Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdf
Company profile of airtel
1. A PROJECT REPORT
ON
MARKET SEGMENTATION OF AIRTEL
SUBMITTED TO
C.C.S. UNIVERSITY
under the partial Fulfillment of the requirement for the
BACHELOR OF BUSINESS ADMINISTRATION (2013-2016)
Supervised By Submitted By
Mr. Amit Saini Bhavbhuti Rana
Assistant Professor ROLL NO- 6657508
Disha Bharti College of Management
and Education, Saharanpur
DISHA BHARTI COLLEGE OF MANAGEMENT &
EDUCATION, SAHARANPUR
2. CONTENTS
Certificate
Acknowledgment
Preface
Student declaration
Company profile
Introduction: Market segmentation of Airtel
Research methodology
Objectives of study
Analysis of study
Finding and conclusion
Recommendations
Bibliography
Annexure
3. ACKNOWLEDGEMENT
Acknowledgement is not merely a formality, rather an expression of deep gratitude.
I take this opportunity to express my gratitude and thanks to all those who helped me in
different ways in successful completion of my project.
I owe my sincere thanks to my Project Guide Mr. AMIT SAINI Assistant Professor I
shall remain thankful to her for able and mature guidance and cooperation. He constantly
encouraged me right from the selection of the project to final preparation of my project.
He has been a constant source of knowledge, information, help and motivation for me
through her depth knowledge and reflections. I wish to thank her for consistent support
and the assistance.
I feel immense pleasure in expressing my sincere and deep sense of gratitude to head of
the dept. also.
I am also indebted to all the faculty members of my institute, along with my friends for
their sincere advice and cooperation.
4. PREFACE
A project work is an integral part of BBA course. The emphasis in the course is providing
the student an insight into business scenario. The project is designed to provide the
fresher on job experience. The education of future manager would be incomplete without
exposure to working in an organization. Therefore a final project assignment is essential
academic requirement for all students.
I have been given a research project on ‘ MARKET SEGMENTATION OF AIRTEL’.
The project is essential built on the in- depth analysis and market research through the
method of questionnaire.
The project has been written in very simple words, clarity has been given the top priority
throughout.
This project report reflect the knowledge and an experience gained by me during my
project research.
5. STUDENT DECLARATION
This is to certify that project entitled ‘ MARKET SEGMENTATION OF AIRTEL’
submitted for the award for the degree of ‘BACHELOR OF BUSINESS
ADMINISTRATION OF CCS UNIVERSITY MEERUT’ is a bonafide research work
carried out and all source used to complete this project are duly acknowledged. In the
case of project report, or any part of it, is found to be copied or quoted without
references, I shall be solely held accountable for the repercussions arising there from.
Date………. Signature…………….
7. COMPANY PROFILE OF
AIRTEL
Bhart airtel ltd. was incorporated on July 7 1995 for promoting investment in
telecommunication services. Bharti airtel is India’s leading private sector
telecommunication services provider with customers base of approximately 17.53
million: 16.33 million mobile and 1.2 million fixed line customers include 2G, Bharti
Airtel Limited is a leading integrated telecommunications company with operations
in 20 countries across Asia and Africa. Headquarter in New Delhi, India, the company
ranks amongst the top 5 mobile service providers globally in terms of subscribers. In
India, the company's product offerings 3G and 4G. services, fixed line, high speed
broadband through DSL, IPTV, DTH, enterprise services including national &
international long distance services to carriers. In the rest of the geographies, it offers 2G,
3G mobile services and mobile commerce. Bharti Airtel had over 287 million customers
across its operations at the end of December 2013.
Airtel is the largest provider of mobile telephony and second largest provider
of fixed telephony in India, and is also a provider of broadband and subscription
television services. It offers its telecom services under the "airtel" brand, and is headed
by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve
Cisco Gold Certification. It also acts as a carrier for national and international long
distance communication services. The company has a submarine cable landing station at
Chennai, which connects the submarine cable connecting Chennai and Singapore. Bharti
airtel ltd have been structured into two main strategic business groups- the mobility
leaders business group and the infotel leaders business group. The mobility business
group provides GSM mobile services across India in 23 telecom circles while the infotel
business group provides broadband and telephone services, long distance services and
enterprise services. All those services are provided under the airtel brand. The company
is the only operator to provide mobile services in all the 23 circles in India. The company
also provide telephone services and internet access over DSL in 15 circles. Bharti airtel
offers GSM mobile services in all the 22 telecom circles of India and is the largest mobile
service provider in the country based on the number of customers. The group offers high-
8. speed broadband with the best in class network with fixed line service in 87 cities, we
help you stay in touch with your friends and family and keep you updated round the
clock.
Airtel business provides a broad portfolio of services to large enterprise, government,
small and medium businesses and carrier customers. It is india’s leading and most trusted
provider of communication and ICT services, offering services that include voice, data,
network integration, data centre and managed services etc. Bharti Airtel Ltd. is one of the
world's leading providers of telecommunication services with presence in 19 countries
including India & South Asia and Africa. The company is the largest wireless service
provider in India, based on the number of customers. The company offers an integrated
suite of telecom solutions to its enterprise customers, in addition to providing long
distance connectivity both nationally and internationally. The Company also offers
Digital TV and IPTV Services. All these services are rendered under a unified brand
'airtel' either directly or through subsidiary companies.
The company operates in four strategic business units, namely Mobile, Tele media,
Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and
Bangladesh. The Tele media business provides broadband, IPTV and telephone services
in 95 Indian cities. The Digital TV business provides Direct-to-Home TV services across
India. The Enterprise business provides end-to-end telecom solutions to corporate
customers and national and international long distance services to telcos. The company
also deploys, owns and manages passive infrastructure pertaining to telecom operations
under their subsidiary.
