Two words Can bring down an empire One dream can change the world One raised finger

can break a billion hearts Two can win a world war A whisper can inspire hop A touch can instill faith Some voices can move a nation Some can dissolve boundaries One act of defiance can spark a revolution One hundred thousand candles can end a war That's the power of human expression Express yourself

ANANT BAGRI 37

"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer."

Sunil Bharti Mittal (Chairman and Group Managing Director)

INDEX
1. 2. 3. 4. 5. 6. 7. 8. ABOUT BHARTI.4 THE MARKET ENVIRONMENT.7 ABOUT AIRTEL..9 AIRTELS MISSION, VISION AND VALUES..12 THE AIRTEL LOGO..13 PEST-G ANALYSIS..14 CURRENT MARKET SCENARIO..15 AIRTELS MARKETING MIX : PRODUCT.19 PRICE23 PLACE..29 PROMOTION31 9. SWOT ANALYSIS : STRENGTHS38 WEAKNESS..39 OPPORTUNITIES.40 THREATS41 10. ANSOFF MATRIX.42 11. STRATEGIES FOR FUTURE TO RETAIN ITS MARKET SHARE...43 12. SURVEY..46 14. BENEFIT LADDERING....51 13. A FEW FINDINGS ABOUT AIRTEL....54 14. A FEW BENCHMARKS ACHIEVED BY AIRTEL55 15. CONCLUSION.57 16. BIBLIOGRAPHY58

ABOUT BHARTI
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base. Bharti Telecom is among India's largest mobile phone operators. With more than 24,337,837 subscriptions as of July 2006, the company is one of the world's fastest growing telecom companies. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal, one of India's richest men with a total worth of US$2.6 billion. The company comprises several subsidiaries, such as Bharti Televentures and Airtel What business are they in?A) Internet infrastructure: Our Internet backbone involves state of the art high end routers and switches as may deployed on the best networks across the world to offer our customers reliable service of unmatched quality. Three years back we had established satellite based Gateway for internet access. This was the first Gateway by a private operator. Now we have established our fibre Gateway on Network i2i, first private submarine cable owned by us and SingTel. B) Fixed line infrastructure: High Quality fibre-based, fixed line networks in Delhi, Haryana, Tamil Nadu, Karnataka, Madhya Pradesh and Chahattisgarh, intensively covering the most prominent commercial and business districts in the country. And serving India's biggest and smartest corporate customers, through TouchTel, India's No.1 private fixed line service. Bharti Infotel's Limited's Broadband and Data Group packs the power of the TouchTel last mile fixed line network to bring end-to-end solutions.

C) Long distance infrastructure: Bharti's 25,000 km advanced fibre-optic cable long distance network covers India's top 200 cities. And it powers the services of India's leading private telecom service providers - cellular, fixed line and internet - as well as IndiaOne Long Distance Service - India's 1st private STD and ISD service. D) Submarine cable: Bharti has partnered with SingTel to create the world's largest submarine cable system- Network i2i with 8.4 TBPS capacity. This 3200 km undersea cable structure stretches from Chennai to Singapore and thereon to Tier-1 carriers on SingTel's capacity on 175,000 km of cables. The huge capacity on network i2i is distributed locally in India through Bharti's 25,000 km of advanced fibre-optic domestic long distance backbone, providing unprecedented capacity, speed & reliability. E) AirTel's wireless network: India's finest cellular service, AirTel from Bharti, has the world's 2nd largest cellular footprint, covering 15 circles, all the major metros and mini metros. Employing GSM and GPRS technologies, AirTel is India's Premier cellular service provider and one of the most powerful brands. Broadband and Data group harnesses the leadership of AirTel to bring bandwidth to customers on the move. Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Airtel Limited is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 27 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bhartis successful foray into the Customer Management Services business, Bharti Enterprises dynamic diversification has continued with the company venturing into telecom software development. Recently, Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agro products exclusively to markets in Europe and USA.
6

The sales and the profits of the company have been increasing for the past few years. As you can see from the following figures there has been an almost overall geometrical increase in the revenue.

120,000 100,000 80,000 60,000 40,000 20,000 0 -20,000 1999 2000 2001 2002 2003 2004 2005 2006 Revenue Rs.(million) Cash profit Rs.(million)

20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0

No. of customers(000)'s

1999 2000 2001 2002 2003 2004 2005 2006

THE MARKET ENVIRONMENT:7

Geographical market:To start of, national long distance calling is provided throughout the country. The mobility services provided under Airtel at present is there in 16 states across the nation. This roughly covers 91% of Indias mobile customer population in the licensed areas. The fixed line services at present are provided in 5 states under the name of touchtel. From 12,000 customers in the year 1999, it has increased its customer base to a staggering amount of 372,000 customers by the year 2003 making it one of the fastest growing networks in India.

BTVL Number of Mobile Circles Number of Fixed-Line Circles Population covered in our licensed area (%) Area covered in our licensed areas (%) Wireless Coverage Area(% of Mobile Customers covered)

1999

Pre-4th License

Post-4th License

2 1 2% 2% 16%

6 1 16% 16% 38%

15 6 58% 56% 90%

India has a fast-growing cellular services market with excellent potential for the future. With almost five million subscribers amassed in less than two years of operation, India's growth tempo has far exceeded that of numerous other
8

markets, such as China and Thailand, which have taken more than five years to reach the figures India currently holds. The number of mobile phone subscribers in the country would cross 300 million by 2010, according to Cellular Operators Association of India (COAI) According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market, such growth rates can be greatly attributed to the drastically falling price of cellular handsets, with price playing a fundamental role in Indian subscriber requirements. Subscribers in certain regions can acquire the handset at almost no cost, thanks to the mass-market stage these technologies have reached internationally

