A

SUMMER PROJECT REPORT

ON

MARKETING STRATEGIES
WITH RESPECT TO

BHARTI AIRTEL LIMITED

Report submitted in partial fulfillment of the requirement for the

award of the degree of

SUBMITTED BY

CERTIFICATE
This is to certify that this project work done on project entitled Marketing
Strategies of Bharti Airtel Ltd. is a bonafide work carried out by
This project report is submitted for the requirement of the degree of the
award of Bachelor of Business Administration (BBA). This work has not
been submitted anywhere else for any other degree / diploma.

Date: _____
Place: NOIDA

FACULTY GUIDE

DECLARATION

I, hereby declare that this project report entitled Marketing Strategies of

Bhart Airtel Ltd. is written and submitted by me.
The findings and interpretations in the report are based on both primary and
secondary data collection. This project is not copied from any source or
other project submitted for similar purpose.

ACKNOWLEDGEMENT

I am thankful to Faculty Members of ASB, Amity University, Noida,

Uttar Pradesh for his valuable guidance and support at all time and
providing me the proper guidance to carry out summer internship effectively
and efficiently.
I would like to thanks to all those people who provided me all the necessary
information directly or indirectly throughout this project report completed at
time.

INDEX

PAGE NO.

CHAPTER 1

INTRODUCTION

CHAPTER 2

LITERATURE REVIEW

CHAPTER 3

COMPANY PROFILE

CHAPTER 4

RESEARCH METHODOLOGY
-

Objectives of the study

Research Design

Data Collection Methods

Sampling Techniques

Sample Size

Limitations of the study

CHAPTER 5

GRAPHICAL DATA INTERPRETATIONS

CHAPTER 6

FINDINGS & ANALYSIS

CHAPTER 7

RECOMMENDATIONS & SUGGESTIONS

CHAPTER 8

CONCLUSIONS

CHAPTER 9

BIBLIOGRAPHY

CHAPTER 10

ANNEXURE - QUESTIONNAIRE

PREFACE

The project aims at understanding the marketing strategies with respect to Airtel products
and services and its impact on the perception of Airtel Cellular Services. My research has
demonstrated conclusively that it is far more costly to win a new customers than it is to
maintain an existing one. There is no better way to retain a customer than to exceed their
expectations. For this purpose it is essential to know the level of customer satisfaction.
The newly expansion plans and other all the factors focused on my research work is the
measurement of customer satisfaction level for the services provided by Bharti Airtel Ltd.
The research is done for the corporate clients, customers and users of Bharti Airtel Ltd. in
the current competitive market. My research work is not only to represent the Corporate
Sales Dept. this is significant research work for corporate, clients and users of Airtel
products and services.
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 strategies to not only retain the existing
customers but also to expand the business to new horizons.

INTRODUCTION
The telecom industry is one of the fastest growing industries in India. India has nearly
200 million telephone lines making it the third largest network in the world after
China and USA. With a growth rate of 45%, Indian telecom industry has the highest
growth rate in the world.

Much of the growth in Asia Pacific Wireless

Telecommunication Market is spurred by the growth in demand in countries like India

and China.
-Indias mobile phone subscriber base is growing at a rate of 82.2%.
-China is the biggest market in Asia Pacific with a subscriber base of 48% of the total
subscribers in Asia Pacific. Compared to that Indias share in Asia Pacific Mobile
Phone market is 6.4%. Considering the fact that India and China have almost
comparable populations, Indias low mobile penetration offers huge scope for growth.
INDIAN TELECOM INDUSTRY
Started in 1851 when the first operational land lines were laid by the government near
Calcutta (seat of British power). Telephone services were introduced in India in 1881.
In 1883 telephone services were merged with the postal system. Indian Radio
Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the
foreign telecommunication companies were nationalized to form the Posts, Telephone
and Telegraph (PTT), a monopoly run by the government's Ministry of
Communications. Telecom sector was considered as a strategic service and the
government considered it best to bring under state's control. The first wind of reforms
in telecommunications sector began to flow in 1980s when the private sector was
allowed in telecommunications equipment manufacturing. In 1985, Department of
Telecommunications (DOT) was established. It was an exclusive provider of domestic
and long-distance service that would be its own regulator (separate from the postal
system). In 1986, two wholly government-owned companies were created: the Videsh

Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In
1990s, telecommunications sector benefited from the general opening up of the
economy. Also, examples of telecom revolution in many other countries, which
resulted in better quality of service and lower tariffs, led Indian policy makers to
initiate a change process finally resulting in opening up of telecom services sector for
the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a
comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom
Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a
regulator to facilitate the growth of the telecom sector. New National Telecom Policy
was adopted in 1999 and cellular services were also launched in the same year.
Telecommunication sector in India can be divided into two segments: Fixed Service
Provider (FSPs), and Cellular Services. Fixed line services consist of basic services,
national or domestic long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic
services. Private sector services are presently available in selective urban areas, and
collectively account for less than 5 per cent of subscriptions. However, private
services focus on the business/corporate sector, and offer reliable, high- end services,
such as leased lines, ISDN, closed user group and videoconferencing.
Cellular services can be further divided into two categories: Global System for
Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The
GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the
CDMA sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are the major growth
drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which along with
rental was the main source of revenue. The reduction in tariffs for airtime, national
long distance, international long distance, and handset prices has driven demand.

CLASSIFICATION OF TELECOMMUNICATION SERVICES

1.

Basic Services

2.

Cellular Services

3.

Internet Service Provider (ISP)

EVALUATION OF CELLULAR PHONES

The basis concept of cellular phones began in 1947, when researchers looked at crude
mobile (car) phones and realized that by using small cells (range of service area) with
frequency reuse could increase the traffic capacity of mobile phones substantially,
however, the technology to do it was nonexistent. Anything to do with broadcasting
and sending a radio or television message out over the airwaves comes under a
Federal Communications Commission (FCC) regulation that a cellular phone is
actually a type of two way radio. In 1947, AT & T proposed that the FCC allocate a
large number of radio spectrum frequencies so that wide-spread mobile phone service
could become feasible and AT & T would have a incentive to research the new
technology.
We can partially blame the FCC for the gap between the concept of Cellular phone
service and its availability to the public. Because of the FCC decision to limit the
cellular phone frequencies in 1947, only twenty three cellular phone conversation
could occur simultaneously in the same service area not a market incentive for
research. The FCC reconsidered its position in 1968, and stated if the technology to
build a better mobile phone service works, we will increase the cellular phone
frequencies allocation, freeing the airwaves for more mobile phones.
AT & T Bell Labs proposed a cellular phone system to the FCC of many small, lowpowered broadcast towers, each covering a cell a few miles I radius, collectively
covering a larger are. Each tower would use only a few of the total frequencies
allocated to the cellular phone system, and as cars moved across the area their cellular
phones cells would be passed form tower to tower. By 1977, AT&T Bell Labs
9

constructed and operated a prototype cellular phone system. A year later, public trials
of the new cellular phone system were started in Chicago, IL with over 2000 trial
cellular phone customers. In 1979, the first commercial cellular phone system began
operation in Tokyo. In 1981, Motorola and American Radio phone started a second
U.S. cellular radio-phone system test in the Washington/Baltimore area. By 1982,
theslow moving FCC finally authorized commercial cellular phone service for the
USA. A year later, the first American commercial for analog cellular phone service or
AMPS (Advanced Mobile Phone Service) was offered in Chicago, IL by Ameritech.
Despite the incredible demand, it took cellular phone service 37 years to become
commercially available in the United States. Consumer demand quickly outstripped
the cellular phone system's 1982 standards, by 1987, cellular phone subscribers
exceeded one million, and the airways were crowded.
Three ways of improving services existed:
One

- increase cellular phone frequencies allocation

Two

- split existing cellular phone cells

Three

- improve the cellular phone technology

The FCC did not want to handout any more bandwidth and building/splitting cells
would have been expensive and add bulk to the cellular phone network. To stimulate
the growth of new cellular phone technology, the FCC declared in 1987 that cellular
phone licensees may employ alternative cellular phone technologies in the 800 MHz
band.

10

The cellular phone industry began to research new transmission technology as an

alternative.

