Professional Documents
Culture Documents
PROJECT REPORT
ON
ROLL NO.:
0702970003
1
KRISHNA INSTITUTE OF ENGINEERING &
TECHNOLOGY
(AFFILIATED TO U.P. TECHNICAL UNIVERSITY, LUCKNOW)
2
CONTENTS
ACKNOWLEDGEMENT -- 4
PREFACE -- 5
EXECUTIVE SUMMARY -- 7
RESEARCH METHODOLOGY -- 11
INTRODUCTION -- 15
COMPANY PROFILE -- 30
SUGGESTIONS -- 68
SWOT ANALYSIS -- 70
RECOMMENDATION -- 74
LIMITATIONS -- 77
CONCLUSION -- 80
BIBLIOGRAPHY -- 82
QUESTIONNAIRE -- 84
3
Acknowledg
ement
4
ACKNOWLEDGEMENT
6
PREFACE
KIET, Ghaziabad.
the picture of big scale sector that exists in this industry. The
7
Executiv
e
Summar
y
8
EXECUTIVE SUMMARY
company markets its strategies and how the company has been
its profit but also needs to satisfy its customers and should try to
9
Objectiv
e of the
Study
10
OBJECTIVE OF THE STUDY
11
Researc
h
Methodo
logy
12
RESEARCH METHODOLOGY
compare Airtel with the existing competitors in the market and the
basically based on primary data via which the most recent and
needed.
Questionnaire Method
Observation Method
The main tool used was, the questionnaire method. Further direct
13
works in.
# To conduct this research the target population was the mobile users,
conducted.
# Internet
# Magazines
# Newspapers
# Journals
# Bharti Circulars
15
Introduct
ion
16
INTRODUCTION
and the rapid growth of exports. Key to achieving these goals was a
In India, the telecom service areas are divided into four metros (New
under "A," "B" and "C," with the "A" circle being the most attractive and
"C" being the least attractive. The regulatory body at that time — the
licenses for each metro and circle. Thirty-four licenses for GSM900
service was provided by, Modi Telstra in Kolkatta in August 1995. For
the auction, it was stipulated that no firm can win in more than one
metro, three circles or both. The circles of Jammu and Kashmir and
Andaman and Nicobar had no bidders, while West Bengal and Assam
17
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was
introduced in the Lok Sabha, and the president officially announced the
High license fees and excessive bids for the cellular licenses put
many operators failed to pay their license fees and were in danger of
was put in place (New Telecom Policy [NTP] 1999). Under this new
THEIR RESOLUTION
1994-96 was beset by several problems for 3 - 4 years till the New
18
current position is tabulated below:
19
ROADBLOCKS
CURRENT POSITION
different bodies.
and allocation and the like remained unresolved for long periods.
20
Interconnect terms since rationalized, risks on pass through income to
a matter of routine allowing ease of entry / exit - paves the way for full
21
control of businesses by foreign companies.
to zoom
Despite the recent gains of the cellular industry, not everything is rosy.
The cellular penetration rate is still very low at 0.8 percent in a nation
In recent years, many foreign companies had pulled out from their
Cellular, Telstra from Modi Telstra and both the Telecom Organization
Telecom Malaysia sold its stake in Usha Martin Telecom, and both
British Telecom exited from Bharti Cellular. Bell South International has
22
also indicated its intention to pull out from Skycell Communications,
various options.
Five companies together bid Rs16.3 billion to bag the licenses for the
the No. 1 bidder with eight new licenses, followed by Escotel with four,
Hutchison with three, and Reliance and Idea cellular with one each.
circles while Idea is set to launch in Delhi. Escotel and Reliance have
BHARTI, the third cellular operator for Delhi and Mumbai, started
was scheduled for 2 October 2002. However, this has been postponed
until after mid October. Once BSNL rolls out its service, most telecom
competitive pressure, which will result in lower tariffs. Future rate cuts
are expected, which will drive demand, together with falling handset
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Leveraging on the success of its cellular service, the company got a
very good response from the primary market. The total size of the IPO
was 185 million shares at a floor price of Rs10. The issue was
oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will
services.
uptake remains elusive. While both Bharti and Idea have GPRS-
question.
hoardings and kiosks. Public transport like the city rail system and
All along, customer acquisition and the top line have been the focus.
and Short Message Service (SMS) will get them the numbers but not
the margins, some are now seriously looking at the enterprise segment
services are also quite popular, especially among fast food centers that
goods (FMCG) segment that have a large field force and need to
movement of goods from warehouse to the retail outlet. Banks too find
customers.
27
• The entry of state-run operators like BSNL and BHARTI means
next major policy document, which was produced, was the National
liberalization.
