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Company profile of airtel

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A Project Report on marketing Segmentation of Airtel .
Given BY- Bhavbhuti Singh. (BBA student)
at CCS UNIVERSITY.

Published in: Marketing
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Company profile of airtel

  1. 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. 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. 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. 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. 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…………….
  6. 6. CHAPTER-1 COMPANY PROFILE
  7. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.
  24. 24. CHAPTER-2 MARKET SEGMENTATION OF AIRTEL
  25. 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. 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. 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. 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. 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. 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. 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. 32. 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.
  33. 33. 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
  34. 34. 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.
  35. 35. CHAPTER-3 RESEARCH METHODOLOGY RESEARCH METHODOLOGY
  36. 36. 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
  37. 37. 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.
  38. 38. CHAPTER-4 OBJECTIVES OF THE STUDY OBJECTIVES OF STUDY
  39. 39. 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.
  40. 40. CHAPTER-5 DATA ANALYSIS DATA ANALYSIS
  41. 41. 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 ?
  42. 42. 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.
  43. 43. 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 ?
  44. 44. 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 ?
  45. 45. 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 ?
  46. 46. 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 ?
  47. 47. 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 ?
  48. 48. 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 ?
  49. 49. 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 ?
  50. 50. 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.
  51. 51. CHAPTER-6 FINDING AND CONCLUSION Finding and Conclusion
  52. 52. 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.
  53. 53. 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
  54. 54. 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
  55. 55. introduce cheaper recharge cards than the other because its competitor HUTCH had introduced it .AIRTEL should sign more celebrities from cricket and bollywood.
  56. 56. CHAPTER-8 BIBLIOGRAPHY BIBLIOGRAPHY ON-LINE WEBSITE :. .GOOGLE.CO.IN .WWW.AIRTEL.COM
  57. 57. 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.
  58. 58. CHAPTER-9 ANNEXURE ANNXURE SAMPLE QUESTIOANNAIRE ON MARKET SEGMENTATION OF AIRTEL Please provide the following information First Name
  59. 59. …………………………………………………………….. Last Name ………………………………………………………………. Working since ……………………………………………………………….. Team ………………………………………………………………. Designation ………………………………………………………………. 1- Which offer attract you more ? ANS- Value added service ( ) Cheap Call Rate ( ) Strong Network ( ) 2-Do you think brand image of airtel is stronger than others ? ANS- Yes ( ) No ( )
  60. 60. 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 ( )
  61. 61. 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 ( )

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