MOBILE COMMUNICATION SPREAD AND ITS IMPLICATIONS IN INDIA

Initially Department of Telecommunications (DoT) was the only monopoly operator
in the country. Telecommunication sector was recognized by the Government of India
as one of the few basic infrastructure sectors for the country. Under the Government
policy of economic liberalization, privatization and competition in India, private
sectors have been allowed to enter the public telecommunication field (where
Government was a monopoly). In 1992 telecommunication sector in India was
liberalized to bridge the gap through government spending and to provide additional
resources for the nations telecom target. The objective of the reform was making the
telecommunications within the reach of all, thereby achieving universal service,
11

covering all villages and bringing the telecommunication services to the world
standard, while protecting the defense and security needs of the country. In 1993 the
telecom industry got an annual foreign investment of Rs 20.6 million. In 1994 license
for providing cellular mobile services was granted by the Government of India for the
Metropolitan cites of Delhi, Mumbai, Kolkata and Chennai. Initially Cellular mobile
services were duopoly (i.e. not more than two cellular mobile operators could be
licensed in each telecom circle), under a fixed license fee. In 1995, government
opened up 19 more telecom circles and issued mobile licenses.
To regulate and settle disputes Telecom Regulatory Authority of India was set up in
1997 and in 1999 National Telecom Policy was announced by the Government of
India. In order to speed up the development of the telecom sector, all telecom services
were opened up for private sector participation. Unrestricted entry is allowed in the
basic services, national and international long distance service, in global mobile
personal communication by satellite (GMPCS) service, VSAT and Public Mobile
Radio Trunked Service (PMRTS).
All telecom sectors under DoT was handed over to new public Sector Undertaking
viz, Bharat Sanchar Nigam Limited (BSNL) which was registered under Companys
Act in 1st October 2005.BSNL covers the entire country except Delhi and Mumbai
Metros which are under Mahanagar Telephone Nigam Limited (MTNL).
MAJOR SERVICE PROVIDERS IN INDIA
Two different technologies are deployed by the mobile operators in India namely
GSM and CDMA.The GSM service providers are Bharti, BSNL, Hutch, IDEA,
Aircel, Reliance, Spice, MTNL and BPL, whereas the CDMA service providers are
TATA, HFCl, Shyam, and Reliance. Indias mobile market is dominated by foreign
companies for high end telecom equipments, handsets, transmission equipments etc.,
Nokia, Samsung, and Motorola are the three important vendors for handsets. Other

12

vendors who have their share in this market are L.G, Alcatel, Sony Ericsson, Siemens,
National Panasonic, Philips, Mitsubishi, and Sagem.

13

MOBILE SUBSCRIBER STATISTICS

Recently, mobile phone connections in India have crossed the 100 million mark,
which means over nine in 100 Indians have a phone. Adding on to this benevolent and
happy information, telecom companies are anticipating the number will nearly treble
in the next two years. According to a survey, by 2006, the cellular networks are
expected to cover 3,50,000 (out of 6,07,000) villages, covering 450 million people.

Market Share of both mobile and wire line Service Providers in India
GSM Subscribers
The cumulative All India GSM subscriber base rose to 72.12 million in April 2006
from 69.19 million in March 2006 which is a growth of 4.23% for a month under
review. Table I shows the subscribers growth rate for one month along with market
share of each provider with coverage
CDMA Mobile Subscribers
The total cumulative all India CDMA subscriber base rose by 0.97 million from 23.25
million in March 2006 to 24.22 million in April 2006, representing a growth of 4.2%
in the month under review.

14

COMPANY PROFILE
Bharti Airtel Limited is a leading global telecommunications company with operations in
19 countries across Asia and Africa. The company offers mobile voice & data services,
fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises
and national & international long distance services to carriers.It operates a GSM network
in all countries, providing 2G or 3G services depending upon the country of operation.
Bharti Airtel has been ranked among the six best performing technology companies in the
world by BusinessWeek. Bharti Airtel had 200 million customers across its operations.
Bharti Airtel is one of the topmost companies in the telecom sector in India and is under
the Bharti Enterprises Group. Airtel Bharti has been ranked as the best performance
company in the whole world by the Business Week magazine in 2007.
The Company Bharti Airtel is in India the biggest integrated and also the 1st telephone
service provider in the private sector, which has footprint in around 23 telecom circles.
Bharti Airtel Limited has been since its very beginning using the latest technology and
thus the company has paved the way for the telecom sector in India with its world-class
services and products. This has helped Bharti Airtel Company to grow for the number of
its customers has increased very rapidly over the years. The company has around 50
million customers in 2007 and its market share of mobile subscribers in India is at 23.4%.
The Company Bharti Airtel is divided into 3 business units that are:

Broadband & Telephone (B&T) services

Enterprise Services

Mobile Services

Among the various services that the Bharti Airtel Limited Company provides to its
customers, the services of broadband and telephone (B&T) are 1 of them. The company
provides broadband Internet services of high speed for it has the best network in India.
The company Bharti Airtel also provides telephone services in around 94 cities of the

15

country and this helps the people to stay connected

with one another. The company plans to expand its
broadband and telephone services by providing IPTV
services and DTH operations.
Further Bharti Airtel provides enterprise services to
its customers. The services of enterprise provide
telecom end-to-end solutions to customers who
belong to the corporate sector and also long distance services to international and national
carriers. The company Bharti Airtel has more than 35,016 kilometers of optic fiber, a
submarine landing station, and is also a member of South East Asia- Middle EastWestern Europe- 4. All this has helped the company to provide the best enterprise
services to its customers. The company Bharti Airtel Limited plans to expand its
enterprise services so that it can achieve the status of a global carrier within a period of 23 years.
The company Bharti Airtel Limited provides mobile services to its customers. The
company provides fixed and mobile wireless services in around 23 telecom circles by
using the GSM technology. Bharti Airtel Company has become the biggest mobile
service provider in India on the basis of the number of customers. The company in the
future plans to expand its network in order to establish its presence in more than 500,000
villages all across the country.

BRAND AIRTEL
Airtel was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven to
seize the day with an ambition to become the most admired telecom service provider
globally. Airtel, in just ten years of operations, rose to the pinnacle of achievement and
continues to lead. As India's leading telecommunications company, airtel brand has
played the role of a major catalyst in India's reforms, contributing to its economic
resurgence.

16

Today they touch people's lives with their Mobile services, Telemedia services, to
connecting India's leading 1000+ corporates. They also connect Indians living in USA,
UK and Canada with our callhome service.

GROWTH STRATEGY
Focus on core competencies and outsource the rest.
Airtel has partnered with leading players in telecommunication sector across the globe. It
has managed to work with the best of domain specialists globally and emerge as a world
class entity. Partnerships include operational contracts with marquee vendors and
strategic investors ranging from private equity investors to global telecom giants.
Following are the majorpartnerships of AIRTEL:

Ericsson was given the mandate to provide, manage and maintain the equipment as well

as provide quality assurance in Airtels then 13 mobile circles.

IBM was given the mandate to handle the back office requirements of Airtels presence in

India.
The company has a strategic alliance with Singtel. The investment made by SingTel is

one of the largest investment made in the world outside Singapore.

In the case of broadband and telephone services and enterprise services, equipment

suppliers include Siemens, Nortal and corning.

The call centre operations for the mobile services have been outsourced to IBM Daksh,
Mphasis and Hinduja TMT.

BUSINESS DIVISIONS
1. Mobile services- Bharti Airtel offers GSM mobile services in all the 23-telecom circles of
India and is the largest mobile service provider in the country, based on the number of
customers.
2. Telemedia services- The group offers high speed broadband internet with a best in class
network. With Landline services in 94 cities we help you stay in touch with your friends
& family and the world. Get world class entertainment with Indias best direct to home
(DTH) service digital TV in more than 150 cities.
3. Digital TV services- discover the magical experience of digital entertainment with Airtel.
From DVD quality picture and sound, the best and widest variety of channels and
17

programs to the best on-demand content on Airtel Live, your TV viewing experience
change forever with digital TV from Airtel!
Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was into an
agreement with Germany's Siemens to manufacture the company's push-button telephone
models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom
Limited (BTL) and his company became the first in India to offer push-button telephones,
establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil
Mittal to expand his manufacturing capacity elsewhere in the telecommunications
market. By the early 1990s, Sunil Mittal had also launched the country's first fax
machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a
cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular
operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular
service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control
of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In
2000, Bharti acquired control of Skycell Communications, in Chennai. In 2009, Airtel
launched its first international mobile network in Sri Lanka. In 2010, Airtel began
operating in Bangladesh and 16 African countries.
Today, Airtel is the largest cellular service provider in India and fifth largest in the world.

18

ACHIEVEMENTS

First to launch Cellular service on November 1995.

First operator to revolutionaries the concept of retailing with the inauguration of

Airtel Connect (exclusive showrooms) in 1995.

First to introduce push button phone in India.
3rd largest in-country mobile operator in the world.
6th largest in-country integrated telecom operator in the world.
Ranked number 5 in the best performing technology companies in the world by

business week.
Indias most innovative company by Wall Street Journal.
Winner of gallup great workplace for being one of the best places to work

worldwide.
Ranked 188 in the FT 500 worlds largest companies 2009 ranked by financial

times
First to expand its network with the installation for second mobile switching
center in April, 1997 and the first to introduce the Intelligent Network Platform.
First to provide Roaming to its subscribers by forming an association called

World 1 Network.
First to provide roaming facility in USA. Enjoy the mobile roaming across 38
partner networks & above 700 cities. Moreover roam across international
destinations in 119countries including USA, Canada, and UK etc. with 284

partnernetworks.
It is also the first company to export its products to the USA.

