USE FOR MBA STUDENT

1. SUMMER TRAINING REPORT
ON
“STUDY OF SALES PROMOTION ACTIVITIES
AND CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD”
SUBMITTED BY
Narendra Kumar Koli
Enrollment No. 1113033
PGDM (SERVICES)
3rd Semester (2011-13) Batch
Indian Institute of Tourism and Travel Management, Gwalior
(An Organization of Ministry of Tourism, Government of India)
Under Guidance
Mr.Mukeh Gupta
Segment Manager Gwalior
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2. CERTIFICATE
This is to certify that the project done on “STUDY OF SALES PROMOTION ACTIVITIES
AND CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD”. Submitted to INDIAN
INSTITUTE OF TRAVEL AND TOURISM MANAGEMENT GWLIOR by NARENDRA
KUMAR KOLI in partial fulfillment by the requirement for the award of degree of
MBATELECOM is a bonafide work carried by her under my supervision and guidance. This
work has not been submitted to anywhere else for my degree/diploma. The original work was
carried during 15 May to 10st of July 2012 in BHARTI AIRTEL LIMITED.
Name of Guide
Mukesh Gupta
Segment manager
Gwalior (mp)
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3. SELF DECLARATION CERTIFICATE
I hereby declare that the project entitled “STUDY OF SALES PROMOTION ACTIVITIES AND
CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD”
Submitted for the PGDM is my original work and the project has not formed the basis for the
Award of any other degree.
Signature of the Student: Narendra Kumar Koli
Place: Gwalior
Gwalior Date16/8/2012
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4. Acknowledgement
The satiation and euphoric that accompany the successful completion of the task would be
incomplete without the mention of the people who made it possible. After all, success is the
epitome of hard work, severance, undeterred missionary, zeal, steadfast, determination and most
of all encouraging guidance. So, immense gratitude, I acknowledge all those whose guidance and
encouragement served as a ³beacon light´ and crowned my effort with success.
I sincerely thank Mr. Mukesh Gupta {AIRTEL} LTD. Gwalior for giving opportunity to associate
myself to the India‟s largest telecom company and to carry out my project titled
“STUDY SALES PROMOTION ACTIVITIES AND CONSUMER AGE ON NETWORK at BHARTI
AIRTEL LTD”
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5. PREFACE
The objective of any marketing activity is to sell a product. For this, one must have the
right product at the right price, available at the right time and place, through the right promotion
commonly understood as the 4Ps of marketing mix. The fundamental point to be appreciated is
that all these variables must simultaneously fall in place for the success of a product. Take a
look around you at all the successful brands and ask the marketing managers the reason for
success .They will invariably tell you that it is because the company has been able to get this
³mix´ right .If one were to examine these variables carefully one will realize that there are indeed
ways of ³communicating´ with the consumer. A product talks to the consumer through its
features, packaging and the promise of fulfilling a need .Its pricing tells the consumer whether it
is affordable, value for money or premium. Its placement also communicates the values
associated with the product. A premium store versus a discount store communicate very different
message to the consumer .The promotion of the product also obviously communicates some
message to consumer. In effect therefore, marketing is all about communication, whether
through the product and its packaging, the pricing, the placement and the promotion. We would
therefore like to use the term communication mix and highlight the importance of sales
promotion in that context
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6. TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION ABOUT THE TOPIC………8
1.2 OBJECTIVE OF THE STUDY………………..12
1.3 SCOPE OF THE STUDY……………………..12
1.4 METHOD OF DATA COLLECTION………..12
CHAPTER 2: COMPANY PROFILE
2.1 TELECOM INDUSTRIES IN INDIA…………12
2.2 BHARTI AIRTEL LTD……………………….14
2.3 VISION OF BHARTI AIRTEL……………….20
2.4 HISTORY OF THE COMPANY……………..20
2.5 CORPOATE GOVERNANCE………………..31
CHAPTER 3: THE COMPETITIVE AREA
3.1 COMPETITORS PROFILE………………....38
3.2 MARKETING STRATEGY BY AIRTEL…..43
3.3 PROMOTIONAL STRATEGY…………….46
3.4 TARGET MARKET SEGMENT……………47
CHAPTER 4: ANALYSIS
4.1 DATA ANALYSIS …………………………51
4.2 FINDING…………………………………….53
4.3 SUGGESTION………………………………54
4.4 LIMITATION OF STUDY………………….55
4.5 CONCLUSION………………………………56
4.6 BIBLIOGRAPHY……………………………57
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7. CHAPTER -1
INTRODUCTION
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8. 1.1 INTRODUCTION ABOUT THE TOPIC
This project is made on the project title” STUDY OF SALES PROMOTION ACTIVITIES and
CONSUMER AGE ON NETWORK at BHARTI AIRTELThe purpose of this project is to know
about the use of mobiles and the need of sales promotional activities and to know what are the
promotional activities company follow to increase the sale. Now a day‟s mobile service has
become a necessary service. In field of marketing many kind of survey are conducted by Airtel
time to time for promotion awareness.
WHAT IS SALES PROMOTION?
Sales promotion describes promotional methods using special short-term techniques to persuade
members of a target market to respond or undertake certain activity. As a reward, marketers offer
something of value to those responding generally in the form of lower cost of ownership for a
purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-
added material (e.g., something more for the same price).
Sales promotions are often confused with advertising. For instance, a television advertisement
mentioning a contest awarding winners with a free trip to a Caribbean island may give the
contest the appearance of advertising. While the delivery of the marketer‟s message through
television media is certainly labeled as advertising, what is contained in the message, namely the
contest, is considered a sales promotion. The factors that distinguish between the
two promotional approaches are:
1. Whether the promotion involves a short-term value proposition (e.g., the contest is only
offered for a limited period of time), and
2 The customer must perform some activity in order to be eligible to receive the
value proposition (e.g., customer must enter contest). The inclusion of a timing constraint and an
activity requirement are hallmarks of sales promotion Sales promotions are used by a wide range
of organizations in both the consumer and business markets, though the frequency and spending
levels are much greater for consumer products marketers. One estimate by the Promotion
Marketing Association suggests that in the US alone spending on sales promotion exceeds that of
advertising.
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9. SALES PROMOTION TECHNIQUES OF COMPANY
 Good Advertising. Effective Incentive Policy.
 Good services.
 Wide & Deep Distribution System.
 Decorating Retailers shop by display board, dealers board etc.
 Posters.
 Banners.
TYPES OF SALES PROMOTION
Sales promotion can be classified based on the primary target audience to whom the promotion
is directed. These include:
 Consumer Promotion
 Trade Promotion
 Sales force Promotion
CONSUMER SALES PROMOTION
Consumer sales promotions encompass a variety of short-term promotional techniques designed
to induce customers to respond in some way. The most popular consumer sales promotions are
directly associated with product purchasing. These promotions are intended to enhance the value
of a product purchase by either reducing the overall cost of the product (i.e., get same
product but for less money) or by adding more benefit to the regular purchase price (i.e., get
more for the money). While tying a promotion to an immediate purchase is a major use of
consumer sales promotion, it is not the only one. As we noted above, promotion techniques can
be used to achieve other objectives such as building brand loyalty or creating product
awareness. Consequently, marketer‟s promotional toolbox contains a large variety of consumer.
There are several possible tools that can be used for consumer promotions. Some of the more
important ones are:
9