ABOUT AIRTEL
9

AirTel comes to you from Bharti Cellular Ltd. A consortium of giants in the telecommunication business - Singtel, Singapore, Telecom Italia, Italy, and Bharti Enterprises India. British Telecom, UK had been one of the key partners in AirTel with 44% stake but has recently backed out of all its Asian operations, leading to the recent JV between Singtel and Bharti Telecom. AirTel launched it's services in Delhi on November 14,1995. Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises. The businesses of Bharti Airtel are structured into two main strategic groups - Mobility and Infotel. The Mobility business provides GSM mobile services in all 23 telecommunications circles in India, while the Infotel business group provides telephone services and Internet access over DSL in 15 circles. The company complements its mobile, broadband, and telephone services with national and international long-distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Bharti Tele-Ventures provides end-to-end data and enterprise services to corporate customers by leveraging its nationwide fibre-optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. All of Bharti Tele-Ventures' services are provided under the Airtel brand. As of September 2005, Bharti Tele-Ventures was the only company to provide mobile services in all 23 telecom circles in India. By the end of October 2005, Bharti Tele-Ventures was serving more than 14.74 million GSM mobile subscribers and 1.10 million broadband and telephone (fixed line) customers. The equity shares of Bharti Tele-Ventures are currently listed on the National Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE). As of September 30, 2005, the main shareholders of Bharti Tele-Ventures were: Bharti Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises; Singapore Telecom (15.69%), through its investment division Pastel Ltd; and, Warburg Pincus (5.65%), through its investment company Brentwood Investment Holdings Ltd). Other shareholders with more than a 1% stake were: Citi Group Global Markets Mauritius Pvt Ltd (2.99%); Europacific Growth Fund (2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon (1.33%); Life Insurance
10

Corporation of India (1.34%); and, The Growth Fund of America Inc (1.11%). Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns Airtel), is today, the most celebrated face of the telecom sector in India. He symbolises the adage that success comes to those who dream big and then work assiduously to deliver it. Sunil Bharti Mittal began his journey manufacturing spare parts for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a unique flair for sensing new business opportunities. In the early years, Bharti established itself as a supplier of basic telecom equipment. His true calling came in the mid 1990s when the government opened up the sector and allowed private players to provide telecom services. Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India's largest telecommunications company and one of India's most respected brands. Airtel was launched in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the brand came to symbolise the very essence of mobile services. Airtel comes to you from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied customers. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. 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. Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel will soon cover the entire country through a
11

process of acquisitions and green field projects. With a presence in over 1,400 towns, Airtel today has the largest network capacity in the country. In the last thirteen years Airtel has achieved many firsts and unique records: it was the first to launch nationwide roaming operations, it was the first to cross the one million and the five million customer marks. It was also the first to launch services overseas. There are other 'firsts' credited to Airtel - many of them in the area of innovative products and services. Today, Airtel innovates in almost everything that it presents to the market. An excellent example is Easy Charge - India's first paperless electronic recharging facility for prepaid customers. As evidence of its fine record, Airtel has also been conferred with numerous awards. It won the prestigious Techies Award for 'being the best cellular services provider' for four consecutive years between 1997 and 2000 - a record that is still unmatched. And in 2003, it received the Voice & Data Award for being 'India's largest cellular service provider', amongst others. As part of its continuing expansion, Airtel has invested over Rs. 1,065 billion in creating a new telecom infrastructure. In 2003/04, Bharti TeleVentures earned a gross profit of Rs. 16 billion on revenues of Rs. 50 billion. In its thirteen years of pursuit of greater customer satisfaction, Airtel has redefined the business through marketing innovations, continuous technological upgradation of the network, introduction of new generation value added services and the highest standard of customer care. Airtel has consistently set the benchmarks for the Indian cellular industry to follow.

12

VISION
To make mobile communications a way of life and be the customers' first choice

MISSION
We will meet the mobile communication needs of our customers through : Error-free service delivery Innovative products and services Cost efficiency

VALUES
We will always put our customers first. We will always trust and respect each other. We will respect our associates as we respect each other. We will work together through a process of continuous improvement

13

The Airtel Logo

The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn wordmark. The Airtel Image style It incorporates two solid, red rectangular forms whose counterform creates an open doorway.

The Airtel Typographical style The title case lettering with its capital 'A' was deliberately chosen to reinforce the brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on innovation.. The words 'Express Yourself' are very much part of the brand identity.

The Airtel Colour Palette The lettering is grey so that the pure black of Airtel is visually unharmed.

14

PEST-G Analysis:1 Political: Although the Telecom Regulatory Authority of India (TRAI) tends to favor the interests of the public sector telecom companies, BTVL has always abided by all the rules and regulations put forth by TRAI.

2 Economic: Looking at the economy one can easily see the way the telecom sector has had an impact on it. BTVL has provided the people with more jobs.

3 Social: Socially BTVL is a very friendly and open company. People have come to trust the company.

4 Technology: BTVL has always gone for the latest technologies in its service providing infrastructure to bring good quality to the consumer. EDGE was the new technology introduced in the mobile services. WiFi is the new technology introduced in the internet product line.

15

CURRENT MARKET SCENARIO

The telecom services industry is currently in a high-growth phase. From 4.3 per cent at the end of March 2002, India's teledensity has trippled to 14% per cent by May 2006, driven largely by the stupendous growth in the mobile services space. The mobile subscriber base increased seven-fold from 6.5 million at the end of 2001-02 to 101.17 million by the end of May 2006, buoyed by a sharp decline in tariffs, intense competition among service providers, lower handset prices, lowering of entry barriers, and the implementation of the calling party pays and the unified access service license regime. The mobile subscriber base is expected to grow at a healthy pace over the medium-term. Growth will be driven by the increasing affordability of mobile services (due to rising income levels and falling tariffs) and by supply-side factors such as an increase in coverage by operators in semiurban and rural areas and the strengthening of marketing and distribution networks. BHARAT SANCHAR NIGAM LIMITED Bharat Sanchar Nigam Ltd (BSNL) is a public sector undertaking, wholly owned by the Government of India. It was formed in October 2000 through the corporatisation of the Department of Telecom Services. BSNL provides telecom services throughout the country, except Delhi and Mumbai. The services provided by the company include fixed line, GSM mobile, CDMA mobile, national long distance, Internet, MPLS-based Virtual Private Network services, ISDN, leased line, intelligent network, telex/telegraph and EPABX services. It also has a license to offer international long-distance services. it was the third or the fourth cellular operator in most of the circles. Nevertheless, it has been successful in attracting customers to its services, due to its aggressive tariffs and extensive coverage. By the end of May 2005, BSNL had 9.87 million GSM mobile subscribers across all the circles where it is present. This makes it the third largest mobile operator in India, with a market share of 16.4 per cent at the end of 2004-05, and the second largest GSM operator in India.

