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A Comparative study of Vodafone Vs Airtel with special reference of Prepaid Plan

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Introduction about two competitive company which is leading in telecom industry in India.
Air tel & Vodafone

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A Comparative study of Vodafone Vs Airtel with special reference of Prepaid Plan

  1. 1. Field Study Report On A Comparative study of Vodafone Vs Airtel with special reference of Prepaid Plan A Project Report submitted in partial fulfillment of the requirements For the award of the degree of INTEGRATED MASTER OF BUSINESS ADMINISTRATION (IMBA) Submitted By Under the guidance of Manzer Abbas Prof. Rashmi Singh IMBA 4th Semester SOM, BBDU Session-2013-2014 Roll Number - 1120675024 SCHOOL OF MANAGEMENT, BBD UNIVERSITY Sector 1, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
  2. 2. PREFACE As a part of our course curriculum I had to go under summer training and prepare a project report on any topic to get the right exposure to the practical aspects of business management. I want to express my gratitude for the experience and practical knowledge that I earned during the Research Project Report. In this project report I had presented my great experience in the form of words. In making the project report theoretical knowledge was needed more than the practical which was given to us by my professors in my institutes. In the market the experience relating to the practical knowledge was very good which realized me about the real conditions of the marketing. The project flows logically consisting of a questionnaire. I hope that the findings and the suggestions will help the company, confidently to formulate its strategy in comparison to its competitors. My depth research on the particular topic has given an insight of the current scenario in the telecommunication and service industry. The various brand aspect to create the particular positioning of both product and service has widened my knowledge. This project provides an opportunity to relate my classroom learning with the reality of management. I believe that this knowledge endeavor of mine has prepared me for the future challenge.
  3. 3. DECLARATION I declare that the project titled “A Comparative study of Vodafone Vs Airtel with special reference of Prepaid Plan” is an original project done by me and no part of the project is taken from any other project or material published or otherwise or submitted earlier to any other college or university. ( ) Manzer Abbas IMBA 4th semester Roll No. - 1120675024
  4. 4. ACKNOWLEDGEMENTS I extended my special gratitude to our beloved Dean and Prof. Rashmi Singh Mam for inspiring me to take up this project. I wish to acknowledge my sincere gratitude and indebtedness to my project “A Comparative study of Vodafone Vs Airtel with special reference of Prepaid Plan” for his valuable guidance and constructive suggestion in the preparation of project report. I extended my gratitude to Prof. Rashmi Singh Mam and all my colleagues, friends for their encouragement, support, guidance and for preparing the project report. Manzer Abbas IMBA 4th semester Roll No. - 1120675024
  5. 5. CONTENT 1) Introduction 2) Company overview 3) Airtel  Tariff rates 4) Vodafone  Tariff rates 5) Research Methodology  Data collection  Primary data  Secondary data  Sampling techniques 6) Data analysis 7) Findings 8) Conclusion 9) Suggestion and recommendation 10) Bibliography/References 11) Appendix
  6. 6. INTRODUCTION The unprecedented growth in the mobile is, perhaps, the most vivid facet of India’s economic transformation since the mid 1990’s. Mobile technology and services came to India less than a decade ago. In the early days, a mobile was seen to be a fashion statement for the rich. Today, it is expected as a basic communication medium for all socio- economic segments. Company Overview
  7. 7. As the pioneer and front runner, Airtel has been instrumental in leading and ushering in the mobile revolution in India. The Indian mobile market is, today, amongst the fastest growing and the most competitive in the world. There were 34.6 million mobile phone subscribers in the country as of April 2004 (source: cellular operators association of India and association of basic telecom operators) with approximately 7 million subscribers, Airtel commands nearly 20% of the share of the market- making is the number one brand in the country. Airtel world class service and innovative products have enabled it to establish this position of leadership. AIRTEL is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular services provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel Brand and provides the following services under the brand name Airtel mobile services (Using GSM Technology), Broadband & Telephone services { Fixed line, internet Connectivity (DSL) and Leased Line}, Long distance services and Enterprise Services(Telecommunication Consulting for corporate). It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07). Leading international Communication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel.
