Airtel New Report_1

A Project Study Report On Training Undertaken

Titled Supervision and Brand Promotion of Airtel prepaid and postpaid cellular services at Modern Trade Centers in Jaipur Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By: AMRIT KUMAR SAKHRANI MBA- 4TH SEM.

Submitted To:- Col.C.D. Sharma (Dean)

2008-10 Faculty of Management Studies,

Maharishi Arvind Institute of Engineering & Technology,

Jaipur (Raj.)

PREFACE

I am pleased to present this report which is the outcome of the hard work put in by me for the last 15 days. I had been assigned with a research topic by my company guide Mr. Lokesh Mehra Mehra (Mar (Marke ketin ting g Mana Manage ger, r, Bhart Bhartii Haxac Haxacom om Ltd.) Ltd.) and and Projec Projectt guide guide Mr. Mr. Mohit Mohit Kuma Kumar r (Territory Manager, Sales) which is ` Supervision and Brand promotion of Airtel prepaid and postpaid cellular services at Modern trade centers in Jaipur ’.

To fulfill the requirements requirements of the research an intensive survey has been carried out to analyze the the compet competiti itiven veness ess and and brand brand image image of Airte Airtell Prod Produc ucts ts and and Serv Service ices. s. In this this Report Report a descriptive account of the research has been mentioned. Also the Objective, Methodology, Data collected, Observations and Findings have been addressed.

As I submit this Report I am sure that the orientation of the research that has been conducted conducted is correct and the findings of it will prove to be quite beneficial to the organization.

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PREFACE

I am pleased to present this report which is the outcome of the hard work put in by me for the last 15 days. I had been assigned with a research topic by my company guide Mr. Lokesh Mehra Mehra (Mar (Marke ketin ting g Mana Manage ger, r, Bhart Bhartii Haxac Haxacom om Ltd.) Ltd.) and and Projec Projectt guide guide Mr. Mr. Mohit Mohit Kuma Kumar r (Territory Manager, Sales) which is ` Supervision and Brand promotion of Airtel prepaid and postpaid cellular services at Modern trade centers in Jaipur ’.

To fulfill the requirements requirements of the research an intensive survey has been carried out to analyze the the compet competiti itiven veness ess and and brand brand image image of Airte Airtell Prod Produc ucts ts and and Serv Service ices. s. In this this Report Report a descriptive account of the research has been mentioned. Also the Objective, Methodology, Data collected, Observations and Findings have been addressed.

As I submit this Report I am sure that the orientation of the research that has been conducted conducted is correct and the findings of it will prove to be quite beneficial to the organization.

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Acknowledgement

I express my sincere thanks to my project guide, Mr. Lokesh Mehra (Marketing Manager, Bharti

Haxacom Ltd.) and Project guide Mr. Mohit Kumar (Territory Manager, Sales) , Deptt, Marketing for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him/her/them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/she/they had provided to me with all stages of this project.

I woul would d also also like like to than thank k the the supp suppor orti ting ng staf stafff of Mark Market eting ing Depa Depart rtme ment nt,, for for thei theirr help help and cooperation throughout our project.

AMRIT KUMAR SAKHRANI MBA 4TH SEM

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LIST OF CONTENTS Industry and Company Profile • •

Introduction and Telecom Industry Overview Company Profile

Project Profile

Research Methodology • • • • • • •

Research Problem Objective & Sub Objectives of Research Research Design Research Instrument used Method of Data Collection Sample Design Limitation

Analysis •

• • •

•

Marketing Mix of Bharti Airtel Comparison Of postpaid & prepaid plans Responses & finding on retailers survey Findings on customer satisfaction survey Conclusion

Recommendation Questionnaire References Bibliography Annexure

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Sr. No.

PARTICULARS

1.

COVER PAGE

2.

CERTIFICATE

3.

PREFACE

4.

ACKNOWLEDGEMENT

5.

DECLARATIONS

5.

EXECUTIVE SUMMARY

6.

INDUSTRY PROFILE

7.

COMPANY PROFILE

8.

RESEARCH METHODOLOGY

9.

LIMITATION OF STUDY

10.

FINDING AND ANALYSIS

11.

CONCLUSION

12

QUESTIONERE

13

REFEERNES

14

BIBLIGRAPHY

6

7

INTRODUCTION

Telecom sector is one of the booming sectors and the market opportunities are immense this is quite evident seeing the increasing number of players in this sector. But unlike the past the competition has also increased leaps and bounds. The reason for this is the availability of so many options to choose from, these are being introduced by the current operators on a timely basis. Now-a-days in the telecom sector there is cut throat competition and only that operator who can withstand this competition can survive in the market, else suffers huge losses. To start the project, I have been told by my company guide is that a survey needs to be carried out which should be focused on retailers, customers, different tariff plans and value available with other operators .The findings from such a survey will be used to analyze what is the current market scenario and where Airtel stands in comparison to the other operators and its value as a brand in sight of customers. After this I started designing questionnaires to conduct the survey. The questionnaire was approved by my project guide and he told me that I can start the survey on retailers. This report contains the survey conducted on retailers and the data collected (Postpaid/Prepaid Mobile Plans) from various outlets of all six telecom operators in Jaipur. Based on the data collected from retailers some findings have been reported and all the competitive plans in the mobile section. This would give an analysis of what is the current status of the company among the retailers and their satisfaction levels and what are the reasons for the sale of various other mobile plans and why they are the best selling ones. In the next phase of the project a summary on the survey on Customer Satisfaction is given which will give a clear picture of the Competitiveness of Airtel among other players.

OVERVIEW OF TELECOM INDUSTRY

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The cellular phone industry is one of the India’s rapidly growing industries. Since the industry came into being in the mid 1990s, its average per annum growth rate has been a phenomenal 85 percent. By the end of 2002, the Indian cellular phone industry had over 10 million subscribers. The industry has undergone a number of changes over the years. The National telecom Policy 1999 was an important landmark in the development of the cellular telecom industry in India, the tariff rationalization and policy regulation introduced in the Policy helped the industry to grow at the pace it did. The years 2001 & 2002 saw an increase in the level of competition in the industry with more operators being given licences, and fixed line providers also entering in the mobile market. In 2003, Telecom Regulatory Authority of India (TRAI) announced regulation of interconnects user charges to resolve conflicts between cellular operators and fixed line operators.

The telecommunication industry operates in a licensed and regulated environment. The government of India, through Department of telecommunication (DOT) and Telecom commission, both functioning under the ministry of communication and information technology decides on the policies that governs/regulates the sector and issues the above-mentioned licenses and registration.

RECENT DEVELOPMENTS IN THE INDIAN TELECOM MARKET

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The telecom sector has shown impressive growth during the past decade. Today, more than 125 million telephone networks is one of the largest communication networks in world, which continues to grow at a blistering pace. The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector. Two striking features of this growth viz. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have predominated the telecom sector. The share of mobile phones (including WLL mobile) has overtaken the share of landlines with 62% in the total number of phones. The private sector's contribution is also increasing rapidly. Currently more than 30 lakh phones are being added each month and it is targeted that by the end of 2007 the total number of phones may reach a level of 250 million taking the tele-density to more than 22% from the present level of 11.32%.

Network Expansion: The subscriber base for telephony services continued its growth during March 2007 with 3.93 million subscribers being added during the month. A total of 66.51 millions subscribers have been added during the financial year 2006-2007 as compared to 41.91 millions in 2005-06, registering an increase of 58% in annual growth. This is highest ever increase in subscribers base during a financial year after the opening up of telecom sector for competition.

Wireless Service: Wireless services subscriber base increased by 3.53 million in March 2007 as compared with 6.21 million in February 2007. This lower growth in the month of March 2007 can be attributed to insistence by the Government to ensure verification of subscribers. The total wireless subscribers at the end of March 2007 are 166.05 million as compared to 98.78 million in March 2006 registering an annual growth of around 68%.

Wire-line Subscribers:

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In the Wire-line segment a total of 0.40 million subscribers were added during March 2007 as compared to a decline of 0.02 million in February 2007. With this the total subscriber base of wire-line reached 40.78 million in March 2007 as compared to 41.54 million in March 2006 registering a decline 1.82%.

Broadband Subscribers: The Broadband connections (>256 Kbps download) in the country have touched 2.30 millions at the end of March 2007 as compared to 1.35 millions in March 2006 registering a growth of 70%. The broadband subscribers were 2.21 million in February 2007 and thus there is addition of 0.09 million broadband subscribers in March 2007.

Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. The share of private sector has risen from 54.54 per cent in December 2005 to 64.14 per cent in November 2006.

Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition. The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service. The long distance domestic as well as international charges have also fallen considerably.

Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy (NTP) 1999. TRAI has endeavored to encourage greater corporation in the telecom sector together with better quality and affordable prices.

"One-India" Tariff Plan

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The Ministry of Communication and Information Technology had mooted the idea of introducing " One India Plan" scheme with the objective of providing an affordable tariff throughout the country. In consonance with this vision, the public sector operators (BSNL & MTNL) launched the "One India plan" with effect from March 1, 2006. The new plan enables the customers of BSNL & MTNL to call from one end to other of India at the cost of Rs. 1.00 per minute anytime of the day to any phone. The new plan makes the tariff technology independent, taking away the distinction between the fixed line tariff and cellular tariff.

The telecom market in India is progressively expanding. Its rapidly growing overall subscriber base is presently on the verge of crossing the 203 million mark.

Today, India is regarded as the third biggest telecom market globally, after America and China, with cell phone and landline telephone customers touched 203 million mark at the close of preceding month, according to the news reported by Telecommunication Industry News.

