Minor Project Report

On

Finance Sector Of Bharti Airtel

GURU GOVIND SINGH INDRAPRAST UNIVERSITY (SESSION 2009-2012) SUBMITTED TO:Miss. Sakshi Anand Lecturer of BBA Department. SUBMITTED BY:Maneesh Sharma Enrol no:07712401809

Guide certificate

Student certificate

INDEX
Sr.no 1. 2. TOPICS ACKNOWLEDGEMENT INDEX Company Profile BHARTI AIRTEL INTRODUCTION Location (8) Organizational Structure(9) Distribution Channels(10) Market Competitors(11) Strategies(12-14) Share(15) Memorandum of Association(16) SWOT (17-18) Financial Accounts of Airtel Cash Flow Statement(20) Profit &Loss Accounts of Airtel(21) Balance Sheet of Airtel(22) Objective Research Objective Research Methodology Research Analysis &Findings Limitation Conclusion Bibliography Annexure 1-5 6-18 Pg.no

3.

19-22

4. 5. 6. 7. 8. 9. 10. 11.

23 25-28 29-31 32-37 38-39 40-41 42-43 44-47

INTRODUCTION

INTRODUCTION

We are one of Indias leading providers of telecommunication services with a nationwide presence in all the 23 licensed jurisdictions (also known as Telecom Circles). We served an aggregate of 88,270,194 customers as of December 31, 2008; of who 85,650,733 subscribe to our GSM services and 2,619,461 use our Telemedia Services either for voice and/or broadband access delivered through DSL. We are the largest wireless service provider in the country, based on the number of subscribers as of December 31, 2008. We also offer an integrated suite of telecom solutions to our enterprise customers, in addition to providing long distance connectivity both nationally and internationally. We have recently forayed into media by launching our DTH and IPTV Services. All these services are rendered under a unified brand Airtel. The company also deploys, owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India. Successful businesses have extensive knowledge about their customers and competitors. Getting accurate and specific information about your customers and competitors is a critical first step in market investigation and development of a marketing plan. Accurate market assessment and development of an effective plan is critical to the success of both new and existing businesses. The market impacts and directs all aspects of the company's activities and ultimately will lead to success or failure of the business. In developing a market plan, your primary functions are to understand the needs and desires of your customer select or develop a product or service that will meet customer needs, develop promotional material that will make the customer aware, and ensure product or service delivery.

Location
Location Type Registered & Corporate Office Address Qutab Ambience H-5/12 Mehrauli Road New Delhi 11, Delhi - India Phone : 41666000, Fax : 41666011/ 12 Email: ir@bharti.com

Registered Office

Qutab Ambience H-5/12 Mehrauli Road New Delhi 110030, Delhi - India Phone: 41666000. Fax: 41666011/ 12 Email: compliance.officer@bharti.in

Registered Office

Aravali Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase 2, New Delhi - 110070 Delhi India Phone : 41666111, Fax : 41666137, 41666146 Email : compliance.officer@bharti.in

Registered & Corporate Office

Aravali Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase 2, New Delhi - 110070 Delhi - India Phone : 46666100, Fax : 46666137 Email : compliance.officer@bharti.in

Registered & Corporate Office

Bharti Cresent, 1, Nelson Mandela Road, Vasant Kunj, Phase New Delhi - 110070 Phone : 46666100, Fax : 46666137, 41666149 Email : compliance.officer@bharti

ORGANIZATIONAL STRUCTURE

Organization means it is a group of people working together co-operatively under authority towards achieving goals and objectives that mutually benefits the organization. It may also be said as grouping activities is to be performed. We can also define as establishing relationship for the purpose of handling people to work effectively by maintaining horizontal and vertical coordination.

Market is related with creation of standard of living. Organization is a form of cooperative efforts. It can be said that marketing organization consists of no. of people with many different position.

Take all the things away from me, take my wealth, take my industries, take my land, but with help of my efficient organization I will bring these all back within only 5 years.

