a week 5000 / a week Don't Sell Lapu 2000 / a week 5000 / a week 2000 / a week 3000 / a week Don't Sell Lapu 5000 / a month Don't Sell Lapu Don't Sell Lapu Don't Sell Lapu Don't Sell Lapu Don't Sell Lapu 2000 / a week Don't Sell Lapu Don't Sell Lapu 2000 / a week 2000 / a week

Don't Sell Sim 2 / a week 2 / a week 2 / a month Don't Sell Sim 2 / a month 1 / a week 2 / a day 1 / a month Don't Sell Sim 1 / a month 4 / a month Don't Sell Sim Don't Sell Sim Don't Sell Sim Don't Sell Sim 1 / Month Don't Sell Sim Don't Sell Sim 1 / a month 1 / a month

SWOT ANALYSIS OF AIRTEL Strengths INVESTOR’s FAITH: Investor’s faith in Airtel that causes huge monetary support. STRONG ADMINISTRATION: Under the leadership of Bharti Cellular Ltd Airtel proved themselves as an well-organized & administrative company. BRAND NAME: Airtel as a brand is the synonym of success. It is the largest private limited organization of India.

Weakness Lack Of Co-Ordination Between Deptt. Lack of Choice of Good Pre-paid numbers like XXYY numbers like others providing.

Opportunity favourable TARRIFS: Newly issued tariffs are suitable for Airtel so they can easily modify their tariff plans according to it and gain customer attraction.

Threats tough COMPETITION: Airtel has to face a tough competition with existing market leaders like Reliance (Reliance is providing Free Outgoing also) Hutch, Idea, Dolphin and Trump.

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FINDINGS Airtel FSO FSO - Full Service Outlet Basically for providing customer services in terms of their queries to build good relation with customers to reach a point of customer satisfaction. Building good customer relation does not only help in expanding sales but also helps in knowing the customer better and knowing the customer further leads to acknowledgement of tastes & preferences of the customer.

One of the various ways to reach the customer is through franchisee. It helps the customer to be in touch with a particular business. The franchisee should be at many places to build a strong relation with all segments of customer. It must also have many customer executives so that there are enough people to attend all customers and time can be saved. It leads to instant help to the consumer to be happy and satisfied and the sole purpose of marketing "Customer Satisfaction is achieved.

OUTLOOK OF THE FRANCHISEE: The franchisee was having transparent glasses outside so that anybody can look in that its open from outside from inside the franchisee was beautifully furnished with furniture. Most of the things there was of Red, black and white colour which are colours of Airtel. The franchisee was centrally air-conditioned and have all the necessary things which customer needs like sufficient number of seats, drinking water etc.

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INTERACTING WITH THE CUSTOMER'S All the customer's were treated well, when they enters the franchisee the executives greets them. All the executives there listens the customer query very patiently and try there level best to solve it they send the customer to the floor manager. For eg.: For the new connection - The executives first listening to the customer patiently (his needs and preferences) than tell them postpaid and prepaid connection plans which most suited to the customer and helps them to choose the best for them, on the basis of their budget, for what purpose they are buying, how often he will use it etc.

SERVICES PROVIDED BY Franchisee: New Postpaid and prepaid connection New SIM issue Duplicate SIM issue. Coupons and Easy recharge (Value) Bill deposit (In cash and cheque) Solving Customer queries Migration of prepaid connection to postpaid connection and vice versa Name and Address change of postpaid connection Activation of Roaming and STD Bill details Changing of plans Disconnection of plan

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Mobile problems Queries regarding broadband, GPRS Queries regarding Land line phone

OBSERVATION: The executives there were not fully aware of all plans. For eg. the executives was not aware that Rs. 2,000 prepaid Connection in which the customer's get two years incoming validity was still going on, he come to know about it when the customer said that he got a message from Airtel today about this plan. Customer's of new connection were very unhappy that there connection will be activated after a weak. Customer's were not satisfied with the Airtel services. Customer care number doesn't connects easily, it takes a lot of time to connect some-times a day to speak with executive. Many fraud cases were coming. Most of the people are opting for postpaid connection instead of prepaid connection postpaid and prepaid connection plans which most suited to the customer and helps them to choose the best for them, on the basis of their budget, for what purpose they are buying, how often he will use it etc. Most of the people were opting for Rs. 1399 advance rental plan of 2 years. Many customers were demanding for corporate connection but the executives said that individual connection of corporate is not possible; they should be atleast five connections. People were very happy with add-on scheme of postpaid and also opting for it.