10.  Sampling
 Price-off
 Quality deals
 Banded offers
 In-product gift
 Out- product gift
 Coupons
 Consumer contests
TRADE SALES PROMOTIONS
As note in the Promotion Decisions Tutorial, certain promotions can help ³push´ a product
through the channel by encouraging channel members to purchase and also promote the product
to their customers. For instance, a trade promotion aimed at retailers may encourage retailers to
instruct their employees to promote a marketer‟s brand over competitor‟s offerings. With
Thousands of products competing for limited shelf space, spending on trade promotion is nearly
equal that spent on consumer promotions. Many sales promotions aimed at building relationships
with channel partners follow similar designs as those directed to consumers including
promotional pricing, contests and free product. In addition to these, several other promotional
approaches are specifically designed to appeal to trade partners.
TECHNIQUES USED IN TRADE PROMOTION
 On-consignment sales
 Dealer contests
 Dealer gifts
 Display contests
 Point of sale material
 Shop board painting
 Dealer discounts
 Trade fair participation
 Dealer meets
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11.  Cooperative advertising
ADVANTAGES AND DISADVANTAGES OF SALES PROMOTION
Sales Promotion techniques yield results that many other marketing communication elements
cannot achieve .For example it can turn around a sales trend in the short run, help introduce a
new product by encouraging consumer and retail acceptance, reinforce message driven by
other communication -mix element, etc.Some of the benefits of sale promotion:
 Sales promotion produces result by stimulating people to act - to try, to buy, to buy more,
or to buy more often. It can lead to trial, generate excitement, encourage rein
peat purchase, attract switchers, etc. It is especially helpful in situations where there is
extreme pressure to increase sales eg.at the end of the year when there are shortfalls
in budgeted sales.
 It produces immediate results. While advertising or public relation act as an
investment producing sales in the long run, sales promotion works during a definite span
of time. Most of the sales come during the sale promotions period itself. Very often, if
the promotion is successful, one can get results within hours, days or weeks.
 It can prevent competitor entry or offset competitor promotions and thus help maintain
the brands current market share.
 Sales promotion techniques directed at channel members or sales force can gain channel
support and involvement and help ³push´ the product. It helps in getting shelf space and
merchandising benefits at the retail level, clearing off excess inventory, motivating
sales people to find new contacts etc .Sales promotion is relatively easy to design and
implement. It is possible to calculate costs effect on sales and sometimes even on
competitor sales.
DISADVANTAGES OF SALES PROMOTION
 Most sales promotion is used for short-term results. Any excessive use can shift the focus
on short-term marketing planning that acts only at the behavioral level.
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12.  Increasing sales promotion activities has led to clutter, leading companies to cut each
other and thus eroding the bottom line. In mature markets sales promotion does not do
much in attracting new customers but only switchers who are dear prone
1.2 OBJECTIVE OF STUDY
Primary research objective:-
To study and interpret the sales promotion schemes running by airtel in jaipur zone. and to know
that how the consumer can be retain for maximum time on same network.
Secondary research objective:-
 To determine the most popular telecom brand
 To determine the average age on consumers on same network
 To determine the best sales promotion scheme
 To determine the consequences of current schemes
1.3 SCOPE OF STUDY
The Scope of the Research study would include the geographic & Demographic region of
gwalior.The research targets the retailers and distributors who deal into telecom services and the
time period of the survey is from 3May -20 June2010.
1.4 DATA COLLECTION METHOD
Primary method: - Data was collected from respondents through direct interaction and through
personal meetings.
Secondary method: - External study data has also been used through internet. And through
newsletters & journals
2.1 TELECOM INDUSTRY IN INDIA
Indian telecom sector, like any other industrial sector in the country, has gone through
many phases of growth and diversification. Starting from telegraphic and telephonic system in
the 19th century, the field of telephonic communication has now expanded to make use of
advanced technologies like gsm, cdma, and wll to great 3g technology in mobile phones. day by
day, both the public players and the private players are putting in their resources and efforts to
improve the telecommunication technologies so as to give maximum to their customers.
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13. the telecom industry of India is on the edge of becoming the second biggest telecom sector in the
world with an overall compactness of telecommunications of up to 4789%. in the year 2009, the
industry attracted subscribers of over 562.21 million which was 35% greater than its previous
year, as per telecom regulatory authority of India (trai) report. the Indian telecom industry
registered annual revenues of over us$ 8.57billion in2009triggered by the revival in incomes from
landline and mobile services. by 2014 the industry is anticipated to surface as the highest element
in the nation's gdp by contributing up to 15.5%.currently, the telecom industry is on an
expansion spree and is adding 9-11 million cellular phone subscribers per month. With this pace
the sector is estimated to cover more than half of the nation's population by 2012 .2010 budget
telecom industry expectations are re-introduction of tax exemptions in context of system rollouts
in rural districts and to telecom infrastructure service providers, tax relief to businesses
undergoing reformatting mentioned in provisions under section80ia (12a) by the finance act,2007
special additional duty (sad) compensation, accessibility of cenvatcredit in case of relocation of
the business, tariffs of not up to 0.5-2% and explanation on tax reduction of entire spectrum
charge
GSM MOBILE MARKET SHARE IN INDIA -
1. Bharti Airtel: 121.7million (30.86%)
2. Vodafone Essar: 94.1 million (23.87%)
3. IDEA: 59.8million (15.19%)4
4. BSNL: 59.million (15.08%)
5. Aircel: 33.0 million (838%)
6. Reliance Telecom: 15.7million (4.0%)
7. MTNL: 4.6million (1.17%)
8. Loop Mobile: 2.7million (0.9%)
9. Uninor: 2.5million (0.64%
10. STel: 0.5million (0.13%)
Total Users: 395.3 million
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14. 2.2 BHARTI AIRTEL LTD
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has
a diverse business portfolio and has created global brands in the telecommunication sector.Bharti
has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart
for the cash & carry business. It has successfully launched an international venture with
ELRothschild Group to export fresh agri products exclusively to markets in Europe and USA and
has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.Airtel comes from Bharti Airtel Limited;
Bharti Airtel is one of the leading alternative providers of telecommunications services in India
and the first private telecom services provider with footprint in all the 23 telecom circles. Bharti
Airtel since its inception has been at the forefront of technology and has steered the course of the
telecom sector in the country with its world class products and services. The businesses at Bharti
Airtel have been structured into three individual strategic business units (SBUs) - Mobile
Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile
& fixed wireless services using GSM technology across 23Telecom circles while the Airtel
Telemedia Services business offers broadband &telephone services in 94Cities. The Enterprise
services provide end-to-end telecom solutions to corporate customers and national &
international long distance services to carriers. All these services are provided under the Airtel
brand .Airtel comes from Bharti Airtel Limited, one of Asians leading integrated telecom
services providers with operations in 18 countries across Asia and Africa. Bharti Airtel since its
inception has been at the forefront of technology and has pioneered several innovations in the
telecom sector. The company is structured into four strategic business units - Mobile, Telemedia,
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15. Enterprise and Digital TV The mobile business offers services in India, Sri Lanka and
Bangladesh. TheTelemedia business provides broadband, IPTV and telephone services in89
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 Telco‟s. Airtel was born free, a force unleashed into
the market with a relentless and unwavering determination to succeed. A spirit charged with
energy, creativity and a team driven ³to seize the day´ with an ambition to become the most
globally admired telecom service. Airtel, in just ten years of operations, rose to the pinnacle to
achievement and continues to lead. As India's leading telecommunications company Airtel brand
has played the role as a major catalyst in India's reforms, contributing to its economic
resurgence.
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16. CHAPTER-2
COMPANY PROFILE
16

17. COMPANY PROFILE -
Date of Establishment
1995
Revenue
6716.88(USD in Millions)
Market Cap
1062548.9208608( Rs. in Millions )
Corporate Address-
Aravali Crescent ,1 Nelson Mandela Road,Vasant Kunj Phase
2 NewDelhi-110070, Delhi
Chairperson
- Sunil Bharti Mittal
MD
- Sunil Bharti Mittal
Directors
- Ajay Lal, Akhil Gupta, Arun Bharat Ram, Bashir Currimjee, Chua Sock Koong,Craig Ehrlich,
Deven Khanna, Lim Chuan Poh, Manoj Kohli, Mauro Sentinelli, N Kumar, Nikesh Arora, Paul
O'sullivan, Pulak Chandan Prasad, Quah Kung Yang, Rajan Bharti Mittal,Rakesh Bharti Mittal,
Sarvjit Singh Dhillon, Sunil Bharti Mittal, Tan Yong Choo, VijayaSampathBharti Airtel,
incorporated on July 7, 1995 is the flagship company of Bharti Enterprises. The Bharti Group
has a diverse business portfolio and has created global brands in the telecommunication sector.
Bharti Airtel is Asia‟s leading integrated telecom services provider with operations in India and
Sri Lanka. Bharti Airtel has been at the forefront of the telecom revolution and has transformed
the sect
Company Secretary-
Vijaya Sampath
Bankers Auditors-
SR Batliboi & Associates
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18. Business Divisions-
The enterprise services group includes units for both long-distance carriers and for corporate
clients. Bharti Airtel has nearly 29 million total customers -- approximately more than
27millionGSM mobile and 1.6 million fixed-line customers. The company was founded as
Bharti Tele-Ventures in 1995 and changed its name in early 2006 to Bharti Airtel Limited. It is a
unit of Indian conglomerate Bharti Enterprises)Sunil Bharti Mittal (Chairman and Group
Managing Director)This highly innovative company created telecom history when it farmed out
its network management to experts Nokia and Ericsson, and set a trend in the global cellular
industry. Last year, Vodafone gave the company a vote of confidence by acquiring 10% mostly
from early Bharti investor Warburg Pincus. This year, Bharti will offer its second overseas
services after the Seychelles. It acquired a license for tax haven Jersey, in the Channel Islands,
and is looking for more. It also plans to spend $2billion this year to double the size of its network
and cover 50%of India's population, up from40% currently. The group offers high speed
broadband internet with a best in class network. With Landline services in 94 cities we help you
stay in touch with your friends & family and the world.Getworld class entertainment with
India‟s best direct to home (DTH) service digital TV in more than 150 cities.
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest
mobile service provider in the country, based on the number of customers.
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19. 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!
Enterprise Services provides a broad portfolio of services to large Enterprise and
Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise
Services is regarded as the trusted communications partner to India's leading organizations,
helping them to meet the challenges of growth.
Airtel Money
Airtel has started a new mCommerce platform called Airtel Money with collaboration with
Infosys and Smart Trust (now Giesecke & Devrient). It was launched on April 5, 2012, in
Infosys Campus of Bangalore. with the help of Airtelmoney,users can transfer money, pay bills
and other financial transactions using mobile phone
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20. 2.3 VISION OF BHARTI AIRTEL -
By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by
top talent Benchmarked by more businesses
2.4 HISTORY OF THE COMPANY
Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability
under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures
received certificate for commencement of business on January 18,
1996. The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom
Limited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as
follows
Calendar year & Events
1995
 Bharti Cellular launched cellular services'AirTel'in Delhi
1996
20

