Marketing Research
Marketing Research
SUBMITTED BY
BHAVNA VAZIRANI
Roll No: DPGD/JL08/0405
WEKINGKAR INSTITUTE OF MANAGEMENT
DEVELOPMENT &
RESEARCH
YEAR OF SUBMISSION: JUNE 2010.
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CERTIFICATE
……………………….. ………………..
(Signature of Student) (Signature of Project Guide)
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CONTENTS
ACKNOWLEDGEMENT 4
EXECUTIVE SUMMARY 5
MARKETING RESEARCH
• MEANING 6
• ROLE OF MARKETING RESEARCH 7
• THE RESEARCH PROCESS 9
• FEATURES 11
• ADVANTAGE & DISADVANTAGE
HISTORY OF INDIAN TELECOMMUNICATION 21
CLASSIFICATION OF TELECOMMUNICATION 24
LITERATURE REVIEW 29
OBJECTIVES 32
RESEARCH METHODOLOGY 33
• Primary Data
• Secondary Data
• Procedure of research methodology
STRENGTHS AND LIMITATIONS OF MAJOR COMPETITORS 34
• Vodafone Essar
• Idea
THREAT OF WLL TO AIRTEL’S BUSINESS 36
• Concept of WLL and current market overview
• Current Scenario in India
MARKETING STRATEGIES OF AIRTEL TO FACE COMPETITION 39
FINDING AND ANALYSIS 41
MARKETING MIX OF AIRTEL 61
HYPOTHESIS & QUICK FACTS 63
LATEST NEWS 64
CONCLUSION 66
LIMITATIONS 67
RECOMMENDATION 67
ANNEXURE 69
BLIOGRAPHY 72
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ACKNOWLEDGEMENT
I wish to express my deep gratitude to all the people whose help and
cooperation has enabled me to complete this project.
Finally, I would like to thank my family and friends for their continuous
support and encouragement during the entire Project. I acknowledge my thanks
to them.
This Project has helped me sharpen my skills as a student and I will always
strive to maintain high standards in any of mine future assignments.
Thank You!
Bhavna Vazirani
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EXECUTIVE SUMMARY
In this project we have first defined what is Marketing Research and its various
features. Also we have focused on the need of Marketing Research, its
advantages and disadvantages.
And taking Airtel as a case study, we have also studied where it stands, relative
to its competitors. The main tool used was, the questionnaire method,
which is shown at the End of the Project. It has also been found that
what are the relative strengths and weaknesses of Airtel vis-à-vis its
competitors. Demographics of the cellular users are also found.
After completion of this project I found that in spite of Airtel, being the market
leader in the GSM Technology, it still lagged behind Idea and Vodafone as far
as customer service and availability is concerned. Maximum numbers of
mobile users are in the age group of 20-28, which are mostly students and
young executives. Maximum numbers of people are using prepaid cards.
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Marketing Research:
Meaning:
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ROLE OF MARKETING
Customer Groups
RESEARCH
Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Controllable Environment
Environment Marketing Research factors
factors
Economy
Assessing Providing Marketing
Product Decision Technology
information Information
Price Making Competition
needs
Promotion Regulations
Distribution Political factors
Social &
MarketIngManagers Cultural
Market Segmentation factors
Target market selection
Marketing programme
Performance and control
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Benefits v/s cost (Does the value of the research exceed the
cost??)
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5. Risk management - identifying what risks pose the greatest threat to your
business.
6. Understanding what customers expect of you and how well you are
delivering.
Most of the people are always confused about the difference between
Marketing research and market research. Generally these terms are used as
alternate terms but there is a minor difference in their concepts.
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2. Marketing research- this includes the 4 p's i.e. product, price, place &
promotion. It covers all the possible measures. It has a systematic
investigation. Market research- this include only place as a factor. It is
narrow & only customer oriented. It is the measurement of market demand
only.
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4. Enhances Opportunities:
MR will help identify opportunities. Check the competition. Are they
missing something you can capitalize on? What can you do better than they
can? Are you clients in need of something nobody else is offering?
