1. A
PROJECT
ON
“ CONSUMER SATISFACTION LEVEL OF AIRTEL INTERNET USERS”
For the partial fulfillment of Degree of
MASTER OF BUSINESS ADMINISTRATION
FROM
(G.B. Technical University, Lucknow)
SESSION (2012 - 2014)
Under the guidance of: - Submitted By: -
Mr. Ajeet Verma Amit Khatri
(Lecturer, Deptt. Of MGMT) MBA IVth sem
Roll no. 1214270001
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2. ACKNOWLEDGEMENT
It is an occasion to offer my indebt ness to choose personalities whom sincere
cooperation and valuable guidance was received during the preparation of their project report.
First, I would like to express my sincere gratitude to Mr.Rateesh Pratap Singh(TSM,
Marketing & Sales), my project guide for putting me into a challenging project. And his
sincere guidance and inspiration in completing this project report.
I am also grateful to Mr. Ajeet Verma my project guide, for guiding me with his
immense knowledge and experience, to formulate my project and helping me, whenever I
required his help.
ANKUR RASTOGI
2
3. PREFACE
The boom in Indian economy leads to the growth of Telecom Industry with the significant
expansion. As this project has been undertaken in Bharti Televentures Pvt. Ltd. which is the
strongest player in the market among the private players. In this project Research To Study the
factors influencing consumer in choosing 3g operators. Researcher also experienced about the
consumer behavior and the strategies of the company to maintain the huge customer base.
Researcher has done a extensive market research about the problem and the factors associated
with it. On the basis of the observed data and the analysis certain recommendations have been
given for the future exploration of the organization.
ANKUR RASTOGI
3
4. CONTENTS
• INTRODUCTION OF TELECOM 05
• COMPANY PROFILE OF AIRTEL 20
• COMPETITORS IN THE MARKET 27
• THE SCOPE OF AIRTEL 34
• OBJECTIVES OF THE STUDY 44
• RESEARCH METHODOLOGY 45
• COLLECTION OF DATA 49
• DATA ANALYSIS & INTERPRETATION 52
• LIMITATIONS 62
• SUGGESTIONS & RECOMMENDATION 65
• CONCLUSION 70
• BIBLOGRAPHY 72
• QUESTIONNAIRE 74
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5. INTRODUCTION
TELECOM HISTORY SINCE 1842 TILL NOW
With the dramatic changes in interpersonal communication over the past decade, Internet
messaging has emerged as the primary medium for transferring information quickly,
inexpensively, and reliably. However, the growing popularity of wireless telephones has added
another dimension to the communications equation—mobility. As more Indians rely on cellular
communication, this market is expected to see explosive growth over the forecast period.
Let’s have a review of telecommunication History:-
TELECOM HISTORY
1842: Wireless by conduction
1843: Early electromagnetic research, wireless by induction
1865: Induction and Dr. Loomis
Early radio discoveries
1879: D.E. Hughes and the first radio-telephone reception
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6. 1880: The photo phone and the first voice radio-telephone call
1880 to 1900: Radio development begins in earnest
1910: The first car-telephone
1924: The first car-mounted radio-telephone
1937: Early conventional radio-telephone development
The modern era begins
1946: The first commercial American radio-telephone service
1947: Cellular systems first discussed
1948: The first automatic radio telephone service
1969: The first cellular radio system
1973: The Father of the cell phone
1978: First generation analog cellular systems begin
1980: Growth of Japanese cellular development
1981: NMT -- the first multinational cellular system
1982: The rise of GSM
1990: North America goes digital: IS-54
Prehistory (Birth to Bell Labs, 1924)
While puzzling over the mysteries of radio, many inventors worked concurrently on
power generation, telegraphs, lighting, and later, telephone. The thorough understanding of
6
7. electricity required to produce a reliable, practical radio system took a long time and happened
in different phases.
In 1820, Danish physicist Christian Ousted discovered electromagnetism, the science that could
help generate electrical power and, if fully understood and applied, usher in the era of
telecommunication.
Michael Faraday - 1791 to 1867
In 1821 Michael Faraday reversed Oberstar’s experiment and in so doing discovered
induction. This helped him build the world's first electricity generator. He worked on different
electrical problems in the next ten years, eventually publishing his results on induction in 1831.
Joseph Henry - 1797 to 1878
In 1830 the great American scientist Professor Joseph Henry transmitted the first
practical electrical signal; showing that electromagnetism could do more than just create current
or pick up heavy weights -- it could communicate. In a stunning demonstration in his Albany
Academy classroom, Henry created the forerunner of the telegraph. While Henry did not pursue
electrical signaling, he did help someone who did. And that man was Samuel Finley Breese
Morse.
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8. Samuel Morse - 1791 to 1872
In 1837 Samuel Morse invented the first practical telegraph, applied for its patent in
1838 and was finally granted it in 1848. Joseph Henry helped Morse build a telegraph relay or
repeater
that allowed long distance operation. The telegraph brought the country closer and eventually
the world. Morse also experimented with wireless, not by passing signals though the atmosphere
but through the earth and water. Without a cable.
Wireless by conduction
On October 18, 1842, Morse laid wires between Governor's Island and Castle
Garden, New York, a distance of about a mile. Part of that circuit was under water. But before
he could complete this demonstration a passing ship pulled up his cable, ending it seemed, his
experiment. Undaunted, Morse proceeded without the cable, passing his telegraph signals
through the water itself. This is wireless by conduction.
8
9. Over the next thirty years most inventors and developers concentrated on wire line
telegraphy, that is, conventional telegraphy carried over wires suspended on poles. Few tinkered
exclusively with wireless since a basic radio theory had not yet been worked out. Telegraphy,
however, did produce a good understanding of wireless by induction since wires ran parallel to
each other and often induced rogue currents into other lines.
Early electromagnetic research
In 1843 Faraday began intensive research into whether space could conduct
electricity.
In 1864 Maxwell released his paper "Dynamical Theory of the Electromagnetic
Field" which concluded that light, electricity and magnetism were all related and that all
electromagnetic phenomena travelled in waves.