16

RELIANCE INFOCOMM The Reliance Group is an integrated pan-Indian telecom operator. It offers fixed wireless services based on CDMA technology, CDMA mobile services, wire line services, ILD services, NLD services, Internet services, and data services. The group provides telecom services in 22 circles across the country through two companies, Reliance Infocomm Ltd and Reliance Telecom Ltd. CDMA mobile, fixed wireless, long distance, and data services are provided through Reliance Infocomm Ltd, while GSM cellular services are being provided through Reliance Telecom Ltd. Reliance has focused its energies on the CDMA technology. It is the dominant player in the CDMA segment, with a market share of around 90 per cent. Reliance launched CDMA mobile services under the Reliance IndiaMobile brand in December 2002. It launched pre-paid mobile services in February 2004. As on May 2005, Reliance had 10 million CDMA subscribers.It has a total market share of 23%.

HUTCHISON LTD The Hutchison Group provides GSM mobile services in 13 circles across the country. Its main equity partner is the Essar Group. The Hutchison Group provides its services through five companies. Unlike other large players such as Bharti and Tatas, Hutchison has chosen to remain focused on the mobile business. It has not ventured into other businesses such as fixed services, NLD, ILD, Internet, etc. At the end of May 2005, the Hutchison Group had 8.18 million subscribers across its circles of operation. Its market share in the mobile market as of the same date was 15 per cent.. As is the case with Bharti, Hutchison too has extensively used the acquisition route to expand its presence in the mobile business. Hutchison bought equity in companies with operations/licence to operate in Delhi (erstwhile Sterling Cellular), Kolkata (Usha Martin Telekom), Gujarat (Fascel), Punjab (Escotel) and Tamil Nadu and Chennai (Aircel).
17

IDEA CELLULAR Idea Cellular Ltd is a joint venture between the Aditya Birla group and the Singapore Technologies Telemedia-Telekom Malaysia combine. Idea Cellular provides GSM mobile services in the Delhi, Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh Haryana, Uttar Pradesh (West) and Kerala circles (the last 3 circles by virtue of its acquisition of 100 per cent of the shareholding of Escotel Mobile Communications Ltd in January 2004). The company also has a licence to offer mobile services in Uttar Pradesh (East), Rajasthan and Himachal Pradesh (the fourth GSM mobile licence held by Escorts Telecommunications Ltd.) Idea Cellular's acquisition of the mobile business of the Escorts Group enabled it to increase its presence and gain size in the mobile business. At the end of May 2005, the company operated in 8 circles and had a subscriber base of 5.36 million, representing 9.8 per cent of the total all-India mobile subscriber base.

TATA TELESERVICES LTD (TTSL) TTSL provides a whole bouquet of services under the TATA Indicom brand. Its services include basic telephone services, Internet services (broadband as well as dialup) and NLD services. Its telephone services include common wireline telephones, fixed wireless telephones and CDMA mobile services. As of now, TTSL provides services in 20 circles. These circles include Delhi, Mumbai, Chennai, Kolkata, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Punjab, Haryana, UP-West, UP-East, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar and Orissa. TTSL has a strong presence in the fixed wireless segment. As of March 2005, TTSL had a total of 2.20 million subscribers for its fixed wireless service across its twenty circles of operation. In the wireline and CDMA mobile segment, it had 0.38 million and 1.09 million subscribers, respectively, at the end of March 2005.

18

MARKETING MIX

Anant 37

19

Product :
Airtel Pre-paid: Airtel prepaid, the ready cellular card from Airtel, includes everything that customer dreamt and believed, possible. Its simple to use and comes with a host of great features like total cost control, instant balance enquiry, easy recharge . Airtel Post-paid: Airtel post-paid gives subscribers unlimited freedom to reach out to their special ones, in their special way. It offers services like National & International Roaming, easy billing. Blackberry Wireless Handheld: Airtel Enterprise Services offer the most secure and technologically advanced wireless data experience for people on the move, who are in constant need of staying in touch with emails and other office applications. Value Added Services (VAS): The different value added services provided by Airtel are Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Hello Tunes & Ring Tones Airtel Live Portal SMS based Information Service Voice Mail Service Easy Post-paid bill collection Gifting of Ring Tones & Hello Tunes GPRS VOICE SERVICES
20

Bharti Airtel 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 four circles of Delhi, Haryana, Madhya Pradesh, Karnataka, Tamil Nadu & UP (West). Airtel Enterprise Services believes that these circles have high telecommunications potential, especially for carrying Voice & Data traffic. These circles were strategically selected so as to provide synergies with Airtels long distance network and Airtels extensive mobile network. Airtel Enterprise Services, India's premium telecommunication service, brings to you a whole new experience in telephony. From integrated telephone services for Enterprises and small business enterprises to userfriendly plans for Broadband Internet Services (DSL), we bring innovative, cost-effective, comprehensive and multi-product solutions to cater to all your telecom and data needs. Voice Product Portflio Airtel Enterprise Services telephone services go beyond basic telephony to offer our users a whole host of Value Added Services as well as premium add-ons. Each telephone connection from Airtel Enterprise Services is backed by a superior fibre-optic backbone for enhanced reliability and quality telephony. Few of the Value Added Services offered are Calling Line Identification, Three Party Conferencing, Dynamic Lock, Hunting Numbers, and Parallel Ringing etc. Airtel Enterprise Services Voice Services provide Free Dial-up Internet access that is bundled along with your Telephone connection from Airtel. Its fast, reliable and gives you unlimited Internet access.

Satellite services Airtel Enterprise Services provides you connectivity where ever you take your business Our Satellite Services bring you the benefits of access in remote locations. Airtel Enterprise Services is a leading provider of
21

broadband IP satellite services and DAMA/PAMA services in India. Our solutions support audio, video and voice applications on demand. Satellite services include: PAMA/DAMA BIT - Internet VPN Satellite based IPLCs for redundancy reasons

Managed Data & Internet Services Airtel Enterprise Services brings you a comprehensive suite of data technologies. So we are able to support all types of networks and ensure our customers can migrate from their network to the future seamlessly. Our Managed Data & Internet services make our customers future proof. Managed data & internet services include: MPLS ATM FR Internet IPLC Leased Lines Customized Solutions International Managed Services Metro Ethernet

Managed e-Business services Airtel Enterpirse Services, offers an internationally benchmarked, carrier class hosting, storage and business continuity services.
22

A range of services that help to keep your business running the way you want- 24x7. Thanks to our world-class high tech Data Centres Managed e-Business services include: BCRS Services Web Hosting

PRICE
23

The pricing of the products has been very customer friendly recently although a customer can never have a low enough price, BTVL has done good in regulating the prices. The payment period is also quite comfortable for the customer.