19

AWARDS AND RECOGNITIONS

For the year 2010 - 2011
Airtel has won the Most Preferred Cellular Service Provider Brand award at the CNBC
Awaaz Consumer Awards in Mumbai. This is 6th year in a row that airtel has won the
award in this category. The awards were based on an exhaustive consumer survey done
by The Nielsen Company. Over 3,000 consumers, spanning 19 cities and 16 states in
India, rated brands across different categories to choose brands which delivered true
value for money.
Bharti airtel has received the prestigious Businessworld-FICCI-SEDF Corporate Social
Responsibility Awards 2009-2010. The FICCI Socio Economic Development Foundation
(FICCI-SEDF) and Businessworld CSR award was instituted in 1999 to recognize
exemplary responsible business practices by the Indian Industry.
FOR THE YEAR 2009 - 2010

Bharti airtel rated as Indias Best Enterprise Connectivity Provider for 2009 at the
Annual Users Choice Awards instituted by PC Quest.
Bharti airtel has been recognized as the Best Global Wholesale Carrier for 2009 at
the Telecoms World Awards Middle East by Terrapin.
Airtel was rated as the Strongest Brand in the Economic Times Brand Finance
Brand Power Rating 2009. It is the only Corporate Brand to be awarded the AAA
rating
Sunil Bharti Mittal conferred with the LalBahadurShastri National Award for
Excellence in Public Administration, Academics and Management.
Airtel ranked second in the Economic Times-Brand Equity Most Trusted Brand
Survey 2009.
Bharti airtel ranked Indias second most valuable company, by Business Today in
2009.
Bharti airtel listed in Forbes Asias Fabulous 50 companies, 2009 on number sixth
position.
Bharti airtel was recognized as the Service Provider of the Year and Wireless
Service Provider of the Year at the Frost & Sullivan Asia Pacific ICT Awards
2009.

20

SERVICES PROVIDED BY BHARTI AIRTEL LTD.

Airtel Pre-paid.
Airtel Prepaid the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, Indias
leading integrated tele-services provider. Going mobile with Airtel Prepaid is a new of life. With a
host of great features, a simple to use, Airtel Prepaid makes everything that you dreamt and
believed, possible.

Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited oppurtnities. More exciting, innovative yet
simple new ways to communicate, just when you want to, not just trough words but through
ideas, emotions and feelings. It gives you unlimited freedom to reach out to your special in a
special way.

Airtel MTV Card

The best offers and the coolest of bargains on the hippest stuff in the market , download the
hippest tunes from the new tracks and dress up your phone with the latest wallpapers, ring tones,
picture messages, screensavers and backgrounds . All this and lots more, only with the MTV
Airtel SIM.

Airtel Roaming
Airtels Roaming service allows you to use your mobile phone to make or receive calls from
almost anywhere in India and abroad. Airtel Roaming gives you two great options:

Airtel National Enjoy roaming in India across 42 partners Networks and over 750 cities.

Airtel International Roam across international destinations, in nearly 119 countries

including U.S.A., Canada, etc. with 284 partner networks.

Long Distance
Now experience complete freedom like never before with Airtel, our National Long Distance facility
allows you to make distance calls in India and Overseas from cellular phone. This services is
applicable to both Postpaid and Prepaid customers.

UNDERSTANDING THE PRODUCT BASKET

PREPAID: Customer pays first & then uses the mobile

POST PAID: Customer uses the service first & pays later - Cold Billing.
21

- Hot Billing.

PRE-PAID CONNECTION
Prepaid connection, the mobile user first makes payment for recharge coupon, which contains a number of
16 digits which when fed in the mobile, activates the pre-paid SIM. The user can use the services rendered
as per denomination of the Recharge coupon. The billing done in case of prepaid connection is termed as
Cold Billing.

BENEFITS OF PRE-PAID CONNECTION

Convenience:
-

This is very convenient. All it requires is just acquiring a Recharge coupon.

Availability:
-

The prepaid SIM Airtel can be easily had from any outlet of Airtel. This is a nonrefundable one time investment made in order to get enrolled.

Cost Control:
-

The pre-paid connection prevents a user from over billing.

Easy Recharge:
-

The recharge coupon of Airtel can be easily had from any outlet of Airtel.

CONTITUENTS OF PEP CONNECTION

PEP PACKAGE

S.U.K.

Recharge Coupons

1.

Sim Pack.

A paper/paperless

2.

May have stored talk value.

Recharge with various

3.

Talk value validity period

Denomination for recharging

4.

SIM Expiry

The prepaid SIM.

22

LIFE CYCLE OF SIM

Active

Grace

Forfeiture

De-active

Time out

POST PAID CONNECTION

Under postpaid connection, the mobile user is allowed to use the mobile services being provided and makes
payment of the charges thus subjected to at the end of the billing period. The billing done under postpaid
connection is termed as Hot Billing. Some more details about this are as following:

BENEFITS OF POSTPAID CONNECTION

The benefits of possessing post-paid connection may be given as following:

Always connected.
-

Unlike pre-paid connection the mobile phone does not get disconnected with the
de-activated of SIM card. Here the mobile user can the phone as much as he
wants and then make payment of Bill at the end of the billing period.

More economical for high users.

-

For those who are high of users of mobile phone, it is wise to post-paid
connection, because, in case of pre-paid connection the user will incur certain
additional expenses every time he/she acquires a recharge coupon.

The post-paid connection holders get an itemized monthly bill mentioning,

nominal charges, mobile originating and terminating charges, SMS originating
& exterminating charges etc.

23

Different plans to suit individual needs.

-

As we know, different high users expect different services from the

mobile

phone. Thus, Airtel has designed different plans to suit individual needs of high
users possessing POP connection.

Advantage of unique V.A.S.

-

Airtel is bringing in a wide range of V.A.S., which has been discussed later in
the project.

CHANNELS OF DISTRIBUTION
For post paid connections there are basically two channels of distribution, viz. Connect & Retail. These two
are discussed as under:

A. CONNECT:
-

Under this the user gets connected to the Airtel POP Services after
AV/CV. Generally the customers with high rentals and more usage
are targeted.

B. RETAIL :
-

This includes OTC plans, pre-activated SIM & low Rental Plans.
This is more suitable for regular local area users.

CHARGES IN POP CONNECTION

These are classified under three heads:

1- Security Deposit:
This varies between Rs. 500/- to Rs.1000/- for POP Connection. Rs.500/- is charge on a pre-activated
instant-card. The credit limit is generally equal to the amount of security deposit, which is refundable on
surrender, after adjustment of pending dues.

2- Activation Charges:
The activation charges vary from plan to plan for high rental plans. This is a non-refundable amount.

3- Plan Enrolments:
This is a non-refundable one time investment made in order to get enrolled into a plan.

24

BILLING IN CASE OF POP-CONNECTION

This billing in case of POP connection constitute of three Components, viz.
1) Monthly Rentals.
2) CLIP Charges.
3) Itemized Billing.
This consists of the following,
a)

Nominal charge-Helps to track the usage pattern.

b) Mobile originating- This refers to the calls being made by the user.
c)

Mobile Terminating- This refers to the incoming calls being received by the users.

d) SMS originating- This refers to the SMS sent by the user.

e)

SMS terminating- This refers to the SMS received by the user.

f)

Other than this the itemized bill also gives a break up of the calls made/ received, SMS made/
received while on roaming.

VALUE ADDED SERVICES:

Stay connected and updated where as you are.

Traveling & waiting time no longer a bore.

Your Mobile your best friend.

V.A.S. CONSTITUENTS:
I-

CALL MGT. SERVICES:

1.

CLIP- Calling Line Identification Presentation. Displays the incoming

Call number or name on Mobile screen.

2.

Call Wait: During conservation, alerts the user about another incoming call.

3.

Call Divert: Diverts incoming calls to the specified L/L, mobile VMQ.

4.

Conference Call: Teleconferencing up to five people at a time.

5.

Call Barring: Call is barred if bill goes above the credit limit.

25

II. GENERAL PACKET RADIO SERVICE ( G.P.R.S.):

It is a non-voice application for enhanced user connectivity. It enables.
a)

Internet on mobile

b) Wireless Surfing
c)

MMS

BENEFITS
a)

Always connected.

b) No modem required for internet connectivity.

III. MESSAGING

SERVICES

1- Short Messaging Service (SMS)

-

It facilitates sending & receiving of text messages. It is possible to type a text up to 100
characters.

2- Multimedia messaging services (MMS) :

-

It is a total communication experience. It includes transmission of following media

types :

a)

Text

b) Picture
c)

Audio

d) Video
e)

Combination of all the above.

IV- ROAMING:
1.

National Roaming (STD)

-

It enables the subscriber to make and receive calls which traveling outside the home
network within the country.

2.

International Roaming (ISD)

-

It enables the subscriber to make & receive calls which traveling outside the home
network outside the country.