21.  STET International Netherlands NV, or STET, a company promoted by Telecom
Italia,Italy acquired a 20% equity interest in BhartiTele-Ventures Bharti Telenet launched
cellular services in Himachal Pradesh
1997
 British Telecom acquired a 21.05% equity interest in Bharti Cellular
 Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh
circle
 Bharti Telecom and British Telecom formed a 51% :49% joint venture, Bharti BT,
for providing VSAT services
1998
Bharti Telecom and British Telecom formed a 51% :49% joint venture, Bharti BTInternet
for providing Internet services
 First Indian private fixed-line services launched in Indore in the Madhya Pradesh circle
on June 4, 1998 by Bharti Telnet thereby ending fixed-line services monopoly of
Dot(nowBSNL)
1999
 Warburg Pincus (through its investment company Brentwood Investment
HoldingsLimited) acquired a 19.05% equity interest in Bharti Tele-Ventures
 Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC Cellular Holdings)
acquired an effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the
cellular services provider in Karnataka and Andhra Pradesh circles
 New York Life Insurance Fund, or NYLIF, acquired a3% equity interest in BhartiCellular
2000
 Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti
Mobinet(formerly Sky cell Communications), the cellular services provider in
Chennai
 Bharti Tele-Ventures acquired a30.2% equity interest of Telecom Italia in BhartiTelenet
and 18.8% from Bharti Telecom thereby making Bharti Telnet a 100%subsidiary of
Bharti Tele Ventures
21

22.  SingTel (through its investment company Pastel Limited) acquired STET's 15.3%
equityinterest in Bharti Tele-Ventures
 Bharti Tele-Ventures acquired an additional effective41.64% equity interest in
BhartiMobile (by acquiring the remaining36.55% equity interest in SC Cellular) resulting
inBharti Tele-Ventures holding an effective74 % equity interest in Bharti Mobile.
2001
 Bharti Tele-Ventures acquired NYLIF's 3% equity interest in Bharti Cellular
 Bharti Telesonic entered into a joint venture, Bharti Aqua net, with SingTel
for establishing a submarine cable landing station at Chennai
 Bharti Tele-Ventures issued additional equity for approximately US$ 481.30 million to
SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and See jay Cellular and
BhartiTelecom
 Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice
Cell),the cellular services provider in Kolkata
 Bharti Tele-Ventures acquired 85% and 1 5% in Bharti Telespatial from Bharti
Telecomand Intel, respectively
 Bharti Tele-Ventures acquired a 44 % equity interest in Bharti Cellular from British
Telecom, thereby making Bharti Cellular its 100% subsidiary
 Bharti Tele-Ventures acquired an additiona l49% equity interest in Bharti Mobinet from
Millicom International and BellSouth International, thereby owning 89.5% equity
interest in Bharti Mobinet, which was further increased to 95.3% following an issuance
of additional equity shares by way of rights issue
 Punjab license restored to Bharti Mobile by the DoT and migration to NTP – 1999
accepted
 Bharti Cellular entered into license agreements to provide cellular services in eight new
circles following the fourth operator cellular license bidding process
 Bharti Telenet entered into license agreements to provide fixed-line services in the
Haryana, Delhi, Tamil Nadu and Karnataka circles
 Bharti Telesonic entered into a license agreement with the DoT to provide national long-
distance services across India
22

23.  Bharti Aqua net, Bharti Telesonic and Bharti Cellular entered into license agreements
with the DoT to provide ISP services in India
 Bharti Telesonic launched national long distance services under the brand name of India
One
 Bharti Telnet launched fixed line services in Haryana under the brand name of TouchTel
2002
 Comes out with issue of 18.53crore equity shares through book building route with afloor
price of Rs45 per share, received bid for 18.55crore shares. Through the issue, it becomes
the first company in India to come out with 100% book building issue
 Issue price fixed at Rs45per share, floor price fixed by the company. Raises Rs834 crore
 Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price of Rs 45
 Enters into a 5 -year agreement with Escotel and ETL of the Escorts group to
contractleased line connectivity for its cellular operations
 Mr. Ravi Akhoury ceases to be Director of Bharti Tele
 DoT grants ILD Telephony License to Bharti Telesonic, subsidiary of the company
 Signs MoU with Telia AB to buy out their 26 % stake in Bharti Mobile
 Ties up with SSC (Secondary School Certification) Board, Hyderabad, where Bharti will
announce SSC results to its customers on their mobile phones
 ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs
 Bharti forays into Mumbai with offers
 Alpine International Ltd. and ELM International Ltd. acquire shares of Bharti Tele-
Ventures
 Sunil Mittal, Chairman & Managing Director of the company, bags Businessman of the
year award by Business India
2003
 Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle
 Company accorded its approval for amalgamation of its subsidiary companies viz:
BhartiTelenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti
Comtel Ltd through scheme of Amalgamation. The merged entity would be renamed as
Bharti Infotel Ltd
23

24.  Air Tel launches Local direct dialing facility in Chennai circle
 Mobilizes5 m long term foreign currency borrowings for expansion of cellular operations
 Bharti Cellular unveils Care Touch service
 Bharti Group's cellular brand Airtel has unveiled free multimedia messaging services
(MMS) for its customers. The company has also rolled out pan-India GPRS (General
Packet Radio Services) for its corporate subscribers
 Launches its `India One Meet press' audio-conferencing service
 Punjab, Haryana get free incoming calls from Airtel
 AirTel provides SMS facilities to hearing impaired in Chennai
 Goa, Maharashtra gets 'voice portal' services by Bharti Cellular-Launches free additional
connection to its new subscribers in New Delhi
 Mr. Sin Hang Boon and Mr. Wong Hung Khim have resigned from the Board
of Directors of Bharti Tele Ventures Ltd with effect from February27, 2003.
 Airtel provides SMS cricket updates
 Bharti Mobinet Ltd, the Bharti group company that provides the AirTel mobile service
inChennai, today launched its GPRS (General Packet Radio Service) network and an
MMS (multimedia messaging) on the GPRS platform
 AirTel unveils new ring tones for Karnataka cellular market
 AirTel Subscribers exceed 3 Million mark
 AirTel unveils RAD system
 Mr. P M Sinha resigns from the Board of Directors of the Company with effect
fromMarch31,2003.
 Bharti TeleVentures announces the completion of merger with Bharti Mobitel
 Bharti Mobitel Ltd. merged with Bharti Cellular Ltd. AirTel reintroduces 'Mobile 2
Mobile' offer for Karnataka customers
 AirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel connection
 AirTel rolls out voice mail service for pre-paid customers
 AirTel unveils new scheme for pre-paid customers giving away free talk time worth
Rs10crore
 Airtel surpasses 4 lakh subscriber base in Karnataka
 Bharti announces new tariff plan AirTel 2012
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25.  Offers 0-1-2, a new cellular package for the customers, which means zero charges on
incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs2 on mobile-to-mobile STD
calls
 Rolls out Airtel messenger service
 AirTel offers bundled handset, connection package for Rs 5715
 Airtel slashes SMS rates to60 paisa; excludes Delhi and Mumbai
 Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its stake
to100% in Bharti Mobile
 Iinks distribution pact with Hathaway Cable. With this alliance, Bharti is said to be the
first telecom firm to step into television distribution services
 Six cell operators move over from Bharti to VSNL
 Airtel augments cellular coverage in TN by including Arcot & Walajapet in its network
 Airtel ties up with Coke in Chennai to sell its Magic prepaid cards
 AirTel embarks on network expansion in Hyderabad
 Airtel unveils India One Long Distance Calling Card
 AirTel introduces unified tariff package in TN, Chennai
 Airtel becomes front runner in Karnataka's mobile services market
 Bharti Tele launches 'Always on' service to its subscribers
 SBI, AirTel announce EMI offer at Rs 299
 Bharti and MTV join hands to launch new SIM card
 AirTel unveils new post-paid scheme at zero rental
 AirTel launches `Happy Plan' in AP
 Airtel emerges as the highest selling pre-paid card
 Airtel join hands with Alcatel & Videocon to launch new scheme
 AirTel service provider touches 5 lakh customers in Punjab
 Airtel offers5 new services for its customers in Mumbai
 Bharti launches first dual band network in Delhi
 Gets 14th place among top25 Cos in India
 Bharti Mobile crosse 4 lakh mobile subscribers in AP
 Airtel holds top position in terms of dealer penetration
 Prof. V S Raju has been inducted on the Board of Directors of the Company.
25