5. Risk Minimization:
It will minimize risk. Just like any situation, if you come prepared you will
be less likely to loose and more likely to win.
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In MR, efforts are being made to predict the possible future situation. For
this certain research studies are undertaken. However the results
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6. MR is a costly affair :
It is costly as research work requires the service of expert and
knowledgeable people. Such expert includes economist, management
scientist, psychologist and computer expert.
7. Complexity of subject :
Specifying
Collecting
Analyzing
Interpreting
FOR
Planning
Problem solving
Control
BETTER DECISION MAKING
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Dynamic (ongoing)
Globalization
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INTRODUCTION
The telecom industry is one of the fastest growing industries in the country.
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.
China is the biggest market in Asia Pacific with a subscriber base of 48% of
the total Subscribers in Asia Pacific as compared to that of India’s share in
Asia Pacific Mobile Phone.
Market is 6.4%. considering the fact that India and China have almost
comparable Subscriber base
Populations, India’s low mobile penetration offers huge scope for growth
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
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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, Vodafone- Vodafone, 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.
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Cellular Service
Overview
There are five private service operators in each area, and an incumbent state
operator. Almost 80% of the cellular subscriber base belongs to the pre-paid
segment.
The DoT has allowed cellular companies to buy rivals within the same
operating circle provided their combined market share did not exceed 67 per
cent. Previously, they were only allowed to buy companies outside their
circle.
Growth Drivers
Opening up of international and domestic long distance telephony services are
growth drivers in the industry. Cellular operators now get substantial revenue
from these services, and compensate them for reduction in tariffs on air time,
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.
The Key players in the Telecom Market in India
Cellular Service provider:
BSNL
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Airtel
Vodafone
Idea
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Reliance
. Reliance
Tata Indicom
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Aircel
7. Aircel
MTNL
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LITERATURE REVIEW
Subscribers:
Wireless subscribers crosses 200 million mark
Tele density reaches 49.50%
The total number of telephone subscribers has reached 247.07 millions at the end
of Dec 2009 as compared to 232.87 million in July 2007. The overall tele density
has increased to 49.50 % in March 2010 as compared to 41.08% in Dec 2009.
In the wireless segment, 46.37 million subscribers have been added in 2010. The
total wireless subscribers (GSM, CDMA & WLL (F)) base reaches 488.40
million at the end of Oct 2009. India Also overtakes U.S to become second
Wireless Network in the World.
(Subscribers in Million)
FY 2007 - 08 FY 2008 - 09
Adds.
Additions Adds.
During
August- during August- During
March-08 March-09 July-09 Apr -
08 Apr - Aug 09 Aug
Aug
2008 2009
2009
Wireless* 98.78 123.44 24.66 165.11 192.98 201.29 8.31 36.18
Wire
line* 41.54 40.87 -0.67 40.75 39.89 39.73 -0.16 -1.02
Total 140.32 164.13 23.99 205.86 232.87 241.02 8.15 356.16
• The present data is tentative and likely to be adjusted on the basis of Quarterly
Reports received from the Telecom Service Providers
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India is seen as the key potential markets in the world by global telecom firms
about 2.5 million users are adding each month. The Indian government has
forecast the country will have 550 million telephones by Dec 2010. Up from 110
million now. Recently India has raised FDI cap in telecom industry from 49% to
74%. The foreign investment can be made directly or indirectly in the operating
company or through a holding company. The remaining 26% stake shall be
owned by resident Indian foreign Indian citizens or an Indian company. FDI
would include FIIs, NRI, Overseas commercial borrowing, FCCB, ADRs,
GDRs, convertible preferential shares, Proportionate foreign investment in
Indian promotes and investment companies including their holding companies.
Telecom industries are now concentrating also on mobile gaming. After ring
Tones, cool wallpapers and MMS, Mobile gaming seems to be the next big,
business of the telecom service providers. According to the market research by
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In-Sat/MDR, the Indian mobile gaming market has the potential to generate
annual revenue of about $ 536 million by 2010.