PRICING for POSTPAID Card REFERENCE TARIFF PACKAGES (RTP) NEW TOTAL FREEDOM 599 AIRTEL ONE 150 PRICING for PREPAID CASH CARD MAGIC REGULAR PACK ZERO COST SIM JODI PACK

NEW TOTAL FREEDOM 599 ONE TIME CHARGES Activation Charges Membership Fee Security Deposit MONTHLY CHARGES Bill Plan Charge Monthly Rental CLIP LOCAL CALLS Outgoing to GSM Mobile/WLL To Landline 250 500(converts into security deposit after 24 months) NA

500 99 49

0.50 1.30

STD (Mobile to Mobile/WLL) Calls made to GSM

24

Mobile up to 200 kms Calls made to GSM Mobile above 200 kms STD (Mobile to Fixed) 50-200km 200-500km 500+ km ISD America, Europe, Asia, Oceania & SAARC Countries Gulf countries & Africa Remaining countries SMS Local National International VAS VAS OPTIONAL SMS PACK

1.99 2.99

2.99 3.99 4.99

15.99 18.99 40.00

1.50 2.00 5.00 3.00

For a monthly rental of Rs 25, enjoy local mobile-to-mobile SMS @75paise

Airtel Regular Prepaid Pulse Rate Price of Pack Incoming Calls (Rs.) 60 secs Rs. 199 Free
25

LOCAL CALLS To GSM Mobile/WLL (Rs.) To Landline (Rs.) To Airtel (Rs.)

2.25 2.25 1.00

STD (To GSM and WLL-M) 50-200km(Rs.) 3.25 200-500km(Rs.) 3.25 500+ km (Rs.) 3.25 To Airtel (Rs.) 2.00 STD (To landline) 50-200km(Rs.) 200-500km(Rs.) 500+ km (Rs.) ISD America, Europe, Asia, Oceania & SAARC Countries (Rs.) Gulf countries & Africa (Rs.) Other countries (Rs.) SMS Local National
International

3.25 3.25 3.25

16.99 19.99 40.00 1.50 2.00

5.00

Jodi Pack Calls between the jodi numbers are charged at 50p/min. This pack can only be recharged with Rs 324 & above recharges There is a Single recharge required between the two numbers so now with one recharge card both the numbers can remain active. Similar Mobile numbers. (E.g. 9871050016 & 9871050017)

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Pre Paid Cash Card Magic Pre Paid Connection

What is Magic?
Magic Ready Cellular Card is your ready-to-use, no-hassle cellular connection. It comes pre-activated with STD/ISD calling facility. Backed by AirTel, the leading cellular operator in India, it gives you crystal clear communication in entire Delhi, Ghaziabad, NOIDA, Gurgaon, Faridabad and Ballabhgarh. Highlights MAGIC... the simplest way to go cellular Wide Availability Magic Ready Cellular Card and Magic Recharge Cards are available widely all over the city at over 1800 outlets. No applying Magic is available across the counter. You do not need to apply in advance or go through complicated formalities to get connected. Instant Connectivity Magic Ready Cellular Card can be used as soon as it's bought. Your connection is pre-activated with a host of other services.

Compatible with all Handsets With only Magic, you are assured that it would work with all models of GSM cellular handsets. No Bills
27

No more keeping track of bills every month. With Magic, you pay when you want and as much as you need. Total Cost Control Magic gives you complete control over your cellular expenses every month. The friendly IVR service tells you your balance, free of cost, whenever you desire. Convenient Recharging Recharging your Magic card is very simple. Whenever your balance is running low, just buy a recharge card of value most suitable or recharge online. Free Home Delivery Just call "Dial-a-Magic' at 333 (toll free) from your Magic to place the order, and get the card delivered at your preferred address at no extra cost. Currently this service is available in Delhi and Gurgaon only.

How does it work?

When you buy a Magic Ready Cellular Card pack you get a SIM card and a recharge card in the pack. Your Magic SIM card is already activated and just needs to be loaded with calling value, which you can do by using the Magic Recharge Card. This calling value is valid for a pre-defined period called the validity period. You can make and receive calls only during this validity period. As and when you make or receive calls the calling value balance on your Magic Card account keeps reducing as per the applicable airtime rates. You must get your Magic Card recharged before the calling value is over or the validity period ends. Magic Recharge Cards are widely available at over 2400 outlets spread across the city in convenient denominations of RS 50, RS100, RS200, RS360Rs.500, Rs.1000, Rs.2000 and Rs.3000. Every time you recharge your Magic Card you get a credit of calling value, which has, a new validity period attached to it. The validity period is followed by a grace period of 15 days during which no calls can be made or received, but the Magic Card Account can be recharged. During the grace period you can also order for a Magic Recharge Card to be delivered at your doorstep, absolutely free of cost, by simply dialing 333 from your Magic.
28

MAGIC ... the most affordable cellular No Rentals No Security Deposits Pre-activated STD/ISD Free CLI

Recharging Magic Card One can either recharge Magic online or purchase a recharge card from any of our outlets spread across the city. Recharge cards are available in four convenient denominations of Rs.500, Rs. 1000, Rs. 2000 and Rs 3000.

PLACE

29

Since BTVL is a more service oriented company it does not have many problems in getting the products to the consumers. They have set up a well run distribution channel and its products are available virtually anywhere in the circles. Bharti Airtel has announced an integrated structure that will be responsible for all aspects of its telecom business in India. This is designed to pursue the company's vision of making Airtel the most admired brand in India by 2010. Manoj Kohli has been named the president of Bharti Airtel to lead the unified management structure of OneAirtel. He will lead the Airtel management board, which will have the overall responsibility of driving the strategy and the operational performance of Bharti Airtel. The Airtel management board will consist of the three joint presidents and Sarvjit Dhillon, director, finance, and business integration; Jai Menon, director, IT and innovation; Hemant Sachdev, director, marketing and communication; and Don Price, director, networks at Bharti Airtel. K Krishnan has been named joint president and will lead the broadband and telephone services SBU. He will focus on scaling new heights with new town rollouts, enhancing broadband share and introducing new technologies. Krishnan will be supported by Rajiv Sharma (CEO-NCR), Rohtash Mal (CEO-North), Prem Pradeep (CEO-South Central), Deepak Khanna (COOCentral), Randeep Narang (COO-West), Deepak Pande (COO-SME). Shamik Das, CFO mobility, moves to Chennai as COO - South. Vinod Sawhny has been named as joint president, Airtel Enterprise Services. This SBU will comprise of two units - Enterprise Services (carriers) and Enterprise Services (corporates). N Arjun, promoted to executive director will lead the Enterprise Services (carriers) business. Mohan Menon, CEO, Airtel Enterprise Services is being promoted as CEO and director of this unit, now re-christened Enterprise Services (corporates). Sanjay Kapoor has been appointed as joint president for the mobility business. Sanjay who has successfully run Airtel in Delhi and has launched Airtel in four western markets, moves in from Teletech Services where he was the president and CEO. Jagbir Singh, CTO, Infotel will now take over as the CTO of Mobility. The mobility business will have four regional hubs.