28
Year Event
basic services
from 4 metros
The National Telecom Policy of 1994 document, which laid out broad
29
installation of 9.5mn additional lines, telephone on demand by 1997,
and a PCO pop of 500. The Eighth Plan had also allowed private
was divided into 20 circles (akin to a state) for basic and 21 circles for
a circle.
every circle will have one private operator apart from DoT/ BHARTI for
basic and two operators for cellular. DoT/ BHARTI have the option to
Government did not achieve most of its stated targets. The basic
theme, which was broadening the reach of telephony in India, has not
The regulator TRAI was set up after delays and confusion and even
after its creation, DoT continued to fight with it in courts. It was also
BOOT and BOLT was not used at all. The major policy direction it
showed was to allow private sector entry in both basic and value
added services. The intention, though noble failed to achieve its goals
and allowing one private operator per Circle to compete with DoT. An
31
Compan
y Profile
32
COMPANY PROFILE
Vision
the best technology in the world and put it at the service of our
These are the premise on which Bharti Enterprises has based its
services.
sector. With many firsts and innovations to its credit, ranging from
being the first mobile service in Delhi, first private basic telephone
circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In
34
are available in the Indian telecommunications market and consolidate
services”.
strategic objective:
operational efficiencies.
35
Businesses
• Mobile services
• Fixed-line
Competitive Strengths
skills; and
Brand Architecture:
architecture — to:
country.
telephony
Though the costs of creating new brands are heavy but the group
Brand Strategy:
To understand the brand strategy, let’s first look at the brand building
38
When the brand was launched seven years ago, cellular telephony
says that such a strategy would not have worked for the simple reason
that the value from using the phone at the time was not commensurate
sensory benefit it gave to the customer as the main selling tack. The
successful men with their laptops and in their deluxe cars using the
aspirational brand that was meant for leaders, for customers who stood
out in a crowd.
Did it work? Repeated surveys following the launch showed that there
were three core benefits that were clearly associated with the brand —
39
leadership, dynamism and performance.
These were valuable qualities, but they only took AirTel far enough to
same level of service and schemes, it had now become important for
differentiation.
The brand had become something like Lufthansa — cold and efficient.
What they needed was to become Singapore Airlines, efficient but also
human. A change in tack was important because this was a time when
The leadership series was okay when you were wooing the crème de
la crème of society. Once you reached them you had to expand the
with a base of 3.77 lakh (it now has 1.2 million customers). And with
How could Bharti leverage this leadership position down the value
Also, a survey showed that 50 per cent of the new customers choose a
That is precisely what the brand tried to achieve through its new
was designed to highlight the relationship angle and make the brand
41
softer and more sensitive.”
now realizing that there are new compulsions to rework the AirTel
brand, and a new exercise is being launched to this effect. Right now,
Bharti has also understood that one common brand for all cellular
operations might not always work in urban markets that are now
for those who are “young at heart”. With its earlier positioning, AirTel
reverse that.
42
In order to deliver the concept, AirTel offered rock bottom tariff rates
and bundling SMS rates with normal calls to make it cheaper for young
people to use.
segmentation through the Tango brand name. The brand was created
The idea was to bring Internet and mobile in perfect harmony. “The
name was chosen from the popular movie title It Takes Two To
that the branding exercise could be revived because Tango will be the
The Magic:
Perhaps the more ambitious experiment has been with Magic — the
pre-paid card. The idea was to make the brand affordable, accessible
even faster.
PHASE I –
the market and assure him that he would have to pay only if he made a
connection with its relatively high rentals (pre-paid cards do not include
rental charges).
operate.
small stores, telephone booths and even kirana shops so that the
This apart, the company roped in Karisma Kapoor and Shah Rukh
Khan for a major ad campaign all across Delhi, a ruse that saw the
customers — that is, customers who were already inclined to opt for
mobile services. But now, with basic service providers having been
While the exact strategy is under wraps, insiders say the new branding
strategy would be aimed at offering them value which they had not
PHASE II -
TV brand campaign
connect the category to the lives of the SEC B & SEC C segment –
life.
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• Sharukh Khan makes ‘everything in life possible’ while romancing
mobile card.