OBJECTIVES
To compare marketing strategies of Airtel with existing players in GSM in
particular IDEA AND VODAFONE
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RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the
subject. As the prime objective of the project is to compare Airtel with the
existing competitors in the market and the impact of WLL on Airtel, the
research methodology adopted is basically based on primary data via which
the most recent and accurate piece of first hand information could be
collected. Secondary data has been used to support primary data wherever
needed.
• Primary data
The main tool used was, the questionnaire method, which is shown at the
End of the Project. Further direct interview method, where a face to face
formal interview was taken. Lastly observation method has been continuous
with the questionnaire method, as one continuously observes the
surrounding environment works in.
• Secondary data
1. Company Sites
2. Magazines
3. Newspapers
4. Bharti Circulars
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Finally the collected data and information was analyzed and compiled to
arrive at the conclusion and recommendations given.
Strengths
• It has existing operations in metros and (New Delhi, Mumbai, Hyderabad,
Bangaluru and Kolkata).
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• It has a strong brand image (Vodafone) in Mumbai, and the brand could be
leveraged in the other circles. It is also perceived as an innovative service
provider.
Limitations
• The 49 % limit on foreign ownership could pose a problem in Vodafone's
plan to expand to other circles.
• It has created increased competition in New Delhi and Mumbai. MTNL has
commenced its cellular offerings there, and Idea and Bharti have also
acquired licenses to operate in New Delhi and Mumbai, respectively.
Strengths
• Idea has service licenses in two of the metros (Mumbai and New Delhi),
with extensive retail outlets in Mumbai (over 1,500). It has also managed to
secure licenses for a large, contiguous service area covering Southern and
Central India.
• It is backed by large and reputed Indian business house — Birla and Tata.
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Limitations
• Idea does not have cellular licenses in any Southern states of India except
for Andhra Pradesh. With the BPL merger not taking off, it has deprived
Idea of a presence in South India.
• It will face intense competition in its service area from the Bharti Group and
Vodafone
WLL Subscribers rose to 2.7 million, from 2.3 million at the start of 2009.
The growth is some what reflective of increasing preference of users to
switch to WLL from fixed line where the Subscribers dropped
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Advantages of WLL
Cost – wireless systems are less expensive due to cost of cable installation
that’s avoided
Selective installation – radio units installed for subscribers who want service
at a given time with a wired system, cable is laid out in anticipation of serving
every subscriber in a given area
Disadvantages of WLL
1. Instrument cost is high.
2. Once you pay for set for Reliance you are bound to it for three years even
after that are not the owner of the set.
3. It is a new technology in India and people are a bit apprehensive about it.
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Easy Recharge: Latest strategy of Airtel to give pre paid users freedom
of amount of recharge.
Monthly Plans ranging from 150 per month to 1799 per month.
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Airtel has launched 128k sim which is having more memory to store
phone book numbers and messages. It is having an inbuilt menu for various
call based and Text based services.
Text base services: services like Chatting and checking mail through
SMS.
Phone Banking: Tie up with HDFC and bank of Punjab to offer banking
services on handset.
Dial a service: To get pizza, flowers train timings, car mechanics etc.
Bill payment through credit card and banks without giving cheques and
credit card number every month.
Fax and Data services: Different numbers for fax and calls.
Latest Recharge of Rs. 64/- wherein Airtel Call Home launches pay
per Second plan for its all customers.
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AGE GROUP
28-35 15-21
20% 15%
21-28
65%
As we can see from the above graph, the people who are in the age group of
21-28 years are the ones who are the maximum users of mobile phones. This
segment is the one which gives maximum business to the mobile operators.
This segment constitutes the young executives and other office going people.
They are 65% of the total people who were interviewed. The next age group is
the people who are 28-35 years old. They are 20% of the total. They are those
who are at home or have small business units etc. And the next age group is the
youngest generation who are 15-21 years old. They are school and college
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going students and carry mobile phones to flaunt. They are 15% of the total
interviewed people.