30

North region: Sanjay Nandrajog will continue to lead the northern region. Christopher Tobit is being promoted as the CEO of Delhi Circle. Rajiv Jaitley is being promoted as CEO of Punjab. Sharlin Thayil (Himachal Pradesh), Gurinder Sandhu (Haryana), Shankar Prasad (UP East) and RVS Bhullar (J&K) will continue in their current positions as COO of their respective circles. Navaid Khan will continue to the CEO of UP West. South region: Atul Bindal will continue to lead the south region. Deepak Mehrotra is being promoted as the CEO of Karnataka. In Andhra Pradesh, Elango T is being promoted as the CEO. P Swaminathan will continue as the CEO of integrated Tamil Nadu. Ramgopal Vallath (Kerala) will continue in his current position of COO. West region: After successfully building up the Mumbai Circle, Jayant Khosla is being promoted as director of the West Region. Till such time as a new CEO for the Mumbai circle is announced, Jayant will hold additional charge of this circle. Subba Rao moves to Mumbai as COO looking after marketing/sales and CSD functions. Mandeep Bhatia moves as the COO of Maharashtra. Raghunath Mandava moves to Rajasthan as the COO. BP Singh (Gujarat) and Sunil Goyal (MP) continue in their current positions of COO. East region: K Srinivas has been promoted as director (East) after successful stints in AP and Delhi circles. He takes over from Rajan Swaroop, director east who has resigned from the company. Ajay Puri moves in as the COO of Kolkata. Deepak Srivastava (Bihar) and Atul Chaturvedi (NESA) continue in their current positions. Sanjeev Saxena is moving to Orissa to be the COO and Rohit Malhotra is promoted as COO (West Bengal). Accordingly Airtels distribution system has structured and has been made easily available anywhere, everywhere.

PROMOTION
31

Airtel has a very good marketing team which has come up with numerous successful schemes and promotions. The latest of which are The easy charge for Airtel prepaid and again for Airtel the Express Yourself advertisements which touches the sentiments of the customers and increases brand loyalty. A few promotional strategies adopted by Airtel: Large scale print and video advertising. Big celebrities like Shahrukh Khan and Sachin Tendulkar are roped in to endorse the product. In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps the most downloaded tune in India. Provides innovations such as Bollywood movie premiers, music services such as ring back tones & many more. "Friendz" pre-paid connection for youth," Ladies Special" plan, Seniors plan. Executives corporate plan(First to give prepaid in this category). Special discounts in calling rates & sms services.

Providing wallpapers and screensavers on website.

Rural Market Promotional Strategies

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 Door-to-Door marketing strategy involving members of gram panchayats and trained market-feelers. Tie-ups with low cost mobile handset producers to reach out to the lower-end market segment. Reduced call rates as compared to urban area. Value added services such as Voice based SMS and regional language SMS. Match-Box approach' which essentially will ensure Airtel's availability wherever a match-box is available, even in the smallest and remotest corners of the country. Handset cannot be used with any other SIM, the SIM can be used on any other handset. Network locked Handset for 2 years. Free A2A Local Talk time every month till the cost of handset is recovered. Free Coupons would be withdrawn from customer on recharging. Using channels with territorial reach like Doordarshan and All India Radio to reach the interiors. Billboards in regional language. Customer care centers in regional languages

FEW OF THE PROMOTIONAL TACTICS ADOPTED:

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Airtel Magic announces a new offer of Rs. 10 crore talk time Rs. 10 crore worth of talk time up for grabs by new AirTel Magic customers One out of every 2 new connections can win additional talk time Additional free talk time ranges between Rs.25 to Rs.100,000

AirTel, the first pan-India cellular operator to extend the largest promotional extravaganza in all its 15 circles Top prize of Rs.1 lakh worth of talk time to be declared everyday Guaranteed free talk time worth Rs.50 with every activation The Rs.10 crore talk time offer is valid from 3rd May to 15th June,2003

NEW DELHI, MAY 2, 2003 : AirTel, Indias premier mobile services, in its constant endeavour to add value, has launched an exciting offer for all new AirTel Magic customers. Under the new offer, on purchase of every new AirTel Magic prepaid mobile card, a customer will get a guaranteed free talk time of Rs.50. In addition, every one out of two new subscribers has a chance to win extra talk time ranging between Rs. 25 to Rs. 100,000. Everyday, a top prize of Rs. 1 lakh worth of talk time will be announced. The total value of the talk time is Rs. 10 crore. The draw for the Rs. 10 crore talk time offer will be held on a daily basis simultaneously for all the 15 circles of AirTel. There after, the winning customers will be informed of their lucky prize through SMS within 48 hours. The extra talk time won by the customer will be over and above the minimum guaranteed free talk time. The consumer offer and the entire process are being audited by a reputed external auditor. Speaking on the occasion, Mr. Manoj Kohli, President Mobility, Bharti TeleVentures, said Close on the heels of incoming calls becoming free, we are launching the largest ever customer offer in the cellular market in India. AirTel has the largest prepaid mobile customer base in India. This segment has seen rapid growth during recent times. We feel that the new Rs.10 crore talk time offer will create unprecedented consumer excitement and attract new users into the category.
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Airtel Spells End of Distance in India Creates an India without boundaries Liberates national long distance calling Redefines national roaming Makes mobile telephony more affordable New Delhi, April 28, 2008: Reiterating its commitment to make mobile telephony more affordable, Airtel today announced unprecedented tariff reductions on STD and Airtel today announced unprecedented tariff reductions on STD and Roaming services for its over 62 million customers. Airtel has reduced its STD rates dramatically to Re 1.50/ minute from the earlier Re 2.65/ minute, benefiting all Airtel customers who make long distance calls. The new tariffs will be effective from April 30, 2008. Airtel has also redefined the roaming regime in the country. Airtel customers will now be able to receive a call while roaming at Re 1/minute, as compared to Re1.75/minute at present. Further, while roaming, Airtel customers can make an outgoing local call at Re1/minute and an STD call at Re 1.50/minute. This will help create an India without boundaries, making communication with loved ones easier and more affordable. Mr. Manoj Kohli, President & CEO, Bharti Airtel Ltd said, Airtel has today taken another step to take forward Indias telecom story powered by enhanced affordability. 800 million Indians are now closer than ever before. This initiative will particularly benefit rural customers and underlines our commitmen to the nations growth. Mr. Sanjay Kapoor, President, Mobile Services, Bharti Airtel, added, This initiative spells the end of distance for our existing and prospective customers. With 70% STD customers in India using less than 5 minutes/month on STD calls and 80% mobile customers not using their phones while roaming, we have a compelling customer proposition. I am delighted that we are leading this endeavour, which strengthens our strategic plank of affordability. I am confident that this will drive growth and usage in the Indian telecom industry. Airtel has always been a front-runner in leading affordability in the industry, one of the many reasons why over 62 million customers prefer its services. This revised tariff further reinforces Airtels commitment to make mobile telephony more affordable. The 700-million strong rural market in India is the biggest single market in the world and Airtel is rapidly expanding its footprint in the rural areas of the country. It has already
35