The nation's telecom segment rose by 3.2% in February alone, with the joining of 6.3 million more customers through the month. Most of the customers were wireless subscribers, with India's GSM and CDMA networks toting up 4.88 million and 1.35 million, correspondingly. India is one of the most rapidly developing telecommunication markets. Fast developing middle class and growing privatization of the major industries are comprehended as a few of the main causes of this development. More quantity at economical prices is also the primary reason for prosperity of the Indian telecom industry. The growth of the Indian telecom industry has been driven by a huge increase in cell phone customers. India amassed about 74 million additional cell phone customers in 2006. The development in the cellular telephone sector followed large reductions in duties by mobile services providers, which removed the average revenue per user (ARPU). As a result, telecom density in the nation has risen to above 17.0% at close of January 2007 from 3.6% in March 2001. Cell phone service providers are currently shifting their focus on innovative services like e-mail and song downloads to increase ARPU. 12

The huge increase in mobile customer base in India has attracted international organizations to invest in mobile facilities in the nation. Recent liberalization of government regulations permits international firms to retain up to 74% stake of a mobile service provider. As indicated by a research analyst at RNCOS , the telecom sector in India showcases a distinctive chance as opposed to highly-developed nations, where mobile services are expected to be complementary services, since majority of the business organizations and houses already have existing facility of land line phones. But in India, mobile telephones can be an alternate to land line telephone services, thus maximizing the attraction of the Indian telecom sector.

As per the Nokia's estimation, India will be the number two mobile handset market worldwide by 2010 as demand of handset continues to grow.

India will be the second largest mobile handset market by the year 2010, according to Nokia, the largest mobile manufacturer in the world. Presently, India stands at third spot in the list of mobile phone markets in terms of Nokia sales volume, after the United States and China, as per the news published on Tech2.com. "India is one of the fastest growing market right now in terms of mobile phone consumption and usage. As this trend is expected to continue, we are planning to cash in on and soon have the country emerge as the second-largest consumer for Nokia by 2010," said Director-Sales of Nokia India, Sunil Dutt, in news published on Agencyfaqs. According to Nokia, the launch of affordable and smart handsets with some attractive features is the major driver of the growth in the mobile market of India. The cell phone users in India have doubled during the past years to 150 million by the end of the year 2006. In India, more than six million new mobile phone users are signing up each month that makes India the fastest developing mobile phone market in the world. This growth is predicted to come greatly from above 600,000 villages where a major fraction of Indian population lives. Although the average Indian mobile user remains cost-conscious because of low- income living and huge size of mobile subscriber in India uses only SMS or voice services; new and more multifunctional handset with features like cameras, FM radio and mobile video are becoming 13

more and more popular. Also, India is the largest untapped market where the 20% of the total world's population lives. According o the COAI (The Cellular Operators Association of India), Mobile operators in India faces numerous regulatory obstacles, including the high fees of interconnection, abuse by present operators and shortage of spectrum, high govt. taxes and levies that include high license fees. As per the research analyst at RNCOS , "There seems no good reason why the mobile market of India can't grow more speedily than current estimation if the competitive and regulatory barriers can be removed. The Indian government's bottom line must be that if they have the mobile penetration of 3% in the year 2006, then they will be discouraging their economic position".

The two technologies namely GSM & CDMA have immense scope in Indian mobile handset market, as telecom operators in India continue to come up with innovative plans to lure customers. The mobile industry in India believes the market still offers loads of opportunity for both GSM & CDMA technologies. While the service providers have been launching various plans to lure customers, it's still a big question as to which of the two technologies will lead eventually. There're twelve operators in India where the population has crossed one billion. Of these, eight are GSM providers. India is the most competitive telecom market in the world. The Telecom tariff in India is just 2 cents/minute as against 4 cents in China. This is something that's absolutely in favor of the Indian mobile industry. Boom in telecom has completely changed the teledensity scenario in India. With companies continuously penetrating deeper in to the interiors of this country, teledensity is expected to grow further in the years to come. As per industry estimates, GSM subscriber base rose by 81% year-on-year in October 2006. However, CDMA subscriber base has more than doubled compared to the previous year. This shows that both the technologies have been quite successful in increasing the mobile usage in the country, and will likely continue to do so in the near future as well. As per RNCOS report on " Mobile Handset Market In India (2006) ", India has emerged as one of the booming mobile markets throughout the globe. For the 1st time after 1995 - when 14

mobile services were launched in the country - India has pulled alongside China. India added 4.5 million new mobile phone subscribers during December 2005.

With rapid growth in teledensity in almost every region of the country, Indian telecom industry seems to emerge as a booming industry in 2007 The telecom sector in India, after witnessing a tremendous 50% growth in the year 2006, is ready to grow further in the next year (i.e. year 2007). With the govt. aiming 250 Million telephones by December 2007, teledensity of India will rise to 22%, which is currently 16.28%, as per DoT (Department of Telecommunications).

Total number of phones grew from 125.79 Million as on December 31, 2005 and reached to 183.46 Million by November 30, 2006 and wireless phones' share grew to 78% in November 2006, whereas it was 68% in December 2005. During the year 2006, India exceeded 100 Million GSM mobile subscribers' target and became the fifth nation achieving this benchmark subsequent to China, Japan, USA, and Russia. The high growth in this sector was made possible by the various proactive & positive decisions govt. had taken in the recent past as well as the support that this sector has received from both public & private sectors. Continuous reduction in tariffs and improved affordability of handsets and service has also contributed to the rapid growth in the number of mobile subscribers. Growing demand for an array of telecom equipments has offered excellent opportunities for both domestic & foreign investors in manufacturing sector. The country has been able to attract strategic investments from Singaporean and Malaysian operators such as Smart Digital, SingTel, Ascent Media Group, Astro, etc., who're looking forward to offset the decline in their own markets. The outlook of growth remains robust throughout market segments, underlined by low teledensity & supported by the strong economic fundamentals. As per DoT, more than 14 thousand villages would be covered with telephony by means of DSPT (Digital Satellite Phone Terminals) technology using Indian satellite band frequency, for which the procurement is underway. "In India, there's tremendous appetite of absorbing new technology. At the higher-end of the market, the country will imitate the most sophisticated telecommunication technology in the world & will face all sorts of uncertainties associated with any novel technology across the world. It'll take some time for new technologies market to consolidate", an analyst at RNCOS said.

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Dial-up continues to be the most preferred way to access the Internet in India but broadband is slowly closing down the gap. As per a new study by TRAI (Telecom Regulatory Authority of India), percentage of dialup subscribers declined to 66 % in March 2006 from 84 % year-on-year & came down to 60 % in June 2006.

India had around 7.7 million Internet subscribers by June 2006. Around 20 % of those were using broadband to access the Internet, but the segment is witnessing a fast growth rate boosted by cheap tariffs and easy & economic installation options as most broadband connections in India are DSL (digital subscriber lines) connections, provided as an add-on over existing fixed line connections, thereby reducing installing costs. In order to attract more customers, operators are offering exciting packages while some are even providing installations at zero or very low cost.

As per RNCOS report " Indian Telecom Sector Analysis (2006-2007) ", "The Internet Access Market in India is all set to grow twice the existing value, with the increase in de-regularization, literacy level, increasing consumer awareness, PC penetration etc. Broadband Wireless Market in India is all set to take off in a big way. Over 70% of the households in India have no access to wired lines and the number of mobile phone users far outnumbers PC owners. Such a scenario presents a very good opportunity for Wireless Broadband Services." However, broadband connections in India are still very much behind target. Till 2005, 3 million subscribers were aimed but just 0.18 million broadband subscribers were achieved. At the end of October 2006, number of broadband subscribers was around 1.9 million & is not likely to reach 2007-end target of 9 million. Among the major hindrances in the Indian broadband sector is the speed at which broadband is provided. Though the tariffs have reduced significantly, the speed of the connection is still insufficient to justify its price. Moreover, improper & false billing and slower connection speeds (than specified by the ISP) are the key challenges for the sector. A cost-effective & scalable technology like WiMAX is needed to achieve these set targets. WiMAX has the potential to offer a perfect solution with long-range, wireless & scalable broadband solutions, which can be quite successful in Indian market.

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Company Profile of Bharti Airtel Ltd

Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri business, insurance and retail. Bharti Airtel, India’s leading integrated telecom company, has been at the forefront of the telecom revolution and has transformed the telecom sector with its world-class services built 18

on leading edge technologies. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. Bharti has grown successfully in partnership with various leading companies of the world Singapore Telecom, Vodafone, Warburg Pincus, and British Telecom, to name a few. The other businesses in the group are Beetel, communication and media devices, Bharti AXA, a financial services JV with AXA of France, and Bharti Del Monte India, a joint venture with Del Monte to offer fresh and processed fruits and vegetables in the domestic as well as international markets. Bharti has recently forayed into the retail sector with its subsidiary Bharti Retail. It has also entered into a joint venture with Wal-Mart for setting up the supply chain, logistics and cash and carry to support the burgeoning retail market in India.

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Bharti Airtel B harti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India' s largest Telecom Business operator with more than 75 million subscribers as of August 2008. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal . The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone 19

services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.

Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services ( Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07). 20

Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications licence in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the Office of Utility Regulation in

Guernsey awarded Guernsey Airtel with a mobile

telecommunications licence. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for Island mobile subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network. In August 2007, the company announced it will be launching a customized version of Google search engine that will provide an 'array of services' to its broadband customers. In March 2008, Bharti Airtel will roll out third generation services in Sri Lanka in association with Singtel . This is because Singapore-based Asian telecom major Singtel, which owns a little over 30% in Bharti Airtel, is a major player in the 3G space as it has already third generation networks in several markets across Asia.