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The franchisee sells 7 to 9 postpaid and 3 to 5 prepaid connection daily. Many customer's were coming for making adjustment in their bill plan or amount. Many customer's were coming with the problem that the plan they are assigned was not opted by them. Radio-connectivity of their system was getting very slow again and again by which the customer's were getting irritated. The customer's who need prepaid connection were getting less preference in comparison to the customer's who need postpaid connection. The customers were very happy with Airtel scheme in which the customer can make the payment through bank automatically every month by filling ECR form.

SUGGESTIONS:

There should be more customer care numbers and executives so that the problems of the customers can be solved quickly. They should have more space for payment. The executives there should be given training time to time about new schemes and plans. No phone calls should be attended while entertaining the customer. Every executives should know his responsibility and work.

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RECOMMENDATION The company should go ahead with aggressive marketing. They should light competition on 1. Awareness level. 2. Pricing strategy.

Thus, the recommendations fir these are as follows: 1. AWARENESS (a) (b)

The company should sponsor local programs. The company should arrange briefing sessions at prominent clubs such as LIONS CLUB and ROTARY CLUBS etc.

(c)

The company should organize awareness quizzes through Newspapers, Magazines & announce suitable rewards accordingly.

(d) The company should distribute, l eaflets of AIRTEL Cellular in posh colonies of DELHI.

2. PRICING STRATEGY (a) The company should look the strategies of the competitive companies. (b) The company should try its level best to keep the price low as compare to competitors. (c) The schemes should be updated as per the needs and occasions

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SUGGESSTIONS (a)

As the company have captured the western market they should retain the customers

(b)

Try to capture the nearest other markets nearby

(c)

Occasional offers

(d)

Proper billings to the post paid users

(e)

Proper response to the customers on the helpline no. Or toll free nos.

(f)

Roaming deposits should be reduced

FURTHER SUGGESTIONS  MATCH COMPETITORS SCHEMES.  COMMUNICATE THE SCHEMES TO Fos. AND RETAILERS DAILY.  BETTER NUMBERS IN PRE – PAID AS CUSTOMER REQUIRES CHOICE.  ENHANCE THE SERVICE IN AREAS WITH WEAK NETWORK.  COORDINATION BETWEEN DEPARTMENTS MUST BE IMPROVED.

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“CONCLUSION” “Good services is the way to retain the clients”  AIRTEL CONNECTIONS ARE

SELLING

BECAUSE

OF

BEST

NETWORK COVERAGE.  GOOD RELATIONSHIP OF FOS. & REATILER IS BEING HELPFUL IN SELLING.  LARGE MARKET COVERAGE, EASY AVAILABILITY OF COUPONS.  CUSTOMER CARE NUMBER DOES NOT CONNECTS EASILY AND EXECUTIVES THERE WERE ALSO NOT AWARE OF THE SCHEMES.

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CHAPTER5

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QUESTIONNAIRE SURVEY OF AIRTEL Dear Sir/Madam, We are thankful to you for patronizing AIRTEL. We hope that you are satisfied with the product and quality of the services offered by the Airtel. As there is always scope for improvement, we would like to get your opinion in these areas. I would, therefore, request you to kindly assist us in our efforts by sparing a little time to give us your valuable feedback and suggestions in the feedback form below. Please do not hesitate to inform us of any observation that you think may be relevant. We assure you that we would try to come up to your expectations.

Name: …………………………………………………………………………… ……… Sex :…………………

Age:…………

Occupation: ..…………………………………………………………………… …..………… Address: ………………………………………………………………………… …………………………………………………………………………………… ………… Contact Number: +91989………………… 1. WHICH PRODUCTS OF AIRTEL THEY WERE SELLING AND WHICH NOT? __________________________________________________________________ __________________________________________________________________ _____________________________________________

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2. WHY WERE THEY NOT SELLING THAT PARTICULAR PRODUCT. __________________________________________________________________ __________________________________________________________________ _____________________________________________

3. WHAT ARE THE DIFFICULTIES FACED DURING SELLING THE PRODUCTS. __________________________________________________________________ __________________________________________________________________ _____________________________________________

4. WHAT IS THE LEVEL OF STOCK MAINTAINED BY THEM.

__________________________________________________________________ __________________________________________________________________ _____________________________________________ 5. THEIR FEEDBACK IN COMPARISON WITH THE COMPETITORS.

_____________________________________________________________________ _____________________________________________________________________ _______________________________________

BIBLIOGRAPHY

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• BOOKS Marketing Management by Philip Kotler 9th Edition Research Methods for management by Dr. S. Shajahan 2nd Edition Principal & Practice of Management by L.M. Prasad, 4th Edition.

• REFRENCES • AIRTEL’s reports • Books & magazine on mobile communication •

WEBSITES & SEARCH ENGINE

•

www.airtelworld.com www.bhartiteleventures.com www.researchandmarket.com www.info-shop.com www.smartmobs.com www.yahoosearch.com

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