Andrew Carnegie

DISTRIBUTION CHANNEL

Company

Distributor

Dealer

Salesmen

Retailer

Customer

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Market Competitors
Major Players:

BSNL - Incumbent service provider and World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India Services include Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Subscribers : BSNL---------------------------- 42673357 ---------------------15.95% MTNL - State owned operator covering the cities of Mumbai and Delhi. Provides both fixed and mobile services. Bharti Airtel - Integrated operator with presence in all segments. Leads the mobile segment in the country. Subscribers : Bharti Airtel -------------------88382758--------------------- 33.04%

Reliance Communications - Largest player in India in the CDMA segment Launched a GSM network. Subscribers : Reliance Telecom --------------10353841--------------------- 3.87% Tata Teleservices - Integrated operator (with VSNL) with presence in all segments Provides CDMA services in 20 circles. Subscribers : Tata ---------------- 63340024 ----------------------23.68%

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STARTIGIES
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 a great 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 Delhiitess mind, the Airtel campaign began to focus on the utility of Cellphone. In the first four months alone Airtel's advertisement spend exceeded Rs. 4 crores.
As of today the awareness level is 60% unaided. This implies that if potential or knowledgeable consumers are asked to name a Cellular phone service provider that is on the top of his/her mind 60% of them would name Airtel. As for aided it -is 100% (by giving clues and hints etc.).

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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. Airtels 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 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 realised 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 organised 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

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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 . (i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent flier's programs. (ii) There have been educational campaigns, image campaigns, pre-launch advertisements, promotional launch advertisements, attacking congratulatory advertisements advertisements, and tactical

advertise-ments,

advertisements.

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SHARES

The equity shares of Bharti Airtel are currently listed on National Stock Exchange of India Limited (NSE) and The Stock Exchange, Mumbai, (BSE). Bharti Airtel offered 185,336,700 equity shares in the initial public offering (IPO) and raised Rs 8,340.15 million through this process. The shares were over subscribed 2.56 times. With this IPO, Bharti Airtel established certain important landmarks in the history of the Indian capital market. Together with being the first 100% book building process that this country has seen, the listing was completed within a record time of ten working days. of the close of the issue. Moreover the process of allotment and issue of shares was also completed within one day of the last day of pay-in.

The book running lead managers for the IPO were JM Morgan Stanley and DSP Merrill Lynch and the registrars to the issue was Karvy Consultants Limited.

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Memorandum of Association

Merger/Demerger Orders

Order under section 391(2) and 394 of the Companies Act, 1956 regarding amalgamation of Viscount Holdings Limited, Jubliant Holdings Limited, Jumbo Holdings Limited with Bharti Tele-ventures Limited forming part of the Memorandum of Association of the Company. Order under section 391(2) and 394 of the Companies Act, 1956 regarding amalgamation of Bharti Cellular Limited, Bharti Infotel Limited with Bharti Televentures Limited forming part of the Memorandum of Association of the Company. Order under section 391and 394 of the Companies Act, 1956 regarding amalgamation of Satcom Broadband Equipment Limited, Bharti Broadband Limited with Bharti Airtel Limited forming part of the Memorandum of Association of the Company.

Order under section 391and 394 of the Companies Act, 1956 regarding scheme of
arrangement between Bharti Airtel Limited and Bharti Infratel Limited forming part of the Memorandum of Association of the company.

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SWOT ANALYSIS

Strengths

Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. It has a strong brand name, superior quality products and an enviable distribution network. It h a s a c l e a r a n d w e l l -defined o r g a n i z a t i o n s t r u c t u r e a n d limits of financial authority. Increase in advertisement spends affect the companys margins. The c o m p a n y s b o t t o m l i n e f a l l s v i c t i m t o t h e b l o a t e d a n d highly paid workforce, which affects its margins.