Sunil Bharti Mittal

Chairman & Managing Director since October 2001 Board director since: July 1995 Age: 49 years Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. head quartered at New Delhi, India. Bharti Airtel, India’s leading private integrated telecom company, has been at the 21

forefront of the telecom revolution and has transformed the telecom sector with its world-class services built on leading edge technologies. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. Sunil started his career at a young age of 18 after graduating from Punjab University in India and founded Bharti, with a modest capital, in the year 1976. Today, at 49 he heads a successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40 billion and employing over 30,000 people. Bharti has grown successfully in partnership with various leading companies of the world - Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. The other businesses in the group are consumer electronics (Beetel), life insurance with AXA of France (Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and export fruits and vegetables to the world (FieldFresh) Bharti has recently entered into a JV with Wal-Mart for setting up supply chain, logistics and cash and carry to support the burgeoning retail market in India. Sunil is an alumnus of Harvard Business School, MA, USA. Sunil has been conferred one of the highest civilian award – Padma Bhushan. Sunil has been conferred the degree of Doctor of Science (Honoris Causa) by the G B Pant University of Agriculture & Technology. Sunil is an Honorary Fellow of “The Institution of Electronics and Telecommunication Engineers (IETE)". Sunil is the Honorary Consul General of the Republic of Seychelles in New Delhi, India.

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Other Companies The other businesses in the group are Beetel, communication and media devices, Bharti AXA, a financial services JV with AXA of France, and Bharti Del Monte India, a joint venture with Del Monte to offer fresh and processed fruits and vegetables in the domestic as well as international markets.

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Foundation

Technology Airtel is the synergy of information and communication services brought about by the digitalization and convergence. In the fast moving and competitive knowledge era, Airtel is not only a driver of growth but also competitive. Airtel is revolutionizing telecommunication in India by provisioning services that would match with the leading operators of the most developed countries. These services are the outcome of state-of-the-art network technologies that have been inducted in the Airtel network.

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Our network consists of the latest switching, transmission and access technologies. The core of the network consists of fiber deployed throughout the country. Airtel uses the GSM technology. GSM (Global System for Mobile communications: originally from Groupe Spécial Mobile) is the most popular standard for mobile phones in the world and in India Airtel uses this. Its promoter, the GSM Association, estimates that 82% of the global mobile market uses the standard .GSM is used by over 3 billion people across more than 212 countries and territories.Its ubiquity makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world. GSM differs from its predecessors in that both signaling and speech channels are digital , and thus is considered a second generation ( 2G ) mobile phone system. This has also meant that data communication was easy to build into the system. The ubiquity of the GSM standard has been an advantage to both consumers (who benefit from the ability to roam and switch carriers without switching phones) and also to network operators (who can choose equipment from any of the many vendors implementing GSM). GSM also pioneered a low-cost (to the network carrier) alternative to voice calls, the Short message service (SMS, also called "text messaging"), which is

now supported on other mobile standards as well. Another advantage is that the standard includes one worldwide Emergency telephone number , 112 . This makes it easier for international travellers to connect to emergency services without knowing the local emergency number.

Newer versions of the standard were backward-compatible with the original GSM phones. For example, Release '97 of the standard added packet data capabilities, by means of General Packet Radio Service (GPRS). Release '99 introduced higher speed data transmission using Enhanced Data Rates for GSM Evolution (EDGE). 25

GSM is a cellular network , which means that mobile phones connect to it by searching for cells in the immediate vicinity. GSM networks operate in four different frequency ranges. Most GSM networks operate in the 900 MHz or 1800 MHz bands. Some countries in the Americas (including Canada and the United States) use the 850 MHz and 1900 MHz bands because the 900 and 1800 MHz frequency bands were already allocated.

Business

Airtel will offer a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distant services, data services and a wide range of value added services and applications that will enhance productivity of enterprise and individual. Bharti Tele-Ventures (BTVL) is India’s leading private sector provider of telecommunications services with an aggregate of 4.9 million customers as of August 31, 2003, consisting of approximately 4.4 million mobile and 469,000 fixed line customers. It is the largest mobile 26

service provider in the country. Its all-India market share as on August 31, 2003 was 25.2%. Mobile services constitute the largest portion of business both in terms of total revenues and total customers. We also provide fixed-line, long distance, group data and enterprise services including VSAT and Internet services. The company also provides fixed–line services in Haryana, Delhi, Karnataka and Tamil Nadu circles. BTVL believes that these circles have high telecommunications revenue potential, especially for carrying data traffic. The company complements its mobile and fixed-line services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The long distance and data enterprise service has enormous support from this connectivity and facilitates in offering best value to our customers.

Bharti’s Vision

By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses

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We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more “As Bharti enters its next phase of growth, we have a new vision to make Bharti, India's finest conglomerate by 2020. Bharti's brand essence of “ Big Transformations. Brave Actions.” will define all our actions and drive forward this vision. Our new brand identity and brand logo reflect

this

philosophy.”

added

Mr.

Mittal.

Having established a world-class telecom business in Bharti Airtel, the group aims to build transformational business in the areas of retail, financial services and agriculture, which are future growth engines of India's economy. Through the retail business, the group will enable millions of customers save money and live a better life. It will also benefit farmers, small manufacturers and small artisans across the country through sourcing of products. With the financial services bouquet of life insurance, general insurance and asset management, the group strives to contribute to the process of financial inclusion in the country. The agri and food processing business of Bharti will contribute towards the transformation of the agricultural sector and rural economy to a global

food

basket.

The Bharti brand gets a facelift with fresh and youthful brand logo which reflects a multidimensional character that seeks out new avenues to grow. The colour Indigo blue signifies Depth and Orange stands for Youthful Passion and Energy. The Arrowheads stand for Movement that Extends over Boundaries and symbolises Swiftness, Precision and Accuracy. The core values of Bharti's refreshed brand are: •

Empowering People - to do their best

•

Being Flexible - to adapt to the changing environment and evolving customer needs 28

•

Making it Happen - by striving to change the status quo, innovate and energize new ideas with a strong passion and entrepreneurial spirit,

•

Openness and transparency - with an innate desire to do good

•

Creating Positive Impact – with a desire to create a meaningful difference in society.

Role of Telecom Regulatory Authority of India (TRAI)

India’s telecom policy is guided by overall development goals and the interests of the consumer. In order to protect and promote consumer interest and ensure fair competition, an independent regulatory authority known as Telecom regulatory authority of India (TRAI) was established in 1997. The sector is more liberalized then many developing markets and in most respects, the regulatory framework has caught up with the need to manage a highly 29

competitive market environment. Competition has been introduced into all segments and licenses are available to new entrants. Tariff control have been removed or structured as ceiling tariffs in areas where there is limited competition. There is a current initiative to simplify the charging brands for log distance calls and to remove some of the artificial constrains in the segregation of long distance and access licenses. TRAI has actively intervened in many areas to ensure a level playing field between operators.

TRAI’s initiative to regulate the number of plans and increase transparency

TRAI has released a consultation paper on issues arising out of plethora of tariff offers in Access Service Provision. The telecommunication Sector in India has become competitive in the post-liberalization era, especially in the access segment constituting basic and cellular mobile services. The policy and frame work for tariff regulation has also been reviewed and suitably modified by the Authority from time to time keeping pace with the emerging competitive market.

The tariff regulation currently stands at a point where tariffs are forborne except for fixed rural line services, national roaming in mobile service and Leased Circuits. The service providers have

been given the flexibility to report their tariff plans to the Authority within 7 days from the date of implementation after conducting a self-check with the relevant regulatory principles which include tariffs being IUC compliant, non-predatory and non-discriminatory. The Authority has also placed a cap of 25 on the number of plans that can be offered by an access provider in each licensed service area. This includes both post paid and pre paid tariff plans.

30

However, the competitive activity has also resulted in a large number of tariff offers being made by the service providers in order to acquire and retain their subscribers. Transparency in service provision is and has been one prime issue of concern for the Authority. One of the landmark provisions made to protecting subscriber from any tariff hike for a minimum period of 6 months from the date of enrollment of the subscriber to that tariff plan.

The Authority has issued several regulatory mandates after that also in order to enhance transparency in provision of service and to protect the interests of the consumers of telecommunications services in the country.

The Consultation Paper provides the details of such consumer friendly initiatives of the Authority and some of the important decisions/mandates of the Authority are: •

Any tariff plan presented, marketed or offered as having long term or lifetime or unlimited validity in lieu of an upfront payment shall continue to be available to the subscriber for the duration of the period as prescribed in the plan

•

In the case of lifetime or unlimited validity plans, as long as the Service Provider is permitted to provide such telecom service under the current license or renewed license.

•

No item of tariff in the tariff plan can be increased by the access service provider during the relevant validity period. However, the service provider is free to reduce tariffs at any time.

•

Tariff Plans with misleading titles prohibited. No tariff plan shall be offered, presented, marketed or advertised in a manner that is likely to mislead the subscribers.

•

No chargeable Value Added Services shall be provided to a customer without his explicit consent. Any Value Added Services which was earlier been provided free of charge shall not be made chargeable without the explicit.

31

•

Publication/advertisement of tariff for consumer information shall contain minimum essential information and websites of the service provider shall contain complete details of the tariff plans as well as financial implications for various usage slabs.

•

Access service providers to inform the customer in writing, within a week of activation of service, the complete details of his tariff plan. In addition, as and when there are any changes in any aspect/item of tariff in the chosen package, the operator shall intimate, in writing, such changes to those subscribers whose tariff packages undergo a change.

The Authority has been watching the developments in the market closely and also analyzing the feedback from the consumers on the market activities which has further intensified with several new licensees starting their operations and the existing

operators expanding their roll out. Despite the various measures taken by the Authority to enhance transparency in the matter of service provision and to protect the interest of the consumers, there is a growing feeling among the customers that the various offers being made by the access service providers are not transparent and thus are not consumer friendly.

The Authority continues to receive complaints from consumers and consumer organizations highlighting issues affecting transparency in the tariff offers of access service providers. Considering the sensitivity of the matter, the Authority keeps a look at the regulatory framework governing tariff offers by following the well established procedure of having an open consultation with all the stakeholders.

PRODUCT RANGE 32

Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services ( Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07).