  8. 8. AIRTEL TARIFF RATES I am interested One Time Charges, if any Gold New (Airtel/ DL/ GSM/3) RTP Plan Voucher (Airtel/ DL/ GSM/24) RTP-FR Plan Voucher (Airtel/ DL/ GSM/3) Free Calls/ SMS / Data Transfer if any (included in one time charges)* Loca l No s 15 47 194 STD No s Nil NA NA ISD No s Nil NA NA SMS No s Nil NA NA Data MB Nil NA NA Regular Validity Regular Validity Regular Validity Sim/Account Validity Regular Validity 180days 180days Tariff Validity (initial/promotional/ base, if any)** 1 second 1 second 1 second Particulars/ Services Details Units Pulse Rate Sec./Min. Voice Video Voice V Call Charges 2paisa/sec. 5paisa/sec. 1.5p/sec. 5
  9. 9. Local On net (Airtel to Airtel mobile) Rs. 2paisa/sec. 5paisa/sec. 1.5p/sec. 5 Off net (Airtel to other operators) Rs. 2paisa/sec 5paisa/sec (Mobile), NA(Fixed) 1.5p/sec. 5 Mobile/Fixed(*) Rs. 2paisa/sec 5paisa/sec 1.5p/sec 5 STD On net (Airtel to Airtel Mobile) Rs. 2paisa/sec 5paisa/sec Off net (Airtel to other Operators) Rs. 2paisa/sec 5paisa/sec(Mobile), NA (Fixed) Mobile/Fixed(*) Rs. ISD ISD Tariff to be made available on Website & point of Recharge/ other conditions, if any sale For Country wise ISD tariff, please Visit www.airtel.in or nearest Airtel relationship centre 10p/10kb for 2G network & 3p/10kb for 3G network SMS Local Rs Re. 1.00 Re. 1.00 National Rs Rs. 1.50 Rs. 1.50 International Rs Rs. 5.00 Rs. 5.00 Data Home Paisa/kb 10p/10kb for 2G network & 3p/10kb for 3G network 10p/10kb for 2G network & 3p/10kb for 3G network Roaming Paisa/KB 10p/10kb for 2G network & 3p/10kb for 3G network 10p/10kb for 2G network & 3p/10kb for 3G network
  10. 10. Chargeable while Roaming National Local outgoing Rs Voice Rs 1/1.50/5 Video NA Voice Rs 1/1.50/5 STD Outgoing Rs Nil NA Incoming Rs Existing Customers will get same benefits at Rs.2 Nil SMS (Local/STD/ISD) Rs Special benefits, if any other conditions, if any Blackout Days for year 2014- Applicable for both SMS & Voice (on these days, tariff plan rates will not applicable) 1. New Year(31st Dec & 1st Jan) 2. Holi 3. Chhoti Diwali 4. Diwali
  11. 11. Vodafone is the largest cellular operator in India that covers most of the country. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. The company is often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hi stands out visibly though it uses only black letters on white background. Another recent successful ad campaign in 2003 featured a dog following a boy around in unlikely places, with the tagline, wherever you go, and our network follows. Hutch Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. Vodafone and the Essar group have reached an agreement on the management of the company, which will be renamed Vodafone Essar in the near future. In Mumbai it was earlier known by the name Orange. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India Despite the official name being Vodafone Essar; its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros.
  12. 12. Vodafone Essar Provides 2G services based on 900MHz and 1800MHz digital GSM technology, offering voice and data services in 16 of the country’s license areas. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone.