During the year 1995-96, the company launched mobile services under the brand
name Bharti Infotel Ltd. Own and 42% of Indus Towers Ltd. are the largest passive
infrastructure service providers for telecom services in India. Bharti Airtel Ltd was
incorporated in the year 1995 with the name Bharti Tele-Ventures Ltd. The company was
promoted by Bharti Telecom Ltd, a company incorporated under the laws of India. The
name of the company was changed from Bharti Tele-Ventures to Bharti Airtel Ltd with
effect from April 24, 2006 in order to reflect their brand essence, objective and the nature
of their business activities 'Airtel' for the first time in Delhi and Himachal Pradesh.
During the year 1997-98, the company became the first private telecom operator to obtain
9. a license to provide basic telephone services in the state of Madhya Pradesh. They
incorporated Bharti BT VSAT Ltd and Bharti BT Internet Ltd during the year. During the
year 1999-2000, the company acquired JT Mobiles for providing cellular services
operator in Punjab, Karnataka and Andhra Pradesh. Also, they acquired Sky cell, Chennai
and thus, they expanded their South Indian footprint. During the year 2001-02, they
launched India One, India's first private sector national and international long distance
service. They acquired licenses for eight new circles across India. In July 2001, the
company acquired 100% equity interest in Bharti Mobile telecom Ltd. (erstwhile Spice
Cell Ltd), which provided mobile services in the Kolkata circle. During the year 2002-03,
the company launched cellular mobile services in the circle of Mumbai, Maharashtra,
Tamil Nadu, Kerala, Madhya Pradesh, Uttar Pradesh (West), Haryana and Gujarat, fixed
line services in the circles of Tamil Nadu and
Karnataka and International Long Distance Services. They also commenced commercial
operations for their submarine cable landing station.
During the year 2003-04, the company obtained the new licenses for providing the
Unified Access Services, which include telecom circles of West Bengal (including
Andaman & Nicobar and Sikkim), Bihar (including Jharkhand), Orissa, Jammu &
Kashmir and UP (East). They also acquired interest in the telecom circles of Rajasthan
and North Eastern States, through the acquisition of 67.5% equity stake in Bharti
Hexacom Ltd. During the year 2004-05, operated in Bharti Cellular Ltd. and Bharti
Infotel Ltd. subsidiaries of the company, merged with the company with effect from
April 1, 2004. Prior to merger of Bharti Cellular Ltd. with the company, Bharti Mobile
Ltd circles of Karnataka, Andhra Pradesh and Punjab merged with Bharti Cellular Ltd.
The company acquired an additional stake of 1% from Fouad M T Al Ghanim Trading &
Cont Co Kuwait one of the shareholder of Bharti Hexacom Ltd. During the year, the
company and Videsh Sanchar Nigam Ltd entered into an agreement to share the
company's national long distance network for a period of 15 years for a consideration of
Rs 5,000 million. They entered into a regional mobile services agreement with six other
leading mobile operators, namely Globe Telecom, Philippines; Maxis, Malaysia; Optus,
Australia; SingTel, Singapore; Taiwan Cellular Corporations, Taiwan and Talkomsel,
Indonesia and formed a regional alliance, namely Bridge Alliance. In April 2005, the
10. company through their erstwhile 100% subsidiary Bharti Infotel Ltd, which was merged
with the company acquired 100% equity stake in Bharti Broadband Ltd (formerly known
as Comsat Max Ltd) by acquiring their holding company Satcom Broadband Equipment
Ltd (formerly known as Max Infocom Ltd). Also, Satcom Broadband Equipment Ltd and
Bharti Broadband Ltd were amalgamated with the company with effect from October 1,
2005. During the year 2005-06, the company signed a managed capacity expansion
contract with Ericsson for providing managed services and expands their GSM /GPRS
network into rural India in 15 circles. Also, they entered into an agreement with Nokia to
expand their managed GSM/ GPRS/ EDGE networks in eight circles. The company and
IBM launched Managed Services under their joint go-to-market program. During the
year, Vodafone acquired 10% economic interest in the company by way of subscription
of convertible debentures in Bharti Enterprises Ltd. Also, the company entered into
strategic partnership outsourcing agreements for their customer care call center
operations with four international BPOs - Hinduja TMT (HTMT), IBM Daksh, Mphasis
and TeleTech Services. During the year 2006-07, the company incorporated seven wholly
owned subsidiaries namely Bharti Airtel (USA) Ltd, Bharti Airtel (UK) Ltd, Bharti Airtel
(Hong Kong) Ltd and Bharti Airtel (Canada) Ltd, Bharti Infratel Ltd, Bharti Telemedia
Ltd and Bharti Airtel Lanka (Pvt.) Ltd. They received letter of offer from
Telecommunications Regulatory Commission of Sri Lanka for providing 2G and 3G
mobile services in Sri Lanka. During the year, the company entered into agreement with
Microsoft to offer software and services for the Small and Medium Business (SMB)
market in India and to offer Microsoft's latest Windows Mobile 5.0 technology to its
customer. They entered into agreement with Google to offer search services on Airtel
Mobile. Also, they entered agreement with Adani Group to connect Mundra Port and
Special Economic Zone and with IBM to deliver India's first 'Service Delivery Platform'.
In July 2006, the company launched 'Airtel Mega' Fixed Wireless Phone (FWP) services.