Bharti Airtel’s current ventures include:   

Airtel Mobile - Postpaid and Prepaid Wireless services - Fixed Wireless Telephone (Touchtel) Airtel Data Card - A high Speed Mobile Internet Device



Blackberry



Broadband services



Airtel PCOs.

Bharti provided fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel" . Airtel also includes BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM).. Sooner the Apple iPhone 3G is available in India on Airtel by August or September 2008.

Services provided by company

33

Airtel mobile offers revolutionary, data, video and value-added services at a cost affordable by all, in the largest and most complex rollout in the history of the information technology and communication sector worldwide. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services ( Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07)

Brand Book of Bharti Airtel Ltd.

Physical Identity The physical side of Airtel comprises of the following key elements:

Logo

34

Airtel in a 3D typeface in red and white colour .It reflects the commitment and passion to shape a better future.

Legend The legend line “Bharti Airtel Ltd.” echoes the promise to uphold the trust people place in it.

Apex Its symbol, the Apex is an abiding reflection of the hope and the desire to reach higher.

Brand Opportunity Brand opportunities for Airtel mobiles lies in the vast population of the country and the increasing tele-density .In addition , Airtel mobile opportunity lies in becoming the new medium for people to experience TV , gaming, shopping and potentially become the one stop source of entertainment and information on the move. Brand of Choice for current and future users.

Target Group Airtel mobile target group consists of people within the age of 15 to 55 years, who come from diverse economic, educational, cultural and regional backgrounds. The mind style of our target group is that of forward looking individuals with ambition and a desire for power and wealth.

35

Whether rural or urban, they are progressive in their outlook. They understand the need for the best, fastest and world class technology to enable their success.

Consumer Insight For reliance mobile the consumer insight is,

“I want to stay ahead both professionally and personally. I want technology to make my life easier, faster and richer and give me a sense of control.”

Brand Benefits

Airtel mobiles brand benefit is that we blend technology and service with user-friendly interfaces that bring a highly individualized experience to be consumer’s benefits like trust, assurance etc. are derived.

Brand Values and Personality Airtel mobiles values and personality include honesty, humanity, youthfulness, excitement and innovative.

Brand Core The brand core is the DNA of our brand. It is this essence which guides every action or behavior of our, irrespective of internal conditions the brand core remains constant.

Brand core for Airtel :-

36

We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more

PROJECT PROFILE

•

The study pertains only to the retailers and customers of the telecom sector.

•

The study shows the impact of tariff plans on sales.

•

The study also portrays how the customers rank the various features of the telecom providers based on their preference or what things make a brand.

37

38

RESEARCH METHODOLOGY

TITLE Study on “ Supervision and Brand promotion of Airtel prepaid and postpaid cellular

services at Modern trade centers in Jaipur ” telecom market.

OBJECTIVE OF THE RESEARCH The primary objective of the research is to understand, analyze and interpret the telecom market dynamics and supervision of competitiveness in local telecom market, the key issues, which affects the market impulses and on which the strategies are drafted and what thing help to construct a brand image. AIRTEL is working on 0-1-2-3 and 0-1-2 distribution model. So it is vital to ensure the smooth flow in all these components. My job was to identify the key factors on which the marketing strategies are decided.

Secondary objective of the research are: 

To conduct a survey and ascertain / identify various types of services which effect retailer’s satisfaction and there operations.

 

To determine the market share of all the telecom service providers.



To determine and analyze the results of the survey along with the various relationships between factors.

39



To interact with the retailers formally and informally and ascertain their problems empathetically.



To interact with customer and conduct a survey on Customer Satisfaction, which will give a clear picture of the Competitiveness and Brand Image of Airtel among other players.

RESEARCH DESIGN

Quantitative research technique was used for the project. This was intentionally done because the units in which the factors were organized were in quantitative terms. Exploratory research design was used for this project. The main purpose of this research is to interact with retailers and to know the satisfaction level by the quality of services being rendered by different telecom service providers. The major emphasis in such studies is on discovering of ideas and insights.

RESEARCH INSTRUMENTS USED

Methods used under this kind of research design are: 

Developing plans for the research



Drafting questionnaire



Survey



Analyzing and interpreting the results.

40

Here I have used method of research-based survey. The telecom retailers are my research subjects. The object of the survey is to obtain the insight into the relationship between the sales and services rendered by the companies.

Advantages



It is fast and easy to comprehend.



It can get good result even with a small sample size.



It gives the research the necessary flexibility to get a deeper understanding of the respondents.

METHODS OF DATA COLLECTION

Data collection used for the specific purpose of the research was first hand data called

primary data. It is the first hand data, which is collected through direct involvement of both the parties. The method that was used for obtaining primary data was through questionnaires.

Advantages



High accuracy level.

Disadvantages



It is time consuming.



It is expensive.



Sometimes accuracy is not passed on telephonic interview, due to lack of clarity in the questions.

.

41

SAMPLE DESIGN

Sampling is done to figure out the parameters, which decide our sampling techniques and the sample size to be adopted. It is the process of selecting units from population of interest so that by studying the samples one can fairly generalize the results to the population from which the results were chosen. This would further help the whole research to reach the final solution.

SAMPLE SIZE :

100(Telecom retailers) +100(Telecom Customers)

SAMPLING UNIT :

Telecom retailers + Telecom Customers

SAMPLING DESIGN: Non Probability– Quota Sampling

I have planned to do the research by personally visiting the retailers and customer or through telephonic interview. These retailers or customer have been picked up from the sample population from the prime locations at mega trade centers in Jaipur. Out of all the sampling techniques I have chosen non-probability sampling techniques as I have only considered samples, which are dealing in Airtel telecom services. So it is better to say that I have used purposive non-probability sampling.

And among the non-probability sampling techniques I am using quota-sampling technique as I have been taking the samples, which are dealing in Airtel telecom services. In quota sampling one has to select people non-randomly according to fixed quota.

I have used sample based survey, as the pool of retailer was very vast. But the sample was abstracted with utmost care. This was done because of lack of time and resources. As Airtel’s market in Jaipur is broadly divided among three distributors, so my target was to cover at least 10% from the whole set of retailers. So I have covered around 10 % of retailers falling under each distributor.

The prime focus was to plan the research in such way that the sample size presents the true story and depicts the actual picture.

42

Market Position in Jaipur RAISAR PLAZA

About the market : This market is the hub for the electronic gadgets retailing cash card and Telecom outlets. It has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of which the ground, basement and 1 st floors deal with the retailing of cash cards.

Total Number of Shops

: 488

Shops Dealing in Cash Cards

: 33

OBSERVATIONS 1. Details of the retail outlets

NATURE OF RETAIL OUTLETS

NO OF OUTLETS

RETAIL OUTLETS SELLING CASH CARDS

(i) STD/ISD/PCO

5

-

(ii) Departmental

-

-

(iii) Telecom Outlet

38

31

(iv) Electronic

14

-

(v) Others

431

2

Total

488

33

Stores

Gadgets

2. Brand holding in the retail outlets 43

BRAND

NO. OF OUTLETS Airtel

26

Vodafone

22

BSNL

24

Reliance

26

Exclusiveness and combination of brands selling along with AIRTEL

Airtel & Exclusive Vodafone Hutch

Exclusive Oasis

Exclusive BSNL

Oasis BSNL

24

2**

-

6

∗

2*

&

Oasis & RIM 6

Out of the 2 outlets 1 sells BSNL Recharge coupon

∗∗

Out of the 2 outlets 1 sells BSNL Recharge coupon

“OTHERS” Outlet details:

RETAIL OUTLET Electronic Repair Shop

NO. OF OUTLETS 2

INFERENCE:

MARKET LEADER: VODAFONE The retailers prefer hutch because 44

∗

Numerous schemes

∗

Better service

∗

Customer preference

RAJA PARK About the market : This place occupies a prominent position due to the absence of other market in near by vicinity. The market is an agglomeration of boutiques, showroom dealing in apparel, departmental stores and lots of telephone booths.

Total number of Shops

: 810

Shops dealing in cash cards

: 24

OBSERVATIONS Details of the retail outlet NATURE OF RETAIL OUTLETS

NO OF RETAIL OUTLETS OUTLETS SELLING CASH CARDS

(i) STD/ISD/PCO

20

1

(ii)Departmental

17

-

9

9

12

2

Stores (iii)Telecom Outlet (iv) electronic Gadgets (v)Others Total

752

12

810

24

2.Brand holding in the retail outlets

BRAND

NO. OF OUTLET 45

Airtel

21

Hutch

15

BSNL

12

Reliance

15

“OTHERS” Outlet details RETAIL OUTLET

NO. OF OUTLETS

Pharmaceuticals

2

Book Depot.

2

Stationary Stores

2

Music Gallery

1

Bakery

1

Mobile Repair Shop

1

Ice Cream Parlor

1

Garment Shop

1

INFERENCE: MARKET LEADER: AIRTEL Airtel has an edge in this area. ∗

The shops here have high inventory & the sale is also higher. 46

∗

The absence of any other major market also helps them.

∗

M I ROAD

About the market : Market with a rich history. It’s frequented with bookstores, Telecom outlet, Banks (CANARA, STANDARD CHATERED), showrooms of apparel, footwear houses, and theater & flower shop. This market surrounds the city. Total number of Shops

: Above 450


: 15

OBSERVATIONS Detais of the retail outlets NATURE OF OUTLETS

RETAIL

NO OF RETAIL OUTLET

OUTLETS SELLING CASH CARDS

(i) STD/ISD/PCO

32

9

(ii)Departmental

1

-

5

4

18

-

Stores (iii)Telecom Outlet Electronic Gadgets (v) Others

2

Total

15

2. Brand holding in the retail outlets

BRAND Airtel

NO. OF OUTLET 15

47

HUTCH

6

BSNL

6

RELIANCE

8

CHANDPOL About the market : Highly populated area. It has shops dealing in whole sailing i.e. in the bulk selling of the goods to the retailers & other shops regarding food grains, stationers, timber related products & shops selling cycles.