26.  Touchtel launches SMS service in fixed line phones in Karnal, Panipat
 AitTel unveils special offers in Kerala
 AirTel launches InnoWest for the western region
 Bharti Tele-Ventures enters into an agreement with Telesystem (Mauritius) Pvt. Ltd
 Airtel slashes out going sms price to30ps
 AirTel on December 16,2003 announced the launch of expense tracker service,
which provides customers the option of tracking their day-to-day expenses on a daily
or monthly basis. To avail of this service, the customer should register himself by
sendingEXP REG your mail ID{gt} to3020. This service will allow a user to track
expenses,while on the move by sending an SMS. Each SMS sent to 3020 would cost Rs3.
 AirTel introduces MTV Club Card in Chennai
2004
 Bharti unveils new card for Mecca pilgrims
 AirTel enrolls 50,000 customers in its mobile service in60 days
 Launches WAP enabled portal Service in Kerala
 Bharti Cellular's AirTel has extended its mobile connectivity to Karaikkal,
Nagur,Mannargudi and Kovilpalayam in Tamil Nadu circle.
 Airtel customer base touches new high of 5 lakh mark in Andhra Pradesh
 Mobile service provider AirTel is launching its first ever MMS (Multi Media service)
downloads in Tamil. The launch of this service has been timed to coincide with Pongal.
 AirTel tie up with MAA TV
 Airtel launches Rs50 pre-paids recharge
 AirTel launched a family pack for its post-paid customers in Chennai on January
29.According to a press release, the family pack may have a maximum of 10 members
Spread across the country. The combined basic plan fixed charges/rental of all family members
in the pack will have to be equal to Rs450 but less than Rs 1000 for the family450 pack and
above Rs 1000 for the family 1000 pack. The offerings under family pack 450 include 15free
mobile to mobile STD minutes within the family, 50 free local calling minutes to each family
member, calls within the family in same circle at50 paisa per minute, 25free local SMS and one
subscription alert service free for 3months.
 Bharti Tele-Ventures enters into a three year service agreement with Ericsson
26

27.  Bharti Tele-Ventures (BTVL) has signed and received unified access service license
to provide GSM services in five circles including Uttar Pradesh (East), West Bengal
&Andaman Nicobar, Orissa, Bihar and Jammu & Kashmir. The license has been granted
to Bharti Cellular Ltd (BCL), the cellular arm and subsidiary of BTVL.
 Airtel announces the signing of the first-ever bilateral roaming agreement between an
Indian mobile service provider and its counterpart in Pakistan. This facility will be
available to pre-paid as well as post-paid customers. AirTel's roaming agreement is with
Mobil ink, the only GSM cellular service provider in Pakistan
 Acquires switching systems from Tekelec that will give a technological edge to the
company
 Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with
InfoTech major IBM, estimated to be in the range of 0-750 million for a ten-year period.
 Jayant Khosla, new chief executive officer, Mumbai
Signs MoU to join the South East Asia - Middle East - Western Europe 4(SEA-ME-WE-4)
consortium along with 15 other global telecom operators.
 Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out the latter's
67.5 per cent stake in cellular services company Hexacom for Rs430 crore.
 Bharti Tele garners 0 m via FCCBs
 Samsung India Electronics Limited has tied up with cellular operator Bharti for bundling
its mobile handsets with a connection.
 The Bharti group finalized an Rs500-crore deal to share its national long-distance (STD)
network with VSNL in a first-of-its-kind accord between two top telecom
service providers in a bid to optimize capacities in the NLD segment.
 Internet gateway and services provider, Videsh Sanchar Nigam Ltd. (VSNL) has signed
a right to Use (RoU) agreement to deploy mobile telephony major, Bharti Tele-Ventures
„existing National Long Distance (NLD) backbone.
 Airtel offers talk time transfer service
 Airtel has announced money-back guarantee offer in case of call drop or poor
network experience for its subscribers
 Bharti launches 2-in-1 card
27

28.  Airtel launched two-way international roaming and GPRS for prepaid customers in the
Maharashtra and Goa circles
 India's leading cellular company Bharti Tele-Ventures has bagged the Asian
Mobile News operator of the year award in India and the subcontinent
 Bharti Tele-Ventures Ltd has awarded a million equipment contract to Swedish telecoms
company Ericsson
 Bharti Televentures announced formation of a new strategic business unit to offer
various telecom and IT services through a single contact
 Bharti Televentures unveiled a mobile portal featuring sports, entertainment and news
among others
 Airtel ties up with Micro Tech to set up 'Mcops' vehicle security system
 Bharti Tele-Venture on July 19 launched ring back tone service which is a personalized
mobile music service where the caller hears songs and other sound clips instead of the
traditional switchboard ring-ring tone
 Airtel, a private telecom services provider, has commissioned its first24x7
customer service centre in Andhra Pradesh Airtel unveils Rs 199 pre paid card
 AirTel join hands with NMIMS to offer executive MBA programme
 AirTel introduces new scheme for hearing impaired in Maharashtra & Goa
 AirTel inks pact with JP Mobile
 AirTel unveils first virtual calling cards in India
 BTVL rolls out EDGE services in Bangalore
 Airtel rolls out Full Talk time Advantage card
 Airtel rolls out Wi-Fi services in Mumbai
 BTVL launches new 'Airtel Broadband Friendly Offer'
 Airtel launches GPRS services for pre-paid customers
 Airtel partners with ITPO to set up Wi-Fi network in Delhi
 Airtel launches EDGE services and a new pre-paid plan for Chennai
 Airtel introduces LAS in Karnataka
2005
 Airtel launches video services for its GPRS customers on February 22,2005
28

29.  Airtel unveils new TV ad featuring Sachin, Sharukh
 Bharti Tele-Ventures launches telecom network in Andaman & Nicobar
 BTVL unveil fixed line, broadband services
 Bharti inks5 -m deal with Nokia for rural network expansion
 Bharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA have joined
hands to launch mChq - a revolutionary new service - a credit card on the mobile phone
 Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India
 Bharti Tele Ventures announces agreement with Vodafone
 Airtel unveils 'free flight' offer
 Airtel unveils starter pack
 Bharti Tele-Ventures launches under sea cable system
2006
 Airtel unveils Re 1 STD plans
 Airtel launches NetXpert.
 Airtel launches Post2 Pre recharging service on April 04,2006
 Airtel sets up customer centre
 Mobile service provider Airtel today announced the launch of `Save My Phone Contact
„service for its pre-paid and post-paid customers in Delhi
 Bharti Tele Ventures bags 'Wireless Service Provider of the Year' & 'Competitive
Service Provider of the Year' awards
Sunil Mittal bags CEO of the Year award
 Cellebrum join hands with Airtel
 Airtel Mega unveiled in Coimbatore
 Airtel joins hand with Microsoft
 Bharti Airtel Ltd has informed that Microsoft and the Company announced a
strategic partnership that will offer a range of software and services for small and
medium businesses (SMBs) in India.
 Bharti Airtel Ltd on Nov8, announced a first-of-its-kind alliance with the Adani Group
for establishing an end-to-end modern telecommunication network infrastructure for the
latter‟s
29