In September 14, 2006, they acquired 43,750 thousand shares of Bharti Hexacom Ltd for
an aggregate consideration of Rs 875,000 thousand thereby increasing their stake from
68.5% to 68.89%. In December2006 the company announced their foray into USA with
the launch of Airtel CallHome service for Non-Resident Indians. In March 2007, they
introduced BlackBerry 8800TM business phone. In April 3, 2007, Bharti Airtel
11. (Singapore) Pvt Ltd, Singapore, was incorporated for providing Voice Interconnection,
Prepaid International Calling Services, International Private Leased Circuits and VSAT
Trading. During the year 2007-08, Bharti Airtel Services Ltd (erstwhile Bharti Comtel
Ltd), the wholly owned subsidiary of the company, sold their entire shareholding in
Bharti Tele media Ltd to the company and Bharti Enterprise Ltd in the ratio of 40% and
60%, respectively. The company acquired 2% stake in a subsidiary of IFFCO Ltd called
IFFCO Kissan Sanchar Ltd at a consideration of Rs 50,125 thousand. Also, they invested
USD 1,200 thousand towards 1,200 thousand shares, of Bridge Mobile Pvt. Ltd,
Singapore (Bridge Mobile). During the year, the company entered into a joint venture
agreement with Vodafone Essar Ltd and Idea Cellular Ltd and formed an independent
tower company namely, Indus Towers Ltd for providing passive infrastructure services in
16 circles of India. In September 7, 2007, the company acquired 49% of the equity in
Bharti Aqua net Ltd, India at a consideration of Rs 159,549 thousand making Bharti
Aqua net Ltd a 100% subsidiary of the company. In September 28, 2007, they acquired
100% of the equity in Network i2i Ltd, Mauritius, at a consideration of USD 133,400
thousand. In October 1, 2007, the company incorporated a new company namely, Bharti
Airtel Holding (Singapore) Pvt. Ltd in Singapore as an investment holding company of
the company. In January 2008, the company transferred the passive telecom
infrastructure business of the company to Bharti Infotel Ltd. During the year 2008-09, the
company made their foray into media and television by redefining home entertainment
with Airtel digital TV. They launched their virtual calling card service 'Airtel Call Home'
in UK, Singapore and Canada. The service is targeted at the huge Indian Diaspora, Non-
Resident Indians ( NRIs) and Indian students in these markets. The company launched
their mobile services in Sri Lanka under the Airtel brand. They expanded their footprint
by launching their Mobile Services in Lakshadweep. They also launched Very Sign
Identity Protection (VIP) Services for their enterprise customers in India in partnership
with Verify Sign. In February
19, 2009, the company increased their stake in Bharti Hexacom Ltd by 1.11% through
acquisition of 2,780,306 equity shares for an aggregate consideration of Rs 166,818
thousand. In March 4, 2009, the company subscribed 1,470,000 equity shares (49%
stake) in Bharti Teleports Ltd for an aggregate consideration of Rs. 14,700 thousand. In
12. October 2009, the company launched live mobile comic service on their mobile
entertainment portal, Airtel Live. In October 23, 2009, they acquired an additional 55%
equity stake in their subsidiary, Bharti Tele media Ltd. for a consideration of Rs. 7.38
crore. Consequently, the total equity interest of the company in Bharti Tele media Ltd
increased to 95%. In January 12, 2010, the company agreed to acquire 70% stake in
Warid Telecom, Bangladesh, a wholly owned subsidiary of the Dhabi Group. Warid
Telecom is offering mobile services across all the 64 districts of Bangladesh. As of
January 2010, the company had an aggregate of over 131 million customers in South
Asia, including 121.7 million mobile customers in India. In March 11, 2010, the company
made their debut into Media & Entertainment with the launch of the Airtel Digital Media
Business. With this, the company is able to offer Content Delivery Solutions for media
and entertainment sector. In June 2010, the company acquired Zain Group's mobile
operations in 15 countries across Africa for an enterprise valuation of USD 10.7 billion.
With this, the company has become the first Indian brand to go truly global with a
footprint that covers over 1.8 billion people. Also, the company has become a major
Indian MNC with operations in 18 countries across Asia and Africa with a customer base
of over 180 million. During the year 2010-11, the company introduced a completely new,
fresh and vibrant brand logo and identity. Apart from India and Sri Lanka, the brand also
started to offer its services to consumers in Bangladesh making the Company a
powerhouse across South Asia. Across the seas, the Company established a strong
presence in the 16 countries across the African continent. During the year, Airtel won the
'Most Preferred Cellular Service Provider Brand' award in the CNBC Awaaz Consumer
Awards 2010 for the 6th year in a row. The CNBC Awaaz Consumer Awards were based
on an extensive consumer survey done by Nielsen, wherein the customers rated brands
across different categories which delivered true value for money. During the year, the
company launched 3G Services in 9 of 13 circles with 3G spectrum, empowering all 3G
customers to manage their data usage and avoid 'bill shock' with proactive, personalised
and timely data usage alerts coupled with introduction of easy-to-understand intuitive
tariffs with personalised data usage limits. They launched various new and innovative
products and services, such as airtel money, airtel call manager, airtel voice blog, airtel
world SIM, Live Aarti, Learn Next, IPTV, airtel broadband TV, Unified Service
13. Management Centre (SMC), Global Data Services, airtel digital TV recorder, MAMO
(My Airtel My Offer) and i-Care directly and through its subsidiaries, which enabled it to
strengthen their leadership in an intensely competitive market.
During the year, the company launched their New Vision for India and South Asia
'By 2015, airtel will be the most loved brand, enriching the lives of millions' inspiring and
directing all stakeholders for the next stage of growth. Also, they launched their vision
for Africa 'By 2015 airtel will be the most loved brand in the daily lives of African
people'. In August 27, 2010, the acquired the 100% interest in Telecom Seychelles Ltd, a
telecom operator of Seychelles, for an enterprise value of USD62 million. In September
2011, the company choose Ericsson India, Nokia Siemens Networks and Huawei
Technologies as network partners to launch 3G Services in India. These partners will
plan, design, deploy and maintain a 3G HSPA Network in Bharti Airtel 3G license
circles. In January 2011, the company and State Bank of India (SBI) entered into a Joint
Venture (JV) agreement to make available banking services to India's un banked millions.
The newly formed entity, will harness the power of State Bank's strengths and airtel's
mobile telephony to add value to the banking and financial services sector and empower
millions of financially excluded in the country to enhance their livelihood and quality of
life. The Joint Venture will become the Business Correspondent of SBI and offer banking
products and services at affordable cost to the citizens in un banked and other areas.