: 463


:5

OBSERVATIONS Specifications of the retail outlets

NATURE OF OUTLETS

RETAIL

NO OF RETAIL OUTLET


(I) STD/ISD/PCO

6

2

(ii)Departmental

21

48

Stores (iii)Telecom

1

1

10

-

(v) Others

425

2

Total

463

5

Outlet Electronic Gadgets


BRAND

NO. OF OUTLET

AIRTEL

5

VODAFONE

1

BSNL

2

RELIANCE

5

STATION ROAD (From Station to Grah sangrah)

About the market This market covers the station (Railways). Thus you find here dhabas, bookstores, STD/ PCO Booths and sweet-meat shop.


: 156 49

Shops dealing in cash card

:9


NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

19

3

(ii)Departmental

9

2

-

-

-

-

(v) Others

138

4

Total

156

9

Stores (iii)Telecom Outlet Electronic Gadgets

2. Brands holding in the retail outlets BRAND

NO. OF OUTLETS

AIRTEL

8

VODAFONE

1

BSNL

3

RELIANCE

9

Good service to customers & more profit to retailers. For some it’s

∗

Affiliation & sense of duty. 50

RAILWAY STATION ROAD (Extended from Grah Sangrah to Chandpol)

About the market : Covers a stretch of 2-3 kilometer. It’s the most prominent area of the city playing host to hotels, main bus depot (sandhog camp bus station) and Janana Maternity Hospital, Travel Agencies.


: 376


:8

OBSERVATIONS Specifications of the retail outlets

NATURE OF OUTLETS

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

37

5

(ii)Departmental

3

1

-

-

7

-

Stores (iii)Telecom Outlet Electronic

51

Gadgets (v) Others

329

2

Total

376

8


BRAND

NO.OF OUTLETS

AIRTEL

5

VODAFONE

1

BSNL

1

RELIANCE

7

LAL KOTHI

About the market : The focal point of this market is the SMS stadium. The market is an agglomeration of departmental stores, flower shops & petrol pump. Situated adjacent to tonk phatak.


: 127


:4

OBSERVATIONS Specifications of the retail outlets NATURE OF OUTLETS

RETAIL

NO OF OUTLET

RETAIL

OUTLETS SELLING CASH CARDS 52

(i) STD/ISD/PCO

6

2

(ii)Departmental

8

2

-

-

-

-

(v) Others

113

-

Total

127

4



BRAND

NO. OF OUTLET AIRTEL

4

VODFONE

1

BSNL

2

RELIANCE

4

.

TONK PHATHAK

About the market : 53

Surrounded by K.v.no.1 School & SBI bank this area consists of Bookshops, stationers, departmental stores and STD/PCO outlets along with a couple of telecom outlets.


: 275


: 34

OBSERVATIONS

Details of the retail outlets

NATURE OF OUTLETS

RETAIL

NO OF RETAIL OUTLET


(i) STD/ISD/PCO

21

7

(ii)Departmental

17

4

8

6

7

4


54

Gadgets (v) Others

222

13

Total

275

34


BRAND

NO. OF OUTLETS

AIRTEL

26

VODAFONE

6

BSNL

10

RELIANCE

22

OTHERS Outlet details

RETAIL OUTLET

NO. OF OUTLETS

Pharmaceuticals

2

Book Depot.

2

Studio

2

Bakery

1

Cyber Cafe

1

Travel Agency

1

Hard Wares Shop

1

Textiles

1

Fashion House

1

Auto Parts Shop

1

55

UNIVERSITY MARG

About the market : Adjacent to the university, Canoria College, Commerce College & podar institute. The market consists of agglomeration of Xerox shops, PCO booths &departmental stores. Total number of shops

: 128


:9

OBSERVATIONS


NATURE OF RETAIL NO OF RETAIL OUTLET OUTLETS


(i) STD/ISD/PCO

4

2

(ii)Departmental

4

2

-

-

-

-

(v) Others

121

5

Total

129

9


2. Brand holding in the retail outlets 56

BRAND


8

VODAFONE

5

BSNL

2

RELIANCE

4

JANTA STORE

About the market : Adjacent to the main market tonk phatak. This market consists of departmental stores, cyber cafe, gift shops, restaurants & ice cream parlors.


:62


:6

OBSERVATIONS Details of the retail outlets NATURE OF OUTLETS

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

4

0

(ii)Departmental

17

4

-

-

1

1


57

Gadgets (v) Others

40

1

Total

62

6


BRAND

NO.OF OUTLET AIRTEL

5

VODAFONE

4

BSNL

2

RELIANCE

3

MALVIYA NAGAR

About the market : It is a residential area, covering two to three main markets. The most prominent locale is the Gaurav Towers, which is turning out to be the hub of life for teenagers plus it’s a prime location area.

Total no of shops

: 179


: 14

58


NATURE OF OUTLETS

RETAIL

NO OF OUTLET

RETAIL

OUTLETS SELLING CARDS

(i) STD/ISD/PCO

24

6

(ii)Departmental

10

2

3

1

6

2

CASH


136

3

Total

179

14


BRAND


HUTCH

12 5

BSNL

5

RELIANCE

12

59

HAWA MAHAL

About the market This market deals with the shops selling the traditional dresses of Rajasthan; it’s also a major tourist attraction center. The market mainly comprises of clothes shops, departmental stores and spare automobiles shop.

Total no of shops

: 479


: 6


NATURE OF OUTLETS

RETAIL

NO OF RETAIL OUTLET


(i) STD/ISD/PCO

10

4

(ii)Departmental

7

-

1

1

2

-

(v) Others

477

-

Total

479

5


60


BRAND


5

VODAFONE

2

BSNL

1

RELIANCE

5

JOHRI BAZAAR

About the market :

Johri Bazaar is basically known for jewelry shops with a considerable number of clothes apparel shops and very few electronic retail outlets.


:387


:9

OBSERVATION 61


NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

13

5

(ii)Departmental

33

2

-

-

5

-


336

2

Total

387

9

2. Brands holding in the retail outlets BRAND

NO. OF OUTLETS AIRTEL

5

VODAFONE

6

BSNL

3

RELIANCE

-

3. Exclusiveness and combination of brands selling along with AIRTEL

62

Airtel & Exclusive Vodafone Vodafone

Exclusive Airtel

Exclusive BSNL

Airtel BSNL

4

-

1*

3

2

& Airtel & RIM -

*Only one BSNL Distributor


RETAIL OUTLET

NO. OF OUTLETS

Stationary Store

1*

Jewelry Shop + STD

1*

*Exclusively sells vodafone

INFERENCE: MARKET LEADER: Airtel Since most of the stores deal with jewelry shops and clothes apparel they don’t want to diversify into the retail outlets for the cash cards ∗

This is the reason as to why the market though having comparatively larger amount of departmental stores but only Two shops has gone in for sale of cash cards. ∗

Hutch is doing better in terms of market penetration as it is having 2 exclusive retail outlets.

∗

CHOURA RASTA About the market : 63

Choura rasta is an agglomeration of bookstores, watch shops and stationary shops. There are very few showrooms.


: 378


: 10

OBSERVATION

Specifications of the retail outlets

NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

(i) STD/ISD/PCO

19

(ii)Departmental

1

RETAIL

OUTLETS SELLING CASH CARDS 2 1(recharge

coupon)

Stores (iii)Telecom

1

1

-

-

(v) Others

357

6

Total

378

10


. Brands holding in the retail outlets

BRAND

NO.OF OUTLETS 64

AIRTEL

6

VODAFONE

8

BSNL

3

RELIANCE

-

3. Exclusiveness and combination of brands selling along with OASIS Airtel & Exclusive Vodafone Vodafone

Exclusive Airtel

Exclusive BSNL

Airtel BSNL

6

-

3

-

2

& Airtel & RIM -


RETAIL OUTLET

NO. OF OUTLETS

Stationary Stores

1

Pharmaceuticals

1

Watch Co.(showroom)

1

Music Gallery

1

INFERENCE : MARKET LEADER: AIRTEL Vs VODAFONE One remarkable thing to be noted over here is that out of 10 to12

∗

Watch shops, 3 shops are going in for the sale of cash cards. And here Vodafone sells exclusively in 2 outlets (no exclusive outlet of

∗

65

Oasis). Moreover here the stock level is comparatively less than that of Johri Bazaar but the % of sales is high. Here the STD/ISD/PCO shops that do sell cash cards are in fact the

∗

subsidiary of the main shops. Their details are:

STD + Plastic center + Telecom outlet STD + General Stores STD + Stationery (only recharge coupon)

KISHAN POLE BAZAAR

About the market : Kishan Pole Bazaar constitutes of Toys (Bicycle) shops; Outlets dealing with Plastic based goods, Oil and Paint shops. There are good amount of Provisional ( Kirana) stores also. This bazaar also has a Fine Arts college and an Ayurvedic Hospital and thus few ayurvedic medicine shops.


: 338


:7

OBSERVATIONS

Details of the retail outlet

NATURE

OF

RETAIL

NO

OF

RETAIL

OUTLETS SELLING 66

OUTLETS

OUTLET

CASH CARDS

(i) STD/ISD/PCO

8

2

(ii)Departmental

20

-

-

-

6

-


304

5

Total

338

7

2. Brands holding in the retail outlets

BRAND

NO. OF OUTLETS AIRTEL

6

VODAFONE

6

BSNL

4

RELIANCE

2



Exclusive Airtel

Exclusive RIM

Airtel BSNL

& Airtel & RIM

67

6

-

-

1

4

2

** Outlet having Oasis Cash Cards & 1 Reliance Recharge Coupon only


RETAIL OUTLET

NO. OF OUTLETS

Watch Co. + STD

1

Stationary + STD

1

Pan Shop

1

Ice Supplier

1

Oil Trading Corp.