30.  Multi-sector special economic zone (SEZ), located near Mundra Port in Kutch district
of Gujarat.
2007
Bharti Airtel, telecom major, has come out with a slew of initiatives including buying
OutSingTel‟s50 per cent stake in joint venture undersea cable company Network i2i for 0
million.
 Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics
of Quality.
 Bharti Airtel Ltd has announced the following changes in the operational leadership
structure and roles in the Company effective April 01,2007
 Bharti Airtel Ltd on April 01,2007 , has announced the reduction in International Long
Distance Tariffs (ISD) for all its mobile customers in India.
 Airtel signs agreement with HTC for touch screen mobile
2008
 Nokia Siemens Networks on Jan3declared that it has been awarded a multi
million euro contract from Bharti Airtel Ltd for deployment of a single interactive
voice response (IVR) platform across23 circles. The three-year turnkey contract
comprises designing, planning, systems integration and optimization services to
raise overall customer experience. The new IVR solution will enable Airtel to
deliver services such as voices, televoting, call management services, caller ring
back tone and voice portal on a faster time-to-market basis and, therefore, reduce
OPEX costs.
 Bharti Airtel Ltd on February 1 2008 has announced that it has achieved the60
million customer marks. This landmark has catapulted Bharti Airtel into the club
of top mobile operators in the world in terms of subscriber base. The 60 million
customer base covers mobile as well as fixed line and broadband customers.
 Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based
iPhone in the country.
 Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd
to launch its Direct-to-Home (DTH) television services. Infosys, through its
30

31. digital convergence platform, will offer a suite of products including devices,
application servers and interactive applications for Airtel's DTH services.
2009
 Bharti Airtel HAS signed a five-year managed services deal valued at 0
million withAlcatel Lucent for its fixed-line and broadband operations.
 Bharti Airtel launched the 'Airtel Advantage' initiative. The initiative is
aimed at offering the added advantage to Airtel customers to be in touch
with each other at an affordable rate of 50 paisa per minute, be it a national
long distance call (STD) or local call.
 In order to create products and services for the small, medium and large
enterprises, Bharti Airtel and Cisco announced a strategic business alliance.
The alliance would combine the strengths of Airtel's network service and
Cisco' Internet Protocol (IP) technologie
 Bharti Airtel - Airtel and mChek announce milestone of One Million users;
introduce a broad range of new mCommerce services.
2010
 Bharti Airtel submitted its bid for 3G spectrum, the auction for which starts from April
l9th
2.5. CORPOATE GOVERNANCE
Integrity and Ethics
 The partners will conduct all its dealings in a very ethical manner and with the
highest business standards.
 All partners with a business relationship with Bharti Airtel shall comply with the
highest-level of integrity and ethical practices.
 The partners will provide all possible assistance to Bharti Airtel in order to investigate
any possible instances of unethical behavior or business conduct violations by its
employee. Partner will disclose forthwith any breach of these provisions that comes to
their knowledge to allow for timely action in their prevention and detection.
 Partners will adopt appropriate processes to prevent offering any illegal gratification in
the form of bribes or kickbacks either in cash or in kind in the course of all dealings with
us. Any instances of such violations will be viewed in a serious manner and Bharti Airtel
31

32. reserves the right to take all appropriate actions or remedies as may be required under
the circumstances.
 All partners are required to confirm their compliance to ethical dealings on an
annual basis by signing a certificate to this effect as per Bharti Airtel's standard annual
certificate.
Any ethical or integrity issues observed or encountered while dealing with Bharti Airtel shall be
bought to the notice of Bharti Airtels senior management or the Head of Internal Audit
immediately.
Environment, health and safety
Suppliers dealing with Bharti Airtel shall comply and adhere to all laws, regulations and
guidelines on environment, health and safety. Suppliers will ensure that all new service offerings
as well as new product designs are incompliance with the relevant environmental regulation and
guidelines, at the time of implementation at Bharti Airtel.
Protection of Intellectual Property the Partner:
 Shall comply with the guidelines for use of the trademarks and trade names notified by
the Company (including but not limited to 'Bharti' and 'Airtel') and shall not use the
Company trademarks and trade names without the prior written consent of the Company.
 Shall, under no circumstances, advertise or use Bharti Airtel's name to market its
own product or associate its company with Bharti Airtel. If a partner spots any
counterfeit or infringing Company product/service, the partner shall immediately notify
Bharti Airtel.
Shall not reproduce, in whole or in substantial part, any copyrighted work in hard copies, prints,
video or electronic copies in violation of the copyright laws including the Bharti Airtel's Partner
Manual. Bharti Airtel's intellectual property also resides in trade secrets or know-haws. Trade
secrets are technical, commercial or other information unknown to the public, which can bring
economic benefits to its owner. Documents that contain trade secrets and available to the Partner
shall be safeguarded and not shared by the Partner with any third party without prior written
consent of Bharti Airtel.
32

33. Domestic and international trade controls
Suppliers shall understand and follow applicable domestic and international trade control and
customs laws and regulations, including, but not limited to those relating to licensing, shipping
and import documentation and reporting and record retention requirements
Conflict of Interest
Suppliers will ensure they do not engage in any personal dealings with Bharti employees,
especially those that they interact with on Bharti business matters.
PARTNER POLICY
Airtel would strive to conduct its business in a manner that reflects its vision and brand essence.
As the sourcing base expands, Airtel will only do business with partners who are committed to a
long term relationship focusing on mutual growth and trust. All Partners are responsible
for making sure that Airtel's vision and brand essence is adhered to when subcontracting any
portion of their obligations. Partners are individually responsible for ensuring that their
employees understand Airtel's vision and brand essence.
Regulatory Compliance
All Partners of Airtel must operate within the bounds of all applicable laws. They must also
adhere to the governing standards of the country and international countries in which they
conduct business. If at any time a Partner ceases to meet any statutory and/or other requirement
of the country in which they are doing business, Airtel reserves the right to immediately cancel
all its outstanding orders with that Partner as well as terminate its agreement with the Partner.
Corporate Citizenship
Airtel believes in Corporate Citizenship. Airtel is committed to protecting the environment
wherever it does business. As a responsible corporate citizen we will favor those Partners who
share our commitment to the community and the environment, as well as those who conform to
all local requirements regarding environmental codes and guidelines.
Corporate Citizenship
All potential partners are required to undergo the registration process to be considered
for business with Airtel. On successful completion, the partner would be added to Airtel's
Supplier Base and a registration code would be provided. Only registered partners would be
considered for new business opportunities. The registration code would be rendered inactive for
33

34. partner‟s not meeting the requirements of the registration process. Once deactivated, partners
would be required to go through the registration process again.
Number of Partners and Business Share
All partners working with Airtel would have a unique partner code and would be applicable
for all their business units globally. Airtel would have a maximum of 6 to 8 partners registered
for any product or service. RFP would be released to registered partners only. Airtel at any point
of time would release a contract to a maximum of 3 partners for a product or service with a
business share split of 60%,30% and 10%. Incase 2 partners are contracted; the business share
split would be 67% and33%. Business share would be primarily based on partner performance
score card. Airtel would provide higher business share for partners who help it to improve its
technology, competitiveness and customer delight. In case where all criteria are similar the
decision would be based on the partner's dependence on Airtel. Any deviation would be
approved at a level higher as per DOA. Single partner for a product or service would be
approved through a specific DOA.
Reciprocity
Airtel's goal is to buy products and services which have the best prices, quality, delivery, and
technology. Airtel encourages partners to use its products for their telecom requirements and
would prefer partners endorsing Bharti Airtel products where all criteria requirements are being
met.
Code of Ethics
Airtel expects the highest standards of integrity and conduct from its partners. No gifts (other
than advertising matter of modest values such as calendars and diaries), or favors Should be
offered to an employee of Airtel or to friends or family of employees. Partners are expected to
familiarize themselves with the Airtel Code of Conduct which is available in the Partner Manual
or on request, in order to avoid any ambiguity in this regard.
Contracting
Supply Chain is solely responsible for selecting partners, obtaining quotations and
awarding purchase orders/contracts for products, equipment, software and/or services. Direct
discussions between the requesting organization and partner shall be coordinated by the Supply
Chain Department. Airtel will issue a purchase order / contract for all products and/or services to
all partners. Work should not begin until a formal purchase order/contract is received.
34