AirTel today unveiled its strategy for market expansion with the launch
of it’s new AirTel Magic pre-paid card brand campaign – ‘Magic hai to
their lives.
make all their dreams, hopes & desires come alive… instantly. (At just
horizons. It gives you the freedom to control your life in a way never
with AirTel Magic. The new brand slogan ‘Magic hai to Mumkin hai’
47
This strategy is designed to help us talk to this segment directly in the
tone, manner & language of the masses. The “Mumkin hai” value
this ‘can do’ or “Mumkin Hai” spirit (infact that is the reason they were
success is due to her ‘attitude’, talent, hard work and the sheer ability
to make a mark in such a short time. Both these stars have said
The genre of this new strategy & campaign is Hindi cinema led. This
The new TV campaign of AirTel Magic crafted in the Hindi film idiom,
on Kareena Kapoor and wins her love with the help of AirTel Magic.
48
made possible and a victory of the heart is won).
The strategy & new brand campaign is targeted at the large untapped
the perception that the mobile category is useful mainly for ‘business’
by Percept Advertising.
PHASE III -
TV brand campaign
• First time ever in India - any pre-paid card brand gives such
unveiled its strategy for market expansion with the launch of it’s new
make all their dreams, hopes & desires come alive… instantly .At a
amount of your choice you can recharge your account with available
validity time .Improving productivity, letting you befriend the world and
opening up new horizons. It gives you the freedom to control your life
possible is possible with AirTel Magic. The new brand slogan ‘Aisi
Amount ce g Time ty
(Rs.) Tax Fees(Rs. (Rs.) (Day
50
(8%) ) s)
54 4 25 25 5
60 4.44 25 30.56 5
75 5.56 25 44.44 5
100 7.41 25 67.59 5
125 9.26 50 65.74 10
150 11.11 50 88.89 10
175 12.96 50 112.04 10
200 14.81 50 135.19 10
216 16 85 115 20
225 16.67 85 123.33 20
250 18.52 85 146.48 20
275 20.37 85 169.63 20
300 22.22 85 183.78 20
Amount ce g Time ty
Tax Fees(Rs. (Day
( Rs.) (8%) ) ) s)
850 62.96 150 637.04 60
51
900 66.67 150 683.33 60
1000 74.07 150 775.93 60
1080 80 150 850 60
1200 88.89 150 961.11 60
1300 96.3 150 1053.7 60
1400 103.7 150 1146.3 60
1500 111.11 150 1238.89 60
1800 133.33 150 1516.67 60
2000 148.15 150 1701.85 60
2160 160 150 1850 60
3000 222.22 150 2627.78 60
5000 370.37 300 4329.63 366
6000 444.44 300 5255.56 366
7000 518.52 300 6181.48 366
8000 592.59 300 7107.41 366
9000 666.67 300 8033.33 366
9999 740.67 300 8958.33 366
YOUR TALK TIME = MRP - PROCESSING FEE -
SERVICE TAX
Other Brand Building Initiatives:-
The main idea is to stay ahead of competition for at least six months.
across the country for services like customer care, food services
base) would come from the pre-paid card segment. So, they
• Bharti, for the first time for a cellular operator, has decided to
facility would be limited to the region in which they buy the card.
• The loyalty program will not be only for a ‘badge value’, it will
services) and about 250 Airtel Points which were kiosks in larger
shops. Now activation can be done by all of them, and not only
• Pre- paid cards are really catching up with the mobile phone
Keeping the entry cost low for consumers and making recharging
more convenience.
card. The system will not only save users the hassle of going out
and buying a card every time it expires but also enable mobile
55
operators are beefing up their distribution channels. The
Spot) subscribers.
can dial 777 and enjoy a slew of services, which includes easier
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AirTel Magic customers. Highly interactive VJ based show with
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Bharti’s View on its Branding strategy:-
services) across the world are more informed and, at the same time,
mere advertising and promotion. This is not to say that advertising and
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promotion are less relevant. On the contrary, with more choices and
philosophy and core design, production, and delivery operations for the
product itself.
It is, however, crucial to note that in the years to come, not only will the
continue to rise but also the time taken to do so will be longer and will
59
Findings
and
Analysis
60
OCCUPATION
AGE GROUP
10% 15%
executives and other office going people. They are 65% of the total
people who were interviewed. The next age group are the people who
are 28-35 years old. They are 20% of the total. They are those who
are at home or have small business units etc. And the next age group
is the youngest generation who are 15-21 years old. They are school
and college going students and carry mobile phones to flaunt. They are
Occupation Graph
As the above graph shows that 55% of the total people interviewed are
working. So, these people are the ones who are the maximum users of
callers etc. who require mobile for their official purposes. The next
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SERVICE
CUSTOMER PROVIDER
SATISFACTION LEVEL
10% 20%
5%their
which operate from 15% homes etc. They are 20% of the whole . The
Service
IDEAProvider
AIRTELGraph
HUTCH OTHERS
The above graph shows a slice of 50%. These are the total no. of
people who are using Airtel. It seems that people are more aware of
Airtel than any other brand. The next popular brand is Hutch. 305 of
the people interviewed had Hutch connections. The next popular brand
was Idea. 15% people had Idea connections. As it came very late in
the market when Airtel had established it self very well. So, that could
be one of the reasons of such a low percentage. The remaining 5%
had trump connections.