1

INFERENCE:

MARKET LEADER: VODAFONE Vs BSNL

There is considerable number of departmental (Kirana) stores but

∗

not even a single shop has gone in for sale of cash cards. Baring 1 to 2 shops Vodafone has got more sales followed by BSNL,

∗

And then Airtel 68

NEHRU BAZAAR

About the market : Nehru Bazaar is situated left to Choura Rasta. Shops mainly comprise of clothes apparels & few Electrical repair shops.


: 177


:8

OBSERVATIONS


NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

4

4

(ii)Departmental

1

-

69

Stores (iii)Telecom

-

-

29

2

(v) Others

143

2

Total

177

8



BRAND


7

VODAFONE

8

BSNL

4

RELIANCE

3

3. Exclusiveness and combination of brands selling along with AIRTEL Airtel & Exclusive Vodafone Vodafone

Exclusive Airtel

Exclusive BSNL

Airtel BSNL

7

-

-

4

1

& Airtel & RIM 3


RETAIL OUTLET

NO. OF OUTLETS

Book Store

1

Watch Company

1 70

INFERENCE: MARKET LEADER: Stiff competition between Oasis and Hutch. Due to its location i.e. being adjacent to the main market it Due

∗

Faces a lot of competition. The market primitively deals in apparels and thus there are The

∗

Only few shops which have ventured for the retailing of the Cash card

BAPU BAZAAR

About the market : Bapu Bazaar is situated left to Johri Bazaar. Shops mainly comprise of clothes clothes apparels, apparels, fancy stores & footwear shops. footwear shops.


: 192


: Nil

OBSERVATIONS

Details of the retail outlets NATURE OUTLETS

OF

(i) STD/ISD/PCO

RETAIL

NO OF OUTLET 3

RETAIL

OUTLETS SELLING CASH CARDS 71

(ii)Departmental

3

-

-

-

7

-

(v) Others

185

-

Total

192

-


INFERENCE : This market is all about women starting from Apparels to Footwear This

∗

thus the soul of the market is care of woman’s need. There isn’t even a single outlet that deals with cash card, this could There

∗

be due to the fact that Sarogi Mansion is situated facing the main main road.

SAROGI MANSION

About the market : Sarogi Mansion is a Shopping Complex. It is an extension of Bapu Bazaar.


: Above 200


:4

OBSERVATIONS 72

Details of the retail outlets NATU NATURE RE OF RET RETAIL AIL OUT UTLE LET TS

NO OF OUTLET

RETA RETAIL IL OUTLETS SELLING CASH CARDS

(i) STD/ISD/PCO

1

-

(ii)Departmental

-

-

5

4

-

-


-

Total

4


BRAND


4

VODAFONE

4

BSNL

-

RELIANCE

-

3. Exclusiveness Exclusiveness and combination of brands selling along with OASIS OASIS

73


Exclusive Airtel

Exclusive BSNL

Airtel BSNL

4

-

-

-

-

& Airtel & RIM -

INFERENCE :

MARKET LEADER: VODAFONE Vs AIRTEL

Has high inventory stock and so is the sales.

∗

Is prominent because of it’s location on the main road and is

∗

particularly famous with the youth as it’s just a version of a mall.

INDRA BAZAAR

About the market : Indra Bazaar is just attached to Jayanti Bazaar. Raizar Plaza (complex known for Telecom outlets, Computers and Electronic Gadgets) is also included in Indra Bazaar’s part. Though this Bazaar contains all kinds of shops but there is considerable number of clothes apparels. Market is also famous for vehicle repair shops & service center.


: 528


: 14

OBSERVATIONS 74


NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

5

-

(ii)Departmental

8

-

6

2

18

4

(v) Others

491

8

Total

528

14


2.Brands holding in the retail outlets

BRAND


VODAFONE

14 14

BSNL

4

RELIANCE

4


RETAIL OUTLET Watch Company

NO. OF OUTLETS 1 75

Cassette Shop

1

Sari Matching Center

1

Fancy Store

1

Auto Parts Shop

1

INFERENCE :

MARKET LEADER: VODAFONE

The location of this area is a bit subdued in comparison to others.

∗

Let’s say Raizar Plaza has more than 100 outlets dealing with cash cards & Jayanti Bazaar is known for its reliability & has a reputation to live up to. This is the reason as to why out of the total shops only 14 deals with

∗

the cash cards. Moreover there is vast diversity among the outlets. The stock level is also low. Retailers give prominence to Vodafone as they feel that a national brand

∗

sells & that its connectivity is increasing steadily by leaps & bounds. But the decision is mostly centered on the customer preference and service than the commission to the retailer.

JAYANTI BAZAAR

About the market : Jayanti Bazaar is located as an extension of M.I. road. This market is specific for Electronic goods shops(includes T.V, washing machines, refrigerators, V.C.D etc.).Moreover shops dealing with telecom products like handsets, service centers are there. Some shops are 76

combination of both electronics and telecom outlets. This market is divided into two parts :one as main Jayanti Bazaar ( with 55 shops ) and second as Jayanti Bazaar Extension (with 48 shops).


: 103


: 15

OBSERVATIONS Details of the retail outlets

NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

2

-

(ii)Departmental

-

-

6

6

29

9

66

-


77

Total

103

15


BRAND


13

VODAFONE

14

BSNL

3

RELIANCE

1

3. Exclusiveness and combination of brands selling along with AIRTEL Airtel & Exclusive Vodafone Vodafone

Exclusive Airtel

Exclusive BSNL

Airtel BSNL

13

-

-

3

2

& Airtel & RIM -

INFERENCE :

MARKET LEADER: AIRTEL The stock level is high that ranges from Rs.15, 000 - Rs.1, 50,000. Inspite of tough competition from Hutch, Oasis seems to have an edge & people are going in for Oasis because of: It’s Image of being first in Rajasthan.

∗

Better services.

∗

78

Customer preference.

∗

But shops, which have newly started, prefer Hutch assuming that it would be more profitable to them.

TRIPLOLIA BAZAAR

About the market : Tripolia Bazaar is full of Utensils shops, Watch shops, Clothes and Electrical components & repair shops.


: 382


:7

OBSERVATIONS


NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

7

1

(ii)Departmental

11

-

-

-

2

1

362

6


79

Total

382

8


BRAND


8

VODAFONE

8

BSNL

3

RELIANCE

1



Exclusive Airtel

Exclusive BSNL

Airtel BSNL

8

-

-

3

-

& Airtel & RIM 1


RETAIL OUTLET Repair Shop

NO. OF OUTLETS 2

80

Watch Co.(showroom)

4

INFERENCE : MARKET LEADER: AIRTEL Though the STD shops are few in numbers but only 1 is concerned

∗

with selling the cash cards. Watch holds most of the stock companies & none by the departmental store (kiranas). There was no exclusive shop of Hutch.

COLLECTRATE CIRCLE

About the market : This area encloses the Court, post office, some Government offices & the residential area Bani Park. This area is near to Station also thus lot of hotels is also there.


: 45


:3

OBSERVATIONS


NATURE OUTLETS

OF

RETAIL

NO OF OUTLET

RETAIL


(i) STD/ISD/PCO

7

1

(ii)Departmental

7

2

81

Stores (iii)Telecom

-

-

-

-

(v) Others

42

-

Total

45

3



BRAND

NO.OF OUTLET AIRTEL

3

VODAFONE

3

BSNL

2

RELIANCE

-

INFERENCE :

MARKET LEADER : Competition between Airtel & Vodafone. Though this area has a good amount of shops but only 3 are dealing

∗

in cash cards. Here the stocking among the shopkeepers is high as there are only 3 shops dealing in Prepaid and more numbers of customers.

82

Details of shops surveyed market position 8000 7000 6000 s p 5000 o h s f o 4000 r e b 3000 m u n

2000 1000 0 all shops surveyed

others

Shops s urveyed total shops dealing in cash cards

FRAGMENTATION of “Total Shops”

83

MARKET POSITION 300

250

200

s p o h S 150 f o . o N

100

50

0 std

dept

telecom

electronics

specification of retail outlets

total no.of shops shops dealing in cash cards

84

85

Limitations

•

The scope of the study is restricted only to the mega trade centers in Jaipur and does not include the outskirts.

•

•

Responsive error ---- this arises when respondents are unwilling to listen or talk.

•

•

Time was the major constraints in interviewing required retailers.

86

87

ANALYSIS

Marketing Mix of Bharti Airtel

Marketers use numerous tools to elicit desired responses from their target markets. These tools constitute the marketing mix. The four broad groups which we call the four P’s of marketing are as follows: 

Product



Price



Place



Promotion

An apportionment of the combination, the designing, the integration of the elements and the effort put into the product can be enumerated as follows-:

Product Products offered by Airtel include: 1. 2. 3. 4. 5. 6.

Airtel Mobile Airtel Fixedline Phone (Touchtel) Airtel Data Card Blackberry Broadband Airtel PCO’s.

Airtel includes large variety of services, which also offer popularity and uniqueness. They include features like:

88

•

Itemized billing

•

Internet connectivity.

•

Caller line identification

•

Value roaming

•

Voicemail service

•

Way call conference

•

Caller line identification restriction

•

International SMS

•

Call wait/call hold/call divert

Bharti Airtel also provides with after sales services by way of dealing with customer complaints that can be dealt at Airtel Relationship Centers (ARC).

Price Airtel has flexible tariff plans that could be opted for depending on the various spend levels and calling patterns of the customers. For postpaid subscribers we have Airtel Easy 149, Humdum 225, New325,Super Value 350 and many more.

Prepaid tariffs are non stop @ 1 re. while additional facilities like 10paisa at one number, Echarge and sms top up cards are available.