connected over 3.2-lakh villages and plans to reach 5 lakh by 2010. This rapid roll out is witnessing a large number of customers joining Airtels network from the rural areas of the country. Therefore, these tariff initiatives will help catalyze efforts to make telephony more affordable for all customers across the country and further reinforce Airtel as the industry leader in both affordability and availability. Industry reports indicate that education, tourism and travel will be key growth driver of the future. Data shows that Airtel remains committed to ensuring that communication continues to help facilitate cultural, social and commercial exchanges to the benefit of its customers. The reduced call tariffs will be a welcome relief to the increasing number of people who are taking up educational, professional or commerce opportunities in different parts of the country. Bridging distances, the revised call tariffs will empower Airtel customers to talk more at an affordable cost.

Earlier, Airtels initiatives like the Re.200 Recharge, Easy Charge, Lifetime, Easy Lifetime & Super Lifetime Prepaid have revolutionized the Indian market in terms of creating customer value and Airtel will continue to come up with offerings that facilitate an affordable and available mobile experience.

36

37

SWOT ANALYSIS
Following is the SWOT Analysis for AIRTEL

STRENGTH Very focused on telecom. Leadership in fast growing cellular segment. Pan-India footprint. The only Indian operator, other than VSNL, that has an international submarine cable.

WEAKNESS Price Competition from BSNL and MTNL Untapped Rural market
Losing Lead on Technical Expertise.

The fast-expanding IPLC market. Latest Technology and Low Cost Advantage. Huge Market.

Competition from other cellular and mobile operators. Saturation point in Basic telephony service Essar is Gaining Technologically.

OPPORTUNITIES

THREATS

38

STRENGTHS

VERY FOCUSED ON TELECOM Bharti Airtel is largely focused on the telecom, around 93% of the total revenue comes from telecom.

LEADERSHIP IN FAST GROWING CELLULAR SEGMENT Airtel is holding leadership position in cellular market. Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 27,239,757 customers as on August 31, 2006, consisting of 25,648,686 GSM mobile and 1,591,071 broadband & telephone customers. PAN INDIA FOOTPRINT Airtel offers the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over 240 networks. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 92 cities. THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVING INTERNATIONAL SUBMARINE CABLES . Airtel, the monopoly breaker shattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly with Singapore Telecommunications Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering them an option besides the incumbent carrier, to connect to the outside world.

39

WEAKNESS
Price Competition from BSNL and MTNL. Airtel is tough competition from the operators like BSNL nd MTNL as these two operators are offering services at a low rate.

Untapped Rural market. Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector.

Losing Lead on Technical Expertise. Though Airtel has managed to keep its nose ahead on basic technical aspects of telecommunication, Essar backed by MTNL are bridging the gap.

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OPPORTUNITIES
THE FAST EXTENDING IPLC MARKET An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersed throughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. Airtel Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Airtel in Chennai (India). Each Landing Station has Power Feeding Equipment, Submarine Line Terminating Equipment and SDH system to power the cable, add wavelengths and convert the STM-64 output to STM-1 data streams respectively. LATEST TECHNOLOGY AND LOW COST ADVANTAGE The costs of introducing cellular services for Airtel are marginal in nature, as it needs only to augment its cellular switch/equipment capacity and increase the number of base stations. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology. As a late entrant into the cellular market, it has dual advantage of latest technology with modern features, unlike other private cellular operators who started their service more than 4-5 years back and low capital cost due to advantages of large scale buying of cellular switch/equipment. HUGE MARKET The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for Airtel to enter /expand in this market. Besides there is a vast rural segment where the cellular services have not made much headway and many customers are looking towards Airtel for providing the service to them. With its wide and extensive presence even in the remotest areas, Airtel poised to gain a big market share in this segment when it expands cellular services into the rural areas.

41

THREATS
COMPETITION FROM OTHER CELLULAR It is time for BSNL to improve/expand its cellular services. Fierce and cut-throat competition is already in place with the markets ever abuzz with several tariff reductions and announcement of attractive packages, trying to grab most of the mind share of the king - the consumer, whose benefits are increasing with passing of everyday. If BSNL is not innovative and agile, its cellular service will be a flop. It needs to be proactive with attractive packaging, pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. The launch of WLL services by Reliance Infocomm has aggravated the situation. MARKET MATURITY IN BASIC TELEPHONY SEGMENT Although Airtel entered in the basic telephony market its a biggest there for the company as the basic telephony market has reached. ESSAR IS GAINING TECHNOLOGICALLY Essar has now acquired outsourcing for all its new projects. Motorola is the company, which provides this outsourcing. This though expensive has greatly increased the efficiency and speed of Essars projects. It is a big challenge for AirTel; as its technological superiority could be challenged which would seriously affect its status as market leader of cellular services

42

ANSOFF MATRIX
MARKET PENETRATION
ENTERED IN BROADBAND AND FIXED LINE MARKET

PRODUCT DEVELOPMENT
IPLC PRODUCTS

MARKET DEVELOPMENT
LOOKING FOR OVERSEAS MARKET

DIVERSIFICATION
OUTSOURCING

To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the firms present and potential products and markets / customers. He called the four product-market strategic alternatives market penetration [existing market + existing product], market development [existing product + new market], product development [existing market + new product], and Diversification [new product + new market]. The company should follow all four strategies depending on the demand and product as indicated in the matrix. The company perhaps needs to focus more on the comparatively neglected area of diversification. MARKET PENETRATION: Airtel entered in broadband and fixed phone line market. PRODUCT DEVELOPMENT: IPLC products MARKET DEVELOPMENT: Airtel is now looking for overseas market. Company has already make his presence in Nigeria and Seychelles DIVERSIFICATION : Airtel has now outsourcing sum of its services like customer services with IBM.
43