Induction and Dr. Loomis
In 1865, a dentist Dr. Mahlon Loomis of Virginia may have been the first person to
communicate through wireless via the atmosphere. Between 1866 and 1873 he transmitted
9
10. telegraphic messages at a distance of 18 miles. At one location he even flew a metal-framed kite
on a metal wire, perhaps taking inspiration from Benjamin Franklin. At another location a
similar kite picked up these signals and noted them with a galvanometer.
Early radio discoveries
Maxwell's 1864 conclusions were distributed around the world and created a sensation.
But it was not until 1888 that Professor Heinrich Hertz of Bonn, Germany, could produce and
detect radio waves consistently and reliably.
On November 22, 1875, while working on acoustical telegraphy, a science close to
telephony, Thomas Alva Edison noticed unusual looking electro-magnetic sparks.
D.E. Hughes and the first radio-telephone reception
From 1879 to 1886, London-born David Hughes discovered radio waves but was told
incorrectly that he had discovered no such thing. Discouraged, he pursued radio no further.
Hughes noticed a clicking noise in his home built telephone each time he worked using
his induction balance, a device now often used as a metal detector. He transmitted signals from
one room to another in his house in London. But since the greatest range there was about 60
feet, Hughes took to the streets with his telephone, intently listening for the clicking produced
by his clockwork transmitter, gradually diminishing until it no longer could be heard.
10
11. Alexander Graham Bell was the man who invented the telephone and made the first call
on a wired telephone to Thomas Watson. Bell was also first with radio.
1888 onwards: Radio development begins in earnest
In 1888 the German, Heinrich Hertz, conclusively proved Maxwell's prediction that
electricity could travel in waves through the atmosphere. Unlike Hughes, the extensive and
systematic experiments into radio waves that Hertz conducted were recognised and validated by
inventors around the world.
Jagadish Chandra Bose demonstrated electromagnetic waves in 1895 "by using them to ring a
bell remotely and to explode some gunpowder".
Marconi established the first successful radio system. In 1901, his radio-telegraph
system sent signals across the Atlantic Ocean. Ships were the first wireless mobile platforms. In
1901 Marconi placed a radio aboard a Thorny croft steam-powered truck, thus producing the
first land-based wireless mobile transmitting data, not voice.
In December 24, 1906, Reginald Fessenden accomplished the first radio bandwave
communication of human speech over a distance of 11 miles, from Brant Rock, Massachusetts,
to ships in the Atlantic Ocean. Radio was no longer limited to telegraph codes, no longer just a
wireless telegraph, but a means of verbal communication.
The first car-telephone
11
12. From 1910 onwards, Lars Magnus Ericsson, the man who founded Ericsson in 1876,
and his wife Hilda, regularly worked the first car telephone. Access was not by radio, instead
there were two long sticks, like fishing rods, handled by Hilda. She would hook them over a pair
of telephone wires, seeking a pair that was free. When they were found, Lars Magnus would
crank the dynamo handle of the telephone, which produced a signal to an operator in the nearest
exchange.
Around the same time, the triode tube was developed, allowing far greater signal
strength to be developed both for wireline and wireless telephony. No longer passive like a
crystal set, a triode was powered by an external source, which provided much better reception
and volume.
Later, with Armstrong's regenerative circuit, tubes were developed that could either
transmit or receive signals, were stable and powerful enough to carry the human voice and
sensitive enough to detect those signals in the radio spectrum.
In 1919, three firms came together to develop a wireless company that one day would
have a reach across the globe. Heavy equipment maker ASEA, boiler and gas equipment maker
AGA and telephone manufacturer LM Ericsson, formed SRA Radio, the forerunner of
Ericsson's radio division.
The first car-mounted radio-telephone
12
13. Bell Laboratories claims to have invented the first version of a mobile in 1924. It was a
two-way, voice-based radio-telephone and the adjoining photograph from their site certainly
seems to confirm it.
History of cellular mobile telephony: 1982 to 2001
1980 - First cellular phones began to appear
1982 - Nordic Mobile Telephony (NMT) standard
1983 - American Mobile Phone System (AMPS) standard
1986 - Nordic Mobile Telephony (NMT) 900 MHz
1991 - Commercial launch of the GSM service
1993 - Coverage of main roads GSM services start outside Europe
1994 - Japanese Digital Cellular (JDC)
1996 - USA Personal Communications Systems (PCS)
1982 - The beginning
During the early 1980s, analog cellular telephone systems experienced rapid growth in
Europe, particularly in Scandinavia and the United Kingdom, but also in France and Germany.
Each country developed its own system, which was incompatible with those of others, in
equipment and operation. This was an undesirable situation, because not only was the mobile
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14. equipment limited to operation within national boundaries, but also limited to the market for
each type of equipment. This scenario in a unified Europe was undesirable.
The Europeans realized this early on, and in 1982, the Conference of European Posts and
Telegraphs (CEPT) form a study group called the Group Special Mobile (GSM) to study and
develop a pan-European public land mobile system. The proposed system had to meet certain
criteria, which included:
1. Good subjective speech quality.
2. Low terminal and service cost.
3. Support for international roaming.
4. Ability to support handheld terminals.
5. Support for a range of new services and facilities.
6. Spectral efficiency
7. ISDN compatibility.
Nordic Telecom and Netherlands PTT proposed to the CEPT the development of a new
digital cellular standard that would cope with the ever-burgeoning demands on European mobile
networks. The European Commission (EC) issued a directive which required member states to
reserve frequencies in the 900 MHz band for GSM to allow for roaming.
1986 Main GSM radio transmission techniques were chosen.
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15. 1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory
group signed the charter GSM (Groupe Spéciale Mobile) MoU "Club" agreement, with a launch
date of 1 July 1991.
The original French name Groupe Spéciale Mobile was changed to Global System for Mobile
communications; but the original GSM acronym remains.
GSM SPECIFICATIONS WERE DRAFTED.
1989 – 1998
In 1989, GSM responsibility was transferred to the European Telecommunication
Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990.
Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22
countries, with 25 additional countries like South Africa, Australia and many Middle and Far
East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers
worldwide.
The developers of GSM chose an unproven (at that time) digital system, as opposed to
the then standard analog cellular systems like AMPS in the United States and TACS in the
United Kingdom. They had faith in the advancements in compression algorithms and digital
signal processors to allow the fulfillment of the original criteria and the continual improvement
of the system in terms of quality and cost.