26

AIRTEL- CORPORATE COMMUNICATION

Till November 2010
Signature tune
The signature tune of Airtel is composed by Indian musician A. R. Rahman. The tune
became hugely popular and is the world's most downloaded mobile music with over 150
million downloads.
Logo:

Figure 1: Airtel old logo

Color Scheme:
Red and White- Airtels previous logo had both white and red colors interchangeably. The
interesting part was that the word Air was written in black with a white background
while Tel was written in white on a red background. Sometimes they also included their
slogan Express Yourself with the logo.
SLOGAN/ TAGLINE
Express Yourself
BRAND AMBASSADORS
Shahrukh Khan

KareenaKapoor

Saifali Khan

A R Rehman

Sachin Tendulkar

VidyaBalan

R Madhavan

SainaNehwal

Genelia DSouza

27

Sharman Joshi

BHARTI AIRTELNEW GLOBAL IDENTITY

Bharti

Airtel

has

unveiled New Logo

&

refreshed

1min

Signature tune along

with

the launch of 3G
services.Shah

Rukh

Khan is the brand

ambassador of Airtel
and he was called by Chairman Sunil Bharti Mittal over the companys 3G network
marking the first Airtel 3G calls. Since Bharti Airtel inception has been done, it is at the
front position of technology and has pioneered a number of modernizations in the
telecom segment. The company is organized in the four tactical business units including
Mobile, Enterprise, Digital TV and Tele media. Services of the mobile business are
provided in countries like India, Sri Lanka and Bangladesh. The Enterprise business
supplies nationwide and worldwide long distance services to telcos and one by one
telecom solutions to corporate customers. The Digital TV business provides D2H TV
services all over India. Broadband, telephone and IPTV services are provided by the Tele
media business. To change Airtels brand identity and to generate knowledge about the
new logo among its consumers, Bharti expended above Rs. 300 Crores internationally.
The new global and youthful avatar in the form of logo was unveiled throughout India,
Africa, Sri Lanka, Bangladesh, and Seychelles. According to the Mittal, the Chairman
and Managing Director, Bharti Airtel, the new logo of Airtel is the symbol of inclusive,
dynamic, youthful and international and it represents the journey of first Indian brand to
go accurately worldwide. The integral fraction of the Airtel is red color and the new

28

curved addition to the logo is a sign with the text Airtel written in white in the middle.
This integral part reflects the energy and dynamism. In case,
if Airtel only use the image and not the text at places, then it
might be a little complex for people to for people to figure it
out.
The world's fifth largest teleco, Bharti Airtel has more than
150 million users in India and subscriber base of the
company has traversed the 200 million mark in the domestic regions. In Africa, the
company has 40 million users and the remaining are in Sri Lanka and Bangladesh. In
India, the brand launch took place following the launch in Africa, Sri Lanka and
Bangladesh.
While unveiling the company's new brand logo, Bharti Airtel chairman and managing
director Sunil Bharti Mittal said that "We are on track to launch 3G services by the end of
this year...we need a good experience on day one."
The company has also rebranded itself with a new signature Airtel tune and it is
composed by Oscar winner A R Rehman. With the new visual identity, the new tune is
more youthful and vibrant in line and it will be cherished by listeners universally. The
new logo and new service of the company was promoted by a new lot of advertisements
and a variety of branding tricks.
Today as we expand on the global stage, this new brand identity gives us the opportunity
to present a single powerful and unified face to our customers, stakeholders and partners
around the world, said Bharti Airtel chairman and managing director Sunil Bharti Mittal
on the occasion. He added that It reinforces our promise to deliver innovative services
and a superior brand experience to our 2000 crore customers across Asia and Africa.
It reinforces our promise to deliver innovative services and a superior brand experience to
our 2000 crore customers across Asia and Africa, said by the Chairman and Managing
Director of Bharti Airtel, Sunil Bharti Mittal.
The introduction of this new logo also marks the 200 million customer milestone for
Airtel. In October 2007, Airtel had more than 50 million customers and in May 2009, it
29

had 100 million customers. Describing the journey of Airtel, Mittal mentioned that in just
18 months the company added the next 100 million customers.

BRAND IDENTITY
Signature Tune:
A new version of the song was released on 18 November 2010, as part of the rebranding
of the company. This version too was composed by Rahman himself. It is a theme song
having a younger and international feel to it.
Logo:

2. New logo
The logo looks more like a curved A with little bit of highlighting to indicate what they
call dynamism and the warm and friendly appeal of Airtel. It represents a dynamic force
of energy which would bring the management and customers closer.
Color Scheme:
It is red and white for youthful, dynamism, warm and friendly appeal.

30

Slogan/ Tagline:
Diljochahe, paaslaye.
Brand ambassadors:
Shahrukh Khan, KareenaKapoor, Saifali Khan, A R Rehman
Vision & promise
By 2015 Airtel will be the most loved brand, enriching the lives of millions.
"Enriching lives means putting the customer at the heart of everything we do. We will
meet their needs based on our deep understanding of their ambitions, wherever they are.
By having this focus we will enrich our own lives and those of our other key
stakeholders. Only then will we be thought of as exciting, innovation, on their side and a
truly world class company."
Airtel Website

31

BROADBAND REVOLUTION3G LAUNCH IN 2010

Bharti Airtel unleashed the Broadband Revolution in India by launching 3G in 2010
Set to lead the next phase of Indias telecom success story by introducing a new range
of services in areas of Mobile Commerce, Health and Entertainment
Airtel in advanced stage of discussion to offer all India coverage
Bharti Airtel, which has been at the forefront of the mobile revolution in India, with the
launch of its 3G services to usher in broadband data revolution in the country.
Airtel, the largest mobile services provider in India, offers customers the widest 3G
network in India. Airtel successfully bid for 3G spectrum in 13 telecom circles across
India and is rolling out state-of-the-art networks in these geographies. These 13 telecom
circles also constitute 68% of Airtels revenue market share. This includes key metros
such as Delhi, Mumbai, Bengaluru, Chennai and Hyderabad, which account for 21% of
all data traffic in the country and are expected to have the strongest uptake of 3G
services. Airtel is also in advanced discussions with other quality operators to offer 3G
services to its customers across the country. This will not only ensure seamless roaming,
but also offer 3G broadband to its entire customer base in India.
Mr. Sanjay Kapoor, CEO India and South Asia, Bharti Airtel said, 3G services will
mark the beginning of the next phase of Indias telecom growth story and elevate Indias
telecom sector at par with most advanced telecom markets in the world. 3G services have
the potential to transform the lives of millions of Indians by taking a variety of life
enhancing services on high speed broadband to the remotest corners and bridge the
digital divide. In addition, 3G services have a strong multiplier effect on economic
growth and bring in enhanced efficiencies. It is Airtels endeavor to lead Indias journey
on the information superhighway with world-class 3G services.

32

Bharti deploys high speed HSPA networks provided by Ericsson, Nokia Siemens
Network and Huawei. The High Speed Packet Access network is be the best in world in
terms of technology and will enable high peak user throughputs.
Airtel's 3G services usher in a new era of unique life style enabling products. Along with
meeting the growing demand of high speed surfing and wireless entertainment, Airtel
introduced a suite of products in areas such as mobile commerce and mobile health.
In 2006, Bharti became the first Indian operator to launch 3G services when it started 3G
operations in Seychelles. Currently, Bharti Group is successfully running 3G broadband
services in four countries - Sri Lanka, Jersey, Guernsey and Seychelles. For India, Bharti
will also draw significantly from the expertise of its partner SingTel, who offers one of
the worlds most advanced 3G networks in Singapore, Australia, Philippines and
Indonesia.

33

AIRTEL SERVICES
1.

Mobile:

Prepaid services
Postpaid services
Blackberry services
International calling
Within these mobile services, Airtel provides:

Airtel Live: entertainment on mobile

Hello tunes
Wallpapers
Mobile games
Get Blackberry: contrary to popular belief
Features
Handsets
App Central: Indias first mobile application
Airtel world SIM:
Use your India number abroad and save up to 85%.
M-commerce
Mobile commerce is the convergence of wireless communication technology and
commerce. m-Commerce has two distinctive advantages namely flexibility and
ubiquity. Through the mobile phone, consumers can conduct business transactions
without being fixed at a computer terminal or being physically present at the shop.
In essence, m-Commerce offers personalization and real time transactions while
on the move.

2. Airtel Broadband
Speed on demand:

34

Buy additional broadband speed when you need it with airtel speed on
demand.
Wi-Fi Hotspots:
High speed broadband access on the move. Airtel's ever expanding hotspot
network across hotels, commercial complexes and hospitals helps you get
secure and reliable broadband connectivity on your laptop and handheld
devices.
Wi-Fi:
Get the freedom to surf anywhere in your house.
Website builder:
Create your own website in minutes with airtel website builder.
Games on demand:
Enjoy the best in online gaming with airtel games on demand.
Britannica online:
Get a free 2 year subscription to Britannica Online.

35

AIRTEL BROADBAND SERVICES

STRATEGIC COMMUNICATIONS CHALLENGE
According to Internet Governance Forum, India has the fourth largest number of
Internet users in the world, with 81 million users. The proportion of below 25
years age group net users account for 52% of the total internet user base in
Indians. Home emerges as the most preferred place of accessing internet. Almost
half of the regular internet users (46%) access the net from more than one place of
access , 41.2% prefer to access the net from home using* the internet for
blogging, networking, information search, downloading (music, games,
entertainment), transacting (banking), for fun, want speed & discerning on
service.
Unlike competition which is focused on pricing and low entry cost, Airtels
endeavor has been to enhance the Desirability of Broadband in India. This has
led Airtel to delivering better value in terms of - service, higher speeds and a slew
of value added offerings. Understanding and responding to the psyche of a fast
growing and dynamic broadband market thus, is an ongoing challenge.
*Source: Segmentation study

Objectives
Our objective was to build desirability for broadband and thereby increase
consideration amongst intenders to create a category defining position for Airtel
Broadband by showcasing broadband as the antidote to the strained at the leash
feeling.
The always-on broadband has a transformational effect on the internet experience.
The essence of the Broadband Effect is that when what consumers can do
changes, what they will do changes dramatically. A snappier browsing experience
is just the beginning. Once the Internet is fast, consumers find all kinds of uses for
it - Greater freedom, more choice, a richer-more personalized experience.
Across the world, Broadband has induced transformational changes in the way
consumers engage with brands, media or the whole field of entertainment. With
millions adopting web2.0, blogging becoming a common word, personalization,
36

mashups, vblogs, tagging etc are changing the digitallandscape, the way we buy,
the way we communicate and the way we live and the way organizationsdo
business. World trends show considerable similarity in User generated content,
multipoint accessof information, communities, dialogue, and collaborative
development.