  13. 13. VODAPHONE TARIFF RATE Tariff Plans SUK 10 Prepaid Plan Voucher Rs.2 Prepaid Plan Voucher Rs.3 MRP 10 2 3 Applicability New Customer Existing/Ne w Customer Existing/New Customer Talk Time Rs. 0 Rs. 0 Rs. 0 Sim/Account validity Lifetime Lifetime Lifetime Local call rates Vodafone-to-Vodafone calls 2p/sec. 1.2p/sec. 50p/min. Vodafone-other mobiles 2p/sec. 1.2p/se0c. 60p/min. To landlines 2p/sec. 1.2p/sec. 90p/min. STD call rates Vodafone-to-Vodafone calls 2p/sec 1.2p/sec. 60p/min. Vodafone-other mobiles 2p/sec. 1.2p/sec. 60p/min. To landlines 2p/sec. 1.2p/sec. 90p/min. Tariff validity 180days 180days 180days SMS Local SMS Re.1.00/SMS Re.1.00/SMS Re.1.00/SMS National SMS Rs.1.50/SMS Rs.1.50/SMS Rs.1.50/SMS International SMS Rs.5.00/SMS Rs.50/SMS Roaming Rs/min. All Incoming Calls 0.75 Outgoing Calls Rs/min.
  14. 14. Local Calls 1 STD Calls 1.5 ISD Calls Rates applicable same as in home network SMS Rs/min. Outgoing(Local/National) 1/1.50on all networks Outgoing(International & Short Codes) Rs. 5/SMS for all international SMS Incoming Free Note: • Lifetime validity as per circle license period presently till 2026 for Bihar circle • MRP inclusive of 12.36% service tax • To enjoy the benefits of bonus cards. Positive balance needs to be maintained in account. • As per govt. regulation. For connection without any usage (Voice/video calls, outgoing SMS, Internet usage, VAS purchases with balance) for 90 days, following actions are liable to be performed: • For subscriber with less than Rs. 20 balances all services will be deactivated pending payment of reactivation fee Rs. 20 for a period of 15 days. Number will be disconnected on non-payment of sale fee with in this period. • For subscriber with more than Rs. 20 balance, Automatic Number Retention Scheme will be put into effect – Rs. 20 will be deducted and services will be continuing for 30 days.
  15. 15. RESEARCH METHODOLOGY Research Design It is descriptive research Population Lucknow region Sampling Techniques Used – Convenience sampling Sample Size – Taken is 25. Method of data collection:- There are two main sources of data: Primary research is conducted from scratch. It is original and collected to solve the problem in hand. The data is collected by the survey. By going to the retailer shop and collect data. Secondary research, also known as desk research, already exists since it has been collected for other purposes. The data is collected by internet. Problems & limitations There was some problems is collecting the samples. Some peoples were not filling the questionnaire properly. Some people don’t complete the questionnaire.
  16. 16. DATA ANALYSIS Q.1 Do you keep telecom Connection? Reply of respondent No. of respondents Percentage of respondents Yes 22 88% No 3 12% Q.2 which mobile company services you are using now a days? Airtel 7 28% Vodafone 7 28% Others 8 32% None 3 12% Q.3 among them, which brand, you prefer most? Company Customer Percentage Airtel 7 28% Vodafone 7 28% Reliance 2 8% Tata 1 4% Idea 3 12% Others 2 8% None 3 12%
  17. 17. Q.4 How long you have been using this product? Years Airtel Vodafone Others None 0-1 1 1 1 5 1-2 4 1 2 0 2-5 0 2 1 0 5-10 1 1 1 0 More than 10 1 2 1 0 Q.5 Do you collect any information search before making purchase? Company Yes No Total Airtel 3 4 7 Vodafone 4 3 7 Others 3 3 8 None of these - - 3 Q.6 what are the features you look for in a product before making purchase decisions? Features Airtel Vodafone Others None Brand credibility 1 3 2 - Price & discount 2 - - - Value of money 1 2 2 - Value of performance 1 2 2 -
  18. 18. After sales service & parts, network 2 - - - None of these - - 2 - Total 7 7 8 3 Q.7 if you have to purchase a new connection or product in near future, which brand will you go for and why? Company Plan Responses Popularity Airtel 3 1 3 Vodafone 1 2 4 Others 5 2 1 None - - - Q.8 Are you aware of various promotional activities being run by Airtel/Vodafone. If yes then how? Promotional activities Airtel Vodafone Customer care 3 3 By ad films 1 4 By camp 1 - 24 hrs call center services 2 -
  19. 19. Q.9 Are you satisfied with these promotional activities? Promotional activities Airtel Vodafone Very satisfied 1 2 Satisfied 2 4 Somewhat satisfied 3 1 Not satisfied 1 - Q.10 what are you suggestions for improving the product quality, service availability and parts availability? Company Costly Plans Quick response No suggestion Airtel 4 - 3 Vodafone 3 1 3 Others 1 1 6 0 1 2 3 4 5 6 7 Costly Plans Quick Response No Suggestion Airtel Vodafone Others Q.11 which company provides you best plan? Company No. of respondents Percentage of
  20. 20. respondent Airtel 6 24% Vodafone 3 12% Reliance 3 12% Idea 5 20% Others 5 20% None of these 3 12%
  21. 21. FINDINGS The basic and to the point conclusion of the above discussed issue is that the company can make more and more profits only when it can satisfy all its customers,/dealers and distributors in order to do that the company should agree with all their fair Suggestions and make them happy. If workers will be happy and satisfy then they will make sincere efforts to achieve their targets and increase the sales of the company.