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16. The European Telecommunications Standards Institute (ETSI) defined GSM as the
internationally accepted digital cellular telephony standard.
1990
Phase 1 GSM 900 specifications were frozen
DCS adaptation started.
Validation systems implemented.
First GSM World congress at Rome had 650 participants.
1991
First GSM specification was demonstrated.
DCS specifications were frozen.
GSM World Congress at Nice had 690 participants.
1992
January - The first GSM network operator was Oy Radiolinja Ab in Finland.
December 1992 - 13 networks were on air in 7 areas.
GSM World Congress at Berlin had 630 participants.
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17. 1993
GSM was demonstrated for the first time in Africa at Telkom '93 in Cape Town.
Roaming agreements between several operators were established.
By December 1993, 32 networks were on air in 18 areas.
GSM World Congress at Lisbon progressed with 760 participants.
Telkom '93 was held in Cape Town. First GSM systems were shown.
1994
First GSM networks in Africa were launched in South Africa.
Phase 2 data /fax bearer services were launched.
Vodacom became the first GSM network in the world to implement data/fax.
GSM World Congress at Athens drew 780 participants.
December 1994 -- 69 networks were on air in 43 areas.
1995
GSM MOU was formally registered as an association registered in Switzerland with 156
members from 86 areas.
GSM World Congress at Madrid attracted 1400 participants.
December 1995 - 117 networks were on air in 69 areas.
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18. Fax, Data and SMS roaming started.
GSM phase 2 standardisation was completed, including adaptation for PCS 1900.
First PCS 1900 network was shown live 'on air' in the USA.
Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data via GSM.
Namibia goes on-line.
Ericsson 337 wins GSM ‘phone of the year’.
US FCC auctioned off PCS licenses.
1996
December 1996 - 120 networks were on air in 84 areas.
GSM World Congress was held in Cannes.
GSM MOU Plenary was held in Atlanta GA, USA.
8K SIM was launched.
Pre-paid GSM SIM cards were launched.
Bundled billing was introduced in South Africa.
Libya goes on-line.
Option International launches the world's first GSM/Fixed-line modem.
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19. 2001
Feb -- GSM Conference held in Cannes.
By May 2001 there were 500m GSM 900/1800/1900 users worldwide.
16 billion SMS messages were sent in April 2001.
By April, 500 million people are GSM users.
BHARTI ENTERPRISES – AN OVERVIEW
Bharti Enterprises has been at the forefront of the Indian telecommunications industry with its
world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts
and innovations to its credit, ranging from being the first mobile service in Delhi, first private
basic telephone service provider in the country, first Indian company to provide comprehensive
telecom services outside India in Seychelles and first private sector service provider to launch
National & International Long Distance Services in India.
19
20. E x ist in g
Li c e n se A r e a1 9 9 9
2 0 0 1
P r e - 4 L ic e n set h
P o st 4
Li c e n se
t h
The Company has also implemented a submarine cable project connecting Chennai-Singapore
for providing international bandwidth. Using this infrastructure we are the only private
telecommunications company that is able to supply IPLC (dedicated bandwidth to International
destinations) solutions for Indian companies. Bharti Enterprises also manufactures and exports
telephone terminals and cordless phones. Apart from being the largest manufacturer of
telephone instruments, it is also the first telecom company to export its products to the USA.
COMPANY PROFILE
Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom
conglomerate, Bharti Enterprises.
Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently
introduced National Long Distance. Bharti also manufactures and exports telephone terminals and
cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also
the first company to export its products to the USA. Bharti is the leading cellular service provider, with a
footprint in 15 states covering all four metros and more than 7 million satisfied customers.
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21. VISION:
TO BE GLOABALY ADMIRED FOR TELECOM SERVICES THAT DELIGHT
CUSTOMERS.
MISSION:
To meet global standards for telecom services that delight customers through:
Customer service focus
Empowered
Innovative services
VALUES
Customer: Be responsive towards the needs of the customers.
People : Trust and respect the employees.
Learning: Continuously improve services – innovatively & expeditiously.
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22. Community & Partners: Be transparent and sensitive in the dealing with all stakeholders.
CORE VALUE:
We will delight our customer with our simplicity, speed & innovation.
We will honors our commitment.
We will follow the highest standard of professional integrity & behavior.
We will respect individual, build winning teams and lead by example.
We will create a fun filled and friendly workplace.
BUSINESS AREA
Cellular Services: Bharti has been a pioneering name in the Indian Telecom
Industry. In Delhi itself Bharti launched first mobile service under the name of
AirTel. Today AirTel’s mobile footprint extends across the country in 21
Telecom circles. Its service standards compare with very best in the world.
22
23. Fixed Line Services: Bharti Tele-Ventures became the first private fixed-line service
provider in India. It is now promoted under the Airtel brand. Recently, the Government
opened the fixed-line industry to unlimited competition. Airtel has subsequently started
providing fixed-line services in the six states i.e.- 5 circles of NCR, Haryana, Madhya
Pradesh, Chattisgadh, Karnataka & Tamil Nadu.
Internet & Broad Band: AirTel Enterprise services bring comprehensive suits of data
technology. It provides DSL Services over optical fibers with dedicated line. So it is 5
times faster than
Analogue Connection. It is most preferred high-speed internet service (over 2, 50,000
subscriber nation wide).
National long distance Service: To provide National Long Distance (NLD)
Services, Bharti has laid 25,000 km of optical fibre with presence in 200 cities. It is also
interconnected with all leading cellular operators, fixed line service providers.
International long distance Service: To provide this service across Asia Pacific region it
has laid i2i submarine cable network along 3,200 km and the landing stations are
Singapore and Chennai.
23
25. (1) ISDN: Integrated Service Digital Network (ISDN) is a standard, all-digital access
technology that allows simultaneous, integrated voice and data capabilities over ordinary
telephone lines.
An ISDN PRI is configured with 30 bi-directional B (Bearer) channels and one D
(Data) channel. It allocates all signaling and call control requirements to the D channel,
leaving the 30 B channels free for any mix of voice and circuit switched data.
ISDN BRI is suitable for both residential and commercial purpose, configured with
2 bi-directional B channels and 1 D channel.