Customer Service At Airtel Graph
seems poor. 60% of the people are dissatisfied with the customer
services provided by Airtel. They are the ones who have the maximum
share in the market but they are lagging behind in the customer
services. 10% of the people were fully dissatisfied with the customer
consumer. He can even switch over his brand. 20% of the people
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TYPES OF CARDS
Monthly Expense
SIM
CARD
seemed partially15%
satisfied with the customer services and only 10%
of the total mobile users were having cash card connections. This
means that the cash cards should be easily and readily available in the
local markets. Airtel should make sure that Magic is available in each
and every nook and corner of the market. 15% of the people were
expense. 64% people spend this amount. 24% people spend RS 300
per month as their monthly mobile expense. And the remaining 12%
had an expense more than RS 1000, they could the ones having sim
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AWARENESS
AWARENESSOF WLL WLL
ABOUT PLAYERS
TATA
their mobiles. INDICOM
15%
NO
45% YES
RELIANCE 55%
85%
WLL seemed to be a new word for many of the people. 45% of the
people were not at all aware of such a technology. So, in order to get
the answer for this question they were first explained the concept.
Reliance was the brand which was popular amongst the interviewed
of its popularity. Tata was hardly a known brand in this new field.
Reliance.
maximum no. of people who use mobile phones are in the age group
of 20 to 28. who are the young executives and other office goers.
There are more no. of prepared cards than post paid cards. The
mobile users want to spend money side by side than to spend money
Now when I compared Airtel with its competitor from the point of view
of the consumer I found that on the basis of Tariff plan, value added
but in the case of customer care and availability they lag behind there
competitors. As, Airtel has a hold in the market because it has the
not many people are aware about Tata. They only Know more about
Reliance. People at this point of time are not interested to switch over
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from GSM to WLL.
66
Suggesti
ons
67
SUGGESTIONS
1. PRODUCT
*Modification must be brought about in AIRTEL, in terms
of quality. Its demand should be increased.
2. PLACE
* The brands must be made available easily in, PCO &
general stores.
3. PROMOTION
*Company must undertake extensive promotional
activities like advertisements must be released in
different Medias to create brand awareness.
*Free samples should be distributed among the
prospects. Sales promotion tools like gifts, contests and
coupons must be given to retailers as well as customers
and prospects.
* Catalogues should be distributed among
customers.
68
SWOT
Analysis
69
SWOT ANALYSIS
Strengths
products.
margins.
Weakness:
70
segment.
Opportunities:
years.
Threats
71
significant impact on costs and margins of the company.
72
RECOMMENDAT
ION
73
RECOMMENDATION
75
LIMITATI
ON
76
LIMITATIONS
queries.
78
CONCLUSI
ON
79
CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel
mobile are in the age group of 20 to 28. Cash cards are the most
it must seriously look into the loop holes of the existing customer
service department.
As we know that now airtel has already launched its product with logo
having a good position just because every time, it tries its best to
80
BIBLIOGRAPHY
81
BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem
have been referred. All the material detailed below provides effective
Websites:
www.airtelworld.com
www.google.com
www.india.com
Magazines:
82
Question
naire
83
QUESTIONNAIRE
Dear Sir/Madam,
I am a student of MBA of Krishna Institute of Engineering &
Technology, Ghaziabad, doing my summer training project on
consumer behavior from Airtel. Please give your precious time for
filling these details.
Q.1 For how long you have been using Airtel Product?
0-2 Years
2-5 Years
5-10 Years
More than 10 years
Yes
No
Idea
Hutch
Airtel
Yes
No.
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Q.6 If yes, which sources are used?
Magazines
Dealers
Sales Executives
Operators reference
Pamphlets and catalogue
Reference from friends and relatives
Any other
Q.7 What are the features you look for in a product before making
purchase decision? Give preferences (1-Highest, 6- least)
Brand credibility
Price and Discount
After sales services and parts, network
Value for money
Vehicle performance
Add on features or ergonomics of design
Good Network
Discount scheme
Service package
Any other
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________
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Q.10 Are you aware of various promotional activities being run by
Airtel, if yes then how? Are you satisfied with these promotional
activities?
Very Satisfied Somewhat Not
Satisfied Satisfied satisfied
Customer Care
By Ad Films
By Camp
Q.12 What are you suggestions for improving the product quality,
service availability and parts availability?
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________
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