The Big Idea

Idea: Life @ speed of thought.
Articulation: Impatience is a virtue
How did we arrive at the big idea?
Target Audience:
The Craving Joy riders
16-24 year olds consuming technology as oxygen
Moving from experience to experience in the real world
Sampling all that life has to offer to them
Seeking to rebut any pattern formation in their lives
Living life on-the-fly
Product insight:
Hi speed broadband lets you experience the internet without any associated
waiting times.
Consumer insight:
The youth today are straining at the leash, how did we bring the idea to life?
The new campaign established the human truth of impatience as a virtue &
connect with the target segment. Waiting for things to come their way is just not
an option. They want to lead life @ speed of thought. As opposed to the age old
negative connotation of impatience, for this generation who lead life in the fast

37

lane, impatience is a virtue. Broadbands high speed allows these impatient ones
to achieve a lot more in their lives, enjoy and discover the true power of internet.
An engagement plan for showcasing 16Mbps was thus evolved!
The campaign went live in 2 phases as follows
1. Phase 1 was a digital launch on 06th April 2009 which utilized social
ambassadors and offered engagement through created/user generated content,
contests etc.
Lifecast Micro site: The micro site was built to Lifecast the lives of four
youngachievers:

Shiv

DravidBhaskar

(entrepreneur),

JishnuDasgupta

(musician), SanaSiddiqui (Assistant Director & Script writer) and Sukhmani

(Model) who have excelledin their respective fields. These Impatient ones,
who achieved more because of their willingness to do more and get more out
of life at a young age.

38

Following are Key the activities built around the micro site
The site opened on the TV advertising with interactivity built

on the AD itself
The chosen ambassadors posted content & discussed things which does
require high speed connection & thus made broadband more desirable e.g.

Google latitude
A visitor could make friends with them, follow their lives and even

interact with them through comments and blogging, twitter etc.

Visitors could Enter a lead if they desired a Broadband connection
Viral Videos: Quick & Short funny versions of popular films. Seeped in
the spirit of Impatience these quick takes on movies had a very high
engagement level as once the movie ended, the viewer got a call on his
mobile with an interesting/wacky prerecorded message.( the mobile

number came as an input while forwarding to a friend )

Apart from the four impatient ones, the Micro site also had a section on
becoming the fifth impatient one selection based on UGC
(uploadedImpatient videos)

3. Airtel Digital TV
Bharti Airtel extends its Triple play proposition to Bangalore Bharti Airtel extends its
Triple play proposition to Bangalore Bangalore becomes the 2nd city to get Airtel ipTV
services
Pause and rewind live programs at your own will with Time shift TV
Services like Movies-on-Demand & Radio to offer a unique Interactive experience on
TV
Bengaluru, December 9, 2010: Bharti Airtel, a leading global telecommunications
company with operations in 19 countries across Asia and Africa, today announced the
expansion of its Triple Play proposition to Bangalore. The announcement follows a
successful run of ipTV operations in Delhi NCR region. With Triple Play, Airtel offers
customers the opportunity of simultaneously enjoying voice, broadband and television
(ipTV) all on a single line.

39

Airtel ipTV will come to customers through a strong backbone of Carrier

Ethernet Network with last mile delivery on copper using ADSL2+
technology, which will enable superior digital video and audio quality. s
Airtel ipTV's unique features
Triple Play-enjoy voice, broadband and television (ipTV) on a single line and
simultaneously too!
True VoD Library of 150+ Titles
42 channels on Time Shift TV - over 7000+hrs of content
Universal remote-single remote for TV and set top box
All-weather broadcasting-enjoy uninterrupted signals
Single unified bill for voice, DSL and ipTV
Extending its promise of a Single Knock on The Door experience, airtels single
Customer Service interface will deliver a single unified bill for voice, broadband and
television (ipTV) to its Triple Play customers in Bangalore.
Transforming TV viewing into a two-way experience, Time Shift TV on Airtel ipTV auto
records the entire programming schedule on 42 top of the line channels. This ensures that
ones favorite entertainment is kept fresh, so that one can enjoy it when they want. So
rewind or fast-forward whenever you want, at no extra cost!
According to Mr. Girish Mehta, Chief Marketing Officer, Airtel telemedia services, "We
are pleased to announce the launch of Airtel ipTV services in Bangalore. Bangalore has
consistently been one of our biggest markets for broadband and often leads in adoption of
new technologies. Now viewers no longer need to take an appointment with their
televisions. With a customer-friendly interface, universal remote, video library of over
150 titles and all weather broadcasting, Airtel ipTV will create an unmatched
entertainment experience for our customers."
What is IPTV?
One of the key drivers of digitalizing entertainment in India, Internet Protocol Television
is a system where:

4. Fixed Line Services

40

Get the flexibility to organize and control your

communication with airtel fixed line. Get used
to a host of exciting features and services ,
from call conferencing, call forwarding, short
dialing, caller identification, to voice alarm,
parallel ringing, and much more. Services
include:
Call waiting: The service alerts about the incoming call, even when one is talking
on phone.
Parallel Ringing: Give one phone number to others, while receive calls on two
Phone numbers.
Call forwarding: Identify the caller before you pick up your phone.
Three party conferencing: It allows you to talk simultaneously to two persons at
the same time
other services

Call Back-Busy
Short Dial (Abbreviated dialling)
Dynamic Locking
Do Not Disturb
Absentee Service and Pre-Record Messages
Selective Call Forwarding
Devotional Alarm
Railway Enquiry

AIRTEL - A NEW BEGINNING

41

After eight years Airtel, deciding that it was time to change, came up with a new look and proposition.
When it began its journey in 1995, the concept of mobile telephony was a distant dream as there were less
than one million phones, all fixed lines, in India. The initial look of the brand was designed by then national
creative director of Rediffusion Y&R, GulluSen, with the aim of introducing the concept of mobile voice
services in the country. Hence, the two-swoosh design was developed and the brand was positioned as
Touch Tomorrow.

The next big wave came in 2002, when the brand went through a transition in which all
its sub-brands such as Telemedia, DTH, and the Enterprise business were brought under
one roof and branded as Airtel. The new look was then designed by Bengaluru-based
brand consulting and design company, Ray + Keshavan.
Now eight years later, Airtel went under the knife again. It re-introduced itself with a
brand new logo - with just the letter 'a', because it felt the need for a symbol, so that the
consumer could easily connect. It also changed its positioning to 'Diljochahepaaslaye'
which meant - whatever one's heart desires, Airtel will bring it closer. It also got itself a
fresh ringtone, created by musician A R Rahman.
According to, Harish Bijoor, CEO, Harish Bijoor Consults, the current feedback on about
Airtel's new look is negative. He adds, "Airtel is an iconic brand in the telecom category.
However, with the relaunch the brand has softened too much. In a bid to capture the
youth, the brand has lost its sharpness."
Bijoor further feels that the new logo is not "new" as the symbol resembles one or two
brand symbols, which are already present in the market. Citing the example of one such
brand, he explains, "The new logo which is a small letter 'a' very much resembles the
Wall's logo, which takes the point further that there is no uniqueness attached with the
new logo."
Airtel followed up the logo change with a countrywide campaign encompassed television
channels across all genres. Additionally, the brand was visible in all the daily papers
across language, with a radio campaign going on at the same time across all the stations.

42

While it was an easy task to capture the attention of the urban consumer, grabbing
eyeballs in the rural parts of country was more difficult.
Overnight, all the dhabas, the walls as well as mobile vans went through the makeover
and were re-branded with the new Airtel look. It even branded the Delhi-Bengaluru
Rajdhani Express with the look - the branded train will be seen chugging across the
country for two quarters. Meanwhile, Airtel launched a digital campaign called 'The
Name Game', inviting people to name its new logo. The brand has also introduced its 3G
service, which it believes will open new window of opportunities.

1. Strategic communications challenge

Voice SMS Will the youth lap up, what illiterates rejected?

Previously targeted at rural folk who cant message. Didnt have traction. Languishing.
43

With multiple options like text sms/email/social media/blogs/status updates already

available, would

Voice SMS be able to break into this dense jungle of options?

Objectives
1. Double the penetration level of the product.
2. Drive imagery attribute Brand for someone like me amongst 15-29 yr olds.
The Big Idea
The death of emoticons Add emotion to your messages with Voice SMS.
Consumer Insight
Text messages are open to interpretations.
Chatting with Youth revealed that they find text messages as an extremely convenient &
discreet way to communicate. However since text is cold they frequently use emoticons
to liven it up.

44

How did we `bring the idea to life?

Phase 1 drove awareness of the product in a fun way using TV & radio.
Phase 2 spiked trials with the Sirf Voice SMS se Kareenamanegi contest.
This was supported with
1. 15 sec TVC
2. Radio spots
3. Interactive website: where visitors could leave a message for Kareena
4. Yahoo audibles which used the TVC line Miss you so much..
5. Youth hangouts like Barista, PVR, CCD.
In Phase 2 there were also other relevant touch points:
1. Voice SMS innovation on MTV (to become Voice of MTV for a month) - to drive
trials for the product by leveraging youth-focused media property.
2. Animated
uploaded

on

viral

film-

various

social

media websites &youtube.