These flexible tariff systems has been developed keeping into consideration the segmentation of the customers on the basis of demographic, geographic and behavioral basis.

89

Place Airetel mobile Phone has coverage of •

•

It has an installed base of 40,000 cellsites and 59% population coverage After the proposed network expansion, an additional 30,000 towers will result in the company achieving 70% population coverage

•

Wireless network covering over 2,400 cities/towns, to expand to over 5,700 cities AND 4, 00,000 villages by December.

•

30000 Base Transceiver Stations (BTSs) or towers across the country, to increase to around 35000 by December.

•

Network with superior reliability.

All this managed from our state-of-the-art national network operations centre in different states of country, with master server in Chandigarh. Its distribution channel includes-



Airtel Relationship Centers

Airtel relationship centers are company managed retail outlets where Airtel Mobile and Bharti Airtel Phone products are showcased and retailed. It has in all 10 ARC’s in Jaipur.



Mini CIOU’s(Customer Integrated Operation Units ) Jaipur has 15 CIOU’s.



Super Direct Sales Agents (DSA) Customers can contact Airtel Sales Agents for demonstration of products, offer details, subscription and delivery of Airtel Mobile Services at your doorstep! 90

They are 6 in numbers in Jaipur city. 

Payment Location To help you pay your monthly bills, we have installed drop boxes at various locations through out your city. The drop boxes are located at our ARC’s, retail shops and 6 bill collection centers.

Promotion Communication adds to the merits of the product and induces target customers into buying the product. Airtel has a very aggressive promotion campaign which includes newspapers, magazines, television, hoardings etc The Company has spent a large amount of money in sales promotion by means of media advertising, through celebrity endorsements, hoardings, road shows and various discount schemes.

Some of the prime mediums of promotion regularly used by the company are:



Regular supply of collaterals, pamphlets and brochures to the vast pool of retailers.



Installation of signage, gantry, glow signs and hoardings.



Print media



Audio video medium of communication

Company has spent Rs. 1 cr. on advertisement in recent brand change programs. It proves the promotion consciousness of Bharti Airtel Ltd.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India' s largest Telecom Business operator with more than 75 million subscribers as of August 2008. It also offers fixed line services and broadband services. 91

92

COMPANY

RELIAN AIRTEL CE

VODAPHO NE

IDEA

BSNL

TATA INDICOM

ONE TIME CHARGES Rs.299 FOR NEW CUSTOMERS Rs.198 FOR EXISTING CUSTOMERS 2021 INCOMING TILL YEAR LOCAL CALL RATES

Rs.299

Rs.299

Rs.295

Rs.199

Rs. 251

Rs.299

Rs.298

Rs.295

Rs.99

Rs. 251

2024

2021

2021

2024

SAME NETWORK MOBILES SAME NETWORK FIXED OTHER NETWORK MOBILES OTHER NETWORK FIXED STD CALL RATES

Rs.0.99

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.0.99

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.0.99

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.0.99

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

Rs.1.0

SAME NETWORK MOBILES SAME NETWORK FIXED OTHER NETWORK MOBILES OTHER NETWORK FIXED SMS CHARGES

Rs.2.65

Rs.1.5

Rs.1.30

Rs.2.65

Rs.2.4

Rs.1.5

Rs.2.65

Rs.1.5

Rs.1.30

Rs.2.65

Rs.2.4

Rs.1.5

Rs.2.65

Rs.1.5

Rs.1.30

Rs.2.65

Rs.2.4

Rs.1.5

Rs.2.65

Rs.1.5

Rs.1.30

Rs.2.65

Rs.2.4

Rs.1.5

LOCAL SAME NETWORK NATIONAL

Rs.1

Rs.1.0

Rs.1

Rs.1

Rs.0.5

Rs.1

Rs.2

Rs.1.5

Rs.2

Rs.2

Rs.0.8

Rs.2

INTERNATIONAL

Rs.5

Rs.5

Rs.5

Rs.5

Rs.5

Rs.5

YES (Except YES Few) YES YES YES (Except YES STD CALLING CARDS Few) YES YES YES (Except YES STD CALLING STVs Few) YES YES YES (Except YES SMS CARDS Few) COMMITMENT (IF ANY) FOR THE CONTINUATION OF SCHEME

YES

YES

YES

YES

YES

YES

YES

YES

Rs.200

Rs.200 93

180

180 DAYS

2021

USAGE OF SPECIAL PACKS (APPLICABLE OR NOT ) LOCAL STVs

MINIMUM USAGE IN Rs. TIME LIMIT OF

YES

YES

Rs.200

Rs.200

Rs.200

180

180

180 DAYS

Rs.200 180

Comparison of Lifetime Prepaid Schemes

Comparison of Postpaid Plans

STD Segment 94

Recently all the operators have reduced their STD call Rates. The revised call rates are given in the chart given below.

Company

Old STD Rate Airtel

Revised STD Rate Rs.2.4/Min

Rs.1.5/Min

Vodaphone

Rs.2/Min

Rs.1.3/Min

Idea

Rs.2.4/Min

Rs.1.3/Min

Tata Indicom

Rs.2.65/Min

Rs.1.5/Min

BSNL

Rs.2.4/Min

Rs.1(Plan 325 & Above)

Reliance

Rs.2.65/min

No Change(STD pack available1.25 or 1.5)

95

Low Rate Calling For Local Mixed Usage

Low ISD Call Rate Plans

96

Full Value Local Calling Plans

97

Low Call Rate Plans for Mixed Calling

Responses of the Survey Conducted on Retailers After conducting the survey on retailers a variety of responses were found out. On the basis of these responses the key findings have been listed which help to analyze the competitiveness of Reliance in terms of retailer satisfaction and comparison with other players in the market. The responses are given below on each parameter that has been adjudged:-

Retailers Preference to Connection type 98

Handset

Sample Size

No. of Responses

Percentage

GSM

100

29

29%

CDMA

100

04

04%

Both

100

67

67 %

Company Offering Best Connectivity

Company

Sample Size

No. of Responses

Percentage

Airtel

100

32

32%

Reliance

100

20

20%

Vodafone

100

23

23%

BSNL

100

12

12%

Idea

100

08

08%

Tata Indicom

100

05

05%

On the basis of after sales support

99

Company

Sample Size

No. of responses

Percentage

Reliance

100

24

24%

Airtel

100

21

21%

Vodafone

100

27

27%

BSNL

100

09

09%

Idea

100

11

11%

Tata Indicom

100

08

08%

On the basis of Mode of communication of New Connections & Schemes Modes

Sample Size

Responses

Percentage

Company Employees

100

12

12%

Distributors

100

32

32%

Others (SMSs, Advertisements)

100

56

56%

Company offering best tariff plans

100

Company

Sample Size

No. of responses

Percentage

Airtel

100

15

15%

Reliance

100

31

31%

Vodafone

100

18

18%

BSNL

100

04

04%

Idea

100

22

22%

Tata Indicom

100

10

10%

Most Preferred Brand among the Customers

Company

Sample Size

No. of responses

Percentage

Airtel

100

21

21%

Reliance

100

23

23%

Vodafone

100

28

28%

BSNL

100

11

11%

Idea

100

10

10%

Tata Indicom

100

07

07%

Most Effective Means of Advertising

101

Means

Sample Size

Responses

Percentage

Print

100

41

41%

Television

100

21

21%

Radio

100

16

16%

Road Shows

100

14

14%

Word of Mouth

100

08

08%

Average Number of Prepaid Connections Sold Per Month

Company

Reliance

Airtel

Vodafone

BSNL

Idea

Tata Indicom

Sample Size

100

100

100

100

100

100

Sales of Prepaid Connections

2750

2700

2550

1750

1350

750

KEY FINDINGS OF THE SURVEY ON RETAILERS

102

Most of the retailers prefer GSM handsets in comparison to CDMA handsets. This is because of the reason that using GSM handsets a customer can easily switch to any other GSM connection, also these are more in demand in the market. But in the recent past the trend has changed as on a timely basis Reliance, Tata Indicom and Vodafone introduce CDMA handsets in Bundle offers and Low price schemes, so now the retailers prefer to keep both CDMA and GSM to meet the demands of the customers. And these are giving a competition to Airtel and other GSM service provider.

•

In the recent past Airtel is positioned itself as the No.1 Brand in terms of Network but the survey tells that Reliance is considered to be the next best Network provider and giving competition to Airtel.Thus on the basis of connectivity Airtel holds the first position and then after Vodafone and Reliance.

•

The best after sales service provider is Vodafone and retailers are well satisfied with Vodafone which is providing efficient service to them as compared to Airtel service providers.Thats a different thing that Airtel holds the maximum customer in the state. Here after sales services refer to the troubleshooting, issues related with new connections etc. and commission on sales and other technical problems of Retailers.

103

•

When it comes to the mode of communication of the changes and introduction of tariff plans and schemes most of the retailers are immediately informed about the change in any schemes through sources other than Company employees and distributor. More than 50% of retailers surveyed told that they get these information mostly from SMSs from company, advertisements, bantering activities and other marketing activities in Jaipur.

•

During the research I found that the distributors of Airtel are most supportive in terms of services as such gaining the 1 st position in this as compared to Reliance, Tata Indicom, Idea and Vodafone .ARC’s play an important role in it

•

Airtel captures the market with its more economical and efficient tariff plans and products and gains the competitive advantage here by being at the top position. The reason for this top position is also that Airtel has variety of tariff plans, local calling packs and STD calling packs and these makes it the market leader. The nearest

104

competitor in this segment is Idea and Reliance which also has a bunch of good tariff vouchers as.

•

Most preferred brand by the customers according to retailers came out to be Reliance because of its economical pricing and Low calling Tariff Plans; as compared to Airtel which is the 2 nd most preferred brand by the customers because of its Network and services.