(2) BROADBAND: With the speed of 512 Kbps AirTel Broadband is
approximately 5 times faster than an analogue connection. Larger data application, faster
file transfer, streaming multimedia and heavy duty surfing every thing we can imagine is
now easily possible with this facility. Superior server technology and a dedicated port
provide total security to data, both stored and in transit. Bharti also provide round the
clock Customer Support.
25
26. (3) Wi-Fi: Now we can access the Internet facility wirelessly with Wi-Fi.
We can use net anywhere we need it, what only we have to do just login into
corporate LAN from any where in the premises. We don’t need to stick to our
workstation for using the
Internet facility. There is no need to load DSL driver on PC or laptop, just connect the PC
or laptop to Ethernet port or over Wi-Fi, and we can start surfing.
(4) Centrex: Airtel Centrex is also called a virtual EPABX for offices, at various
locations. Its intercom calling facility (between Centrex lines) lets us call our colleagues in other
branches for free. The Centrex is part of Airtel’s robust high-tech switching system, which
assures high reliability and security.
SOME OTHER SERVICES:
(1) Group Pulsing
(2) Roaming on Landline
(3) Voice Mail Service
(4) Hunting Service
(5) 3-Party Conferencing
(6) Audio Conference
(7) Remote Video Surveillance over the Internet
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27. SCHEMATIC DIAGRAM OF BASIC NETWORK OF AIRTEL
LANDLINE & BROADBAND
27
Sub Pillar-
2
DP
DP
Remote
Switching Unit
Pillar-1
Pillar-2 Pillar-3
Sub
Pillar-1
Sub
Pillar-3
MSU- (Main
Switching Unit)
OFC Link
Copper Network
in the last mile
1200 Pair
800
Pair
200 Pair
28. COMPETITORS IN THE MARKET
Now days in the market each and every company has to face a stiff
competition for its survival. AirTel, which is the strongest brand among the
private service provider in the Indian Telecom Industry, has been facing a tough
competition by some other telecom giants like MTNL, Reliance & AIRTEL 3G.
(1) MAHANAGAR TELEPHONE NIGAM LIMITED (MTNL):
MTNL was setup in 1986 by Govt. of India to upgrade the quality of
telecom services, expand the telecom network, and introduce new services and
to raise revenue for Telecom department in the key metros like Delhi & Mumbai.
It has a strong financial base, market share of 13% and customer base more than
over 4.75 million lines.
Govt. of India currently holds 56.25 % stake n the company. Services
provided by the company:
(i) Basic Services: Plain old Telephone service through digitalized public
switched telephone network.
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29. (ii) Garuda: Technically most advance and most affordable in Delhi. Call
rate – 40 paise/min & Rent – 200/- per month
(iii) ISDN: For voice, Data & Video.
(iv) Internet: PSTN & ISDN dialup Internet Access.
(v) Dolphin: GSM based cellular service
(vi) Answering machine Service, Leased Circuit & Trunk Service.
(2) RELIANCE INFOCOMM:
Reliance - Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group
founded by Shri Dhirubhai H. Ambani (1932-2002), ranks among India’s top three
private sector business houses in terms of net worth. Reliance – ADA Group’s
flagship company, Reliance Communications, is India's largest private sector
information and Communications Company with over 20 million subscribers.
Services provide by the company:
(1) Reliance GSM services: Reliance Infocomm has launched very old GSM
services in mobility in some of the states like Bihar, Jharkhand, Orissa etc.
(2) Reliance India Mobile: PAN India network and town coverage.
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30. • 80,000 kms of optic fiber backbone.
Wireless network covering over 2,400 cities/towns, to expand to over
5,700 cities AND 4, 00,000 villages by December.
• 4,300 Base Transceiver Stations (BTSs) across the country, to increase to
around 8,500 by December.
(3) Reliance Broadband: flexibility to choose the speed from the range of 100
kbps to 1000 kbps.
Bonus bandwidth of 100, 300, 600 instead of 64, 212, 524.
Charging of net surfing is also available in per minute tariff.
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31. AIRTEL 3G:
AIRTEL 3G is another main competitor of Airtel in the market due its strong
presence of it in the CDMA mobility, broadband and WLL fixed phone segment.
AIRTEL 3G fixed phone: - AIRTEL 3G offers almost instant phone connections.
Get AIRTEL 3G Landline Phone services based on the state of the art Optical
Fibre Cable-based backbone. Enjoy greater voice clarity and say goodbye to
excessive billing.
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32. AIRTEL 3G Phone Connections Advantage
Superior voice clarity
Instant and hassle - free connections
Accurate billing
Secure and tamper – proof lines
Responsive and friendly service
24 x 7 friendly customer service
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33. BACKGROUND OF THE PROBLEM
As we know that now a day there is enormous competition exist in each
area of market and the circumstances are similar also in the case of Telecom
Industry. To face this competition this is very essential for any of the organization
to do a proper planning, implementation and taking proper feedback about the
process. By doing these things any organization might be able to deliver better
product, services or the combination of both.
Regarding Summer Training Project the topic researcher has chosen with the
agreement of the Project Guide:
“ To measure the customer satisfaction level of existing users of AirTel
landline and broadband services.”
The motive of undertaking such task was quite clear to the researcher.
Organization simply wanted to take proper feedback of their customers. They
wanted to know what exactly their customers feel about the services of Bharti
and about the brand of AirTel. What are the strong features of AirTel and what
are its weaknesses or where they lag, by knowing all these facts they could
improve their quality of service.
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34. THE RATIONALE OF THE STUDY
There was a time when government had a monopoly in the telecommunication
sector. But in the year 1999 deregulation in telecom sector, brought a number of
private players, which gave stiff competition in the monopoly market. Telecom
Tariff has been changed rapidly because of this deregulation. Deregulation has
opened up a new market for telecom services. Now days in telecom sector there
are three types of service provider:
1. Fixed Landline Service Provider
2. Wireless Local Loop Service Provider
3. GSM Service Provider
4. CDMA Service Provider
To survive in this competitive market each and every company tries to
provide better service at lowest possible price to the consumer. As we know
Bharti provides services in Fixed Landline and GSM area under its brand Airtel.
And Airtel is very strong brand in the market.
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35. By doing this project the researcher will be able to understand what is the
present perception of the consumer about Airtel landline & Broadband and what
is the exact satisfaction level of its existing customers.