Strategies for Future to retain its market share

Target markets Lower middle class : This segment has not yet been tapped by any of the cellular service providers. Since these would be first time users in the lower income group the price will be a major factor. AirTel will have to model its price structure to accommodate this segment of customers. Prepaid SIM card may thus be a good strategy to start off with. Youth : Already AirTels magic brand is synonymous with youth. AirTel will have to lay greater emphasis on this a segment of consumers because with greater disposable income youngsters can contribute greatly to the revenues. Working women : This segment has not yet been tapped. AirTel can thus concentrate on this segment by introducing schemes aimed at women. This can be done by providing them specific value added services. Opponent's share: By aggressively marketing their products and taking advantage of the fact that as mentioned before Essar is facing problems with its technical manpower at the services level. Sooner or later this is bound to result in dissatisfaction of their clients. AirTel can absorb these users

Increased competition from other player

44

MTNL will enter the cellular services market in a big way. AirTel will have to pay off their attack by New tariff plans. More value added services. Better network quality. Intensification of marketing and advertising effort aimed highlighting the strengths of the brand and their continuous ability to provide good quality service. Increase in visibility and coverage AirTel will have to go in for further image enhancement of the AirTel brand with a care and family message and the magic brand with emphasis on targeting the youth. Also, their retail outlets and franchises will have to be increased further by 50%. This is infact a strategy that AirTel is implementing and the results will show soon. Such reach and visibility once attained will have to be complemented with excellent peoples services that AirTel is known for. Once achieved this level of services will be hard new or established player to match. In the long run this could be the vital factor, which keeps AirTel No. 1 in the industry. The first come advantage Value added services are the norm of the day. The service providers can gain a long term advantage by consistently introducing new incentives in value added services or tariff structures. Every time a new scheme is launched it provides temporary edge to the service provider over its counterpart. This temporary advantage is in terms of the new clients it acquires who have been attracted by the offer. However after some time this advantage is neutralized by the other player offering something similar. Thus it important to innovate before the competition time and again so that one can make the short term advantage cumulatively long term and help increase mind share as well as market share. Corporate clientele Since this a target market by itself its marketing methodology itself would be different. Most organizations prefer to take services for their employees in groups. Hence, this order becomes very big for the service provider. Personalized selling would be the order of the day for these users. The
45

presence in the various business and corporate circles would also enhance AirTel`s brand image. Special incentives can be given to these employees for maintaining their loyalty to the AirTel brand. The AirTel - AirTel advantage AirTel could lure more customers by introducing schemes in which calls from one AirTel user to another would be possible at a reduced tariff. This would encourage a group of users who need to communicate frequently to opt for this service only. Also it would help in promoting bondage between the users and thus further promote loyalty. New innovative packages AirTel has to come up with new innovative packages like the CALL HOME scheme offered by Essar. Such schemes launched at regular intervals will help in maintaining customer loyalty and also attract new customers. Collaborative schemes with other companies AirTel can collaborate with companies like Nokia or any other hardware provider and launch schemes like providing free airtime with every hardware instrument bought. Exposing the customer to the brand increases the chances of the customer being hooked on to the brand. The companies can ensure this by offering the option of renewal of the account at the expiry of the free airtime. Discounted products The company has to offer more discount schemes like reducing the activation charges or reducing the security fees. This will provide the company a competitive edge. However this may lead to a price war. Hence the trade offs of indulging in this exercise must be considered.

Regular freebees AirTel can offer at regular intervals and specially at festivals schemes like free airtime to its users, free coupons for shopping, free entry to shows etc. this would keep the customers interested in the brand and ensure that they remain loyal to the brand. The other competitor will also be indulging in the
46

same hence the effectiveness of these would depend on the timing of these offers.

Special offers AirTel may offer special incentives and rewards to the frequent and regular users by offering them free maintenance checks. Free or minimal cost up gradation to a category of users who use the service over a specified limit of airtime

More of the e-factor The future belongs to the net. The players who will be able to integrate the net in their operations will lead the market. This would mean advertising over the net, allowing an interface of the net with the cellular service. AirTel is already on the right track as far as this is concerned. They have introduced the concept of being able to send messages to the user like a pager message. This can be done from the AirTel site. Consolidate WAP AirTel has the advantage of having introduced the WAP before its competitor Essar has. They can use this as platform for taking a lead when this technology becomes widespread. Till then it will act as bait for status conscious users who want the latest innovations irrespective of its present application.

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Survey Conducted by me:

Research Tool Questionnaire & Phone calls Sampling Unit General Public Sampling Size 100 Sampling Method Convenient Random Sampling

QUESTIONNAIRE Name: __________________________ Gender: _____________ Occupation: _____________________

Do you use mobile phones? Yes No

Which Connection(s) do you have? Hutch AirTel Reliance Tata Indicom BPL BSNL Any other; Please Specify______________ Are you satisfied with the tariff plan of your service provider? Yes No
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 Please rank the following service providers from 1 to 6 (1 being the best and 6 being the worst among the mentioned ) as per your observation: Vodafone ____________ Airtel Spice Reliance ____________ ____________ ____________ Idea____________

Tata Indicom ____________

Any one thing that you dont like about your service provider and would like them to improve ____________________________________ Which Brand do you associate with music? _________

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ANALYSIS
USE OF MOBILE PHONE
Do you have CellPhone?
No 10%

Ye s 90%

OPERATOR PREFERENCE

Service Preference
Tata 14% Reliance 17% Vodafone 27%

Spice 8%

Airtel 29% Idea 5%

50

Satisfaction with tarrif structure

Satisfied with Tariff Structure
25 20

No. of customer(s)

15 10 5 0 Hutch Airtel Idea Spice 1 3 4 0 4 11

RelianceTata 2 7 11 0 5 3

Dont make difference 4 No Yes 7 6

3 7 12

Brand Loyalty
Postion of Operator(s)

Hutch
Rank6 Rank5 Rank4 Rank3 Rank2 Rank1 7 7 18
26 20

Airtel
5 10 13 18 24 30

Idea
15 25 22 13 15 10

Spice
8 18 24 21 18 11

Reliance
8 12 11 20 22 27

Tata
57 28 12 2 1 0

22

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BENEFIT LADDERING
What is BENEFIT LADDERING???
Consumers seek certain attributes in products and these attributes lead to certain benefits for them. When the benefits matter to them, over time they learn to choose products which possess those attributes that lead to the relevant consequences. Understanding these linkages between product attributes, their consequences and their ultimate consumer values are important if one has to arrive at a positioning that the consumer can relate to. Benefit Laddering refers to a technique which focuses on product attributes and hence provides a link for the changing value proposition of a product. It helps the company to communicate its final value proposition to the consumer and hence help the company to arrive at the desired positioning of the product in the market.

