PROJECT REPORT

ON
MARKETING STRATEGIES OF AIRTEL
SUBMITTED UNDER PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR
TRAINING SUPERVISOR: PROJECT ADVISOR:
SUBMITTED BY:
SESSION:
ACKNOWLEDGEMENT
I acknowledge the sincere assistance provided to me from
several rather unexpected quarters during the course of
execution of this study. It would be a mammoth task to place on
record my gratitude to each and every one of them but a whole
hearted attempt would be made nevertheless, least I be branded
ungrateful.
I am extremely thankful to Mr.Abhishek Yadav, (Unit
Advisor) for giving me an opportunity to undergo training in
BHARTI AIRTEL MARKETING and making my stay at AIRTEL
MARKETING a memorable learning experience.
Where the emotions are involved words cease to work. I am
deeply indebt to ---------------------- for her encouragement,
affections, valuable advice and guidance that helped me to
complete this project successfully.
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EXECUTIVE SUMMARY
The project aims at understanding the Marketing strategies at
Airtel and its impact on the perception of Airtel Cellular Services.
Research has demonstrated conclusively that it is far more costly
to win a new customer than it is to maintain an existing one. And
there is no better way to retain a customer than to exceed his
expectations. For this purpose it is essential to know the level of
customer satisfaction. The focus of my research was the
measurement of customer satisfaction level for the services
provided by Bharti Airtel. The research was done for the
corporate clients of Bharti Airtel. My job was not only to
represent the Corporate Sales Dept. and collect the feedback
from the clients but also to get the major complaints resolved
through internal counselling. There can be no better opportunity
to interact with the external as well as the internal customers of
an organization. Finally the results of the research verify the fact
that keeping the customer satisfied is the best strategy to not
only retain the existing customers but also to expand the
business to new horizons.
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TABLE OF CONTENTS
1. TELECOMMUNICATION MARKET IN INDIA 7
2. GSM MARKET IN INDIA 11
3. INTRODUCTION 23
4. TARIFF STRUCTURE 39
5. PROMOTIONAL STRATEGY 48
6. MARKET SITUATION 50
7. COMPETITIVE SITUATION 51
8. MARKETING STRATEGY ADAPTED BY BHARTI 60
9. OBJECTIVE 69
10. RESEARCH METHODOLOGY 70
11. LIMITATION 71
12. SWOT ANALYSIS 79
13. CONCLUSION 81
14. BIBLIOGRAPHY 82
15. QUESTIONNAIRE 83
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TELECOMMUNICATION MARKET IN INDIA
The Indian telecommunications Network with 250m telephone
connections is the fifth largest in the world and is the second
largest among the emerging economies of Asia. Today it is the
fastest growing market in the world and represents unique
opportunities for UK companies in the stagnant global scenario.
Tele-density, which was languishing at 2% in 1999, has shown an
impressive jump to 9.5% in 2006 and 10.5% in 2007 and is set to
increase to 20% in the next five years beating the Govt. target
by three years. Accordingly, India requires incremental
investments of USD 20-25 bln for the next five years.
Private operators have made mobile telephony the fastest
growing (over 164% p.a.) in India. With more than 33 million
users (both CDMA and GSM), wireless is the principal growth
engine of the Indian telecom industry. Given the current growth
trends, cellular connections in India will surpass fixed line by late
2004/early 2005. Intense competition between the four main
private groups - Bharti, Vodafone, Tata and Reliance and with the
State sector incumbents-BSNL and MTNL has brought about a
significant drop in tariffs. There has been almost 74% in cell
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phone charges, 70% in ILD calls and 25% drop in NLD charges,
resulting in a boom time for the consumers.
The Government has played a key enabling role by deregulating
and liberalising the industry, ushering in competition and paving
the way for growth. While there were regulatory irregularities
earlier, resulting in litigation, these have all been addressed now.
Customs duties on hardware and mobile handsets have been
reduced from 14 percent to 5 percent.
The Indian government has merged the IT and Telecom
Ministries to speed up reforms and decision on the
Communication Convergence Bill to enable the common
regulation of the Internet, broadcasting and telecoms will be
taken after the new Government assumes responsibilities in may
this year. An independent regulatory body (TRAI) and dispute
settlement body (TDSAT) is fully functional.
INDIAN CELLULAR MARKET
The Bharti Group, which operates in 23 circles, continues to be
the country's largest cellular operator, with 50 lakh subscribers.
BSNL, which operates in 22 circles, has a subscriber base of 37
lakh subscribers. Thus BSNL stands second largest cellular
operator in terms of subscriber base at the end of the fiscal
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ending March 31, 2007, displacing Vodafone from the second
position.
Vodafone, which operates in only eighteen circles, is the third
largest operator with a subscriber base of 32 lakh. Unlike fellow
public sector undertaking, MTNL, which operates in Mumbai and
Delhi, BSNL has been a very aggressive player in the market.
"Cellular operators who expected BSNL to go the MTNL way,
were taken by surprise and did not take effective steps to
counter it, till it was too late in the day," said a telecom analyst.
Belying fears of a slowdown in cellular subscriber acquisitions,
the cell club has reported a 7.92% growth, the highest growth in
any month so far, during March 2005. Year-on-year, the cellular
subscriber base in the country has almost doubled in March
2005, and is expanding at the rate of 25% per year thereafter.
The cellular subscriber club expanded by 21.31 lakh last month.
This is much higher than 5.9 lakh subscribers added in February
2005 and 2.13 lakh in January 2005. Idea, which operates in
Seven circles, is the fourth largest operator with a subscriber
base of 17.80 lakh, higher than BPL's 11.31 lakh subscribers
across four circles. The subscriber numbers per operator drop
sharply with the sixth largest operator, Spice Communications,
having a subscriber base of 9.40 lakh, followed by Reliance
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Telecom's 8.9 lakh subscribers. MTNL is the ninth largest
operator, with a base of 8.32 lakh subscribers.
While the subscriber base-jumped by 3.38% to 44.39 lakh in the
metros, subscriber base of category A circles of Maharashtra,
Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by
10.18 % to reach 43.64 lakh. Category B circles of Kerala,
Punjab, Haryana, Uttar Pradesh (West), Uttar Pradesh (East),
Rajasthan, Madhya Pradesh and West Bengal recorded a jump of
10.69%, with a total base of 33.74 lakh subscribers. Circle C has
reported 12.74 % growth with subscriber numbers jumping to
5.08 lakh.
Among the metros, while Mumbai added 1,63,180 subscribers,
higher than the 1,58,646 added by Delhi, the Capital's cellular
subscriber base of over 80 lakh is still higher than Mumbai's
66.89 lakh. While the cellular industry has been on roll for the
first three quarters of the previous financial year with an average
of 16.75 lakh monthly additions in the third quarter, the first two
months of 2007 had seen the growth slowing down.
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GSM MARKET IN INDIA
Regional Interest Groups - GSM India
With a population of around 1.1 billion growing at roughly 1.7 per
cent a year, India is potentially one of the most exciting GSM
markets in the world. After two rather difficult years, the past 12
months have seen the region's promise beginning to come to
fruition. Much of this success can be attributed to the
stabilisation of the licensing and regulatory environment.
India's telecommunications have undergone a steady
liberalisation since 1994 when the Indian government first
sought private investment in the sector. More significant
liberalisation followed in 1996 with the licensing of new local
fixed line and mobile service providers. However, it has been the
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government's New Telecom Policy (1999) that has had the most
radical impact on the development of GSM services. 'The policy's
mission statement is 'affordable communications for all', There
is a genuine commitment to creating a modern and efficient
communications infrastructure that takes account of the
convergence of telecom, IT and media. In addition, the policy
places significant emphasis on greater competition for both fixed
and mobile services.'
Competition in the mobile sector has already had a visible
impact on prices with calls currently costing less than 9 cents per
minute. This means that service costs have fallen by 60 per cent
since the first GSM networks became live in 1995. It also helps
explain why a recent Telecom Asia survey revealed that more
than 70 per cent of Indian mobile subscribers felt that prices
were now at a reasonable level.