OCCUPATION GRAPH
60%
50%
40%
Percentage 30%
20%
10%
0%
Executives Households Others
Student
s
Series1 15% 55% 20% 10%
Occupation
As the above graph shows that 55% of the total people are working. So, these
people are the ones who are the maximum users of mobile phones. They are
the young executives, managers, Tele - callers etc. who require mobile for their
official purposes. The next category is the households, who are either
housewife, small units which operate from their homes etc. They are 20% of
the whole. The next segment is the students. They are 15% of the whole. And
10% of the whole is categories who are the professionals.
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MODE OF COMMUNICATION
100% 90%
80%
P e rce nta ge
60%
Series1
40%
20%
5% 2% 3%
0%
Telephone Cell Phone E-Mail Other
Series1 5% 90% 2% 3%
Mode of Communication
Telecom industry in India is increasing at a very fast rate. The telecom industry
has maintained its strong growth in FY09 backed by the higher demand for
mobile phones. It found that today 90% people are using Cell phone and it is
increasing with the tremendous rate in India. On the other side people are using
only 5% telephone, 2% E-mail and 3 % other.
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50%
40%
30%
Percentage
20%
10%
0%
Idea Airtel Trump &
Vodafone Others
Series1 15% 50% 30% 5%
Service Providers
The above graph shows a slice of 50% are the total no. of people who are using
Airtel. It seems that people are more aware of Airtel than any other brand. The
next popular brand is Vodafone. 30% of the people interviewed had Vodafone
connections. 15% people had Idea connections. As it came very late in the
market when Airtel had established it self very well. So, that could be one of
the reasons of such a low percentage. The remaining 5% had trump
connections.
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60%
50%
40%
Percentage 30%
20%
10%
0%
Dissatisfi Fully
Fully Partially
ed Dissatisfi
Series1 20% 10% 60% 10%
Customer Satisfaction Level
As the above graph clearly shows that customer services seems poor. 60% of
the people are dissatisfied with the customer services provided by their service
provider. They are the ones who have the maximum share in the market but
they are lagging behind in the customer services. 10% of the people were fully
dissatisfied with the customer services. This could leave an impact on the mind
of the consumer. He can even switch over his brand. 10% of the people seemed
partially satisfied with the customer services and only 20% seem to be fully
satisfied with customer services, which is a very small amount.
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100% 95%
80%
Percentage
60%
Series1
40%
20%
4% 1% 0%
0%
Yes Sometimes Rarely Not at all
Series1 95% 4% 1% 0%
Provider offers schemes
While survey it was found that 95% people believe that their service provider
offers new schemes on time. Only 4% 1% and 0% people said that their service
provider offers new schemes sometimes, rarely and not at all respectively.
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120%
97%
100%
Percentage
80%
60% Series1
40%
20%
1% 2% 0%
0%
Very Some what Not very Not at all
important important important important
Series1 97% 1% 2% 0%
Importance of Mobile Phone
With reference to 97% people think that mobile phone is very important now
days. Only 1%, 2% and 0% people think that mobile phone is some what
important, Not very important and Not at all important respectively.
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45%
40%
40%
35%
35%
30%
Percentage
25%
Series1
20%
15%
15%
10%
10%
5%
0%
Every time Sometime Rarely Not at all
Series1 40% 35% 15% 10%
Service provider listens problems
After conducting the survey 40% people think that service provider listens to
their problems every time and 35% people think that service provider listens to
their problems sometimes. But with 15% and 10% people think that service
provider listens to their problems rarely and not at all respectively.
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TYPES OF CARDS
POSTPAID
CARD
30%
PREPAID
CARD
70%
Prepaid cards seemed quite popular among the people interviewed. 70% of the
total mobile users were having prepaid card connections. This means that the
prepaid cards should be easily and readily available in the local markets. 30%
of the people were having sim connections which are the regular bill.
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80%
60%
Percentage 40%
Series1
20%
0%
Rs. 200- Rs. 450- More than
450 600 Rs. 600
Series1 24% 64% 12%
Monthly Expenses
People on an average spend RS 500 per month as their mobile phone expense.