Board of Director
14. The Board of Directors of the Company has an optimum mix of Executive and Non-
Executive Directors, which consists of three Executive and fifteen Non-Executive
Directors. T h e C h a i r m a n a n d M a n a g i n g D i r e c t o r , M r . S u n i l B h a r t i
M i t t a l , i s a n Executive Director and the number of Independent Directors on the
Board is 5 0 % o f t h e t o t a l B o a r d s t r e n g t h . T h e i n d e p e n d e n c e
o f a D i r e c t o r i s d e t e r m i n e d o n t h e b a s i s t h a t s u c h d i r e c t o r
d o e s n o t h a v e a n y m a t e r i a l pecuniary relationship with the Company, its
promoters or its management, which may affect the independence of the judgment of a
Director. The Board members possess requisite skills, experience and
expertise required to take decisions, which are in the best interest of the Company.
The composition of the Board is as under-
• Sunil Bharti Mittal
• Rajan Bharti Mittal
• Akhil Gupta
• Rakesh Bharti Mittal
• Chua Sock Koong
• N. Kumar
• Kurt Hell storm
• Donald Cameron
• Paul O’Sullivan
• ProfessorV.S.Raju
• Pulak Chandan Prasad
• Bashir Abdullah Currimjee
• Gavin Darby
• Syeda Imam
• Ajay york Lal
• ChyeChang
15. ACHIEVEMENTS
1- First operator to revolutionaries the concept of retailing with the inauguration of Airtel
Connect (exclusive showrooms) in 1995.
2- First to introduce push button phone in India.
3- First to expand it network with the installation for second mobile switching center in
April, 1997 and the first to introduce the Intelligent Network Platform First to provide
Roaming to its subscribers by forming anassociationcalledWorld1Network.
4- First to provide roaming facility in USA. Enjoy the mobile roaming across 38 partner
networks & above 700 cities Moreover roam across international destinations in 119
countries.
5- Bharti announces agreement with Vodafone marking the entry of the world’s largest
Telecom operator into India
6- Bharti enterprises and AXA Asia Pacific Holdings Limited announce Partnership for a
life insurance joint venture in India.
7- Airtel launches future factory- centres of innovation to incubate Pioneering Mobile
Applications.
8- 16 states, 600 million people. Only India's leading.
9- It is also the first company to export its products to the USA.
AIRTEL NEWS
16. 1-Bharti Airtel inks USD 400 million network expansion contract with NOKIA.
.2-Bharti Airtel limited: Q2 cash profit exceeds Rs. 1,600 crores, PBT crosses Rs. 1,000
crores.
3-Bharti Airtel is amongst India’s Most Admired Knowledge enterprises in 2006.
4-Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE.
5- Notice of postal ballot for seeking consent of the shareholders on scheme of
amalgamation of Satcom Broadband Equipments Limited and Bharti Broadband Limited
with Bharti Airtel Limited.
SEGMENTATION OF AIRTEL
17. On the basis of Geographic variables:-
Regionwise
• East Region (West Bengal, Assam, Arunachal Pradesh etc.)
• West Region (Gujarat, Rajasthan, Maharashtra etc.)
• South Region (Andhra Pradesh, Karnataka, Kerala etc.)
• North Region (Punjab, Haryana, Himachal Pradesh etc.)
Density of area
• Urban (Cities Such As Mumbai, Delhi, Pune, Jaipur etc.)
• Semi-urban (Nasik, Aurangabad, Ahemadnagar etc.)
• Rural (Baramati, Khed, Saswad etc.)
On the basis Demographic variables:-
Age
1) From age group 18< 35
As most of the people start using a mobile from the age of 18 so we may make a segment
of a age group 18 to 35 as most of them will be students and remaining will be young
professionals working in the industry. So they need SMS plans for chatting and they also
need cheap calling rates. We may provide the FRINDZ card to them
2) 35andabove
As most ofthese groupwill beworkinganddon’tusemobile for SMS and chatting. So this group
needs only the calling facility at a reasonable rate. This Group may continue using the
general plan.
Income
18. PREPAID&POSTPAID
Generally the mobile service providers plan their marketing strategies according to the
prepaid market and postpaid market. So it basically depends upon the income of the
consumer that whether he selects the prepaid or postpaid. Generally the
consumers with low income choose prepaid and consumers with high income choose
postpaid.
On the basis of Behavioral variables:-
Brand Loyalty
We can also segment it on the basis of the loyal customers and non-loyal customers of the
brand. We can provide various schemes and offers to the loyal customers to retain him
with our product.
Bharti airtel limited – Organization structure (India and South Asia)
19. Chairman
Sunil Bharti Mittal
MD & CEO (India and
South asia)
Gopal Vittal
Director- Consumer
Business
Srinivasan Gopalan
Director & CEO,
Global Voice & Data
Business
Ajay Chitkara
Director - Human
Resources
TBD
Director- Global
Supply Chain
Moti Gyamlani
Director, Market
Operations
Ajai Puri
Director - Enterprise
and Government
Manish Prakash
Director Network
Services Group
Jagbir Singh
CFO
Nilanjan Roy
Director -Customer
Experience Raghunath
Mandava
CEO- DTH
Shashi Arora
Director
Legal & Regulatory
Jyoti Pawar
CIO
Harmeen Mehta
Vision Statement
To be globally admired for telecom services that delight customers bench marked by
more business- first private telecommunication company to launch long distance services.
By 2010 Airtel will be the most admired brand in India;-
Loved by more customer.
Targeted by top talent.
Benchmarked by more business.
Mission statement
Will meet the mobile communication needs of our customers through error free service
delivery, innovative products and services, cost efficiency, unified messaging solutions.
Awards and Recognitions
20. • Bharti Airtel won four Effie awards at the Effie Awards 2012. Airtel's extremely
popular 'Har ek friend zaroori hota hai' campaign conceptualized by
Taproot India, stood out as a campaign amongst all nominations, winning three
Gold Effie awards.
• Sanjay Kapoor was awarded the "Telecom Person of the year 2012" at
the "Voice & Data Telecom Leadership Awards 2012.
• Bharti Airtel won the Star News Viewers Choice Best Mobile Network, Best
Quality Mobile Network Service Provider, at the 6th National Telecom Awards
2012 hosted by CMAI in May 2012.
• Bharti Airtel was awarded the 1 Service brand in Brand Equity's List of “Most
Trusted Brands".