THE SCOPE
As we know very well that Airtel is market leader among private sector players in
Indian Telecom Industry so, there is a huge pressure upon the company (Bharti
Tele-ventures Pvt. Limited) to retain its position in the market. BTL is facing
several challenges from its competitors mainly MTNL, Reliance & AIRTEL 3G.
More over the main challenge is to retain the present customer base and try to
increase it by providing them better service at affordable price.
This project will help the company to know its market reputation.
As this project mainly deals with the consumer perception about Airtel
and its competitors. The organization may utilize this work to focus it
customer with greater perfection.
By using this project the organization may find some remedy, if there will
be any sort of dissatisfaction about the service amongst the customers.
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36. CUSTOMER SATISFACTION
Company’s first task is to create customers but today customers face a vast
array of product and Brand choices, prices and suppliers. How do customer make
their choices?
We believe that customer’s estimate which offer will deliver the most value.
Customers are value maximizers within the bound of search of cost and limited
knowledge, mobility and income. They form an expectation of value and act on it.
Whether or not the offer leaves up to the value expectation affects customer’s
satisfaction and their repurchase probability.
Our premise is that buyers will buy from the firm they perceive to offer the
highest delivered customer value and total customer cost.
Customer delivered value = (Total Customer value – Total Customer cost).
Total customer value is the bundle of benefits customers expect from
a given product or a service.
36
37. Total customer cost is the bundle of costs customers expect to incur
in evaluating, obtaining and using the product and service.
Satisfaction is a person’s feeling of pleasure or disappointment
resulting from comparing a product’s perceived performance and
expectations.
Many companies are aiming for high satisfaction because customers who
are just satisfied still find easy to switch when better offer comes along. Those
who are highly satisfied are much less ready to switch. High satisfaction or delight
creates an affinity with the brand not just a rational preference. The result is high
customer loyalty.
Some of today’s most successful companies are raising expectation and
delivering performance to match. These companies are aiming for TCS (Total
Customer Satisfaction).
TOOLS FOR TRACKING AND MEASURING CUSTOMER
SATISFACTION
[1] Complaint and suggestion systems: -
A customer-centered organization makes it easy for its customers to deliver
suggestions and complaints. Many restaurants and hotels provide forms for guests
37
38. to report their likes and dislikes. A hospital could place suggestion boxes in the
corridors, supply comment cards to exciting patients and hire a patient advocate to
handle patient’s grievances. These information flows provide these companies
with many good ideas and enable them to act more rapidly to resolve problem.
[2] Customer satisfaction surveys: -
Many companies obtain a direct measure of customer satisfaction by
conducting periodic surveys. They send questionnaires or make telephone calls to
a random sample of their recent customers and ask if they were very satisfied,
satisfied, somewhat dissatisfied or very dissatisfied. With various aspects of
company’s performance while collecting customer satisfaction data it is useful to
ask additional question to measure the customer’s repurchase intuition, those will
normally be high if the customer’s satisfaction is high. It is also useful to measure
customer’s willingness to recommend the company and brand to other person. A
high positive word of mouth indicates that the company is producing high
customers satisfaction.
38
39. [BHARTI TELEVENTURES PVT. LTD HAS ADOPTED ABOVE
MENTIONED STRATEGY TO MEASURE THE
SATISFACTION LEVEL OF ITS CUSTOMER.]
[3] Lost Customer analysis: -
Company should contact customers who have stopped buying or who have
switched to another service provider or supplier to know why this happened. Not
only it is important to conduct exit interviews when customer first stop buying but
also to monitor the customer loose rate which if increasing clearly indicates that
the company is failing to satisfy its customers.
ATTRACTING AND RETAINING CUSTOMER
To improve their relations with their partners in the supply chain, many companies
are intent on developing stronger bonds and loyalty with their ultimate customers.
In the past many companies took their customers for granted. Their customers
may not have had many alternatives of supply or all suppliers were equally
deficient in the service or the market was growing so fast that the company did not
worry about satisfying its customers. Clearly things have changes.
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40. COMPUTING THE COST OF LOST CUSTOMERS
Today’s companies must pay closer attention to their customer defection rate and
take steps to reduce it. There are 4 steps to this process, which are as follows: -
[1] The company must define and measure its reduction rate.
[2] The company must distinguish the causes of customer attrition and
identify those who can be managed better. Not much can be done about the
customers who leave the reason but much can be done about the customers
who leave because of poor service, high prices and so on. The company
needs to examine the percentages of customers who defect for different
reasons.
[3] The company needs to estimate how much profit it loses when it loses
customers. In the case of individual customer the lost profit is equal to the
customer lifetime value that is the present value of the profit stream that the
company would realize on a customer if the customer had not defected
prematurely.
[4] The company needs to figure out how much it would cost to reduce the
defection rate. As long as the cost is less than the lost profit the company
should spend that amount to reduce the defection rate.
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41. THE NEED FOR CUSTOMER RETENTION
The cost of attracting a new customer is estimated to be 5 times the cost of
keeping a current customer happy. It requires a great deal of effort to induce
satisfied customers to switch away from their current suppliers.
Unfortunately most marketing theory and practice centered on the art of
attracting new customers rather than retaining existing ones. The emphasis
traditionally has been on making sales rather than building relationship. The focus
has been on reselling and selling rather than on caring for the customer afterwards.
Today however, most of the companies are recognizing the importance of
satisfying and retaining current customers. There are two ways to strengthen
customer retention: -
[1] One is to erect high switching barriers. Customers are less inclined to
switch to another suppliers when this would involve high capital cost, high
search cost and the cost of loyal customer discounts and so on.
[2] The better approach is to deliver high customer satisfaction. This
makes it harder for competitors to overcome switching barriers by simply
offering lower prices. The task of creating strong customer loyalty is called
Relationship Marketing. Relationship Marketing embraces on those steps
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42. that companies undertake to know and serve better their valued
individual customers.
RELATIONSHIP MARKETING: THE KEY OF
SUCCESS OF BHARTI TELEVENTURES PVT. LTD.
If you want to study the practical aspect of marketing theories then it can be
done only by seeing that how organizations implement those theories in their
working process definitely with some modifications. Here researcher has
tried his best to examine the process involved in attracting and retaining
customers which are the main funds of Customer Relationship Marketing
(CRM).