  22. 22. CONCLUSIONS After analyzing the findings of the research, I can conclude that Airtel Lagged behind its competitors as far as customer service availability is concerned. The maximum no. of people who use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spends Rs. 300 on their connections. As Airtel is the only company having the maximum no. of mobile connections so it must seriously look into the loop holes of the existing customer service department. As we know that now Airtel has already launched its logo “Aisi azaadi aur kahan” has already became popular in market. So we can say that in spite of so many competitors in the market Airtel is having a good position just because every time, it tries its best to understand the needs of its important customers. From the comparison and deep analysis of every aspects of business and both the companies we can conclude that Bharti Airtel has to more work in every field communications business. • It is the time not only to survive but to sustain in the market for a long time. • For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc. • Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and when the need arises. • With aggressive marketing strategies Airtel has to target rural India as 70% of population of India lives in these areas. • The other segment may be customer of all age groups.
  23. 23. SUGGESTION & RECOMMENDATION Following are the few suggestions to Vodafone for improving the market share and image of the products concerned. 1. Product • Modification must be brought about in Airtel, in terms of quality. Its demand should be increased. 2. Place • The brands must be made available easily in PCO & general stores. 3. Promotion • Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. • free samples (TERMS AND CONDITION APPLY) should be distributed among the prospects. Sales promotion tools like gifts, contests and coupons must be given to retailers as well as customers and prospects. • Catalogues should be distributed among customers. 4. Price • Price should be as competitive as other company maintains. • Distribution of new connection should be in reach of customer pocket.
  24. 24. BIBLIOGRAPHY In this project report, while finalizing and for analyzing quality problem in details the following Books, magazines/ journals and websites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report. Websites: www.airtel.in www.google.in www.slideshare.net www.slideshare.net/hemanthcrpatna/a-project-report-on-comparative-brand- equity-of-hutch-and-airtel-cell-phone www.vodafone.in
  25. 25. APPENDIX QUESTIONNAIRE Q.1 Do you keep telecom connections? • Yes • No Q.2 which mobile company services you are using now a days? • Airtel • Vodafone • Reliance • others Q.3 Among them, which brand, you prefer most? • Airtel • Vodafone • Reliance • Tata • Idea Q.4 How long you have been using this product? • 0-1 years • 1-2 years • 2-5 years • 5-10 years • More than 10 years Q.5 Do you collect any information search before making purchase?
  26. 26. • Yes • No Q.6 what are the features you look for in a product before making purchase decisions? Give preferences (1-highest, 6-least) • Brand credibility • Price and discount • Value of money • Value of performance • After sales service and parts, network Q.7 if you have to purchase a new connection or product in near future, which brand will you go for and why? _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ____________ Q.8 Are you aware of various promotional activities being run by Airtel/Vodafone. If yes then how? • Customer care • By ad films • By camp • 24 hrs call center services Q.9 Are you satisfied with these promotional activities? Very satisfied Satisfied Somewhat satisfied Not satisfied
  27. 27. Q.10 what are you suggestions for improving the product quality, service availability and parts availability? _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ____________ Q.11 which company provides you best plan? • Airtel • Vodafone • Reliance • Idea • others

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