• Bharti Airtel was felicitated for 'Best Mobile Service Provider' and 'Innovation
in Money' at Aegis Graham Bell Awards held on November 1, 2012.
• In 2010-11 Airtel has won the most preferred cellular service provider brand
award at the CNBC awaaz consumer awards in Mumbai.
• Bharti airtel has received the prestigious business world- FICCI- SEDF Corporate
social responsibility awards 2009-2010.
• Bharti airtel rated as india’s best enterprise connectivity provider for 2009 at the
annual users choice awards instituted by PC quest.
• Airtel has been recognized as the best global wholesale carrier for 2009 at the
telecoms world awards middle east by terrapin.
• Voted India’s most innovative company- in a survey conducted by the wall street
journal in 2008
• Winner of the ‘’ Gallup Great Workplace Award’’- Gallup consulting 2008.
PRODUCTS
21. • Airtel Connections postpaid.
• Airtel connections prepaid.
• Airtel Data Cards.
• Airtel blackberry phones-
On 19 october 2004 Airtel announced the launch of a blackberry wireless solution in
India. The launch is a result of a tie – up between bharti Tele- ventures limited and
research in motion ( RIM).
• Airtel digital TV
Television service. Discover the magical experience of digital entertainment with airtel.
From DVD quality picture and sound, the best and widest variety of channels and
programmes to the best on demand content on airtel live, your TV viewing experience
change forever with digital TV from airtel.On 9 october 2008, Airtel joined the DTH
bandwagon in India with Airtel digital TV, a direct- to- home
Top competitors for Bharti Airtel limited
Reliance
Idea
Vodafone
Tata Docomo
Aircel
MTNL
BSNL
SWOT ANALYSIS
22. STRENGTH
Largest cellular service provider in India with over 164.61 millions
subscribers at the end April 2014.
Largest telecom operator in India world with 207.8 million subscribers across 19
countries at the end of 2011.
Only Indian operator with VSNL that has an international submarine cable.
High brand visibility.
Strong advertising with celebrity brand ambassadors.
WEAKNESS
Price competition from BSNL and MTNL.
Untapped rural market.
OPPORTUNITY
Fast expanding cellular market.
Latest and low cost technology.
Untapped rural market.
Mobile number portability
THREATS
New entrants low price offering.
Saturation point in basic telephony service.
23. REBRANDING
On 18 November 2010, Airtel rebranding itself in India in the first phase of a global
rebranding strategy. The company unveiled a new logo with Airtel written in lower
case. Designed by London- based brand agency, brand union, the new logo is the
letter “ A ” in lowercase, with airtel written in lowercase under the logo.
REGISTERED OFFICE
Bharti Airtel Limited ( A Bharti enterprise) Bharti cresent, 1 Nelson Mandela road,
Vasant kunj, Phase II , New Delhi- 110070
Tel. no. – 911146666100
Fax no- 911114666641
OTHER OFICES IN –
Karnataka, Banglore, Andhra Pradesh, Chennai, Punjab, Haryana, Pune, Rajasthan,
Hyderabad, Madhya Pradesh, Kolkata, Gujarat, Mumbai etc.
25. INTRODUCTION
• Owner – Sunil Bharti Mittal
• Bharti Airtel formerly known as Bharti Tele- ventures limited is a JV between
singtel and bharti telecom.
• India’s largest cellular service provider.
• Known for its service.
• First cellular operator to set up cellular showrooms ‘ AIRTEL CONNECT’.
• First cellular company to install a second mobile switching centre.
• Bharti is now the world’s third- largest, single-country mobile operator and sixth-
largest integrated telecom operator.
• The businesses at bharti airtel have always been structured into three individual
strategy business units – Mobile services, Airtel telemedia services and enterprise
services.
• The mobile business provides mobile and fixed wireless services using GSM
technology across 23 telecom circles while the Airtel telemedia services business
offers broadband and telephone services in 95 cities and has recently launched a
Direct- to- Home service, Airtel Digital TV.
• Shahrukh khan is the brand ambassador of the mobile company and Kareena
kapoor and Saif Ali khan are the brand ambassadors of the DTH Company.
26. MARKET TARGETING
• 121.63 Million Subscriber by 2010 elite class up market professional women and
senior citizen by postpaid connection.
• PAN- India targeting.
• High Corporate clients.
• Low Income group people.
• Youth with youth club.
POSITIONING
• Tagline – “ Express Yourself ‘’.
• The Product is sought to be positioned as a business efficiency tool. A Lifestyle
revolution and a status symbol the emphasis is to Remove misconception that the
cell phone is an expensive means of communication and drive home the point that
the cell phone is actually a day- to- day utility. Airtel has been successful in
positioned itself as an efficient and good service provider. This can be clearly
seen as Airtel is the market leader in mobile service in India.
MARKETING STRATEGY ADOPTED BY BHARTI AIRTEL
• Bharti has spent a considerable amount on advertising its mobile phone service,
Airtel. Beside print advertising, the company had put up large no. of hoardings in
and around Delhi.
• The objective behind designing a promotion campaign for the AIRTEL Service is
to promote the brand awareness and to build brand preferences.
27. • It is trying to set up a thematic campaign to build a stronger brand equity for
airtel. Given the Cell phone category it is the network efficiency and the quality
of service that becomes important what now the buyer is looking at is to get the
optimum price performance package.
• Airtel’s campaign strategy is designed keeping in mind its marketing strategy. It
tries to portray the image of being a first mover every time and that of a market
leader.
7’S PS
PRODUCT
• Mobile services – Prepaid and postpaid services.
• Tele media services – Broadband and telephone services.
• Enterprise services- Corporate and Carrier services
PRICE
• The biggest driver of its growth is the development of pricing plans catering to
individual needs and requirements of the people at the prices they are willing to
pay.
• Two separate trends are evident for pricing which are in terms of the kind of
usage by the subscriber.
• Local or STD phone calls.
• Calls to a phone on same network or to a different network combining these two
trends, four different usage patterns emerge according to which a user can select
the pricing plans:-
1) Local calls to same network cell phone.