35. Partner performing a service or supplying products without the proper authorization would do so
at its own cost and risk.
Confidentiality
Airtel will treat information received from Partners in a responsible fashion, and expects Partners
to treat information received from Airtel in the same manner. Partners should not disclose
BhartiAirtel as a customer, documentation received from Bharti Airtel or release information
about relationships with Bharti Airtel without written consent (should such disclosures be legally
required, Bharti Airtel will not unreasonably withhold that permission, which must be obtained
in advance and in writing).
Partner Satisfaction
Airtel would conduct an annual partner satisfaction survey and use it as an important tool to
continuously improve and further develop its internal and external processes with partners. In
order to obtain an unbiased feedback, the survey would be conducted by an independent external
agency.
Partner Awards
Airtel recognizes consistent performance of its partners annually by presenting performance
awards. The awards would be primarily based on the partner performance score card. Awards
would be announced and presented during the partners meets. Consistent & good performers
would also be entitled to better share of business and other benefits, as would be announced from
time to time by Bharti Airtel.
Partner Disengagement
Airtel reserves the right to cancel all orders and/or contracts with a partner in cases where there
is an unethical practice used, code of conduct violation, partner bankruptcy or insolvency,
ownership transfer and/or any other reason deemed fit for disengagement. Airtel would follow a
structured approach for disengagement to ensure the smooth transitioning where
separation becomes inevitable.
Partner Grievance
Airtel's Partner grievance process ensures a Partner's ability to access Airtel's corporate
assurance group and leadership to address concerns, grievances, or complaints relating to the
contracting award process for products or services, or in general‟s Partner who believes that a
contract award decision was not determined appropriately must file a written grievance using the
35

36. Partner Grievance form stating facts and concerns. The completed form must be sent via e-mail
to central.scm@airtel.in A Partner who has a general concern, grievance & complaint must file a
written grievance using the Partner Grievance form stating facts and concerns. Complete form
must be sent to the supplier Ombudsperson at Airtel via e-mail Ombudsperson@airtel.in
36

37. CHAPTER-3
THE COMPETITIVE AREA
37

38. 3.1 COMPETITORS PROFILE
Vodafone Essar-
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. Vodafone Essar provides2G
services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data
services in 16 of the country's 23license areas.
Growth of the company as Hutchison Essar-
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994
was awarded a license to provide mobile telecommunications services in Mumbai (formerly
Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh
of Max still holds 12% in company. By the time of Hutchison Telecom's Initial Public Offering
in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications
operators providing service in 13 of India's23 license areas and following the completion of the
acquisition of BPL that number increased to 16. In2006, it announced the acquisition of company
thatheld license applications for the seven remaining license areas. In a country growing as fast
as India, a strategic and well managed business plan is critical to success. Initially, the company
grew its business in the largest wireless markets in India – in Cities like Mumbai, Delhi and
Kolkata. In these densely populated urban areas it was able to establish a robust network, well
known brand and large distribution network -all vital to long-term success in India. Then it also
targeted business users and high-end post-paid customers which helped Hutchison Essar to
consistently generate a higher Average Revenue per User ("ARPU") than its competitors. By
38

39. adopting this focused growth plan, it was able to establish leading positions in India's largest
markets providing the resources to expand its footprint nationwide.
IDEA CELLULAR-
Idea Cellular is a wireless telephony company operating in various states in India. It initially
started in 1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging
Tata Cellular and Birla AT&T Communications. Initially having a very limited footprint in the
GSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering
Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,
Chhattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi (inclusive of
NCR).The company has its retail outlets under the "Idea n' U" banner. The company has
also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services
in urban areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa,
Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-West,
Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 23 million,
IDEA Cellular‟s footprint currently covers approximately 60% of India's telecom population
A frontrunner in introducing revolutionary tariff plans; IDEA Cellular has the distinction
of offering the most customer friendly and competitive Pre Paid offerings, for the first time in
India in an increasingly segmented market Customer Service and Innovation are the drivers of
this Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRS
and EDGE in the country. Idea has received international recognition for its path-breaking
innovations when it won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 Consecutive years. IDEA Cellular is part of the Aditya Birla Group, a US$ 24
billion corporation with a market cap of US$ 31.5 billion and in the league of Fortune 500.
Anchored by an extraordinary force of over 100,000 employees belonging to 25 different
39

40. nationalities, over 50% of its revenues flow from its overseas operations. With ambitious future
plans, the company is poised for rapid growth across the whole country.
The Brand Idea
: It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are the
company values and vice versa.
The Brand Vision
: It goes without saying that the brand vision of idea mirrors the
Company’s vision
The brand mission statement is... To be the most customer-focused mobile service brand,
continuously innovating to help liberate our customers from the shackles of time& space
RELIANCE COMMUNICATIONS-
Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and
Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National
Stock Exchange data, Anil Ambani controls 66.75per cent of the company, which accounts
for more than 1.36 billion shares of the company. Reliance Infocomm is an Indian
telecommunications company. It is the flagship company of the Reliance-Anil DhirubhaiAmbani
Group, comprising of power (Reliance Energy), financial services (Reliance Capital)and telecom
initiatives of the Reliance ADA Group. Reliance Infocomm is currently managed byAnil
Dhirubhai Ambani. It uses CDMA 2000 1x technology.
company profile
On November 15th 1999, Reliance infocomm begins its project planning. The founder
of RELIANCE INFOCOMM, Dhirubhai Ambani dream was ³Make a phone call cheaper than
40

41. a postcard and you will usher in a revolutionary transformation in the lives of millions of
Indians‟. In 2000, optic fiber laying process commences in Gujarat, Andhra Pradesh and
Maharashtra. In 2001, first media convergence Node made ³Ready for Electronics´ at Jaipur. In
2002, first Base Transceiver Station (BTS) made ³Ready for Electronics´. Then in same year
company obtains International Long Distance License from Govt. of India. After that they
establish 1st point of Interconnect in New Delhi and on December 27, Honorable Prime Minister
of India Atal BihariVajpayee inaugurates RELIANCE INFOCOMM. Then year 2003 starts
which was the most successful year for Reliance Communications
strategic business units-
The business of Reliance Communications is organized into three strategic customer
facing business units: Wireless, Global, and Broadband. In addition, one of the wholly owned
subsidiaries of Reliance Communications is engaged in the marketing and distribution
of wireless handsets. Their strategic business units are supported by our fully integrated, state-of-
the-art network and operations platform and by the largest retail distribution and
customer service facilities of any communications service provider in India.
TATA TELESERVICES-COMPANY PROFILE-
Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian
Conglomerate. It runs the brand name Tata Indicomin India in various telecom circles of India.
The company forms part of the Tata Group's presence in the Telecommunication Industry in
India.TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile services
in India, specifically in the state of Andhra Pradesh. Tata is the direct competitor with
other operators in India. The company provides unified telecommunication solutions including
41

42. mobile, fixed wireless, fixed line and broadband. Other competitors like Vodafone, Airtel,
Aircel, Idea MTNL and BSNL providing GSM based mobile telephony. The company was first
in India to provide free intra network calling within city limits. They launched a unique scheme
providing lifetime rental free connectivity on its mobile and fixed wireless for a one-time charge.
The Tata Group's commitment to building a substantial presence in India's telecom industry has
seen it play a leading role in the development of the country's communications infrastructure.
The telecom services of the Group are offered under the brand name Tata Indicom, and cover all
segments, from retail and enterprise to wholesale and international. The objective is to make
TataIndicom the preferred telecommunications choice of customers across the country. The
TataIndicom Enterprise Business Unit (TIEBU) is the central, specialized enterprise sales and
marketing unit for the Tata Group's telecom initiatives. The unit is the benchmark telecom
player in the enterprise space and was formed with a view to providing customized, end-to-end
voice and data solutions to customers across India. It delivers cost-effective, integrated solutions
that are designed to fulfill the most complex communication needs. Tata Indicom offers you a
range of products and services like Wireless Internet, Wireless US Modem and Mobile Phones
so you are always connected. Landline Phones Net Telephony Internet & Broadband It has
partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable,
technologically advanced network. The company, which heralded convergence technologies in
the Indian telecom sector, is today the market leader in the fixed wireless telephony market with
a total customer base of over 3.8 Million
BHARAT SANCHAR NIGAM LTD.COMPANY OVERVIEW
Bharat Sanchar Nigam Limited provides telecommunications services in India. Its services
include wire line and cellular services, as well as other value added services, such as voice mail
42