One of the challenges facing GSM operators in India is the
diversity of the coverage regions -from remote rural regions to
some of the most densely populated metropolitan areas in the
world. India has more than 40 networks, which cover the seven
largest cities, over 7000 towns and several Lacs villages. Such
depth of coverage has required enormous investment from
India's operators. It is estimated that more than Rs200 billion
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had been invested in India's GSM industry by mid-2000, a figure
that is set to be supplemented by a further Rs. 300 billion over
the next five years.
The good news is that subscriber growth is beginning to look
healthy. With India's low PC penetration and high average
Internet usage -at 14-20 hours a month per user it is comparable
to the US -the market for mobile data and m-commerce looks
extremely promising. WAP services have already been launched
in the subcontinent and the first GPRS networks are in the
process of being rolled out. In the year ahead, GSM India will
work with its members to realise the potential of early packet
services in anticipation of the award of 3GSM licences.
India fastest growing GSM mart
India is expected to have 145 million GSM (global system for
mobile communications) customers by 2007-08 compared to 26
million subscribers as on March 2005, according to the Global
Mobile Suppliers Association. "For GSM, India is a success story.
It is one of the fastest growing markets with its subscriber base
doubling in 2005. At this pace, the target of 150 million
subscribers by 2007-2008 is definitely achievable," Alan Hadden,
president of GSA, said at a news conference in New Delhi.
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Globally, the GSM market reached 1 billion users in February
2005, he said, adding GSM accounted for 80 per cent of the new
subscriber growth in 2005."Almost every Latin American operator
has chosen GSM. In North America GSM growth is bigger than
CDMA (code division multiple access)," he said. Commenting on
the raging debate over GSM versus CDMA in mobile services
arena, Hadden said: "GSM is the world's most successful mobile
standard with over 1 billion users, and is an open mobile
standard. It also supports automatic international roaming, which
is a major contributor to business plans."
India’s GSM mobile firms’ revenue up 30 pct
India’s private telecoms firms offering GSM-based mobile
services reported a 24 percent rise in revenue in the year to
March 2007 but said future growth rates could slow because of
heavy taxes on the nascent industry. Although India’s mobile
sector is the world’s fastest growing major wireless market, it is
amongst the highest taxed industries in the country. Mobile
carriers pay as much as 25 percent of their revenue as licence
fee, spectrum charges and other taxes. The Cellular Operators
Association of India (COAI) said revenue for fiscal 2003/04 stood
at 83.08 billion rupees ($1.86 billion) compared with 64 billion
rupees a year earlier. According to T.V. Ramachandran, director
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general at COAI, “These revenue growth rates cannot be
maintained unless there is a concerted effort by the government
to cut excessive levies and allow sharing of infrastructure”
“But the potential to do much better exists as there is still huge
demand in the sector.” Ramachandran said the sector was still
losing money but declined to elaborate. Sales jumped because
of a doubling of the GSM (Global System of Mobile
Communications) user base as more people entered the
flourishing market thanks to one of the lowest call rates in the
world. But the monthly average revenue per user, a key measure
of profitability, declined 17.4 percent to 432 rupees in the fourth
quarter compared with 523 rupees in the first quarter due to a
cut in tariffs and excessive competition among companies.
Growth slowing, demand untapped: The association has not
included the financial performance and the GSM-user base of
state-run firms Bharat Sanchar Nigam Ltd, the second-ranked
player, and Mahanagar Telephone Nigam Ltd, Ramachandran
said. There are 150 million GSM customers and more than 96
million users of the rival CDMA-based mobile services in the
country.
The pace of growth in monthly additions is slowing after just 1.25
million users took up the service in April compared with
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1.9 million in the previous month and 1.63 million in February.
Ramachandran blamed the slowdown on a majority of small GSM
operators being unable to expand networks into rural swathes
where demand remained largely untapped.
“Our surpluses are not enough to cover costs of network
expansion and financing charges on loans. We are making
money only to cover operating expenses,” he said. Carriers are
now subsidising handset costs to woo users into the
underpenetrated industry forecast to have more than 250 million
customers by 2007. Roughly three percent of Indians own a
mobile phone compared with about 20 percent in China. About a
dozen firms such as Bharti Airtel Ltd, 28 percent owned by
Singapore Telecommunications, Reliance Infocomm Ltd and the
Indian GSM-unit of Vodafone group battle in the hotly
competitive sector.
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DOES GSM HAVE THE EDGE?
GSM operators are not the only ones who are worried about the
rapid strides made by CDMA mobile players Reliance Infocomm
and Tata Indicom in the Indian cellular market?
The GSM suppliers – both handset and equipment - who
incidentally also have their other foot firmly placed in the CDMA
pie, are beginning to lose some sleep over what was earlier
termed as `niche’ and `minuscule’ data carriage market by the
operators
Apart from the strong success of the two CDMA operators whose
networks are based on code division multiple access (CDMA), the
miserable showing of the four global standard for mobile (GSM)
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based networks that launched general packet radio service
(GPRS) service for data connectivity in last three years, has the
vendors worried. Global mobile Suppliers Association (GSA) now
believes that even though India will primarily remain a voice
traffic-led market in next two-three years, the data traffic
component will grow by 25-30 per cent, an optimism that it’s
trying to make GSM operators feel as well.
THE CDMA CHALLENGE
CDMA players had launched their services with CDMA 2000 1Xbased
networks, which can give hi-speed, always-on connectivity
to the Internet, and other data services. GSM operators, on the
other hand, have had to migrate from the frustrating experience
of WAP (wireless application protocol) to GPRS, which has not
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significantly improved the subscriber’s experience of surfing the
Net on/from mobile.
The top brass of GSA, an organisation comprising Nokia,
Siemens, Ericsson, Alcatel and Lucent Technologies - met on
Tuesday in the capital to persuade the operators to adopt EDGE
(Enhanced Data rates for GSM Evolution) and leave GPRS behind
as a dream gone sour.
Only Airtel, Vodafone, BPL Mobile and Idea Cellular had launched
GPRS, but the data transfer speeds of GPRS have been abysmal.
The field trials gave a speed of around 54 kbps, but the actual
speeds have not exceeded 14-18 kbps, a major reason why GPRS
growth has been so slow. As against the total GSM cellular base
of 5.61 crore, the country has between 2,80,000 lakh GPRS users
only. In comparison, the two CDMA operators have about 120
lakh connections. All these sets are data compliant. Though no
figures are available as to how many use these for data services,
the figure is believed to be respectable as a percentage ratio for
CDMA.
Bharti is almost there
But first, the EDGE! Bharti Cellular is close to commercially
launching its EDGE service in Delhi and Mumbai by end May or
early June, sources said. The company was the first to conduct
field trials in November with its equipment supplier Ericsson. Idea
17
too held EDGE field trials in February this year with its vendor
Nokia. Vodafone and BPL are yet to hold the trials. The two
companies would eventually migrate to EDGE, but perhaps after
seeing the response to Bharti’s service.
EDGE holds the promise of delivering data speeds of around 170-
180 kbps (as against the theoretical speed of around 380 kbps)
which, if achieved, promises the launch of many data
applications. The scalable cost of migrating from GPRS to EDGE
is not too high and mainly comprises software upgrades in case
of a modern network such as Bharti and Hutch, claimed chairman
of GSA India chapter Rakesh Malik.
Will GSM maintain its headstart?
At the GSM Evolution Forum held in New Delhi, GSA president
Alan Hadden predicted that GSM growth will far outstrip CDMA as
was happening globally. He felt India could have as many as 200
million GSM subscribers by 2007-2008, up from nine million in
December 2004. According to GSA, there are over 1.1 billion
GSM subscribers worldwide as against 250 million CDMA
customers. The revenue of top 25 global operators from data
averages 18 per cent and 22 of these operators run GSM
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networks. Overall, there are 76 operators in 50 countries that
have committed to deploy EDGE.