There are certain steps involved in customer relationship development
process.
Suspects: For Airtel everyone who might conceivably buy the landline
or its broadband connection. The sales team looks hard at the suspects
i.e., the need of the customer, budget and the expectation about the
service. So, they can determine who are the most likely prospects.
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43. Prospects: The people who have a strong potential interest in the
Telecom services and the ability to pay for it.
Disqualified prospects: When sales team studies the prospects properly
and when they find they have poor credit and would be unprofitable
company assuming them as a disqualified prospect.
Note: Above three steps are termed as the process of COLD
CALLING.
First time customers: After Cold Calling sales team visits to the
qualified prospect then they do detailing to them about the services, try
to match the prospect’s need and the product profile. So, this is the
process to convert qualified prospects into first time customers.
Repeat customers: Now the main process of CRM starts with providing
better After sales service to the customers. Company tries to satisfy the
customers and build a strong relationship with them. They do not want
to loose customer due to their dissatisfaction because according to their
view
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44. “ A satisfied customer can give you 10 more customer but a
dissatisfied customer can cut your 100 prospective customer.”
Clients: the company then acts to convert repeat customers into
client’s people who buy only from the company in the relevant
product category.
Some cautions in measuring customer satisfaction level
When customer rates their satisfaction with element of the company’s
performance the company needs to recognize that two customers can
report being “highly satisfied” for different reasons. One may be easily
satisfied most of the time and the other might be hard to please but was
pleased on this occasion. Company should also note that manager and
sales people could manipulate their ratings and customer satisfaction.
They can also try to exclude unhappy customers from the survey.
Another danger is that if customers know that the company will go out
of its way to please customers many express high dissatisfaction in
order to receive more concession.
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45. OBJECTIVE OF THE STUDY
Title of my project is “FACTORS INFLUENCING CONSUMER WHILE SELECTING
3G OPERATORS IN BAREILLY”. In order to complete this project, we had to see the
preference of corporate in telecom sector.
The Primary objective is
The telecom sector in our country In this we had to find which the main telecom operators in
our country are and what is the present scenario in our country regarding their Customer
positions.
The secondary objectives are
1) STUDY THE FACTORS INFLUENCING CONSUMER WHILE SELECTING 3G
OPERATORS amongst corporate locally It was needed to figure out the preferences of
corporate houses in NCR region and what are the things they look forward to while
choosing their telecom partner.
2) STUDY THE FACTORS INFLUENCING CONSUMER WHILE SELECTING 3G
OPERATORS in corporate internationally Many of the chosen companies are also expanding in
global environment and AIRTEL 3G too is expanding its network to different parts of the world.
So, it was a need to find out what are the services provided by AIRTEL 3G on International
level and what is the attitude of those corporate about it.
The above mentioned sub-objectives will help in project to obtain the main objective for which a
questionnaire was prepared on the basis of which the
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46. research is being conducted. By this the main objective will be fulfilled as visit to different
companies had to be done and getting this questionnaire filled by corporate and also asking
about their Customer Satisfaction and preferences in telecom sector. Several companies were
given from which the data was to be collected.
Research Methodology
Research Methodology is all about designing the research which indicates way of carrying out
the project. It keeps the researcher on the track of the project study.
It relates to the following questions, which unfolds aspects of the research:
What should be the type of research design either Descriptive or conclusive?
What is the type of data to be required for the project study either primary or
secondary?
What should be the method of collection of data?
What should be the sample size?
Research Design
Each research project is conducted scientifically, which has specific framework or blueprint for
controlling the data collection.
This framework is called research design.
In this project I have used Descriptive research design because I have conducted research
through survey.
Research Design of the project is Descriptive. As the term suggests, Descriptive research is
often conducted because a problem has not been clearly defined as yet, or its real scope is as
yet unclear. It allows the researcher to familiarize him/herself with the problem or concept to be
studied. It is the initial research, before more conclusive research. Descriptive research helps
determine the best research design, data collection method and selection of subjects, and
sometimes it even concludes that the problem does not exist.
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47. Another common reason for conducting descriptive research is to test concepts before
they are put in the Customer place, always a very costly endeavor. In concept testing,
consumers are provided either with a written concept or a prototype for a new, revised
or repositioned product, service or strategy.
Descriptive research can be quite informal, relying on secondary research such as
reviewing available literature and qualitative approaches such as informal discussions
with consumers, employees, management or competitors, and more formal approaches
through in-depth interviews, focus groups, projective methods, case studies or pilot
studies.
The results of descriptive research are not usually useful for decision-making by
themselves, but they can provide significant insight into a given situation. Although the
results of qualitative research can give some indication as to the "why", "how" and
"when" something occurs, it cannot tell us "how often" or "how many". In other words,
the results can neither be generalized; they are not representative of the whole
population being studied.
Descriptive research is selected because the scope of this study is very vast and also
whole population cannot be taken into consideration due to human and time limitations.
Therefore, the need to explore the pattern and preferences of whole population on the
basis of available data. As this is more of a qualitative research, descriptive research is
one of the most suitable techniques available.
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48. Research Method
The research method used in the project is:-
SURVEY METHOD
The method was used in the project was the survey method as the project was to know
the Customer Satisfaction Towards AIRTEL 3G in corporate so survey was used with
the help of questionnaire filling by which the data was further used for the analysis by
which the Customer Satisfaction Towards AIRTEL 3G could be seen properly. The data
collected was primary data which was done with the help of questionnaires. As the
survey was basically on qualitative data collection so questionnaire was developed in
the from to get the qualitative data by which Customer Satisfaction Towards AIRTEL
3G in the corporate can be seen properly.
Sample Method
In this study, convenience sampling have been selected.
Sampling
Sampling method refers to the procedure in which few units are selected from the total
population, constitute a sample.
Sample Size
I have taken sample size of 100 customers in Bareilly.
Sample Unit
Bareilly
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49. convenience sampling
In convenience sampling, the selection of units from the population is based on easy
availability and accessibility. The trade-off made for ease of sample obtainment is the
representative ness of the sample. If we want to survey tourists in a given geographic
area, we may go to several of the major attractions since tourists are more likely to be
found in these places. Obviously, we would include several different types of
attractions, and perhaps go at different times of the day and week to reduce bias, but
essentially the interviews conducted would have been determined by what was
expedient, not by ensuring randomness. The likelihood of the sample being
unrepresentative of the tourism population of the community would be quite high, since
business and convention travelers are likely to be underrepresented, and – if the
interview was conducted in English – non-English speaking tourists would have been
eliminated.