43. service, short message service (SMS), group messaging, national and international roaming, call
forwarding, corporate virtual private network, call conferencing, friend and family talk, call
waiting, and call holding services. The company also provides3G; wireless in local loop
(WLL)mobile telephone; Internet; Web-hosting; Web co-location; SMS and bulk SMS; and
broadband services. In addition, it offers managed network services; multi protocol label
switching based virtual private network (VPN) services; integrated services digital network
(ISDN) services; data communication services; intelligent network services consisting of toll free
phone service, universal access number, voice VPN, televoting, and virtual calling cards; and
video, audio, and Web conferencing services. Further, the company provides fleet management
solution comprising track, an on-line tracking system to manage fleet, such as trucks, car
carriers, trailers, tankers, containers, or vehicles carrying hazardous and specialty explosive
chemicals; net services for use in various applications, including electronic mail services,
corporate communications, information retrieval, database services, remote job applications,
credit card verifications, travel reservations, and Internet connectivity; telex/telegraph
services;PABX/EPABX services; and DSPT services, as well as offers VSAT, voice over
Internet protocol, and IN services. Bharat Sanchar Nigam Limited was founded in
2000 and is based in New Delhi, India.
3.2 MARKETING STRATEGY BY AIRTEL
Bharti decided to design different marketing strategies for different circles depending on the
strategies, employed by the competitors. While the company was focusing on its pricing
strategies, its competitors in various sectors were concentrated on new service offerings and
value additions since the players almost immediately matched price reduction moves, companies
had begun focusing on developing value-added offerings and schemes to expand their market
and gain customer loyalty. Analysts remarked that the players were coming up with new
schemes or value-additions almost every week to get the better of their competitors. By
constantly keeping itself abreast with the moves of its competitors and launching various
proactive/reactive schemes, Bharti was able to retain its leadership position. Despite continual
attacks from Vodafone, Reliance, , Idea Cellular and Bsnl, Bharti cellular services received good
high response in all circles during 2005 It was reported that in Mumbai,60-75% of customers
seeking Airtel services were BPL Mobile and Hutch subscribers. In fact, it was becoming
difficult for the company to activate cellular connections in Mumbai swiftly on account of the
43

44. high rush ± in some cases; it took almost three days to activate a connection. Bharti has spent a
considerable amount on advertising its mobile phone service, Airtel. Besides print advertising,
the company had put up large no of hoardings and kiosks in and around Delhi. The objective
behind designing a promotion campaign for the Airtel services is to promote the brand awareness
and to build brand preferences. It is trying to set up a thematic campaign to build stronger brand
equity for Airtel. Since the cellular phone category itself is too restricted, also the fact that a
Cellular phone is a high involvement product, price doesn't qualify as an effective differentiator.
The image of the service provider counts agreat deal. 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. This also serves as an effective
differentiator Brand awareness is spread through the' campaigns and brand preference through
brand stature. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the
city,' bearing just the company's name and without explaining what Airtel was. In the next phase
the campaign associated Airtel with Cellular only thereafter was the Bharti Cellular connection
brought up. Vans with Airtel logos roamed the city, handing out brochures about the company
and its services to all consumers. About 50,000 direct callers were sent out. When the name was
well entrenched in the Delhi it essmind, the Airtel campaign began to focus on the utility of Cell
phone. In the first four months alone Airtei's advertisement spends exceeded Rs.4 crores. As of
today the awareness level is60% unaided. This implies that if potential or knowledgeable
consumers are asked to name cellular phone service provider that is on the top of his/her
mind60% of them would nameAirtel. As for aided it -is 100% (by giving clues and hints
etc.).Brand strength of a product or the health of a brand is measured by the percentage score of
the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and
a thriving brand. Every company has a goal, which might comprise a sales target and a game
plan with due regard to its competitor. Airtel 's campaign strategy is designed keeping in mind its
marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey the
image of a market leader in terms of its market share. It tries to portray the image of being a
"first mover every time" and that of a "market leader”. The status of the product in terms of its
life cycle has just reached the maturity stage in India. It is still on the rising part of the
product life cycle curve in the maturity stage. The diagram on the left hand side shows the
percentage of the users classified into heavy, medium and low categories. The right hand side
44

45. shows the revenue share earned from the three types of users.Airtel, keeping in mind the
importance of the customer retention, values its heavy users the most and constantly indulges in
service innovation. But, since heavy users comprise only 15-20% of the population the other
segment cannot be neglected. The population which has just realized the importance of cellular
phones has to be roped in. It is for this reason that the service provider offers a plethora of
incentives and discounts. Concerts like the "Freedom concert" are being organized by Airtel in
order to promote sales. The media channel is chosen with economy in mind. The target segment
is not very concrete but, there is an attempt to focus on those who can afford. The print
advertisements and hoarding are placed in those strategic areas which most likely to catch the
attention of those who need a cellular phone. The product promise (which might cost different 1
higher) is an important variable in determining the target audience. Besides this, other
promotional strategies that Airtel has adopted are. People who have booked Airtel services have
been treated to exclusive premiers of block buster movies. Airtel has tied up with Lufthansa to
offer customer bonus miles on the German airlines frequent flier's programs. There have been
educational campaigns, image campaigns, pre launch advertisements, launch advertisements,
congratulatory advertisements, promotional advertise-ments, attacking advertisements and
tactical advertisements.
WHAT DOES AIRTEL OFFER?
With Airtel, the subscriber wouldn't just get a personal phone that lets him/her be in touch,
always, but also gets a host of benefits that let him/her manage his/her time like never before. An
Airtel subscriber is provided with a Subscriber Identity Module Card (SIM card) - that is the key
to operating his/her cellular phone. His card activates Airtel cellular services and contains a
complete micro-computer chip with memory to enable one to enjoy one's cellular phone
thoroughly. Each SIM card contains a PIN code (Personal Identity Number) which may be
entered by one. Just plug your SIM card into your cellular phone, enter the PIN code and
it becomes 'your' personal phone'.
PRODUCT LIFE CYCLE
45

46. The pattern of cell phone subscriber growth observed elsewhere in the world reveals that the
growth in the market is initially slow followed by a sharp acceleration, but so far that has not
happened in India. As far as the Product Life Cycle is concerned. Indians are at the beginning
of the maturity stage.
INTRODUCTION, GROWTH, MATURITY
Marketing objectives
 Create product awareness and trial
 Maximize market share
 Maximize profits whole defending market share
3.3 PROMOTIONAL STRATEGY
Airtel to ³Touch Tomorrow´ with a new brand vision The Bharti Mobile promoted AirTel
cellular service will go in for repositioning of its brand image. The new brand ethos is portrayed
in two distinct fashions - the tag line "Touch Tomorrow", which underscores the leading theme
for the new brand vision, followed by "The Good Life", which underscores a more caring, more
customer centric organization. Aimed at re- engineering its image as just simply a
cellular service provider to an all out information communications services provider, Touch
Tomorrow is meant to embrace the new generation of mobile communication services and the
changing scope of customer needs and aspirations that come along with it The new
communication is about a new dimension in the cellular category that goes beyond the Internet,
SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless digital broadband
services that will constitute tomorrows cellular services. The new campaign is in two phases - the
first of which will communicate overall brand philosophy and the second products and services.
According to Mr.Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, Karnataka "We
are adopting a new brand- platform - Touch Tomorrow - not only to reflect our corporate ethos
but also business strategy”. The new identity will have the logo in Red, Black and White colors
along with lower case typography to convey warmth.AirTel will incorporate the latest branding
in all of its communication and will soon be going in for an enhanced promotional drive to
establish the brand's presence.
3.4 TARGET MARKET SEGMENT
Airtel has targeted the premium and upper middle class. The rationale behind it is that only those
segments should be targeted who value time and have the paying capacity. It is also planning to
46

47. target the business tourists during their stay in the capital about60% of the clientele are top
executives of corporate houses. About 15% are foreign organizations and the rest
are professionals and small businessmen. During the introduction stage there was intense
pressure to get consumers across to hook up with their brand, because getting them to switch
brand loyalty later would be hard So far Airtel marketers have been concentrating totally on the
business executive class but now that the basic viable volumes has beer) built up and prices have
declined to a certain extent they are planning to venture further afield.
POSITIONING
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
PRODUCT POLICY AND PLANNING
The product or services the hearts of the marketing mix. Without a product or a service
customers' needs cannot be satisfied. The basic product promise by Airtel is mobility. Airtel's
main marketing strategy is to be a first mover all the time. It has recognized the significance of
making the first move-- because in the field of Communication & Information Technology
changes occur at a tremendous pace. Effective product segmentation has to be carried on
continuously because basic services can beand will be copied and in time become expected
component of the product. Airtel seeks to carry out this segmentation through provision of new
information services and making new facilities available. The product policy and planning
depends on the stage of the product life cycle. At present the cellular phone market has reached
the maturity stage. Since, the premium segment is nearing saturation the company targeting the
upper middle and middle-middle class. In order to Do so Airtel is trying to optimize the price
performance package by offering suitable "product bundling”. This involves the selection of the
suitable hardware (handset) and its software (its services.) with reasonable price in order to
deliver maximum price performance to its customers. In addition, it offers free Airtime services
and other concessions to make the prices and thus the product more attractive. It has also opened
a 24 hours customer service. Only price doesn't serve as an effective differentiator, value added
47