Weakness:
Little efforts over the Advertising of products. Distribution channel is not accurately categorized.Premium priced products, hence cant compete in low price segment. No separate strategy for rural market.

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Opportunities:

The c o m p a n y s f i n a n c i a l p e r f o r m a n c e c a n r e c e i v e a m a j o r boost from its cost reduction efforts. There is a lot of scope of product and market diversification. Exports of products will also have huge chances in the coming years. Airtels business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth.

Threats

The slowdown in the economy has restricted topline growth of most FMCG majors and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario.Companys major raw materials are influenced by government policies /controls as well asvagaries of the monsoons. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company. Moreover, inordinate hike in Broad Band Internet products would also increases companys production and distribution cost.

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CASH FLOW STATEMENT OF AIRTEL

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Profit &Loss Accounts Of Airtel

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BALANCE SHEET OF AIRTEL

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RESERCH OBJECTIVE

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Research Objectives:
To study the consumer trends in telecommunication sector. To study consumer decision-making & preferences. To study marketing strategies adopted by Airtel. To study the level of customer satisfaction in Airtel. To study the market potential. To study customer purchase decision behaviour. To understand the needs of different consumer segments. Comparative study of different mobile companies.

Research Approach
The research approach for the purpose was secondary research to collect the information on the subject.

Research Instrument
I used direct observation, customer data & survey as research instrument.

Sources of Data:

Research Data Data is the key activity of marketing research. The design of the data collecting method is backbone of research design.

Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data.

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Data can be obtained from two important sources, namely:

Primary Data

Secondary Data

Primary Data:

Primary data are gathered for the specific purpose or for a specific research project, consist of original information for the fulfillment of project objective. When the data are required for the particular study can be found neither in the internal record of the enterprises nor in published sources. In some cases it may become necessary to collect original data. Primary data can be collected in four ways:Observation Focus Survey Experiment

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Secondary data:

Secondary data are the data, which already exists somewhere. Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types:

Internal data External data

When researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc.
Internal or External Data
Internal data are reports and memos generated within an organization to facilitate its operations. External data are those specially produce for outside consumption.

Sources from which I have taken the secondary data are as under: Direct observation Airtel website Books for marketing management Surveys and customer data & report KNOPs

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Research Analysis & suggestion

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Analysis and suggestion

Are you like to see advertisement?
Yes No 46 4

50 45 40

No. of person

35 30 25 20 15 10 5 0 Yes No Series1

Analysis
From the above mentioned graph we can analyze that out of 50 Person which I have gone through, all of them are watching the advertisement and 50 out of them 46 are watching the advertisement and only 4 people are not like to watching advertisement.

Suggestion
I would not like to do any suggestion because most of the people are watching advertisement of Airtel.

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Have you seen the advertisement of Airtel?

Yes No

45 5

50 45 40

No.of people

35 30 25 20 15 10 5 0 Yes No Series1

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have gone through, all of them are watching the advertisement of Airtel and 50 out of them 45 are watching the advertisement of Airtel and only 5 people are not aware about the Airtel advertisement.

Suggestion
I would not like to do any suggestion because most of the people are watching the Airtel advertisement.

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In advertisements which factor are very attractive? (Rank them)

Theam Color combination Brand ambassador Massage Other Factors

12

10

3 24 1

Importent Factores

Theam Color combination Brand ambassador Massage Other Factoers

Analysis
From the above mentioned graph we can analyze that out of 50 Person which I have gone through, all of them are watching the advertisement of Airtel and 50 out of them 12 are saying that Theam is important factors, 10 are saying color combination, 3 are saying brand ambassador 24 are saying Massage.

Suggestion
I would like to suggest to the company that they can Focuses more and more in their advertisement massage and theam because more people are concern with the massage in compare to other.

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Do you get all information through advertisement of Airtel?

Yes No 24 26

26.5 26 25.5 25 24.5 24 23.5 23 Yes No

No. of Person

Series1

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have gone through, all of them are watching the advertisement of Airtel and 50 out of them 24 are saying that they get all information through Airtel and 26 are say that they are not getting all information through advertisement of Airtel.