Therefore, the major disadvantage of this technique is that we have no idea how
accurate is the information population. But the information could still provide some fairly
significant insights, and be a good source of data in Descriptive research.
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51. DATA
The data collected for the research is primary data which is calculated by the help of
questionnaires. The questionnaire is to be filled by the corporate company which comes under
AIRTEL 3G enterprise services. The questionnaire used can be seen in the Annexure.
The data collected directly gave us answers which lead to finding about the Customer
Satisfaction Towards AIRTEL 3G in the eyes of corporate and also further analysis of data
gave different aspects and needs of corporate so it also gave some data to sales team wherein
they could try to increase the services provided to the corporates.
Both the data was required for the project as primary data was required for the research
purpose and the secondary data was required to know more about the telecom sector and the
AIRTEL 3G working at present and for the analysis that how the company would progress in
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52. the future. Therefore both data’s are important to go about the project one backs the other
wherein we get both the present prospects and future prospects of AIRTEL 3G.
PRIMARY DATA
Primary data was collected depending upon the following questionnaire prepared where in the
maximum answers were obtained and depending upon the different questionnaire filled we had
to interpret the results.
SECONDARY DATA
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53. The data which used as secondary data was basically taken from different websites
and also the company websites. These data gave us clear picture of how AIRTEL 3G
evolved from the time they started.
The data collected also gave us a clear picture of telecom growth and also AIRTEL
3G’s growth accordingly.
These data’s were collected from the website of AIRTEL 3G and other website which
gave the information of AIRTEL 3G and the complete
telecom sector.
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55. INTERPRETATION:-
After interacting with 100 mobile users, it was found that 100% people using mobile phone.
Q.2 which type of mobile connection do you use?
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56. INTERPRETATION :
After interacting with 100 mobile users, it was found that 90% of them were using prepaid
services while only 10% of them were using postpaid services.
So this is a large segment which provides vast opportunities for growth.
Q.3 which kind of mobile network do you use?
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57. INTERPRETATION :
After interacting with 100 mobile users, it was found that 80% of them were using 3G services
while only 20% of them were using 2G services.
Q.4 which connection you presently own?
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58. INTERPRETATION :
After survey done on 80 mobile users it was observed that about 50% were using
Airtel 3G, 20% were using BSNL 3G, 10% were using Idea 3G, 5% were using Reliance 3G,
15% were using other network.
Q.5 From how long you are availing the Airtel 3G service?
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59. INTERPRETATION :
After interacting with 40 mobile users of Airtel 3G, it was found that 50% of the
customers were Using 5 month, 20% of the customer were using 3 month, 20% of the
customer were using 1 month & 10% of the customer were using 2 month.
Q.6 Reasons for choosing Airtel 3G service ?
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60. INTERPRETATION :
After interacting with 40 mobile users of Airtel 3G, it was found that 50% of the
customers were Influencing by Network coverage, 20% of the customer were Ifluencing
by Advertisement & 30% of the customer were Influencing by Brand Image.
Q.7 What is your monthly expenditure on Airtel 3G network Service?
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61. INTERPRETATION :
After intracting 40 Customer of Airtel 3G we found 50% customers monthly expenditure is 200-
400 Rs. 20% customers monthly expenditure is 100-200 Rs. And 20% customers monthly
expenditure is Rs 400 above & 10% customer monthly expenditure is 50-100 Rs..
Q.8 From where you are getting information about new others?
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62. INTERPRETATION :
After interacting with 40 mobile users of Airtel 3G, it was found that 50% customers are
getting information by T.V, 20% Customers are getting information by Internet, 20% customers
are getting information by Newspaper & 10% customers are getting information by Word-of-
Mouth.
Q 9. Are you satisfied with the service which are you availing?
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63. INTERPRETATION :
After interacting with 40 mobile users of Airtel 3G, it was found that 80% Customer are
satisfied & 20% customers are not satisfied.
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64. LIMITATIONS
1) TIME :- One of the basic limitation was time. We had been given 6 weeks time period in
order to visit them and get firsthand information on their requirements and usage. Due
to the other limitations mentioned below the time period given to us was indeed short,
therefore the foremost limitation was time.
2) COST :-The companies were all in various locations of Delhi and NCR .The general
account list was extensive and had too many errors in address , which indirectly led to us going
through quite a tough time in finding those address and directly incurring loss of money and
leading to shortage of funds.
3) ACCURACY OF DATA :- The data given to us by different companies were doubtful as
some of the data’s were given to us in a hurry and some of the data were taken from some
unreliable source due to shortage of time. So the accuracy of data was much questionable.
4) AVAILABILITY OF THE REQUIRED PERSON :- The research was done to get the data
from the companies IT head or Admin head or people who were taking care of these
department .So it was a routine for us to get the appointment fixed from the required person
and speak to him regarding the services he is interested or he is using .But most of the time the
required person weren’t available, which led to revisit of the company until and unless the data
sheet is filled.
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65. Many customers were not interested in giving feedback.
During survey I had to wait in point of sales for customers, sometimes no customers for whole
day.
Most of the customers visiting had no time to fill questionnaire.
Most of the time when I asked customers to fill the form, they started talking about their
problems and asked me to solve the problems they were facing instead of filling the form.
As AIRTEL 3G has very wide customer base from higher educated class to small uneducated
businessman, so they were not able to answer properly.
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67. SUGGESTION AND RECOMMENDATION
1) Performance level has to be upgraded
The popularity of AIRTEL 3G among the corporates is well known however due to some
reasons one or the other the performance level is not that high .Due to heavy competition from
different telecom companies the performance level also needs to be upgraded.
2) AIRTEL 3G must venture into government companies
Previously according to government norms,government companies weren’t allowed to get there
telecom solutions from private companies .But due to recent development government
companies can now look to private companies for their telecom solutions ,and hence -AIRTEL
3G must start to think faster and rope in as many as government companies as possible under
their belt.