2) Local calls to different network/ Landline.
28. 3) STD Calls to same network.
4) STD calls to different network/ Landline.
PLACE
It refers to how the product gets to the customer i.e the channel by which a product or
services is sold e.g. ( online vs. retail ), which geographic region or Industry to which
segment ( young adults, families, business people) etc.
PROMOTION
• Use of print Advertising material.
• Innovative TV Advertisement.
• Brand Ambassadors.
• Sponsorships
PEOPLE
• The Board of Directors.
• The Employees.
• The Target customers- Airtel has Positioned itself as an aspiration and lifestyle
brand in a way that trivializes the price in the mind of the customer. It pitches not
merely as a mobile service provider, but as something that would give a Customer
Certain badge value.
PHYSICAL EVIDENCE-
• The Physical environment plays an important role in shaping the service
experience and delivering the customer satisfaction.
29. PROCESS
• Process Innovations and Continuous improvement through people
involvement.
• Problem Investigation by fact based- Root Cause Analysis.
• Based on Customer Specification. Airtel has many business Processes on the
following concepts:-
1) Delivery time.
2) Lead time.
3) Time to market.
• Result oriented approach- Each process has been designed by the desired
result. The targeted results are then arrived at through identification of the
following-
1) The next- customer and end- customer expectations.
2) Past experience of what went wrong and can go wrong.
AIRTEL BROADBAND
Bharti Tele ventures is the fixed line operator business of Airtel. In the recent branding
exercise, all the services have been offered under the Airtel brand. Data is the next driver
for growth. This is clear to the operators who have belatedly realized the implications for
having a pie in all the segments of telecommunications. Hence Bharti ventured in the
broadband market. However, the main contention in the broadband market is the price
offering which includes the bandwidth costs as well as the cost of laying down the copper
wire. Typically, in the mentality of the profit making exercise, Airtel has so far focused
only in those areas where it perceives that a huge market is present. However, I still hold
30. that their thrust should be in smaller towns and cities where BSNL would ultimately
usurp their potential customer base. It seems that their fancily paid MBAs haven’t really
understood the success of BSNL who focused on the B and C class cities where it has
drawn unparalleled support despite the lousy customer experiences. This is because of the
absence of any other operator.
The current offerings by Airtel does not really enthuse a potential customer who is
looking at sustained data transfer. It is the classic case of having something better than
nothing. Add to the lousy customer care that Airtel is slowly perfecting, it is staffed with
people who usually land up in their jobs with little idea of their job profile. The so-called
Tech engineers have often been unable to help a customer who is facing issues with the
connectivity.
Initially, the cellular services market registered limited growth. Moreover, these services
were mostly restricted to the metros. Other factors such as lack of awareness among
people, lack of infrastructural facilities low standard of living, and government
regulations were also responsible for the slow growth of cellular phone services in India.
Although the cellular services market in India grew during the late 1990s (as the number
of players increased and tariffs and handset prices came down significantly) the growth
was rather marginal. This was because the cellular service providers offered only post-
paid cellular services, which were still perceived to be very costly as compared to
landline communications .Following this realization, the major cellular service providers
in India, launched pre-paid cellular services in the late 1990s. The main purpose of these
services was to target customers from all sections of society (unlike post-paid services,
which were targeted only at the premium segment).
We will meet global standards for telecom services that delight customers through:
• Customer Service Focus
• Empowered Employees
• Cost Efficiency.
• Unified Messaging Solutions.
• Innovative products and services
31. • Error- free service delivery.
BHARTI announces agreement with VODAFONE marking the entry of
the World's Largest Telecom Operator into India
• Vodafone to invest approximately Rs. 6,700 crores (approx. USD 1.5 bn.)toacquire
around10%in BhartiTele-VenturesLtd.
• BhartiEnterprises,SingTelandVodafonetotake BhartiTele-Ventures Ltd. to unassailable
leadership position in India.
• The largest single foreign investment everin thehistoryofIndia.
• The largest investment in the Indian Telecom industry.
• Bharti establishes its supremacy in the Indian telecom market, havingattractedAsia’s
best–Singtel,andnowworld’sbest– Vodafone.
• Bharti set to gain global leadership in the telecom sector
• Bharti Enterprises continues to hold shareholding and management control in Bharti
Tele-Ventures.
32.
33. NEW PRODUCT/ INITIATIVES -
During the year, the Company launched various new and innovative products and
services, directly and through its subsidiaries, which enabled it to strengthen its
leadership in an intensely competitive market. Some of the key launches of the year
included:
• 3G Services in 9 of 13 circles with 3G spectrum, empowering airtel call manager,
a service that enables a customer to keep his/her callers informed (when he is in a
meeting or driving and is not able to take calls) by choosing the meeting or the
driving profiles all 3G customers to manage their data usage and avoid ‘bill
shock’ with proactive, personalised and timely data usage alerts coupled with
introduction of easy-to-understand intuitive tariffs with personalised data usage
limits.
• Airtel money - India’s first mobile wallet service by a telecom operator. It offers
customers an efficient alternative to cash transactions, providing. Airtel customers
across the country with a convenient and secure way of making payments through
the ubiquitous mobile platform anytime, anywhere.
• Airtel call manager, a service that enables a customer to keep his/her callers
informed (when he is in a meeting or driving and is not able to take calls) by
choosing the meeting or the driving profiles.
• Airtel voice blog, world’s first voice blogging service, enabling customers to
share recorded voice updates with their followers, fans, friends or family.
• Airtel world SIM for international travellers enabling outbound travellers to retain
their local number while roaming internationally at a fraction of the cost, allowing
customers to save upto 85 percent on international calls.
• Live Aarti on mobile, India’s first service on mobile offering daily live Pujas and
Aartis directly from the shrines including Tirupati Balaji, Siddhivinayak, Shri Sai
Baba from Shirdi and Bangla Sahib.