Findings from the Customer Satisfaction Survey

Most selling plans Company

Postpaid Plan

Prepaid Plan

Special Pack

Airtel

250 Rental

350 Recharge

Rs.7 SMS CARD,STV89 105

Reliance Vodafone Idea BSNL Tata Indicom

NJ 199 SOHO FR275 Easy 400 Plan 325 224 Rental

Lifetime Prepaid 6 Month Validity My Gang 200 Day incoming 149 For 1Year

STV120& STV49 STV69, Half Rate 70 STV22,STV69 EXCEL POWER,STV100 POWER49

Reason to choose Services of this Company Company Airtel

Reason why chosen Better Network Coverage

Reliance Vodafone Idea BSNL

Tariff plans and STVs

Tata Indicom

Customer Focus

Customer focus Promotional Schemes & offers Customer Focus

Problem Faced with current operator Company Airtel Reliance Vodafone Idea BSNL

Problems faced by customer Bill dispute / Hidden cost and not very satisfying. Bill not given on time and balance gets deducted automatically. Balance gets deducted & SIM often Blocks. Network not very good. Congestion is too heavy on the network and call drops often. 106

Tata Indicom

Network coverage is not very good and bill not given on time.

Rating the Customer Care

Company

Excellent

Airtel Reliance Vodafone Idea BSNL Tata Indicom

18% 05% 66% 12% 06% 12%

Good 58% 14% 23% 21% 09% 63%

Average

Unsatisfactory

21% 60% 10% 59% 73% 19%

03% 21% 01% 08% 12% 06%

Switching to other company & why

Company switching to

%

Why this company

Airtel

32%

Due to better network coverage.

Reliance

21%

Due to good tariff plans for both Local & STD calling.

Vodafone

15%

More customer focus and good tariff plans. 107

Idea

21%

Due to availability of variety of Special Vouchers.

BSNL

06%

Due to deep network penetration and customer focus.

Tata Indicom

05%

Cheap Handsets and Low Tariff.

CONCLUSION project on “Supervision and Brand promotion of Airtel prepaid and postpaid cellular services at Modern trade centers in Jaipur” helped to analyze and understand the trends of telecom industry and the market position of Bharti Airtel in Jaipur. With the help of the research conducted I have tried to adjudge competitiveness and Brand position of Airtel in Comparison with other Players Airtel is getting a good competition from the other players in the market so it has to take steps to neutralize its weaknesses, customer complaints and customer wants which are not being met sufficiently. This will help to keep a check on customer attrition. 108

A detailed study of the postpaid and prepaid plans have also been executed which will give an insight as to what is lacking in the plans of Airtel and what could be done to improve them. Some of the issues have been highlighted in the ANALYSIS and FINDINGS part of the report which could be looked at a step to improve effectiveness. Also, I would like to state that this report is an outcome of the hard work put in by me in the last three months and I hope that my efforts will help the organization in enhancing its business.

RECOMMENDATION

As we all know the metal of Bharti Airtel limited in Indian telecom market. With 27% market share and above 75 million-customer bases, company should look ahead towards untouched layers of growing Indian telecom market. Bharti Airtel has potential to grow rapidly and capture Indian market share where it doesn’t have its sheen. Company should nurture and hold its present market share by providing better services equipped with advance technology.

109

After doing a two-month research we have enlisted certain points, which company should consider while drafting its marketing strategies:

COMPANY-RETAILER RELATIONSHIPS

1. Company should keep an eye on distributors and retailers relationship. 2. Company should look forward to organize various activities, which helps its motive of sharing of knowledge and healthy relationships. 3. Encourage retailers for regular feedbacks.

4. Company should try to convince the retailers that they are secure both financially and emotionally with Airtel.

SERVICES RENDERED BY COMPANY

1. Company should try to improve their services rendered to the retailers.

2. Company should regularly supply the POP materials. 3. Visit the retailers regularly and listen them empathetically. 4. Company should make their policies more transparent, which will ultimately help the retailers to enter into the circle of trust and confidence.

110

PRODUCT LINE AND ATTRIBUTES

1. Company should monitor and revive its product related features. 2. Company should adapt an innovative approach and always be ahead of its competitors. 3. Always look for latest technology, equipped with enhanced set of facilities 4. Regularly modify or replace the product in order to make a niche in the target segment.

TARIFF PLANS

1. Company should make tariff plans simpler. TRAI has also its keen concern on the complexity of tariff plans which rather helping the retailers and customers they confuse them.

111

2. Company should categorize the tariff plans into three categories. Each category for an individual set of customers on the basis of there usage pattern. This will help them to identify the best suited tariff plan for his/her requirement. Following categories is suggested:

a) Low budget users (L) b) Medium budget users (M) c) High budget users (H)

Market expansion

1. Company should try to retain the present retailer base and look forward to unexplored markets . 2. Company should focus on those retailers, which are not giving huge business but have potential to do so. 112

SAMPLE QUESTIONNAIRE (Retailer Survey) (Personal Information will be kept confidential)

Q1. Do you sell? GSM

CDMA

BOTH

----------------------------------------------------------------------------------------------------------------------------------------113

Q2. Which is the best service provider on the basis of connectivity (mark any one)?

Airtel

Reliance

Vodafone Vodafone

I

idea

BSNL

Tata Indicom

-----------------------------------------------------------------------------------------------------------------------------------------

Q3. Which is the best service provider on the basis of after sales services (mark any one)?

Airte Air tell

Relian Reli ance ce BSNL

Voda Vodafo fone ne Tata Indicom

Idea Idea

___________________________________________________________________________ __________

Q4. Which of the following companies’ distributors is more supportive in terms of services? (Rate on scale of 0 to 5, 0 being the worst and 5 being the best)

Airtel _____ Reliance _______ Vodafone_______ Idea_______ BSNL_______ 114

Tata Indicom________ ___________________________________________________________________________ __________

Q5 (a). Are you informed immediately if there is a change in the scheme? Yes ( )

No (

)

(b). What is your mode of communication? Distributors ( )

others _________________

___________________________________________________________________________ __________

Q6. Which of the following brands provides customers with best product & tariff plans? Airtel Reliance Vodafone Idea BSNL Tata Indicom

___________________________________________________________________________ _________ 115

Q7. Amongst the following which is the most preferred brand by customers in telecom sector? Airtel Reliance Vodafone Idea BSNL Tata Indicom

___________________________________________________________________________ __________

Q8. In your opinion which is the most effective media of advertising for telecom sector?

Television Print Media Radio Road Shows Word of mouth Others

116

___________________________________________________________________________ __________

Q9. What would you suggest for the companies to improve their sales?

Airel _________________________________________________________________________

Reliance _________________________________________________________________________

Vodafone _________________________________________________________________________ 117

Idea _________________________________________________________________________

Tata Indicom _________________________________________________________________________

BSNL ________________________________________________________________________

__________

PERSONAL DETAILS Name of the Outlet

__________________________________________________________

Name of the Retailer __________________________________________________________

Address of the Retailer __________________________________________________________

118

Contact number __________________________________________________________

Sample Questionnaire (Customer Survey) As a summer trainee in BHARTI AIRTEL, survey is being conducted to measure “Customer Satisfaction Level with the telecom operators in Jaipur” . The information provided would be kept confidential and will be used only for academic purpose.

DEMOGRAPHIC PROFILE

Name of the Customer:

Contact Number:

___________________________________________

___________________________________________ 119

Q1. Which type of connection do you use? Prepaid Mobile

Postpaid Mobile

Prepaid Fixed

Postpaid Fixed

Datacard

Q2. You are using the services of which company? Airtel

Reliance

Vodafone

Idea

BSNL

Tata Indicom

Q3. Which Tariff Plan are you using? ___________________________________________________________

Q4.Why you have chosen the services of this particular company? 1. Customers focus 3. Better network coverage 5. Better Sales Support

2. Service delivery 4. Promotional Schemes and Tariff plans 6. Customer Services

120

Q5. Do you face any problem with services being offered by the operator, if yes please tick a. Bill not received on time

b. Bill dispute/ Hidden costs

c. Unsatisfactory plan

d. Network

e. Any other (Please Specify) _______________________________________________________

Q6. How would you rate the Customer care of the company whose services you are using? Excellent (4/4)

Good (3/4)

Average (2/4)

Unsatisfactory (1

Q7. If you have to switch to some other Brand which would it be apart from the one you are using Airtel

Vodafone

BSNL

Reliance

Idea

Tata Indicom

Q8. Any suggestions to improve the services/ customer base of Reliance Communication:

121

1. Improvement in Network Coverage _____________________________________________________

2. Improvement in Service Quality _ ___ _________________________________________________

REFERENCES

COMPANY OVERVIEW http://www.airtelworld.com/about.jsp http://www.airtel.in http:www.rcovl.com/rcovlportal/home.jsp

INDUSTRY OVERVIEW www.trai.gov.in/trai/upload/tarifforders/54/torder21maro6.pdf www.coai.co.in www.auspi.co.in

COMPITITIVE ANALYSIS 122

http.//www.hutch.in/bottom/aboutus.asp http.//www.hutch.in/postpaid/talk_plans_upe.asp http://www.rimweb.in/forums/indexphp?showtopic=1896&mode http://www.tataindicom.com/aboutus.asp

Research Methodology C.R.Kothari, Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch

Bibliography

Kotler. Phillip, Keller. Kevin, Marketing management, Prentice hall India, 12 th edition, 2006, (102-103) Kevin.j.clancy, Robet.s.shulmen, Marketing myths that are Killing Business , McGraw hill(New York), 4th edition,1994,(213-215) Chrsto.f. lovelock Jachen wirtz, Service marketing, pearson eduction, 5 th edition, 2004, (231-241) Saxena rajan, Marketing management, Tata McGraw hill, 2nd edition, 2004, (55-67) Levin.m.david Bearson.i.mack, Business statistic, Pearson education, 2 nd edition, 2001, (503-509)

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Airtel New Report_1

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