64% people spend this amount. 24% people spend RS 300 per month as their
monthly mobile expense. And the remaining 12% had an expense more than
Rs. 600, they could the ones having sim connections or having cash cards and
having a lot of business calls on their mobiles.
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100%
80%
60%
Percentage
40% Series1
20%
0%
Aware Not Aware
Series1 85% 15%
Awareness about WLL
WLL doesn’t seem to be a new word for many of the people. 85% of the
people are aware of such a technology. So, in order to get the answer for this
question they were first explained the concept. Only, 15% people don’t know
what WLL is all about.
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TATA
INDICOM
15%
RELIANC
E
85%
Reliance was the brand which was popular amongst the interviewed people.
As Reliance had done so much advertising and has it banners and hoarding
spread all over Delhi. So, this could be one the reasons of its popularity.
Tata was hardly a known brand in this new field. Possibly, because of less
promotions done by them as compared to Reliance.
There is no more of prepaid cards than post paid cards. The mobile users
want to spend money side by side than to spend money at the end of the
month on a big bill.
Now when I compared Airtel with its competitor from the point of view of
the consumer I found that on the basis of Tariff plan, value added services
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and billing accuracy Airtel is at par or ahead of its competitor but in the
case of customer care and availability they lag behind there competitors. As
far as WLL is concerned people are aware about it but not many people are
aware about Tata. They only know more about Reliance.
• NETWORK CONNECTIVITY
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• EASY AVAILABILITY
36%
35% 35%
35%
34%
33%
Percentage
32%
Series2
31%
30%
30%
29%
28%
27%
Airtel
Airtel Hutch
Vodafone Idea
Idea
Easy Availability
Customers find all connections easily available in major market places, service
provider’s outlets etc with Airtel 35%, Vodafone 35% and Idea 30%.
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• SERVICE QUALITY
45%
40%
40%
35%
35%
30%
Percentage
25%
25%
Series2
20%
15%
10%
5%
0%
Airtel
Airtel Hutch
Vodafone Idea
Idea
Good Service Quality
o 40% of the customers think that Vodafone has the best service quality on all
India basis.
o 35% of the customers think that Airtel has a better service quality.
o 25% of the customers think that Idea has good service quality.
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• LOW PRICE
45%
40%
40%
35%
30% 30%
30%
Percentage
25%
Series2
20%
15%
10%
5%
0%
Airtel
Airtel
Vodafone
Hutch
Idea
Idea
Price
40% of the customers think that Idea is offering services at low price
than Airtel and Vodafone, while 30% customers of Airtel and 30% of Vodafone
think that their service provider is offering low price than Reliance Infocomm.
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45%
40%
40%
35%
30% 30%
30%
Percentage
25%
Series2
20%
15%
10%
5%
0%
Airtel
Airtel Hutch
Vodafone Idea
Idea
Promotinal Schemes
o 40% of the customers think that Idea provides most value added services.
o Airtel and Vodafone have also started providing more value added
service with 30%
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32%
Series2
31%
30%
30%
29%
28%
27%
Airtel
Airtel Hutch
Vodafone Idea
Idea
Advertisements & Brand Ambassador
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• BRAND NAME
50%
45%
45% 40%
40%
35%
Percentage
30%
25% Series2
20% 15%
15%
10%
5%
0%
Airtel
Airtel Hutch
Vodafone Idea
Idea
Brand Name
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45%
40% 40%
40%
35%
30%
Percentage
25%
20% Series2
20%
15%
10%
5%
0%
Airtel
Airtel Vodafone
Hutch Idea
Idea
Influence from Family, Friends & Relatives
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MARKETING MIX
Product
Airtel Pre-paid Airtel Pre-paid
Airtel Post-paid
Blackberry Wireless Handheld
Value Added Services (VAS)
The different value added services provided by Airtel are-
Instant Balance Enquiry
24Hr recharge Facility
Caller line identification
Call divert, Call wait & Call Hold
Multimedia messaging service (MMS)
Airtel Live Portal
SMS based Information Service
Hello Tunes & Ring Tones
Voice Mail Service
Easy Post-paid bill collection
Gifting of Ring Tones & Hello Tunes
GPRS
Price
Customer based pricing strategies.