34. CELEBRITY ENDORSEMENT
TENDULKAR & SHAHRUKH
Both Tendulkar and King Khan already share the frame for soft drinks major PepsiCo
India. Tendulkar is not the first cricketer to endorse Bharti’s Airtel brand. Indian captain
Saurav Ganguly had done so when Airtel launched its service in the eastern metropolis of
Kolkata in 2001.Though company executives were mum on the value of the Tendulkar
deal ,those in the advertising fraternity peg the signing rate for the three-year deal any
where between Rs 8 crore and Rs 10 crore.
Both Sachin and Shah Rukh are two of the most sought after celeb endorsers in the
country, with the former edging out the latter in the celeb endorsement race. The Master
Blaster’s portfolio includes brands like Colgate Pamolive, ESPN-STAR Sports, Pepsi, MRF,
Boost, TVS, Palio, Visa, Adidas and Britannia. The leading brands endorsed by Khan
include Hyundai, Pepsi, Airtel, Tag Huer, Clinic All Clear, Bagpiper and Videocon, among
others .According to company executives, the idea of roping in Tendulkar is in line with
the group’s strategy to connect to the mass market through celeb endorsers from movies,
cricket and music. “For mass connect, Shah Rukh and Sachin are the best bet as brand
endorsers,” says a senior company executive. Bharti Plans to launch a multimedia
campaign targeting its service at the mass market.
Targeting of Airtel
Airtel has targeted the premium and upper middle class. The motto behind this only those
segments should be targeted who value time and have the paying capacity. During the
introduction stage there was a huge pressure to get consumers across to hook up with
their brand, because getting them to Airtel by their earlier brand and switching their
brand loyalty was too tough. Airtel marketers have been concentrating totally on the
35. business executive class but now that the basic viable volumes has been built up and
prices have declined to a certain extent they are planning to venture further field.
Professionals by giving free calls in postpaid connections. Entrepreneur by giving various
plan in which they may get internal calling free. Youth with the “FRIENDZ” Scheme.
Targeting Students by introducing postpaid connection only for students and with zero
rentals.
37. The methodology adopted for this project is explanatoryin nature.There is no hypothesis
that has to be tested. The conclusions have been drawn by exploratory research work. There have
beentwosourcesof informationcollected:
a) Primary Sources
I have met retailers of the airtel of the company and have been able to get first
hand information regarding the product, its features and the buying patterns
of the product. Their input has been valuable.
b) Secondary Sources
Secondary source has played a vital role to play in this report. A good amount of data has
been collected from various published articles and reports found in magazines and
journals. And the revital source has been the Internet and particularly the companies own
website.
DATA SOURCES
Data is collected from both the Primary sources i.e. questionnaire and also from
Secondary sources.
Primary sources:
The primary source of data collection is through questionnaire. The questionnaires are
distributed among 35 peoples and their view is recorded and used in analyzing the data
Secondary sources:
The secondary sources includes online sites, newspapers and templates from AIRTEL
distributionscentersandAIRTELCustomer care.
TYPES OF RESEARCH METHODOLOGY
38. EXPLORATORY
Type of Research carried out was Exploratory in Nature, The Objective of such Research
is to determine the Approximate area where the Drawback of the Company Lies and also
to identify the course of action to solve it. For this Purpose the Information Proved useful
for giving Right Suggestion to the company.
40. There are several important reasons why businesses should attempt to segment their
markets carefully.
To create separate offers for each segment makes sense and provides customers
with a better solution enhanced profits for business customer have different
disposable income.
By segmenting markets, businesses can raise average prices and subsequently
enhance profits.
To Better opportunities for growth market segmentation can build sales.
To Clearer understanding of the needs and wants of selected customer groups.
To Greater accuracy in selecting promotional vehicles and techniques( example:-
advertising media, sales promotion methods, geographic placement.
42. Q 1- Which offer attract you most ?
Ans-
OFFER PERCENTAGE
Value added services 60
Cheap call rate 20
strong network 20
percentage
value added services
cheap call rate
strong network
Interpretation: from the above pie chart it indicates that value added services of airtel
like by 60% people, 20% like cheap call rate and 20% like strong network of airtel.
Q 2- Do you think brand image of airtel is stronger than others ?
43. Ans-
Response Percentage
Yes 96
No 4
percentage
yes
no
Interpretation: According to the pie chart it indicate that airtel is the brand preferred
by most of the people as 96% people like airtel and 4% like others brand.
44. Q 3- How did you get aware about airtel landline and broadband
services?
Ans-
Response Percentage
Banners and hoardings 13
sales people 67
Tele calling 2
Newspaper 4
References 1
Others 13
percentage
banners and hoardings
sales people
tele calling
newspaper
references
others
Interpretation: Among different means of awareness we can see from the graph 67%
people get aware about the services from the sales people, 13% people get aware from
banners and hoarding, 2% people get knowledge by the tele calling,4% people get aware
by the newspaper, 1% people by the references and 13% get awareness by the others
means.
Q4- How much you satisfied with the services of airtel ?
45. Ans-
Responses Percentage
Strongly satisfied 80
Satisfied 10
not satisfied 10
percentage
strongly satisfied
satisfied
not satisfied
Interpretation: According to the graph 80 % people says that they are strongly
satisfied with the services of aitel, 10% people satisfied with the services of airtel and
10% people says that they are not satisfied with the services of airtel.
Q 5- How long have you been a customer of airtel ?
46. Ans-
Responses Percentage
Less than 1 year 10
1-2 year 20
3-5 year 10
More than 5 year 60
percentage
less than 1 year
1-2 year
3-5 year
more than 5 year
Interpretation: According to the pie chart 60% people says that they have been a
customer of airtel for more than 5 years and 20% people says that they have been
customer of airtel for 1-2 years and 10% people says that they have been customer of
airtel for 3-5 years and 10% people says they have been customer of airtel for less than 1
year.
Q 6- What does the customer see at the time of purchasing the product ?
47. Ans-
Response Percentage
Price 28
Quality 29
Packaging 25
Test 18
percentage
price
quality
packaging
test
Interpretation: According to the pie chart 29 % people says that they are attract by
the quality of the product, 28% people says that they attract by the price of product, 25%
people says that they are attract by the packing and 18% people says that they attract by
the test.