Results
Penetration
within

doubled
months

of

campaign launch.
For someone like me
up by 2 points amongst

Intenders aged 15-30.

Source: Millward Brown Brand Health review, Airtel Sales data

45

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 re-engineering 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 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.

46

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.

Maintaining call reports for records.

Providing Feedback to the marketing department regarding the requirement of the

market.

B. IDC (indirect Channel)

C.

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

Distribution Support

47

1.

Logistics

Monitor handset and SIM card requirements of channel partners and coordinate with stores

2.

Settle areas of concerns such as incentive claims of channel partners

Rental

Provide cellular services (SIM cards) on rent.

Provide cellular phones on rent

Useful for people visiting Delhi for a short interval.

Telesales

Call customers and generate sales lead.

Follow up with the customers, if they need any assistance

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.

48

The present market for Cellular phones, pagers and conventional phones is as
follows

Premium
Upper
Cellular Phones
X
Pager
X
Conventional Phones X
X Market Segment Targeted

Middle
Upper
X
X
X

Lower
X
X
X

Lower
X
X

Economy
Upper
Lower
X
-

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 of communication and drive home the point that the cellphone is
actually a day-to-day utility

49

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".
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

50

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
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. 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

51

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

b)

They anticipate customers' problems and take pro-active steps to prevent them

c)

They give answers to the questions & requests, quickly & efficiently.

d)

They have a positive tone & manner while interacting with customers.

e)

They end the interaction on a positive or a humorous note-making the last 30

seconds count.

Airtel 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.

52

LITERATURE REVIEW
Buying Behavior is the decision processes and acts of people involved in buying and
using products.
Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer.
A firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms
success.

The marketing concept stresses that a firm should create a Marketing Mix (MM)
that satisfies customers, therefore need to analyze the what, where, when and how
consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

STAGES OF THE CONSUMER BUYING PROCESS

Six Stages to the Consumer Buying Decision Process actual purchasing is only one stage
of the process. Not all decision processes lead to a purchase. All consumer decisions do
not always include all 6 stages, determined by the degree of complexity.
THE 6 STAGES ARE:
1.

Problem Recognition (awareness of need)- difference between the desired state

and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat. Can be stimulated by the marketer through product
information--did not know you were deficient?

53

2.

Information search-

Internal search, memory.

External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc. A
successful information search leaves a buyer with possible alternatives, the evoked
set.

3.

Evaluation of Alternatives--need to establish criteria for evaluation, features the

buyer wants or does not want. Rank/weight alternatives or resume search. May
decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied
with your choice

then return to the search phase. Can you think of another restaurant?

Look in the yellow pages etc. Information from different sources may be treated
differently. Marketers try to influence by "framing" alternatives.
4.

Purchase decision--Choose buying alternative, includes product, package, store,

method of purchase etc.

5.

Purchase- May differ from decision, time lapse between 4 & 5, product
availability.

6.

Post-Purchase Evaluation- outcome: Satisfaction or Dissatisfaction.

Cognitive Dissonance, have you made the right decision. This can be reduced by
warranties, after sales communication etc.

TYPES OF CONSUMER BUYING BEHAVIOR

Types of consumer buying behavior are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek

information about a certain products and brands but virtually ignores others.

54

High involvement purchases - high priced goods, products visible to others, and the
higher the risk the higher the involvement.
Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior--buying low involvement frequently

purchased low cost items; need very little search and decision effort; purchased
almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain

information about unfamiliar brand in a familiar product category, perhaps.
Requires a moderate amount of time for information gathering. Examples include
Clothes--know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products. High degree of economic/ performance/
psychological risk. Examples include cars, homes, computers, education. Spend a
lot of time seeking information and deciding. Information from the companies
MM; friends and relatives, store personnel etc. Go through all six stages of the
buying process.

Impulse buying, no conscious planning.

55

CATEGORIES THAT EFFECT THE

CONSUMER BUYING DECISION PROCESS
A consumer, making a purchase decision will be affected by the following three
factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate
MM for its target market.
Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is
responsible for the decision making. Young people purchase things for different reasons than
older people. Highlights the differences between male and female shoppers in the
supermarket.
PSYCHOLOGICAL FACTORS
Psychological factors include:

Motives--

A motive is an internal energizing force that orients a person's activities toward satisfying
a need or achieving a goal. Actions are effected by a set of motives, not just one. If
marketers can identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
o

Physiological

Safety

Love and Belonging

Esteem

Self Actualization

56

Need to determine what level of the hierarchy the consumers are at to determine what
motivates their purchases. A product marketed by Bristol-Myers Squibb originally was
targeted at consumers that needed to receive additional energy from their drinks after
exercise etc., a fitness drink. It was therefore targeted at consumers whose needs were for
either love and Belonging or esteem. The product was not selling well, and was almost
terminated. Upon extensive research it was determined that the product did sell well in
inner-city convenience stores. It was determined that the consumers for the product were
actually drug addicts who couldn't not digest a regular meal. They would purchase
Nutrament as a substitute for a meal. Their motivation to purchase was completely
different to the motivation that B-MS had originally thought. These consumers were at
the Physiological level of the hierarchy. BM-S therefore had to redesign its MM to better
meet the needs of this target market. Motives often operate at a subconscious level
therefore are difficult to measure.

PERCEPTION

What do you see?? Perception is the process of selecting, organizing and interpreting
information inputs to produce meaning. IE we chose what info we pay attention to,
organize it and interpret it. Information inputs are the sensations received through sight,
taste, hearing, smell and touch.
Selective Exposure-select inputs to be exposed to our awareness. More likely if it is
linked to an event, satisfies current needs, intensity of input changes (sharp price drop).
Selective Distortion-Changing/twisting current received information, inconsistent with
beliefs. Advertisers that use comparative advertisements, have to be very careful that
consumers do not distort the facts and perceive that the advertisement was for the
competitor. A current example...MCI and AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets those that don't.
Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30
minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't
be expected to be aware of all these inputs, and certainly will not retain many.

57

Interpreting information is based on what is already familiar, on knowledge that is stored

in the memory.
Problems marketing wine from South Africa. Consumers have strong perceptions of the
country, and hence its products.
Ability and KnowledgeNeed to understand individual capacity to learn. Learning, changes in a person's behavior
caused by information and experience. Therefore to change consumers' behavior about
your product, need to give them new information re: product...free sample etc.
When making buying decisions, buyers must process information. Knowledge is the
familiarity with the product and expertise. Inexperience buyers often use prices as an
indicator of quality more than those who have knowledge of a product. Consumers chose
the most expensive six-pack, because they assume that the greater price indicates greater
quality.
Learning is the process through which a relatively permanent change in behavior results
from the consequences of past behavior.
AttitudesIndividual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or failure
of the firm's marketing strategy.
Attitudes and attitude change are influenced by consumers personality and lifestyle.
Consumers screen information that conflicts with their attitudes. Distort information to
make it consistent and selectively retain information that reinforces our attitudes. IE
brand loyalty.

58

There is a difference between attitude and intention to buy (ability to buy).

Personality--

All the internal traits and behaviors that make a person unique, uniqueness arrives from a
person's heredity and personal experience.
o

Workaholism

Compulsiveness

Self confidence

Friendliness

Adaptability

Ambitiousness

Dogmatism

Authoritarianism

Introversion

Extroversion

Aggressiveness

Competitiveness.

Traits effect the way people behave. Marketers try to match the store image to the
perceived image of their customers.
There is a weak association between personality and Buying Behavior, this may be due to
unreliable measures. Nike ads. Consumers buy products that are consistent with their self
concept.
LifestylesRecent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.

59

Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.

Opinion leaders-Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay)
spokespeople to market their products. Michael Jordon (Nike, McDonalds,
Gatorade etc.)

Roles and Family Influences--

Role...things you should do based on the expectations of you from your position within a
group. People have many roles.

Individuals role are continuing to change therefore marketers

must continue to update information.

Family is the most basic group a person belongs to. Marketers must understand:
o

That many family decisions are made by the family unit

Consumer behavior starts in the family unit

Family roles and preferences are the model for children's future family (can
reject/alter/etc)

Family buying decisions are a mixture of family interactions and individual

decision making

Family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages, each stage creates different
consumer demands:
o

Bachelor stage...most

Newly married, young, no children...me

60

Full nest I, youngest child under 6

Full nest II, youngest child 6 or over

Full nest III, older married couples with dependant children

Empty nest I, older married couples with no children living with them, head in
labor force

Empty nest II, older married couples, no children living at home, head retired

Solitary survivor, in labor force

Solitary survivor, retired

Modernized life cycle includes divorced and no children.

Because 2 income families are becoming more common, the decision maker within the
family unit is changing...also, family has less time for children, and therefore tends to let
them influence purchase decisions in order to alleviate some of the guilt. Children also
have more money to spend themselves.
Reference GroupsIndividual identifies with the group to the extent that he takes on many of the values,
attitudes or behaviors of the group members.
Families, friends, sororities, civic and professional organizations. Any group that has a
positive or negative influence on a persons attitude and behavior. Membership groups.
Affinity marketing is focused on the desires of consumers that belong to reference
groups. Marketers get the groups to approve the product and communicate that approval
to its members.
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)

61

The degree to which a reference group will affect a purchase decision depends on an
individuals susceptibility to reference group influence and the strength of his/her
involvement with the group.