Almost every country has a GSM-based network and even those
US operators, which operated on now-defunct TDMA technology,
were migrating gradually to GSM, not CDMA, pointed out Hadden
at the GSM Evolution Forum. The Forum is a global GSA program
to assist the operators for evolution to third generation (3G)
technologies. “People are using their phones for much more than
voice. Fifteen networks have commercially launched EDGE as it
can run 3G like services in the existing spectrum for the
operators without needing a 3G license. Even the migration to a
full-fledged 3G level of Wideband CDMA (WCDMA) will be smooth
with EDGE,” said Hadden.
“Besides, the automatic roaming provided by GSM networks in
almost 200 countries is a power that CDMA doesn’t give you. We
know for sure that almost 20-25 per cent of the revenue for
some GSM operators comes from roaming customers,” he added.
But CDMA is no pushover with Korea and Philippines as the
shining jewels in its crown. The first CDMA 2000 1X was
commercially deployed in October 2000.
Already, 81 operators have launched 77 CDMA 2000 1X networks
whereas nine have launched services based on 1xEV-DO
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platform across Asia, the Americas and Europe. At least, 16 new
1X and six 1xEV-DO networks are scheduled to be deployed in
2004, according to CDMA Development Group. EV-DO and EV-DV
are the next level of evolution on the CDMA 2000 1X platform,
capable of delivering services comparable to 3G WCDMA.
Where are the models?
What will matter a lot in this war will be the availability of EDGE
compliant handsets at affordable rates. While the two CDMA
operators have been giving out handsets that can give hi-speed
data transfer, same has not been the case with GSM. Even now,
GPRS handsets have not become commonplace and GPRS
feature is found only in mid and high-end segment handsets.
End sum game
When the networks deploy EDGE, subscribers can expect the
delivery of advanced mobile services such as easy downloading
of video and music clips, full multimedia messaging, besides
high-speed Internet and e-mail access, provided their handset
supports all this.
But the real cruncher will be the migration at a later stage to 3G
technologies such as WCDMA, EV-DO or EV-DA as and when the
government decides what to do with the 3G licences. WCDMA for
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example promises delivery of a phenomenal 2 megabytes per
second (mbps), equivalent to what a leased line in many middle
level corporates gives.
More importantly, WCDMA will spawn a whole new range of full
motion audio-video applications, including video telephony. GSM
lobby may continue to remain gung ho over the future of their
technologies over that boosted by the American firms Qualcomm
and Motorola, but Indian market could well throw an interesting
scenario that industry experts will do well to watch. In the
coming months, Reliance plans to offer its CDMA subscribers
much more than what GSM players intend to deliver through
their EDGE for their subscribers.
Who succeeds in this battle for mobile customer’s eyeballs is
most difficult to predict. A Korea and Japan may not be waiting to
happen in India, but India will probably be more like the Chinese
market with both standards co-existing. For now, GSM rules!
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INTRODUCTION
Airtel (Bharti Airtel Ltd.)
Bharti Airtel Limited was incorporated on July 7, 1995 for
promoting investments in telecommunications services. Its
subsidiaries operate telecom services across India. Bharti Airtel is
India's leading private sector provider of telecommunications
services based on a strong customer base consisting of 50
million total customers, which constitute, 44.6 million mobile and
5.4 million fixed line customers, as of March 31, 2007.
Airtel comes to us from Bharti Airtel Limited - a part of the
biggest private integrated telecom conglomerate, Bharti
Enterprises. Bharti provides a range of telecom services, which
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include Cellular, Basic, Internet and recently introduced National
Long Distance. Bharti also manufactures and exports telephone
terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first
company to export its products to the USA. Bharti has also put its
footsteps into Insurance and Retail segment in collaboration with
Multi- National giants. Bharti is the leading cellular service
provider, with a footprint in 23 states covering all four metros
and more than 50 million satisfied customers.
SERVICES
Airtel Prepaid
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you
from Bharti Enterprises, India's leading integrated telecom
service provider. Going mobile with Airtel Prepaid is a new way of
life. With a host of great features, also simple to use, Airtel
Prepaid makes everything that you dreamt and believed,
possible.
Total Cost Control
You can control your Airtel Prepaid like never before. No more
rentals or deposits – simply recharge as much as you need to
from as low as Rs. 10, to as high as Rs. 10,000/-.
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Pre activated STD/ISD without deposits or rentals
You can now enjoy a pre-activated STD/ISD on your Airtel
Prepaid. No more paying deposits or having a minimum balance
in your account to make an STD/ISD call. Hassle-free calls are
here to stay!
Strong Network Coverage
Enjoy complete clarity when calling with Airtel’s world-class
technology and unbreakable network coverage that spans over
23 circles across the country.
Instant Balance and Validity Enquiry
Your account balance is updated on the screen of your handset
at the end of each chargeable call. You can also call 123 from
your mobile phone and listen to the voice announcement or
simply dial *123#, press 'OK' or 'YES' button and your account
balance will be displayed on the screen of your handset.
Recharge your Airtel Prepaid
Recharging is Easy. The calling value on your card keeps
reducing as you make calls or use any other chargeable service.
Choose the Airtel Prepaid Recharge Coupon that’s right for you,
from a variety of tailor– made recharge coupons with different
24
denominations, which are available at a number of outlets across
your city. Simply follow the procedure mentioned below, to
recharge your phone.
Prepaid Roaming
Airtel Prepaid comes preactivated with 'National Roaming', so
you stay connected no matter wherever you are. You can also
send or receive MMS, check your email and access other GPRS
services while roaming in India as you would in your own city.
While traveling abroad you can receive calls & send or receive
SMS.
Other Services
Airtel brings you, a wide range of Services that will change the
way you communicate. Try them and discover a whole new world
of fun and excitement.
Call management Services
Call waiting, call hold, call divert and Caller Line Identification
Presentation – all with your Airtel prepaid connection.
Voice Mail
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When your handset is switched off, or you’re too busy to answer
the phone, Airtel Voicemail will answer your calls and record a
message. The best part is that there's no extra monthly cost for
setting up Voicemail - you just pay for the phone call when you
use the service.
SMS (Short Messaging Service)
Send messages quickly and easily using text, if it's too noisy to
talk or you don't have much time. It's the way to share those
interesting one-liners, important reminders and rib-tickling jokes,
with anyone, anytime, anywhere in the world.
Subscription Alerts
Get regular alerts on news, jokes, business, health and films on
your Airtel mobile phone with Subscription Services. SMS <SUB
NEWS> to 3333 for News, <SUB JOKE> for Jokes, <SUB BIZ> for
Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU>
for Vaastu tips.
MMS (Multi-media Messaging Service):
Jazz up your messages with pictures, images and video clippings,
with MMS from Airtel! To activate MMS on your phone, SMS
'MMS' to 56465 and save service settings.
Airtel Live!
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Make your mobile the most happening entertainment destination
with Airtel Live! Airtel brings you the latest in entertainment and
information services, right on your phone!
Airtel Live! WAP Services: Download the latest ring tones,
games, wallpapers, videos and much more. You can also get
news clips, watch live TV and download full songs on you phone.
To get Airtel Live! settings on your phone, SMS 'Live' to 56465
and save the settings that you receive as your preferred
connection. Airtel Live! Portal can be accessed from you GPRS
enabled phone, by sending a SMS 'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465, and name the
service. For e.g. say ring tones to download your favorite ring
tones. You can also choose a variety of content options like Live
Cricket Commentary, latest National / International News, Movie
Reviews or Stock Market Updates.
Airtel Live! SIM Services: Access loads of fun content and
exciting services like cricket, stocks, on your phone at the touch
of a few buttons with Airtel Live! SIM based Services on your SIM
card menu. To download new services on your Airtel SIM, choose
the "What's new" option under the "Airtel services" menu.
Airtel Live! SMS Services: You can enjoy a host of services by
sending a keyword as an SMS to 56465! Choose Astrology /
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Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones.
In case you need assistance SMS, Help to 56465.
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Hello Tunes
Tired of that boring old ‘tring tring’ on your phone? Well now
when a friend calls, you can make them groove to the hottest
new tracks burning up the music charts with Hello Tunes from
Airtel! You get a wide choice of songs in the Popular & New
Arrivals categories that are updated regularly. What's more you
can directly call the number for your kind of music, e.g. call
678005 for English New and 678001 for Hindi New. This would
directly take you to your favorite artist's Hello Tunes listing.