3) Faster implication of their premium services awareness
Due to heavy competition and different new norms set by TRY private telecom giants are
facing high competition from their competitors.Therefore during the last year there was a
quarter wherein AIRTEL 3G went through and followed a silent period ,wherein they revised
their plan and at the end of last year AIRTEL 3G only followed the mantra of providing quality
services or premium services.But due to such a large step AIRTEL 3G had also went thorugh
complete revision of every aspect of their Customer.But the implication were slow,however a
faster approach would certainly help them in their long run.
• In order to recapture its share of the Customer, AIRTEL 3G has to launch Value
Vouchers at competitive prices.
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68. • For designing the new value vouchers following points need to be kept in mind-
Reliance is the nearest competitor of AIRTEL 3G SO AIRTEL 3G should launch Value
vouchers, keeping in mind both competitor’s Value Voucher.
• The value voucher should be competitive in terms of price & features.
• Suggestions for the new value voucher according to the customer Satisfaction are:
Value voucher should be applicable in Life time Prepaid also as like in Idea.
Idea has lauched a new Value Voucher of Rs.51 in which Idea to Idea call rate is .20p per min.
AIRTEL 3G should lauched at competitive price.
AIRTEL 3G should launch Voucher which offer free outgoing on at least one number of AIRTEL
3G to AIRTEL 3G either for local or both for local and STD.
A Value Voucher should be launched which can offer some call rate reduction on at least three
STD numbers of different operator as per customer’s choice.
Sms pack of 3000 SMS in 95Rs. should be continued & the validity should not be one month
for 3000 sms, it should be extended.
Value Voucher of Delhi for Re.1 should be continued.
In Local topping Value Voucher Call rates on the land lines should be of 50p instead of
Re.1.like reliance.
One Year Incoming Pack is of Rs. 990/- but in Idea it is for Rs. 550/- so, AIRTEL 3G also
should launch a value voucher.
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69. My suggestions for new Value Vouchers:
Less validity period Value Voucher should be launched such as for 7 days validity.
Incoming Value vouchers while roaming for some frequently visited states like Punjab & Delhi
should be launched.
Voucher of free STD SMS or on reduced rate should be launched.
We should launch Value Voucher occasionally or seasonally such as Vodafone is giving
Umbrella with its prepaid connection. The voucher on festivals should be launched.
My suggestions for promoting Value Added Services:
Retailers must be regularly conveyed with the latest information in field of VAS.
Call rates for Value Added Services like at 678, 646 should be reduced.
To promote Hello tunes their subscription rates should be reduced.
The rates of downloading through GPRS should be slashed.
Proper communication channel should be followed among the Management, distributors,
retailers and customers to ensure effectiveness & efficiency.
Quick Updation of new songs should be there in Hello tunes.
Management must make sure that all the services and information are with the retailers before
it reaches to customer by any means
“Company’s strengths are the threat for other Customer players, while weaknesses can provide
them the opportunities to improve.”
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70. During my entire project, I came to know about both the weaknesses and strengths of the
company.
Some of the strengths are-
Good network & connectivity
Wide categories of Value Added Services
High Brand Image.
Better distribution channel.
But it’s the weaknesses, which provides opportunities to grow and improve.
For any company if these are not looked upon strategically in time, it may lead to decrease in
company’s Customer share.
In today’s price sensitive Customer, AIRTEL 3G needs to come up with new innovations at
regular time intervals.
This may provide AIRTEL 3G the first mover advantage, over its competitors.
The new improved value vouchers in the Customer will certainly help the company to serve all
the segments (customers) in a better way.
The Value Added Services with competitive price tags may enhance its usage by the
customers, because masses may not be able to access this VAS at present price.
At last I can say that, it has been a great experience for me working with the cooperating staff
of AIRTEL 3G.
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72. CONCLUSION
During this summer project researcher went through the working culture of the
organization, functionalities of sales team and the identification of market
potentiality apart of the data collection about the given problem. So, as a whole
it can be said organization emphasize more on teamwork, motivating the
employees and building the friendly environment. According to the company
more than 90% of the business (sales) is done through direct marketing by their
enthusiastic sales team. Since this project is all about customer satisfaction about
the service so it highly depend on the way of delivering services. In the data
observation & analysis part we have seen the after sales service, Salesmen
attitude, Billing Process etc. as important factors to provide satisfaction to the
customer.
Since Airtel is the strongest service provider among private players and
customers also perceive it as a strongest brand. So it has to maintain a high
customer base with providing them complete satisfaction. Practicing a proper
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73. Customer Relationship Management can only do it and Bharti implement it
properly. So why it is now among top names in the world.
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74. BIBLIOGRAPHY
Book Refered :
Marketing Research Naresh K Malhotra
Marketing Research Harper W Boyd
Marketing Management Philip Kotler
Marketing Management Keller & Kotler
Websites:
www.bharti.com
www.Comtel.com
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76. QUESTIONNAIRES
Mode to introduce yourself:
Sir I am Vipin Kumar Singh a student of MBA from Khandelwal College of Management
Science & Technology, Bareilly, doing a research on A Study the factors influencing Consumer
in choosing 3G Operators in Bareilly. And for the same I would like you to answer some of my
following questions.
Name……………………………………………………………………..
Occupation……………………………………Sex ………………..
Address…………………………………………………………………...
Contact……………………………………………………………………
Q.1 Do you have any mobile connection ?
(a) Yes (b) No
Q.2 which type of mobile connection do you use?
(a) Prepaid (b) Post-Paid
Q.3 which kind of mobile network do you use?
(a) CDMA (b) 2G
(c) 3G
Q.4 which connection you presently own?
(a) Airtel (b) Aircel
(c) Bsnl (d) Idea
(e) Reliance (f) Other………………
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77. Q.5 From how long you are availing the Airtel 3G service?
(a) 5 month (b) 3month
(c) 2 months (d) 1 month
Q.6 Reasons for choosing Airtel 3G service ?
(a) Tariff (b) Brand Image
(c) Network Coverage (d) Advertising
Q.7 What is your monthly expenditure on Airtel 3G network Service?
(a) 50-100 (b) 100-200
(c) 200-400 (d) 400-above
Q.8 From where you are getting information about new others?
(a) T.V (b) Newspaper
(c) Internet (d) Word of Mouth
Q 9. Are you satisfied with the service which are you availing?
(a) Yes (b) No
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