TRACKING OF BENEFIT LADDERING IN AIRTEL

"In a service industry like telecom, people live a brand 24X7. It's all about experience; and for Airtel 'brand=customer experience," says Rajan Mittal, joint managing director, Bharti Tele-Ventures Ltd.

When Airtel started in India the brand was all about aspiration. Handset cost about Rs 45,000, the price of a second-hand Fiat and call charges hovered around Rs 16 a minute. The target customer then was elite, up-market professionals and entrepreneurs and Airtel was positioned as an aspirational and lifestyle brand, in a way that trivialized the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave him a badge value. Airtel was on a power trip: the logo was black, uppercase bold lettering; and the baseline was "the power to keep in touch". The Brand was developed to connote leadership in network, innovations, offerings and services. . The taglines like "Airtel celebrates the spirit of leadership" and "The first choice of the corporate leaders" emphasized that stance.
52

At this time Airtel Paid attention on Customer Education through full and half-page ads in newspapers, answering queries like "what is roaming?", "what is coverage area?" and "how to make international calls". In 1999, when the New Telecom Policy came into effect SEC B became part of the catchment area, now Airtel's communication changed from "power" to "touch tomorrow". The focus now was on the endless possibilities of technology to make life good and advertising became two-pronged: a product-driven communication that showcased new offerings like the Magic prepaid card, and an emotional communication that showed younger people. In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps the most downloaded tune in India. In 2003 Airtel adopted the "Express yourself" positioning, which is also its current tagline. Now, the emotional angle was predominant - and stark, black and white imagery to stand out in what was becoming a highly commoditized, crowded market. The latest campaign continues that thought. Only, mobile telephony is now extending to even low-income mass categories. So the TVCs in Hindi and regional languages are now on air, as are low-priced products, like the Rs 200 recharge coupon. Airtel is transforming itself fully into a Service Led Brand. Accordingly, Airtel was the first cellular service provider to start customer centres (called Airtel connects), where customers could pay their bills, apply for new connections and touch and feel new handset models. Airtel perceives its future in product innovations such as easy charge (recharging prepaid connection through SMS), hello tunes, the Blackberry option, stock tickers and M-cheques (mobile credit cards).The customer care centres, too, are metamorphosing into "relationship centres", one-stop shops where subscribers can not only pay their bills and have their queries answered, they can shop for new phones, surf the net and enjoy a cup of coffee. According to Airtel "What matters is what the customers want,"

53

RISING ON the BENEFIT LADDER

Move out and Enjoy life

Value

Build Relationships

Build a bond Consequences Share Emotions

Share Happiness

24x7 Keep in touch

Connectivity

Value

Benefit laddering is of particular importance to the product or the brand manager. Customers perceive various benefits in the products they buy and if the product is not able to deliver those values then the customers base for the product may face a reduction (since competitor product may give those benefits ). Hence it is necessary for the product to continuously evolve with respect to the best standards keeping in consideration the positioning of the product.

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A FEW

FINDINGS

ABOUT AIRTEL

Strategic alliance : The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore in the company. The company also has a strategic alliance with Vodafone. The investment made by Vodafone in Bharti is one of the largest single foreign investments made in the Indian telecom sector.The companys mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. Outsourcing : The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis. Overseas Market : Airtel is looking for overseas market and already atarted operation in Nigeria and Seychelles. Competition : Airtel is facing strong competion from MTNL and BSNL inspite of the fact they are far away from airtel technologically but but these two have a inside rach in rural and urban area and have low tariff rates. Leader in Telecom market : Airtel is holding a position of Market Leader by having 21 percent of the total market share and has been the market leader for the last ten years.

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A Few

Benchmarks

Airtel HAS Achieved:

The company has several Firsts to its credit. Airtel has taken the lead on many occasions. It has been the first : To launch Cellular service in Delhi on November, 1995. To launch full roaming service on pre-paid in the country. To launch 32K SIM cards. In Asia to deploy the multi band feature in a wireless network for efficient usage of spectrum. To deploy Voice Quality Enhancers to improve voice quality and acoustics. Telecom company in the world to receive the ISO 9001:2000 certification from British Standards Institute. Operator to revolutionize the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms)in 1995. Today AirTel has 120 Customer Care Touch Points and over 300 dealers in Delhi and NCR towns. To expand it's network with the installation for second mobile switching center in April, 1997 and the first in Delhi to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. First to provide roaming facility in USA. AirTel has the largest automatic roaming service "SMART ROAM"- National in 350 cities in India and "SMART ROAM" - International in over 60 countries and 95 networks all over the world

56

Consecutively for eight years 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004 AirTel has been voted as the Best Cellular Service in the country and won the coveted Techies award.

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CONCLUSION
For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself in a cluttered market. Airtel's visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it. The strategies used by Airtel to understand their customers is a very positive effort. This has helped Airtel with customer retention, brand loyalty and a faster growth rate than its competitors. It is a fairly customer friendly company and has gained the buyers trust. The company plans to expand further with new technologies and open up newer markets for itself and its followers. With a mammoth consumption of the customer base presently, the future looks quite big for the company. As and when the market will grow, Airtel will be one of the top few who will reap the benefits and be an even more successful company.

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BIBLIOGRAPHY
www.airtelworld.com www.airtel-broadband.com www.trai.gov.in www.hindustantimes.com www.airtelworld.com www.bhartiteleventures.com www.bhartibroadband.com www.timesofindia.com

Annual reports 2003-2008 Airtel Customer Care Centers Newspapers, Magazines etc.

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THA NK Y OU & EX PRESS Y OURSELF

60

Say yes Say no Say something Say nothing Inspire Conspire Confess Celebrate Negotiate Speak up Speak out Be heard Express Yourself

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