Copy a Hello Tune
Get the tune you want, all you have to do is call 55055 and
follow the simple voice instructions to copy your favorite Hello
Tunes. Once inside the copy feature, just key in the 10-digit
Airtel mobile number you want to copy the Hello Tune from and
you get the same Hello Tune assigned to your number.
Gift a Hello Tune
Forget gifting chocolates, flowers and greeting cards. Say it with
a song instead! Gift a Hello Tune to that special someone. Just
call 55055 and choose the song that you want to gift. Follow the
simple voice instructions and key in the 10-digit Airtel mobile
number that you want to gift the Hello Tune to. You will get an
SMS notification upon successful receipt of that gift.
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Buy Music - Airtel Music Shops
Buying your favorite Hello Tune or Ring tone is as simple as
recharging your phone with talk time. Simply walk into your
nearest Airtel Shop and walk out with your favorite song. Choose
from Bollywood Hits to Indipop Remixes, Hard Rock to Gujrati
Garba, Bhajans to Jazz, Bhangra Beats to foot tapping Tamil Hits
from a list of more than 18000 songs.
Reach us Anytime Anywhere
In case you need assistance, dial '121' - our toll-free number,
accessible from anywhere in the country, even while roaming.
You can also send us an SMS to 121 or mail us at
[email protected].
*In case of email, mention your mobile no. like, 9810012345, in
the subject of the mail for a quicker response.
Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited opportunities.
More exciting, innovative yet simple new ways to communicate,
just when you want to, not just through words but ideas,
emotions and feelings. To give you the unlimited freedom to
reach out to your special people in your special way.
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Easy Billing
Enjoy a host of rich features only with Airtel e-bill. Register free
on ‘My Airtel’ section and view your monthly bill with call details
for last three months. Sort your calls between personal and
official or analyze your usage, at the click of a button. To change
your tariff plan call our IVR at 121 and leave a request.
Easy Payment Options. Anytime Anywhere
You can choose from a host of convenient payment options only
with Airtel. Walk into any Airtel relationship centre and make
your payments by cash or credit card. Drop a cheque at any of
the drop boxes for making payments or simply log on to My Airtel
section and pay instantly through your credit card. You can also
opt for easy payment options like:
Standing Instructions
You can give us standing instructions to debit your credit card
account for your monthly Airtel bills. All you have to do is fill the
Standing Instruction Form and mail, fax it to us or drop it any of
our relationship centres.
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Electronic Clearing System
Fill an ECS form and mail, fax it to us or drop it any of our
relationship centres to directly debit your bank account for your
monthly Airtel bill.
Pay while roaming
Airtel has introduced 'Anywhere payment' that offers you the
convenience of making payments while you roam. Walk in to any
Airtel Relationship Centre in the country, make payments by
cash or credit card and enjoy uninterrupted Airtel Services.
Credit limit
Your pre-set credit limit mentioned on your monthly bill helps
you keep your mobile charges in control, keeps track of your
usage and ensures that your mobile phone is not misused.
Should you exceed your credit limit, you will be informed via a
voice or a non-voice message to make an interim payment and
reduce your account balance below your credit limit. You may
also choose to pay us an additional refundable deposit to
enhance your credit limit or opt for our convenient payment
method of Credit Card Standing instruction .You can also make
use of ECS facility.
32
Strong Network Coverage
Enjoy complete clarity when calling with Airtel .It offers you world
class technology and unbreakable network coverage that spans
over 23 circles across the country.
Long Distance Calling Facility
Call long distance calls in India and Overseas with STD / ISD
facility on your Airtel phone.
Widest Roaming - National and International
Airtel's roaming service allows you to stay connected and use
your mobile phone to make or receive calls from almost
anywhere in India and also over 160 countries, abroad.
GPRS - Roaming
Use Airtel Postpaid's GPRS services, while roaming, to access the
internet and office mails (eg. BlackBerry services), from almost
anywhere in India and abroad.
Say it. In more than just words, with Services from Airtel
Airtel brings you a wide range of Services that will change the
way you communicate. Try them and discover a whole new world
of fun and excitement.
33
Call management Services
Call waiting, call hold, call divert and Caller Line Identification
Presentation, help you do more with your Airtel Postpaid
connection!
Conference call
You can hold a teleconference with 5 people simultaneously with
Call Conferencing service from Airtel. In fact, you can set up a
conference even when the other five are using a landline phone.
To know more, call customer service at 121.
Missed call alert
A missed call alert is a SMS that you will receive for all the calls
that you missed. The SMS will detail the CLI and the time when
the call was made. To activate, dial *135*2# then press the call
button and wait for the request to be completed.
Voice Mail
When your handset is switched off, or you’re too busy to answer
the phone, Airtel Voicemail will answer your calls and record a
message. The best part is that there's no extra monthly cost for
setting up Voicemail - you just pay for the phone call when you
use the service.
34
SMS (Short Messaging Service)
Send messages quickly and easily, using text, if it's too noisy to
talk or you don't have much time. It's the way to Share those
interesting one-liners, important reminders and rib-tickling jokes,
with anyone, anytime, anywhere in the world.
Subscription Alerts
Get regular alerts on news, jokes, business, health and films on
your Airtel mobile phone with Subscription Services. SMS
<SUB NEWS> for News, <SUB JOKE> for Jokes, <SUB BIZ> for
Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU>
for Vaastu tips to 3333.
MMS (Multi-media Messaging Service):
Jazz up your messages with pictures, images and video clippings,
with MMS from Airtel! To activate MMS on your phone, SMS
'MMS' to 56465 and save service settings.
Airtel Live!
Make your mobile the most happening entertainment destination
with Airtel Live! Airtel brings you the latest in entertainment and
information services, right on your phone!
35
Airtel Live! WAP Services: Download the latest ringtones,
games, wallpapers, videos and much more. You can also get
news clips, watch live TV and download full songs on you phone!
To get Airtel Live! settings on your phone SMS 'Live' to 56465
and save the settings that you receive as your preferred
connection. Airtel Live! Portal can be accessed from you GPRS
enabled phone, by sending a SMS 'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465 and say the name
of the service. For e.g. say ‘Ring tones’ to download your
favourite ring tones. You can also choose a variety of content
options like Live Cricket Commentary, latest National /
International News, Movie Reviews or Stock Market Updates.
Airtel Live! SIM Services: Access loads of fun content and
exciting services like cricket, stocks, on your phone at the touch
of a few buttons with Airtel Live! SIM based Services on your SIM
card menu. To download new services on your Airtel SIM, choose
the "What's new" option under the "Airtel services" menu.
Airtel Live! SMS Services: You can enjoy a host of services by
sending a keyword as an SMS to 56465 ! Choose Astrology /
Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones.
In case you need assistance SMS ‘Help’ to 56465.
36
GPRS (General Packet Radio Services)
Log on to the internet, with GPRS that allows data transmission
at a higher speed. Access e-mails and internet across Airtel's
pan-India presence using 'Mobile Office' with your phone or a
phone and laptop both.
Get the EDGE
Browse the internet on your mobile phone with Airtel's EDGE
services. Enjoy live TV, enhanced WAP experience and Airtel
Data Cards on our high speed network.
Hello Tunes
Tired of that boring old ‘tring tring’ on your phone? Well now
when a friend calls, you can make them groove to the hottest
new tracks burning up the music charts with Hello Tunes from
Airtel! You get a wide choice of songs in the Popular & New
Arrivals categories that are updated regularly. What's more, you
can directly call the number for your kind of music, e.g. call
678005 for ‘English New’ and 678001 for ‘Hindi New’. This would
directly take you to your favourite artist's Hello Tunes listing.
37
Copy a Hello Tunes
Like a tune you want, all you have to do is call 55055 and follow
the simple voice instructions to copy your favourite Hello Tunes.
Once inside the copy feature, just key in the 10-digit Airtel
mobile number you want to copy the Hello Tune from and you
get the same Hello Tune assigned to your number.