Social ClassAn open group of individuals who have similar social rank. US is not a classless society.
US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class Americans prefer
luxury cars Mercedes.
o

Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.

Lower-upper class, 1.2%, newer social elite, from current professionals and
corporate elite

Upper-middle class, 12.5%, college graduates, managers and professionals

Middle Americans-middle class, 32%, average pay white collar workers and blue
collar friends

Working class, 38%, average pay blue collar workers

Lower Americans-lower class, 9%, working, not on welfare

Lower-lower class, 7%, on welfare

Social class determines to some extent, the types, quality, quantity of products that a
person buys or uses.
Lower class people tend to stay close to home when shopping, do not engage in much
prepurchase information gathering. Stores project definite class images.
Family, reference groups and social classes are all social influences on consumer
behavior. All operate within a larger culture.

62

Culture and Sub-cultureCulture refers to the set of values, ideas, and attitudes that are accepted by a homogenous
group of people and transmitted to the next generation. Culture also determines what is
acceptable with product advertising. Culture determines what people wear, eat, reside and
travel. Cultural values in the US are good health, education, individualism and freedom.

63

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 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 Delhiitess 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.).

64

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". The status of the
product in terms of its life cycle has just reached the maturity stage in India. It is still on
the rising part of the product life cycle curve in the maturity stage. Airtel, keeping in
mind the importance of the customer retention, values its heavy users the most and
constantly indulges in service innovation. But, since heavy users comprise only 15 - 20%
of the population the other segment cannot be neglected.
The population which has just 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.
BESIDES THIS, OTHER PROMOTIONAL STRATEGIES THAT AIRTEL HAS
ADOPTED ARE:
(i)

People who have booked Airtel services have been treated to exclusive premiers of
blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus
miles on the German airlines frequent flier's programs.

(ii)

There have been educational campaigns, image campaigns, pre launch

advertisements,

launch

advertisements,

congratulatory

advertisements,

promotional advertisements, attacking advertisements and tactical advertisements.

65

DISTRIBUTION
Company

Franchisee

Distributor
Dealers

Dealer
Customer

Customer

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 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. 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.

66

The complaints encountered by the franchisees and dealers are either handset being nonfunctional or the SIM Card not getting activated. Anything more complicated is referred
to the main Airtel office in Delhi.

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.

67

Introduction

Growth

Maturity

MARKETING OBJECTIVES
Create product awareness

Maximise market share

and trial

Maximise profits whole

defending market share

Strategies
Product

Offer a basic

Offer value added

Increase in number

product/ service.

services

of value added
services.

Price

Distribution

Charge cost- plus

Price to penetrate

Price to match or

market

best competitors

Build selective

Build Intensive

Build more

distribution

distribution.

intensive
distribution.

Advertising

Build product

Build awareness

Stress brand

awareness among

and interest in the

differences and

early adopters and

mass market

benefits.

Use heavy sales

Increase to build

Increase to

promotion to entice

and maintain

encourage brand-

people to subscribe.

relationships with

switching.

dealers.
Sales Promotion

customers.

68

RESEARCH METHODLOGY
PURPOSE OF THE RESEARCH
The problem of marketing strategies adopted by Bharti Airtel Ltd. and find out the
problems and identify a significant solutions which model is developed by Research and
beneficial for Bharti.
The fast-changing information system and high-tech technological products have affected
the business activities of the country. The telecommunication services in India have
witnessed a phenomenal change over the last few years. The mobile services sector of
India has increased substantially. Taking the huge consumer demand into consideration,
many big players like Reliance, Hutch, Airtel, BSNL, and such others have launched their
products in the market.
AIM
To analyze the present status of telecom industry and their present and future marketing
strategies and to make them best in the competitive market and consumer behaviour and
attitude towards Bharti Airtel Ltd.
OBJECTIVES OF THE STUDY

To study the marketing strategies adopted by Bharti Airtel Ltd.

To study the consumer behaviour towards different products and serviced

provided by Bharti Airtle Ltd.

To analyze the consumer attitude and satisfaction towards Bharti products and
services.

To study about competitors overview, their products and services with Bharti
Airtel Ltd.

This research aims to understand the methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The techniques and

69

concepts used during primary research in order to arrive at findings; which are also dealt
with and lead to a logical deduction towards the analysis and results.
RESEARCH DESIGN
The researchers propose to first conduct a intensive secondary research to understand the
full impact and implication of the industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which the researchers feel remain
unanswered or liable to change. This shall be further taken up in the next stage of
exploratory research. This stage shall help the researchers to restrict and select only the
important question and issue, which inhabit growth and segmentation in the industry.
These set of questions are then proposed to be studied under a descriptive research setting
finally leading to formation of hypotheses and testing under causal research. A research
design is purely and simply the framework or plan for a study that guides the collection
and analysis of data. The survey research was used in this project, because consumers
feedback was necessary for obtaining the data.
DATA COLLECTION METHODS
New data gathered to help solve the problem at hand. As compared to secondary data
which is previously gathered data. An example is information gathered by a
questionnaire. Qualitative or quantitative data that are newly collected in the course of
researches consists of original information that comes from people and includes
information gathered from surveys, independent observations and test results. Data
gathered by the researcher in the act of conducting research. This is contrasted to
secondary data which entails the use of data gathered by someone other than the
researcher information that is obtained directly from first-hand sources by means of
surveys, observation.
Primary data w as collected by the questionnaire based market survey.
In this survey 100 Bharti Airtel Ltd. mobile users were surveyed.

Secondary data was obtained from journals, magazines, newspapers, books and of
course the Internet. All the information that already exists somewhere, having been
collected for real image of Bharti Airtel Ltd. There are two types of secondary data:

70

internal and external secondary data. Information compiled inside or outside the
organisation for some purpose other than the current investigation.
SAMPLE SIZE
A sample size of 100 respondents is used for the study.
SAMPLE UNIT
This study was basically on marketing strategies adopted by Bharti Airtel Ltd. and
consumer behaviour & attitude towards telecom service provider in Delhi & NCR
with special reference to Bharti Airtel Ltd.
PLACE OF STUDY
Delhi & NCR

71

GRAPHICAL DATA INTERPRETATIONS

The breakup of the respondents is shown as follows on the basis of Age, Sex,
Education Level & Occupation:
AGE
Upto 25 Yrs.

33%

26-35

41%

36-45

20%

46 and above

6%

72

SEX
Males

68%

Females

32%

INTERPRETATION
The breakup of the respondents on the basis of sex is males 68 % and females 32
%.

73

EDUCATION LEVEL
High School

28%

Under Graduate

12%

Graduate and above

58%

Others

2%

OCCUPATION
Student

30%

Service Man

29%

Professional

21%

Businessman

11%

Others

9%

74

Do you believe that India is potentially one of the most exciting mobile service
providers in the world?
Company
Airtel
Vodafone
Idea
MTNL

Yes
4
4
4
4

No
1
1
1
1

INTERPRETATION
As per graph, 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.

75

Do you believe that mobile services provider comes close to fulfilling the
requirements for a personal communication system?
Company
Airtel
Vodafone
Idea
MTNL

Yes
9
8
8
5

No
1
2
2
5

INTERPRETATION
As per graph, 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.

76

Do you find that mobile service providers as the most exciting and satisfying mobile
standard?
Company
Airtel
Vodafone
Idea
MTNL

15
AirTel

Vodafone

10

No
1
3
2
2

Yes

No

Yes
9
7
8
8

20
Idea

25

30

MTNL

INTERPRETATION
As per graph, 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.

77

35

Do you believe that your service provider has a genuine commitment to creating a
modern and efficient communications?
Company
Airtel
Vodafone
Idea
MTNL

Yes
10
8
10
8

No
-2
-2

INTERPRETATION
As the above graph, 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.

78

CATEGORY OF SERVICE SUBSCRIBED

Prepaid:

62% subscribers

Postpaid:

38% subscribers

BREAK up in terms of service users Bharti Airtel Limited

Postpaid Services

30%

Prepaid Services

70%

INTERPRETATION
70% of Airtel users prefer the prepaid segment while 30% prefer the postpaid
segment.

79

OTHER SERVICE USERS

Postpaid

46%

Prepaid

54%

INTERPRETATION
54% of other telecom users prefer the prepaid segment while 46% prefer the
postpaid segment. The results clearly show that there is a larger subscriber base in
the prepaid segment, which is in consonance with the industry figures.

80

SATISFACTION FROM CURRENT TARIFF

Satisfaction from current Tariff

70%
61%
60%

53%

50%
40%
30%
20%

13%

15%
11%

14%

15%

18%

10%
0%

Very Satisfied

Satisfied

Satisfied to an Extent

Dissatisfied

Airtel

61%

13%

11%

15%

OSP

53%

15%

14%

18%

INTERPRETATION
This show that only 61% of Airtel users and 53% of Other Service Provider (OSP)
users are very satisfied with tariff charges.15% of Airtel and 18% of OSP users are
dissatisfied with tariff which could lead them to shift to other cell operator
providing lower tariff.