Flexible pricing mechanism
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Controlled by TRAI.
Place
It has wide and extensive presence even in the remotest areas
Airtel Customer Care Touch Points
Distributors like
E.g. Pan shops, grocery stores, chemists, outlet etc.
Outlets
Promotion
Large scale print and video advertising.
Big celebrities like SRK and Sachin are roped in to endorse the product.
In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune
is perhaps the most downloaded tune in India.
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"Friends" pre-paid connection for youth," Ladies Special" plan, seniors plan.
HYPOTHESIS
Quick facts
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LATEST NEWS
Bharti Airtel joins hands with Manchester United for a five year
exclusive agreement.
Manchester, May 8, 2009: Bharti Airtel, Asia's leading integrated telecom
services provider, today announced a five-year partnership with
Manchester United Football Club. The partnership is first of its kind for
both Manchester United and Airtel.
With this, Airtel customers across India, Sri Lanka and the Seychelles will
get exclusive access to rich football content of Manchester United (MU) on
Airtel mobile phones. In addition, Airtel users will also get an opportunity
to participate in the Manchester United Soccer Schools program currently
operated by Manchester United Merchandising Limited. Airtel customers
will also get an opportunity to watch football matches at Old Trafford and
travel to Europe to watch Manchester United play the UEFA Champions
League.
The announcement was made by Sanjay Kapoor, Deputy CEO, Bharti Airtel
in the presence of Manchester United Club CEO David Gill, Sir Alex
Ferguson and Manchester United players Wayne Rooney, Carlos Tevez and
Darren Fletcher at Old Trafford, Manchester City, UK.
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CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel lagged
behind its competitors as far as customer service and availability is concerned.
The maximum no. of people who use mobiles in the age group of 20 to 28.
Cash cards are the most popular type of mobile connections, as they are
consumer friendly and recharging the connection is not a problem.
People are aware about the tariff plans offered by WLL service providers, so to
face the challenge the bill plans must be competitive.
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Pre paid Users cover a larger share of market. Although the call rates had come
down for post paid users but for prepaid users are still not competitive. If this
portion has to be grabbed Airtel has to keep competitive call rates in re paid
connections.
LIMITATIONS
While compiling the project no such problem can be stated as limitation, as
constant help was provided by the faculty members in the effort to bring the
project in the shape it is. However a few difficulties cropped up in handling the
consumers while conducting the survey, which are the limitations in the
project:
The sample size is only 50 so nothing conclusive can be derived from this
sample size.
RECOMMENDATIONS
Airtel should look into the short comings of its customer care service.
Airtel should make sure, that their prepaid card should always be readily
available with the retailers.
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Main advantage of WLL is its tariff plan. So GSM service providers should
try to reduce their tariff plans if possible, at least initially.
More competitive call rates for Pre paid users will help in grabbing the
market.
Reduced roaming rates for pre paid users will also help in grabbing the
market.
Value based services at a lower cost will help in grabbing the market.
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ANNEXURE
QUESTIONNAIRE
NAME: AGE:
SEX: OCCUPATION:
Telephone
Cell phone
E-Mail
Any other …………………..
Yes No
Fully
Partial
Dissatisfied
Fully dissatisfied
Yes
Sometimes
Rarely
Not at all
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Very important
Some what important
Not very important
Not at all important
Every time
Sometime
Rarely
Not at all
8. Do you have
Always
Occasionally
Not at all
Yes No
12. What do you think should be the rent on the usage of cell phones per
month?
13. Give your comments (which you think is the best in the scale).
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BIBLIOGRAPHY
BOOKS
MAGAZINES
BUSINESS INDIA
BUSINESS WORLD
WEBSITES:
www.coai.com
www.trai.com
www.airtelindia.com
www.khoj.com
www.airtelworld.com
www.Vodafone.in
www.idea.com
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