Suggestion
I would like to suggest to the company that they can show the maximum information in their advertisement.

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In your opinion through which media company can get maximum reward?
Newspaper Hording Television Retailer shop Other sources 15 8 10 22 5

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No of person

20 15 10 5 0 Series1

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have went through, all of them are watching the advertisement of Airtel and 50 out of them 15 are saying that company can get maximum reward throw newapaper,8 are saying throw hording,10 are saying throw Telivision,22 are saying throw Retailer shop.

Suggestion
I would not like to suggestion to company that people can maximum reward throw the retailer shop so they can give their advertisement in there retailers.

r H or di ng Te le vi si R on et ai le rs ho O th p er so ur ce s

N ew sp ap e

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Limitation

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LIMITATIONS

In this project, I have tried to present facts with figures penetrating to my survey skill it has some limitation, which are there in this project need identification.

The sample survey is done on a very small number of people thus the results drawn may be different from the opinion of the universe.

The time of two months is very less for covering all the aspects of the project.

The feedback received from the individuals is according to his perception, limited exposure and personal knowledge level.

Very less time was there for interacting with corporate clients.

Problem in meeting with the concern person without appointment.

The last but not the least is that the database which I gathered from the websites is not so reliable because many times I face a difficulty to find the address of the companies and sometimes the companies change the address and not upgrade in the websites due to which I waste my time as well as money also.

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Conclusion

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CONCLUSION

From above the details I conclude that 70% Airtel users preferred to remain with Airtel. Also good no. of users who were willing to switch from their respective subscribers showed interest in Airtel. Hence, these statistics imply a bright future for the company. Also the company is now providing more services like the door to door services which is you dial the Airtel customer care and would like to send someone flowers the Airtel company delivers those flowers to the person concerned. Also Airtel is providing free text messaging service and free voice mail service. Call conferencing is also another feature Airtel provides.

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BIBLIOGRAPHY

BOOKS KOTLER PHILIPS, MARKETING MANAGEMENT, PUBLISHED BY PRENTICE

HALL OF INDIA PVT.LTD. AAKER KUMAR DAY, MARKETING RESEARCH MAGAZINES BUSINESS INDIA BUSINESS WORLD

WEBSITES: HTTP:// WWW.COAI.COM HTTP://WWW.TRAI.COM HTTP://ECONOMICSTIME.COM HTTP://KHOJ.COM HTTP:)//EN.WIKIPEDIA.ORG/WIKI/BHARTI AIRTEL#TELICOMIDIA

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Annexure

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QUESTIONNAIRE

I Maneesh Sharma a Second year student of GGSIPU, Delhi presently pursuing BBA (B&I) . I have prepared the following questionnaire for the completion of my summer project. I promise that all the answer provided by you wont be made public. This questionnaire is purely for educational purpose.

BHARTI AIRTEL, DELHI REGION

Name: __________________________________________________________________

Age: ________ Occupation

_____________________________________

Address: ________________________________________________________________

Phone No. _________________________________________________________________

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QUESTIONNAIRE

QUS (1)Do you have any mobile connection?

QUS (2) Which age group you belong to? (a)15-20 (b)20-25 (c)25-35 (d)35- above

QUS (3) What occupation do you have? (a)Business (b)Professional (c)Government Employee (d)Student

QUS (4) Do you know how many telecommunication companies exist in Lucknow region? (a)6 (b)5 (c)4 (d)Not confirm

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QUS (5) If you have to purchase mobile phone connection which company you will prefer and why? (a)Airtel (b)Reliance (c)TATA indicom (d)Vodafone

QUS (6) How you came to know the scheme/service that you use? (a) Advertisements (c) Internet (b) Word of Mouth (d) Promotional activity

QUS (7) You would like to take Prepaid connection or Postpaid connection?

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