81

SATISFACTION FROM NETWORK QUALITY

80%

73%
67%

70%
60%
50%
40%
30%

15%

20%

18%
10%

10%
0%

8%

7%
2%

Very Satisfied

Satisfied

Satisfied to an Extent

Dissatisfied

Airtel

73%

15%

10%

2%

OSP

67%

18%

8%

7%

INTERPRETATION
As shown in graph, 73% of Air Tel and 67% of OSP users are very satisfied with
network. Only 2% of Airtel users are dissatisfied which show that their network is
best. 7% of OSP users reported dissatisfaction because of poor signals or no
signals in basement.

82

SATISFACTION FROM SMS SERVICE

89%
90%

81%

80%
70%
60%
50%
40%
30%
20%

8% 10%

10%
0%

3%
Very Satisfied

Satisfied

6%
0%

3%

Satisfied to an Extent Dissatisfied

Airtel

89%

8%

3%

0%

OSP

81%

10%

6%

3%

INTERPRETATION
89% of Airtel and 81% of OSP users shown great satisfaction from SMS
service.3% of OSP users shown dissatisfaction because of late delivery of
messages and high charge.

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SATISFACTION FROM ROAMING FACILITY

70%

62%
58%

60%
50%
40%
30%

18%

20%

20%
10% 9%

10%

13%

10%
0%

Very Satisfied

Satisfied Satisfied to an Extent

Dissatisfied

Airtel

62%

18%

10%

10%

OSP

58%

20%

9%

13%

INTERPRETATION
As per graph, 62% of Airtel and 58% of OSP users are very satisfied with roaming
facility. 10% of Airtel and 13% OSP users are dissatisfied with roaming because of
high charges and poor signal strength while on roaming.

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SATISFACTION FROM BILLING

35%

31%

30%

28%

30%
25%

23%

25%

24%

21%
18%

20%
15%
10%
5%
0%
Airtel
OSP

Very Satisfied

Satisfied

Satisfied to an Extent

Dissatisfied

23%

24%

25%

28%

30%

31%

21%

18%

INTERPRETATION
As per graph, 23% of Airtel and 30% of OSP users are very satisfied with billing.
28 % of Airtel and 18% OSP users are dissatisfied with billing because of inflated
bills and delay in resolving. In this case OSP is better in comparison to Airtel with
less billing problems.

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S.W.O.T. ANALYSIS
STRENGTHS
Cost advantage
Current leaders in quality service
Largest distribution network
Ability to constantly innovate
Highly skilled workforce
Entrepreneurial zeal
Airtels increased equity and market cap.
Bharti Airtel has more than 72 million customers (July 2010). It is the largest
cellular provider in India, and also supplies broadband and telephone services - as
well as many other telecommunications services to both domestic and corporate
customers.
Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel,
with whom they hold a strategic alliance. This means that the business has access
to knowledge and technology from other parts of the telecommunications world.
The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.

WEAKNESSES
To prove credibility
Price pressures
Need for Government support
Awareness
Sales and Marketing

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 An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and experience
of how a cellular telephone system actually worked. So the start-up business had
to outsource to industry experts in the field.
Until recently Airtel did not own its own towers, which was a particular strength
of some of its competitors such as Hutchison Essar. Towers are important if your
company wishes to provide wide coverage nationally.
The fact that the Airtel has not pulled off a deal with South Africa's MTN could
signal the lack of any real emerging market investment opportunity for the
business once the Indian market has become mature.
OPPORTUNITIES
To sustain passion and commitment
Airtels 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.
The company possesses a customized version of the Google search engine which
will enhance broadband services to customers. The tie-up with Google can only
enhance the Airtel brand, and also provides advertising opportunities in Indian for
Google.
Global telecommunications and new technology brands see Airtel as a key
strategic player in the Indian market. The new iPhone will be launched in India via
an Airtel distributorship. Another strategic partnership is held with BlackBerry
Wireless Solutions.

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 Despite being forced to outsource much of its technical operations in the early
days, this allowed Airtel to work from its own blank sheet of paper, and to
question industry approaches and practices - for example replacing the RevenuePer-Customer model with a Revenue-Per-Minute model which is better suited to
India, as the company moved into small and remote villages and towns.
The company is investing in its operation in 120,000 to 160,000 small villages
every year. It sees that less well-off consumers may only be able to afford a few
tens of Rupees per call, and also so that the business benefits are scalable - using
its 'Matchbox' strategy.
THREATS

Foreign investment
Global trends moving from GPS to WLL.
Lack of global parity in telecom tariff

Other competition
Airtel and Vodafone seem to be having an on/off relationship. Vodafone which
owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead
invested in its rival Hutchison Essar. Knowledge and technology previously
available to Airtel now moves into the hands of one of its competitors.

The quickly changing pace of the global telecommunications industry could tempt
Airtel to go along the acquisition trail which may make it vulnerable if the world
goes into recession. Perhaps this was an impact upon the decision not to proceed
with talks about the potential purchase of South Africa's MTN in May 2008. This
opened the door for talks between Reliance Communication's Anil Ambani and
MTN, allowing a competing Indian industrialist to invest in the new emerging
African telecommunications market.

Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.

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89

RECOMMENDATIONS & SUGGESTIONS

SIM card activation should not take more than 24 hrs.
More talk time should be given on recharge coupon.
Rent should be brought down to minimum Rs.100 to attract students who
forms majority of mobile phone users.
Calling Line (CLIP) charges should be abolished as this is the necessity of
mobile users to know the number of calling party.
Satisfaction levels of OSP customers are comparatively lower than Airtel
customers. They should introduce reward-based schemes for its customers.
Network signal should reach underground basement with voice clarity.
Vodafone need to focus on it.
Roaming charges should be minimized.
Airtel must provide GPRS facility on prepaid as OSP does. This service is now
in very much demand as accessing e-mail, internet becomes easier by GPRS.
Vodafone is a winner in this.
MMS is now in demand having sound and video messages. This should be
provided at low cost.
Billing complaints should be resolved within 24 hrs. Airtel should look into
this matter as they have more billing related issues.
Customer care should not take so long to provide feedback to customers.
Customers should be given rewards or discounts for showing loyalty to
service.
Rewards to customers recommending others.
Free unlimited call to 1 or 2 nos. on same network without any charges.(A
tribute to LOVEBIRDS)
Free calling within the group at low monthly rental.
Internet access on PC/LAPTOP through mobile be made cheaper.

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CONCLUSION
It is concluded that the market leader of telecom services provider increasing their
deregulation in competitive age, developing countries are witnessing rapid growth in
cellular subscriber base. Indian cellular industry has been witnessing a compounded
annual growth rate of about 105.2%. It is a $5 billion industry today, and the cellular
subscriber base in the country has increased to 6.4 million from a mere 28,550 in
2010.
Indian mobile subscriber base is expected to grow to 19.48 million in the current year
i.e. 2010. The penetration rate of cellular services is very poor in developing
countries. Economic conditions, market structure, policies regarding tariffs and
interconnect agreements, and customer characteristics are some of the significant
forces affecting the growth of cellular services. The consumer behaviour towards
telecom sector its impact on growth potential and its development across the limit
band since last 3-4 years for cellular operators to attain financial payback on their
projects, estimates of market size can be useful for network and investment planning.
Qualitative narratives and descriptive statistics of the cellular sector for many
countries are available from a variety of industry sources. However, rigorous
empirically based studies of cellular market growth are much more limited in number.
Moreover, these studies do not provide much insight into the mechanics of growth in
cellular markets. Such insights can inform policymakers about the process by which
growth occurs and help develop policies that can improve cellular penetration in
developing countries. They are also useful to service providers in planning their
network rollouts and services in the face of market competition.

New service

providers in telecom sector and the incumbents face erosion of their subscriber base.

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They can take preemptive measures to improve the quality of their services offerings,
reduce prices and increase the breadth of their service offerings.
The new operators have to battle against the advantages of the incumbents such as
existing subscriber base, economies of network operations, network infrastructure and
their financial strength. There are idiosyncrasies that may also need to be considered.
In case of India for instance, some of the entities that have received licenses to
operate as the fourth operator in metro areas, have prior cellular network provisioning
experience in selected parts of the country. They can reduce the roaming charges
when the subscriber roams in the operator's other areas. Further, the government
owned third operator, was erstwhile monopoly operator in basic and domestic long
distance services. This operator has extensive long distance network and a sound
financial base that will enable them to cross-subsidize the cellular service and reduce
prices.
o Most of the population prefers the pre-paid segment.
o 62% of Airtel and 58% of OSP users are very satisfied with roaming facility.
o 68% of Airtel and 42% of other service provider and their users are very
satisfied with customer care. In case of OSP 18% of users are dissatisfied with
customer care while in Airtel it is only 5%.
o 73% of Airtel and 67% of OSP users are very satisfied with network.
o 89% of Airtel and 81% of OSP users shown great satisfaction from SMS
service.

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BIBLIOGRAPHY
BOOKS
Marketing Management (Millennium Edition)
Marketing Research

Philip Kotler
C.R Kothari

Marketing Research

G.C Beri

MAGAZINES / NEWSPAPERS

Business World

Business Today

Outlook

The Hindustan Times

The Hindu Business Standard Line

The Economics Times

WEBSITES

www.airtelworld.com

www.trai.com

www.bharti.com

www.telecom_india.com

www.googlesearchengine.com

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