Gift a Hello Tunes
Forget gifting chocolates, flowers and greeting cards. Say it with
a song instead! Gift a Hello Tune to that special someone. Just
call 55055 and choose the song that you want to gift. Follow the
simple voice instructions and key in the 10-digit Airtel mobile
number that you want to gift the Hello Tune to. You will get an
SMS notification upon successful receipt of that gift.
Buy Music - Airtel Music Shops
Buying your favourite Hello Tune or Ringtone is as simple as
recharging your phone with talktime. Simply walk into your
nearest Airtel Shop and walk out with your favourite song.
Choose from Bollywood Hits to Indipop Remixes, Hard Rock to
Gujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tapping
Tamil Hits from a list of more than 18000 songs.
38
Reach us, Anytime Anywhere
In case you need assistance, dial '121' - our toll-free number,
accessible from anywhere in the country, even while roaming. *In
case of email, mention your mobile no. like 9810012345 in the
subject of the mail for a quicker response. TARIFF
STRUCTURE
Prepaid Tariffs
Airtel Prepaid Ready Cellular Card and Recharge Cards are
available, all over the city at over retail outlets including 24-hour
outlets. Airtel Prepaid Ready Cellular Card and Recharge Cards
are available, all over the city at over retail outlets including 24-
hour outlets.
39
Airtel Prepaid Regular
449
SUK
Pulse Rate 60 sec
Price of Pack (Rs.) Rs.449
Free Airtime on Pack (Rs.) Nil
Incoming Calls (Rs.) Free while in home network
Airtel GSM / CDMA
(10 Digit)
Landline / WLL
LOCAL RATES (Rs./min) Rs.1.20 Rs.2.00 Rs.2.40
STD RATES (Rs./min) Rs.2.75 Rs.2.75 Rs.2.75
ISD (Rs./min)
USA, Canada, Europe (Fixed
Line), Australia, Singapore,
Hong Kong, Thailand, Malaysia,
Indonesia, New Zealand.
Rs.6.40
Gulf, Europe (Mobile), SAARC
countries, Africa & Rest of the
world
Rs.9.20
Cuba, Sao Tome & Principe,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands,
Vanuatu, Cook Islands, Tuvalu,
Tokelau, Norfolk Island,
Sakhalin
Rs.40.00
SMS (Rs.)
Local Rs.1.20
National Rs.2.00
International Rs.5.00
Other Details
*Rs 50 Local Airtel-Airtel Mobile talktime per month for 6 months
* First month Airtel-Airtel credit within 72hrs of activation & balance credit by 1st
week of every
month)
*The SMS charge as applicable is per 160 characters
* Validity- 24 months.
40
POSTPAID
Airtel Postpaid allows you to choose from a variety of affordable
talk plans, convenient payment options and host of rich features.
So get set to enjoy a world of limitless possibilities!
Reference Tarif Packages (RTP)
ON TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 524
Bill plan Charge Rs. 444
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 99
Airtel GSM /
CDMA (10
Digit)
Landline /
WLL
Local Rates Rs. 1.99 Rs 1.99 Rs 1.99
STD RATES
50 – 200 Km
200 – 500 Km
500 + Km
ISD
USA, Canda, Europe (Fixed Line),
Austalia, Singapore, Hong Kong,
Thailand, Malaysia, Indonesia, new
Zealand
Rs. 7.20
Gulf, Europe (Mobile), SAARC
Countries, Africa & Rest of the
world
Rs 9.99
Cuba, Sao tome & Principle,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands, Vanuatu,
Rs. 40.00
41
Cook Island, Tuvalu, Tokelau,
Norfolk Island, Sakhalin
SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00
Airtel One Standard 150
ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security
after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 50
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Bissau, Diego Garcia, Nauru,
Solomon Islands, Vanuatu, Cook
Islands, Tuvalu, Tokelau, Norfolk
Island, Sakhalin
SMS
Local Rs 1.00
National Rs 2.00
Intentional Rs. 5.00
VAS Rs. 3.00
 This Bill Plan is also available under Advance Rental of Rs. 799
for 2 years.
Local Pack
Airtel to other local mobiles (non Airtel) At Rs 1 / min
 Monthly rental Rs 25 per months/-
 STD Pack
42
Airtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 /
min.
 Monthly rental Rs 75 per month/-
 Special offer for Airtel Telephone service customers
for availing Airtel Mobile services
If you already have Airtel Telephone service, you can buy a
new Airtel Mobile connection under Airtel One Standard
150 Plan.
Benefits:
 Non security deposit.
 No membership / activation fee
 Enjoy calls to your Airtel fixed line no. at just 50 P / min.
 Monthly rent of Rs 25 for reduced call rates to your Airtel
fixed line has been waived off for 1 year.
For details, call us 516-12345
Advance Rental benefits (1year scheme)
Pay an advance rent of Rs 499 and enjoy Airtel One Standard
150 plan at Zero monthly rental for one year.
Advance rental of Rs 499 gives you a rental discount of Rs 150
every month for the next 2 months. All other options and
charges are as per the existing Airtel One Standard 150 Plan.
43
Airtel one Standard 299
ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security
after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs 299
Bill Plan Charge Rs. 150
Monthly Rental Rs. 299
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Airtel GSM /
CDMA (10
Digit)
Landline /
WLL
LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00
STD RATES
50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40
200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40
500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40
ISD
USA, Canda, Europe (Fixed Line),
Austalia, Singapore, Hong Kong,
Thailand, Malaysia, Indonesia, new
Zealand
Rs. 7.20
Gulf, Europe (Mobile), SAARC
Countries, Africa & Rest of the
world
Rs 9.99
Cuba, Sao tome & Principle,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands, Vanuatu,
Cook Island, Tuvalu, Tokelau,
Norfolk Island, Sakhalin
Rs. 40.00
SMS
Local Rs. 1.00
National Rs. 2.00
44
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00
You also enjoy 25 FREE local mobile to mobile SMS
45
Senior Citizen Plan
ONE TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250 (Concerts into security
deposit after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 51
Monthly Rental Rs. 99
Clip NA
Cuba, Sao Tome & Principle,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands, Vanuatu,
Cook Islands, Tuvalu, Tokelau,
Norfolk Island, Sakhalin
SMS
Local Rs. 1.50
National Rs. 2.00
International Rs. 5.00
VAS Rs. 3.00
With Senior Citizen Plan
46
You can take 3 Friends and Family numbers:
 Airtel to Airtel (1local no.) – Rs. 0.5 / min.
 Airtel to Airtel (1 STD no.) – Rs 1.5 / min
 ISD calls to US / Canada / South East Asia / Australia / New
Zealand) – Rs. 9.99 / min
You also get FREE alert subscription worth Rs 30 / alert or 3
months on:
 News
 Astrology
 Health Tips
The SMS charges as applicable is per 160 Characters.
47
PROMOTIONAL STRATEGY
Airtel to “Touch Tomorrow” with a new brand vision
The Bharti Mobile promoted AirTel cellular service will go in for
repositioning of its brand image. The new brand ethos is
portrayed in two distinct fashions - the tag line "Touch
Tomorrow", which underscores the leading theme for the new
brand vision, followed by "The Good Life", which underscores a
more caring, more customer centric organization. Aimed at
reengineering
its image as just simply a cellular service provider to
an all out information communications services provider, Touch
Tomorrow is meant to embrace the new generation of mobile
communication services and the changing scope of customer
needs and aspirations that come along with it
The new communication is about a new dimension in the cellular
category that goes beyond the Internet, SMS, roaming, IVRS, etc
but which engulfs the whole gamut of wireless digital broadband
services that will constitute tomorrows cellular services. The new
campaign is in two phases - the first of which will communicate
overall brand philosophy and the second products and services.
According to Mr. Jagdish Kini, Chief Operating Officer, Bharti
Mobile Limited, Karnataka "We are adopting a new brand-
48
platform - Touch Tomorrow - not only to reflect our corporate
ethos but also business strategy".
The new identity will have the logo in Red, Black and White
colours along with lower case typography to convey warmth.