48. services become the effective differentiator. The "Value Added Services" provided from Airtel
are:-
Voice Mail service
This system is similar to the answering machine - if the user is not able to answer a call for some
reason the caller can leave messages in the voice mail box which can be later retrieved by the
user
Short Message Service
The short message service is like a two-way pager. It gives an option of sending and receiving
text messages directly from one mobile phone to another without the intervention of an operator
Mobile Fax 1 Data Service
This service helps the subscriber to send and receive Faxes, access E-mail, download files from
other systems and remotely log on to another computer and surf the Internet.
Cash Card
The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time in
advance. All it requires is the payment of an initial amount. This is a useful service for people
who travel to Delhi often and those who want to control the expenses on their calls.
Caller ID
Displays calling person's number.
Outgoing call restriction
To prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude one or
several countries or any geographical region, to permit only local calls, or to limit the outgoing
calls to a listed number.
Call forward
Incoming calls can be forwarded to another fixed or mobile phone. Besides these some other
services provided by Airtel are - Call conferencing, Call Broadcast ET cetera.It is in the
operators -Interest that they not only get many subscribers but also get them to use the mobile
facility frequently. In the early stages getting increases to subscribe may be easier than getting
them to talk since they will find it costlier to use the mobile phone as compared to a conventional
phone [if is believed that initially cell phones would be used buy]
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49. Roaming Facility
Roaming facility is available while the subscriber is travelling. The billing is done in the home
network (Delhi). Roaming facility is available manually* as well as semi-automatically. Once a
subscriber is in any other city or country, where a GSM network is available, simply insert the
SIM card of the local operator into your handset and start talking
49

50. CHAPTER- 4:
ANALYSIS
50

51. 4.1 DATA ANALYSISGSM MOBILE MARKET SHARE IN INDIA-
TELECOM COMPANY SHARE {%} BHARTI AIRTEL 30%
From the above data its can be say that Airtel is the leading brand in telecom industry of India,
having30% market share and 121.7million customers. And second leading brand is Vodafone
with 23.87% market share. Airtel is most admired brand by consumers
India GSM subscribers continue to decline in July 2011 news
Operator Total Sub Figures Market Share
Bharti Airtel 170,696,526 28.15 %
Vodafone Essar 143,011,007 23.58 %
IDEA 96,111,475 15.85 %
BSNL 90,234,162 14.88 %
Aircel 58,589,349 9.66 %
Uninor 27,388,666 4.52 %
Videocon 7,034,876 1.16 %
MTNL 5,265,149 0.87 %
Loop Mobile 3,162,932 0.52 %
S-Tel 3,501,247 0.58 %
Etisalat 1,424,554 0.23 %
All India 606,419,943 100.00 %
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52. MY PROJECT SITES
Project - less than 5 tr sites railway sites- 1. Bada 2.hazira 3.gole ka mandir 4.morar 5.lashkar
Gwalior -
SALES PROMOTION BY AIRTEL IN GWALIOR ZONE
Airtel is leading and most admired brand in Gwalior. Airtel is contributing34.5% market in this
zone and rest 65.5% market is acquired by all other companies such as Vodafone, idea, bsnl
etc.This shows that Airtel is doing best in telecommunication industry. Bharti Airtel Ltd. having
its own separate entity named as BHARTI AIRTEL LTD. for GWALIOR region. Earlier Airtel
was providing mobile SIM cards at very low price or totally free, but the consequences occurred
that the consumer age on network could not be for a long period because the consumers did not
paid for that SIM card and whatever they got as talk value and other useful schemes, they were
used it and threw the SIM cards. Than the Airtel decided to make a change in this procedure of
activations. Now Airtel providing a mobile connection at a specific price so if customers buy it
than he will be with network for a long period because he has paid a amount for it.
4.2 FINDING
52

53. 1.Airtel holds number one position in India with 30.86% market share.
2. Same as in Gwalior zone Airtel is on 1st position with34.5% market share.
3.In Gwalior zone Airtel having20 distributers and around 2800 retailers.
4. Airtel launches every month a new FRC scheme.
5. Earlier Airtel provided SIM cards at very low price or free. But this method was not so
effective because consumers started making it use and throw kind of stuff. By this way company
was being unable to make such stable and long last consumers.
6. Now airtel launches some FRC schemes. So the customer has to pay a amount for a new sim
activation. By this way now consumer age is started being long.
7. Vodafone is the biggest competitor of Airtel in telecom industry.
8. The distributer gives different scheme to different shopkeepers.
9. Mostly retailers are satisfied with Airtel service
10. Some retailers reported that they do not get time to time airtel products.
11. Some retailers are not satisfied with margin policy of Airtel.
12. Earlier the FRC plan61 launched that time some light retailers were facing problem to
convince the customers. Because competitors were providing same plan at low cost.
13. Some Outlets owners are very angry with the company‟s performance because they did well
in Airtel mo. Connection but they were not appreciated by the company
14. Some retailers are facing problem in ID verification policy of Airtel. Because the company
make so strict this procedure.
15. Many customers are diverted to other network due to strictness in id verification.
16. Some retailers reported that the company does not provide enough return on
their performance.
17. Modern trade is very effective concept. In this concept the Airtel is contributing95% market.
And rest 5% covered by all other competitors
4.3 SUGGESTION
 First of all company will provide all its dealers and retailers to all sort of promotion
equipment such as glow sign board, banner, pumplates etc. in time so that they increase
their sales which is benefited both retailer as well as company.
53

54.  Few outlets are unaware about scheme so proper communication is necessary between
distributor and retailers. Number of hoarding should be increased.
 Company should be lenient in ID verification procedure.
 To increase the consumer as on network, company should make change in its FRC plan
for example the talk value should be divided in two parts.50% of talk value
should provide at the time of activation and rest T.T. provide after gap of some days.
 Company should make understand its retailers about the benefits of consumer as on
network.
 Company should give extra return and other bonus, gifts to its retailers so they put
their full efforts to increase the Airtel sales.
 Company should motivate its sales staff so they will pay more concentration in sales and
activation of new connections.
 Company should make some necessary change in its FRC plan. For example company
should divide the talk time in to two time {50% at the time of activation+50% after
4.4 LIMITATION OF STUDY
 Many retailers do not cooperate and searching of retailer outlet name was much more
difficult as many of them have not put their Shop name in Board.
 Dealers and Retailer do not like to give information of their selling.
 The projection is purely based on verbal meeting and may be influenced by
unprecedented factors
 Lack of interest in retailers to provide full information of their performance.
 Problem occurred in collection of competition details from the retailers.
54

55. 4.5 CONCLUSION
Everything in this world is made to utilize properly but it should be reach at the proper person
or to the proper utilized areas. Otherwise the value added to those things became in vein. Thus
promotion role plays a very important role in achieving the objectives of a company. Undoubtly,
value utility is created by the manufacture of product or service but time and place utilities are
created by marketing role. The various finding and befitting recommendation have been made to
increase the market share of each product (postpaid, prepaid) of Airtel thereby increasing the
market share of Airtel as a whole. Various facts and data have been enclosed for better perusal
and various graphs have been provided for better comprehension. Sales Promotion techniques
yield results that many other marketing communication elements cannot achieve.
Sales promotion that is used in with the overall long-turn communication strategy of the brand is
said to use strategically. A promotion should not be used for the sole purpose of altering sales in
the short run .Sales promotion is used as a very strategic tool to introduce a new product.
Although advertising plays a large role towards creating awareness and attitude information,
sales promotion used to make new product launch easier and more effective.
55

56. 4.6 BIBLIOGRAPHY
WEB SITES-
http://trak.in/tags/business/2007/06/19/indian-telecommunication-story-
From-10-million-to-150-million-mobile-subscribers-in-5-years/
http://www.google.co.in/#hl=en&source=hp&q=telecom+industry+in+india+in+2006+t
o+2008&aq=o&aqi=&aql=&oq=&gs_rfai=&fp=ab22efe5d2 b8757
http://airtel.in/wps/wcm/connect/about+ bharti+airtel/Bharti+Airtel/About+Bharti+
Airtel/?WCM_Page.ResetAll=TRUE&CACHE=NONE&CONTENTCACHE=NONE&CONNE
CTORCACHE=NONE&SRV=Page
http://airtel.in/wps/wcm/connect/about+ bharti+airtel/Bharti+Airtel/About+Bharti+Airt
el/Our +Brand+Airtel/
http://www.economywatch.com/world-industries/telecommunications/telecom-industry-
in-india.html
BOOKS-
C.R Kothari, ³ Research Methodology´ , Vishwa Publication , New Delhi , II Edition
William G. Zikmund , ³Business Research Methods ,
2003 Edition
MAGAZINES-
Business today
India today
Forbes India
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