Q7 – Which company sim attract you more in terms of services ?
48. Ans –
Response Percentage
Airtel 60
Reliance 20
Vodafone 10
Tata indicom 10
percentage
airtel
reliance
vodafone
response
Interpretation: According to the pie chart 60% people says that they use sim of
airtel, 20% people says tha they use reliance sim, 10% people says that they uses
Vodafone sim and 10% uses tata indicom sim.
Q 8- Are you using other product instead of airtel ?
49. Ans -
Responses Percentage
Yes 67
No 33
percentage
yes
no
Interpretation: According to the pie chart customer responses about the use of other
product instead of airtel, 67% people replies in yes and 33% people replies in no.
Q 9- Which feature of airtel forced people to use airtel ?
50. Ans-
Response Percentage
Advertisement 35
Connectivity 20
Scheme 10
Goodwill 35
percentage
advertisement
connectivity
schemes
goodwill
Interpretation: According to the pie chart 35% people says that advertising force
them to use airtel, 20% replies that good connectivity force them to use, 10% people says
good scheme force them to use airtel and 35% people attracted by the goodwill of the
airtel.
Q 10- Which type of recharge cards liked by people in airtel ?
51. Ans-
Response Percentage
More talktime 23
More validity 15
Both 62
percentage
more talktime
more validity
both
Interpretation: According to the pie chart when customer were asked about the type
of recharge they prefer , 23% people like more talktime recharge , 15% like more validity
recharge and 62% reply they like both.
53. The conclusion of my study is that AIRTEL’s Advertising has a major impact its users. People
like its schemes very much .AIRTEL had created a very good image on the mind of the
new users of cellular service. AIRTEL has adopted a very good strategy by providing
a new connection with NOKIA who is market leader in mobile set, many new users buy
Nokia sets and they get a free connection of AIRTEL. AIRTEL is successful in capturing
the highest market share by adopting Celebrity Endorsement Strategy. A.R.Rehmaan’s tune
for AIRTEL worked as free advertising for AIRTEL as another service user uses it too. Other
celebrities like Shahrukh Khan (bollywood) and Sachin Tendulkar (Cricket) has also
contributed very muchinAIRTEL.
• Till today all the mobile operators are focused on transactional
marketing ( get new customers) than Relationship Marketing
( Retaining old customers). Bharti needs to see what it can do to re-
attract its existing Customers just to strengthen Relationships.
• They are more focused on increasing network area and Circles- which is
definitely require and India has a huge market, which is fragmented in
nature and too many Customer segments- Geography, Income, Age,
Language spoken, Culture.
• Relationship Marketing is not much emphasized in India but the can
Industry which it too Competitive and can be operated remotely this will
be more Important
• Also the operator should come with new business Plans for rural areas.
There is huge market in mobile data and voice communication, there is
huge potential but proper learning tools and communication required.
• As the wireless network cost is reducing, the focus in rural areas will
become important.
54. CHAPTER-7
RECOMMENDATIONS
RECOMMENDATIONS
• By virtue of its connectivity and advertising strategy AIRTEL is successful
in grabbing the highest market share in India, but there are still some
recommendations from my study point of view is that AIRTEL needs to
55. make its network service more stronger than other service to dominate the
market in future too .AIRTEL should introduce cheaper recharge cards
than the other because its competitor HUTCH has Introduced it.
• Airtel should sign more celebrities from cricket and bollywood.
• Till today all the mobile operators are focused on transactional marketing
( get new customers) than Relationship Marketing ( Retaining old
customers). Bharti needs to see what it can do to re- attract its existing
Customers just to strengthen Relationships.
• They are more focused on increasing network area and Circles- which is
definitely require and India has a huge market, which is fragmented in
nature and too many Customer segments- Geography, Income, Age,
Language spoken, Culture.
• Marketing is not much emphasized in India but the Industry, which is too
competitive and can be operated remotely this will be more important.
• Also the operators should come with new business plans for rural areas.
There is huge market in mobile data and voice communication, there is
huge potential but proper learning tools and communication required.
• As the wireless network cost is reducing, the focus in rural areas will
becomes important till be more Important.
• Relationship Marketing Focus.
• Employee management.
• Service focus on Pre- paid maket.
• New businesses India for rural market
• Usage of Rights CRM tool.
By virtue of its connectivity and advertising strategy AIRTEL is successful in grabbing
the highest market share in India, but there are still some recommendations from my
study point of view is that AIRTEL needs to make its network service more stronger
than other service providers to dominate the market in future too. AIRTEL should
56. introduce cheaper recharge cards than the other because its competitor HUTCH had
introduced it .AIRTEL should sign more celebrities from cricket and bollywood.
58. NEWSPAPERS:
Times of India (15 Oct 2006- 2 Nov 2006)BOOKS:
MarketingManagement, Dr.S.L.Varshney and Dr. R.L. Gupta, Third Revised Edition,
Sultan Chand and Son.
61. 3- How did you get aware about airtel landline and broadband services ?
ANS- Banners and hoardings ( )
Salespeople ( )
Tele Calling ( )
Newspaper ( )
References ( )
Others ( )
4- How much you satisfied with the services of airtel ?
ANS- More satisfied ( )
Satisfied ( )
Not Satisfied ( )
5- How long have you been a customer of airtel ?
ANS- Less than one year ( )
1-2 years ( )
3-5 years ( )
More than 5 year ( )
6-What does the customer see at the time of purchasing the product ?
ANS- Price ( )
Quality ( )
Packaging ( )
Test ( )
7-Which company sim attract you more in term of service ?
ANS- Airtel ( )
Reliance ( )
Vodafone ( )
Tata Indicom ( )
8-Are you using other product instead of Airtel ?
ANS- Yes ( )
62. No ( )
9-Which feature of airtel forced people to use airtel?
ANS- Advertisement ( )
Connectivity ( )
Schemes ( )
Goodwill ( )
10-Which type of recharge cards liked by people in airtel ?
ANS- More talktime ( )
More Validity ( )
Both ( )