AirTel will incorporate the latest branding in all of its
communication and will soon be going in for an enhanced
promotional drive to establish the brand's presence.
LIFE TIME PLAN
PRE-PAID card users need not worry anymore about recharging
their coupons every month. Company has launched a plan that
allows users to take a pre-paid connection with lifetime validity
for a one time payment of Rs. 999. Subscribers availing
themselves of this scheme will also get full talk time for the
recharge coupon they purchase and also have the option to buy
Taiwanese manufactured Bird mobile handsets for as low as Rs.
1,399.
The move is aimed at stopping the churn in the pre-paid
subscriber base. Once a subscriber takes this plan, he will always
be an Airtel subscriber whether the mobile is being used or not.
49
MARKET SITUATION
At the time of launch
The first mover in the market was Airtel which launched its
services in Delhi in Aug 1995 (Informal launch). Essar Cellphone
followed by launching its services informally in Oct 95. At this
point of time, the market was at a nascent stage, awareness
level was low and both operators independently tried to spread
awareness and educate the people
Once the networks were commercially launched, it became a
number game with a multitude of schemes being offered to woo
customers Initially the cellphone was perceived as a status
symbol and utility took a back seat The target segment in Delhi
were corporate and the high income group. The average
capacity installed was for 1.5 lakh subscribers. This coupled with
the steep license fee paid to DOT put pressure on the operators
to break-even by rapidly expanding their markets. In the first
two years, this led to a number of schemes being offered and
prices crashing.
50
COMPETITIVE SITUATION
Airtel launched its services before Essar and skimmed the
market picking up the bulk of the high usage premium clients.
This is a very competitive industry with the two companies
differentiating either on value-added services or price. Airtel is
perceived as the high quality provider and has a premium image.
Essar, on the other hand, is perceived as the lower end service
provider. Airtel positions itself as the market leader on the basis
of the number of subscribers. Essar is trying to counter this by
emphasising on the reach of its network and the quality of its
service. However, Essar is somewhat not been very successful
largely due to the inconsistency in advertising
To promote themselves, both the players have been dependent
on tactical advertising However, they have restrained from using
comparative advertising Hoardings have been a very popular
medium for carrying the advertisements Airtel has also been
advertising on television using the Bharti Telecom name.
SALES DEPARTMENT AND STRATEGY
A. Major Accounts (Direct Channel)
• Handles corporate (named and famed) accounts
• Forecasting of sales
• Mapping the accounts
• Providing after sales support to the subscribers.
51
• Maintaining call reports for records.
• Providing Feedback to the marketing department regarding
the requirement of the market.
B. IDC (indirect Channel)
• Handling distribution
• Maintaining records and level check of the channel partner
• Liaisoning between the channel partner and the company.
• Target achievement
• Training the executives of the channel
C. Distribution Support
1. Logistics
• Monitor handset and SIM card requirements of
channel partners and co-ordinate with stores
• Settle areas of concerns such as incentive claims of
channel partners
2. Rental
• Provide cellular services (SIM cards) on rent.
• Provide cellular phones on rent
• Useful for people visiting Delhi for a short interval.
3 Telesales
• Call customers and generate sales lead.
• Follow up with the customers, if they need any assistance
52
• Pass on the sales lead to the channel department.
4 Audit
• Consultant to the AirTel showrooms.
• Monitor the operations at the AirTel distribution outlets
Organize training.
5. Retail
• Locate shops to open retail counters.
• Monitor the retail counters.
MARKET SEGMENTATION
Segmentation is beneficial because of better predictability of the
target consumer group, minimization of risk exposure, better
ability to fine-tune a product / service to the requirement of
target buyer and the resultant ease in designing a proper
designing marketing mix strategy In this case segmentation is on
the bade of income.
In evaluating different market segments the company looks at
two factors The overall attractiveness of the segments and the
company's objectives & resources The present market for
Cellular phones, pagers and conventional phones is as follows
Premium Middle Economy
Upper Lower Upper Lower Upper Lower
Cellular Phones X X X - - -
Pager X X X X - -
Conventional
Phones
XXXXX-
53
X Market Segment Targeted
TARGET MARKET SEGMENT
Airtel has targeted the premium and upper middle class. The
rationale behind it is that only those segments should be
targeted who value time and have the paying capacity. It Is also
planning to target the business tourists during their stay in the
capital
About 60% of the clientele are top executives of corporate
houses. About 15% are foreign organisations and the rest are
professionals and small businessmen. During the introduction
stage there was intense pressure to get consumers across to
hook up with their brand, because getting them to switch brand
loyalty later would be hard
So far Airtel marketers have been concentrating totally on the
business executive class but now that the basic viable volumes
has beer) built up and prices have declined to a certain extent
they are planning to venture further a field.
POSITIONING
The product is sought to be positioned as a business efficiency
tool. a lifestyle revolution and a status symbol The emphasis is to
remove misconception that the cellphone is an expensive means
54
of communication and drive home the point that the cellphone is
actually a day-to-day utility
PRODUCT POLICY AND PLANNING
The product or service is the heart of the marketing mix.
Without a product or a service customers' needs cannot be
satisfied.
The basic product promise by Airtel is mobility. Airtel's main
marketing strategy is to be a first mover all the time. It has
recognised the significance of making the first move-- because in
the field of Communication & Information Technology changes
occur at a tremendous pace.
Effective product segmentation has to be carried on continuously
because basic services can be and will be copied and in time
become expected component of the product. Airtel seeks to
carry out this segmentation through provision of new information
services and making new facilities available. The product policy
and planning depends on the stage of the product life cycle. At
present the cellular phone market has reached the maturity
stage. Since, the premium segment is nearing saturation the
company targeting the upper middle and middle-middle class. In
order to do so Airtel is trying to optimise the price performance
package by offering suitable "product bundling".
55
This involves the selection of the suitable hardware (handset)
and its software (its services.) with reasonable price in order to
deliver maximum price performance to its customers. In
addition, it offers free Airtime services and other concessions to
make the prices and thus the product more attractive. It has
also opened a 24 hours customer service.
Only price doesn't serve as an effective differentiator, value
added services become the effective differentiator.
The "Value Added Services" provided from Airtel are:-
1). Voice Mail service
This system is similar to the answering machine - if the user is
not able to answer a call for some reason the caller can leave
messages in the voice mail box which can be later retrieved by
the user
ii) Short Message Service
The short message service is like a two-way pager. It gives an
option of sending and receiving text messages directly from one
mobile phone to another without the intervention of an operator.
iii) Mobile Fax 1 Data Service
56
This service helps the subscriber to send and receive Faxes,
access E-mail, download computer files from other systems and
remotely log on to another computer and surf the Internet.
iv) Cash Card
The cash card is a pre-paid and pre-activated card which allows
the buyers to buy air time in advance. All it requires is the
payment of an initial amount. This is a useful service for people
who travel to Delhi often and those who want to control the
expenses on their calls.
v) Caller ID
Displays calling person's number.
vi) Outgoing call restriction
To prevent or limit outgoing calls, for example, in peak hours.
Also possible to exclude one or several countries, or any
geographical region, to permit only local calls, or to limit the
outgoing calls to a listed number.
viii) Call forward
Incoming calls can be forwarded to another fixed or mobile
phone.
Besides these some other services provided by Airtel are - Call
conferencing, Call Broadcast et cetera.
57
It is in the operators -Interest that they not only get many
subscribers but also get them to use the mobile facility
frequently. In the early stages getting increases to subscribe
may be easier than getting them to talk since they will find it
costlier to use the mobile phone as compared to a conventional
phone [if is believed that initially cellphones would be used buy]
viii) Roaming Facility
Roaming facility is available while the subscriber is travelling.
The billing is done in the home network (Delhi). Roaming facility
is available manually* as well as semi-automatically. Once a
subscriber is In any other city or country, where a GSM network
is available, simply insert the SIM card of the local operator Into
your handset and start talking.
* Manual Roaming means a separate SIM card is provided for
each city
** Semi automatic roaming means one card has the facility
for different cities.
AIRTEL'S MARKETING ORIENTATION.
Since this is a high-involvement expensive product, the service
provider has to fully take care of the customers.
a) They take personal responsibility to "get" the answer for any
problem faced by the customer
58
b) They anticipate customers' problems and take pro-active
steps to prevent them
c) They give answers to the questions & requests, quickly &
efficiently.
d) They have a positive tone & manner while interacting with
customers.
e) They end the interaction on a positive or a humorous notemaking
the last 30 seconds count.
Airtel realises that attracting people 'Is easy but converting them
into loyal customers is hard, hence emphasis is on maintaining a
'Smiling and a Friendly Atmosphere' to please and retain the
customer.
PRICE AND PRICING POLICY
AIRTEL has realised that the Indian market is price sensitive.
Therefore it care of the has come up with various innovative
tariff schemes to take needs of different category of customers-
Generally, the cellular services are more expensive than the land
line based telephone services. This is due to the reason that the
operating companies are required to pay a fee to the
government for using airtime.
59
MARKETING STRATEGY
ADOPTED BY BHARTI
Bharti has spent a considerable amount on advertising its mobile
phone service, Airtel. Besides print advertising, the company
had put up large no of hoardings and kiosks in and around Delhi.
The objective behind designing a promotion campaign for the
‘Airtel’ services is to promote the brand awareness and to build
brand preferences.
It is trying to set up a thematic campaign to build a stronger
brand equity for Airtel. Since the cellular phone category itself is
too restricted, also the fact that a Cellular phone is a high
involvement product, price doesn't qualify as an effective
differentiator. The image of the service provider counts a great
deal. Given the Cell phone category, it is the network efficiency
and the quality of service that becomes important. What now
the buyer is looking at is to get the optimum price-performance
package. This also serves as an effective differentiator
Brand awareness is spread through the' campaigns and brand
preference through brand stature. Airtel's campaign in the
capital began with a series of 'teaser' hoardings across the city,'
bearing just the company's name and without explaining what
Airtel was. In the next phase the campaign associated Airtel with
Cellular only thereafter was the Bharti Cellular connection
60
brought up. Vans with Airtel logos roamed the city, handing out
brochures about the company and its services to all consumers.
About 50,000 direct callers were sent out. When the name was
well entrenched in the Delhiites’s mind, the Airtel campaign
began to focus on the utility of Cellphone. In the first four
months alone Airtei's advertisement spend exceeded Rs. 4
crores.
As of today the awareness level Is 60% unaided. This implies
that if potential or knowledgeable consumers are asked to name
a Cellular phone service provider that is on the top of his/her
mind 60% of them would name Airtel. As for aided it -is 100%
(by giving clues and hints etc.).
Brand strength of a product or the health of a brand is measured
by the percentage score of the brand on the above aided and the
unaided tests. The figures show that Airtel is a healthy and a
thriving brand.
Every company has a goal, which might comprise a sales target
and a game plan with due regard to Its competitor. Airtel 's
campaign strategy is designed keeping in mind its marketing
strategy. The tone, tenor and the stance of the visual ads are
designed to convey the image of a market leader in terms of its
market share. It tries to portray the image of being a "first
mover every time" and that of a "market leader".
61
The status of the product in terms of its life cycle has just
reached the maturity stage in India. It is still on the rising part of
the product life cycle curve in the maturity stage.
The diagram on the left hand side shows the percentage of the
users classified into heavy, medium and low categories. The
right hand side shows the revenue share earned from the three
types of users.
Airtel, keeping in mind the importance of the customer retention,
values its heavy users the most and constantly indulges in
service innovation. But, since heavy users comprise only 15 -
20% of the population the other segment cannot be neglected.
The population which has just realised the importance of cellular
phones has to be roped in. It is for this reason that the service
provider offers a plethora of incentives and discounts. Concerts
like the "Freedom concert" are being organised by Airtel in order
to promote sales. The media channel is chosen with economy in
mind. The target segment is not very concrete but, there is an
attempt to focus on those who can afford. The print
advertisements and hoarding are placed in those strategic areas
which most likely to catch the attention of those who need a
cellular phone. The product promise (which might cost different
1 higher) is an important variable in determining the target
audience.
62
Besides this, other promotional strategies that Airtel has adopted
are .
(i) People who have booked Airtel services have been treated
to exclusive premiers of blockbuster movies. Airtel has tied
up with Lufthansa to offer customer bonus miles on the
German airlines frequent flier's programs.
(ii) There have been educational campaigns, image
campaigns, pre launch advertisements, launch
advertisements, congratulatory advertisements,
promotional advertise-ments, attacking advertisements
and tactical advertisements.
63
DISTRIBUTION
The- company whose operations are concentrated in and around
Delhi. It 27 Franchisees and 15 Distributors- They also have 8
'instant access cash card counters- Each franchises or distributor
can have any number of dealers under him as long as the person
is approved by the Airtel authority. Each franchises has to invest
Rupees Ten Lakhs. to obtain a franchise and should employ an
officer recruited by Airtel. This person acts as an liaison between
the company and the franchises. The franchises can it any
number of dealers as long as their territories do not overlap. But
unfortunately Airtel has not been very successful in controlling
territorial overlaps of dealers. The franchises can carry out his 1
her own promotional strategy. For this the. company contributes
64
Company
Franchisee Distributor
Dealer Dealers
Customer
Customer
75% of the money and the franchises contributes 25% of the
money. The dealers under the franchisee receive the same
commission. The franchises and the dealer obtain the feedback
from the customers and they are sent through the liaison officer
on a day-to-day basis to Airtel. The dealer has to invest Rupees.
One Lakh as an initial investment. The dealer of Airtel are not
allowed to provide any other operators' service.
Target set for distributors and the dealers is 100 -150 activations
per month. Hence the dealers can also go for their own
promotions like banners and discounts on festivals etc. The
dealer provides service promptly. The consumer on providing
the bill of purchase for the handset and proof of residence has
only to wait an hour before getting connected. The staff of the
dealers and the franchisees are provided training by the Airtel
personnel.
The complaints encountered by the franchisees and dealers are
either handset being non-functional or the SIM Card not getting
activated. Anything more complicated is referred to the main
Airtel office in Delhi.
65
WHAT DOES AIRTEL OFFER?
With Airtel, the subscriber wouldn't just get a personal phone
that lets him/her be in touch, always, but also gets a host of
benefits that let him/her manage his/her time like never before.
An Airtel subscriber is provided with a Subscriber Identity Module
Card (SIM card) - that is the key to operating his/her cellular
phone. His card activates Airtel cellular services and contains a
complete micro-computer chip with memory to enable one to
enjoy one's cellular phone thoroughly. Each SIM card contains a
PIN code (Personal Identity Number) which may be entered by
one. Just plug your SIM card into your cellular phone, enter the
PIN code and it becomes 'your' personal phone'.
PRODUCT LIFE CYCLE
The pattern of cellphone subscriber growth observed elsewhere
in the world reveals that the growth in the market is Initially slow
followed by a sharp acceleration, but so far that has not
happened in India. As far as the Product Life Cycle is concerned.
Indians are at the beginning of the maturity stage.
66
Introduction Growth Maturity
MARKETING OBJECTIVES
Create product
awareness and trial
Maximise market
share
Maximise profits
whole defending
market share
Strategies
Product Offer a basic
product/
service.
Offer value
added services
Increase in
number of
value added
services.
Price Charge costplus
Price to
penetrate
market
Price to match
or best
competitors
Distribution Build selective
distribution
Build Intensive
distribution.
Build more
intensive
distribution.
Advertising Build product
awareness
among early
adopters and
dealers.
Build
awareness and
interest in the
mass market
Stress brand
differences and
benefits.
Sales Use heavy sales Increase to Increase to
67
Promotion promotion to
entice people
to subscribe.
build and
maintain
relationships
with customers.
encourage
brandswitching.
68

OBJECTIVES OF THE STUDY

Objectives:
To study the importance and development of tele –
communication industry in today’s scenario.
To understand the various Marketing Strategies which Airtel has
adopted to survive in highly competitive cell phone industry.
To make a comparative study of the major players in Indian
Service Provider.
69
RESEARCH METHODOLOGY
The methodology adopted for this project is exploratory in nature
since there is no hypothesis that has to be tested. The
conclusions have been drawn by exploratory research work.
There have been two sources of information collected:
a) Primary Sources
I have met retailers of the Airtel of the company and have been
able to get first hand information regarding the product, its
features and the buying patterns of the product. Their input has
been valuable.
b) Secondary Sources
Secondary source has played a vital role to play in this report. A
good amount of data has been collected from various published
articles and reports found in magazines and journals. Another
vital source has been the Internet and particularly the companies
own website.
70
LIMITATIONS
Every attempt will be taken to obtain the error free and
meaningful result but as nothing in this world is 100% perfect I
believe that there will still the chance for error on account of
following limitations-
(1) Respondent’s unavailability.
(2) Time pressure and fatigue on the part of respondents and
interviewer.
(3) Courtesy bias.
71
FINDINGS
1. Do you believe that India is potentially one of the most
exciting mobile service providers in the world?
Company Yes No
Airtel 4 1
Vodafone 4 1
Idea 4 1
MTNL 4 1
As according to the above table 16 (80%) out of the total 20
interviewed people in all the above four specified Indian mobile
service providers are of belief that India is potentially one of the
most exciting mobile service providers in the world, whereas
some 4 (20%) of them do not agree to this view.
4
1
4
1
4
1
4
10
2
4
6
8
10 12 14 16 18
Yes
No
AirTel Vodafone Idea MTNL
72
2. Do you find that the government’s telecom policy has
had the most radical impact on the development of
mobile service providers?
Company Yes No
Airtel 4 1
Vodafone 3 2
Idea 3 2
MTNL 5 --
As according to the above table 15 (75%) out of the total 20
interviewed people in all the above four specified Indian mobile
service providers find that the government’s telecom policy has
had the most radical impact on the development of mobile
service providers, whereas some 5 (25%) of them deny this.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Yes No
AirTel
Vodafone
Idea
MTNL
73
3. Do you believe that one of the challenges facing mobile
operators in India is the diversity of the coverage
regions?
Company Yes No
Airtel 2 3
Vodafone 3 2
Idea 3 2
MTNL 2 3
As according to the above table 10 (50%) out of the total 20
interviewed people in the mobile service providers are of belief
that one of the challenges facing mobile operations in India is the
diversify of the coverage regions, whereas interestingly another
10 (50%) of them deny this.
0
0.5
1
1.5
2
2.5
3
Yes No
AirTel
Vodafone
Idea
MTNL
74
4. To what extent, does you find that mobile service
providers is a very complex standard?
Company To some extent
(1-5)
To great extent
(6-10)
Airtel 3 2
Vodafone 2 3
Idea 2 3
MTNL 3 2
As according to the above table 10 (50%) out of the total 20
interviewed people in all the above four major the mobile service
providers in Indian Cellular industry find only to some extent that
GSM is a very complex standard, whereas the another 10 (50%)
respondents find to great extent that mobile service providers is
a very complex standard.
0
0.5
1
1.5
2
2.5
3
To some extent To great extent
AirTel
Vodafone
Idea
MTNL
75
CONSUMER LEVEL
1. Do you believe that mobile service providers comes
close to fulfilling the requirements for a personal
communication system?
Company Yes No
Airtel 9 1
Vodafone 8 2
Idea 8 2
MTNL 5 5
As the above shows 30 (75%) out of total 40 respondents are of
the belief that mobile service providers comes close to fulfilling
the requirements for a personal communication system, whereas
10 (25%) of them are in no way to this belief.
3
2
3
2
3
2
2
3
Yes
No
MTNL
Idea
Vodafone
AirTel
76
2. Do you find that mobile service providers as the most
exciting and satisfying mobile standard?
Company Yes No
Airtel 9 1
Vodafone 7 3
Idea 8 2
MTNL 8 2
As the above shows 32 (80%) out of total 40 respondents find
that mobile service providers as the most exciting and satisfying
mobile standard, whereas the remaining 8 (10%) respondents
deny this.
9
1
7
3
8
2
8
2
0 5 10 15 20 25 30 35
Yes
No
AirTel Vodafone Idea MTNL
77
3. Do you believe that your service provider has a
genuine commitment to creating a modern and efficient
communications?
Company Yes No
Airtel 10 --
Vodafone 8 2
Idea 10 --
MTNL 8 2
As the above shows 36 (90%) out of total 40 respondents are of
the belief that their service providers have a genuine
commitment to creating a modern and efficient communications
whereas the remaining 4 (10%) respondents deny this.
10
0
8
2
10
0
8
2
Yes
No
MTNL
Idea
Vodafone
AirTel
SWOT ANALYSIS
78
STRENGTHS
• Cost advantage
• Current leaders in quality service
• Largest distribution network
• Ability to constantly innovate
• Highly skilled workforce
• Entrepreneurial zeal
• Airtel’s increased equity and market cap.
WEAKNESSES
• To prove credibility
• Price pressures
• Need for Government support
• Awareness
• Sales and Marketing
79
OPPORTUNITIES
• To sustain passion and commitment
• Airtel’s market share increasing at other service provider
expense. Thus opportunity to wipe it out.
• Attain higher value services
• Collaborative business needs to be explored
• Vertical repeatable solutions.
• Low penetration level in rural markets.
THREATS
• Foreign investment
• Global trends moving from GPS to WLL.
• Lack of global parity in telecom tariff
• Other competition
80
CONCLUSION
From above the details I conclude that 70% Airtel users
preferred to remain with Airtel. Also good no. of users who were
willing to switch from their respective subscribers showed
interest in Airtel. Hence, these statistics imply a bright future for
the company. Also the company is now providing more services
like the door to door services which is you dial the Airtel
customer care and would like to send someone flowers the Airtel
company delivers those flowers to the person concerned. Also
Airtel is providing free text messaging service and free voice
mail service. Call conferencing is also another feature Airtel
provides.
81
BIBLIOGRAPHY
• Bernard J. T. Mallinder. Specification Methodology Applied to
the GSM System. In EUROCON 88, June 2005.
• Seshadri Mohan and Ravi Jain. Two User Location Strategies
for Personal Communication Services. IEEE Personal
Communications. 1(1), 1994.
• Moe Rahnema. Overview of the GSM System and Protocol
Architecture. IEEE Communications Magazine. April 1993.
• C. Watson. Radio Equipment for GSM. In D.M. Balston and
R.C.V Macario, editors, Cellular Radio Systems, Artech House,
Boston, 1993.
• Robert G. Winch. Telecommunication Transmission Systems.
McGrawHill New York, 1993.
• Vodafone
• Airtel
• Idea
• MTNL
82
QUESTIONNAIRE
NAME: ____________________________________
ADDRESS: ____________________________________
OCCUPATION: ____________________________________
1. Do you believe that India is potentially one of
the most exciting mobile service providers in the
world?
Company Yes No
Airtel
Vodafone
Idea
MTNL
2. Do you find that the government’s telecom policy has
had the most radical impact on the development of
mobile service providers?
Company Yes No
Airtel
Vodafone
Idea
MTNL
3. Do you believe that one of the challenges facing mobile
operators in India is the diversity of the coverage
regions?
Company Yes No
Airtel
Vodafone
83
Idea
MTNL
4. To what extent, does you find that mobile service
providers is a very complex standard?
Company To some extent
(1-5)
To great extent
(6-10)
Airtel
Vodafone
Idea
MTNL
84
CONSUMER LEVEL
1. Do you believe that mobile service providers comes
close to fulfilling the requirements for a personal
communication system?
Company Yes No
Airtel
Vodafone
Idea
MTNL
2. Do you find that mobile service providers as the most
exciting and satisfying mobile standard?
Company Yes No
Airtel
Vodafone
Idea
MTNL
3. Do you believe that your service provider has a
genuine commitment to creating a modern and efficient
communications?
Company Yes No
Airtel
Vodafone
Idea
MTNL
85