PROJECT ON BHARTI AIRTEL LIMITED

1. INTRODUCTION (Company overview)

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 all23 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
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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%); Euro pacific Growth Fund (2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon (1.33%); Life Insurance 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.

1.1Product
Airtel provides a host of voice and data products and services, including high-speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid' mobile offers, with a range of tariff plans that target different segments. A comprehensive range of value-added, customized services are part of the unique package from Airtel. The company's products reflect a desire to constantly innovate. Some of
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these are reflected in the fact that Airtel was the first to develop a 'single integrated billing system' 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 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 nine 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.
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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 Tele-Ventures earned a Gross profit of Rs. 16 billion on revenues of Rs. 50 billion.

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1.2.CORPORATE STRUCTURE

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2. OBJECTIVE OF STUDY
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.

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3.BUSINESS STRATIGIES OF BHARTI AIRTEL

3.1.PROMOTIONAL STRATEGY
Airtel to Touch Tomorrow with a new brand vision. The Bharti Mobile promoted AirTel cellular service will go in for repositioning of its brand image. The new brand ethos is portrayed in two distinct fashions - the tag line "Touch Tomorrow", which underscores the leading theme for the new brand vision, followed by "The Good Life", which underscores a more caring, more customer centric organization. Aimed at re-engineering its image as just simply a cellular service provider toan all out information communications services provider, Touch Tomorrow is meant to embrace the new generation of mobile communication services and the changing scope of customer needs and aspirations that come along with it. The new communication is about a new dimension in the cellular category that goes beyond the Internet, SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless digital broadband services that will constitute tomorrows cellular services. The new campaign is in two phases - the first of which will communicate overall brand philosophy and the second products and services. According to Mr. Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, Karnataka "We are adopting a new brand- platform - Touch Tomorrow - not only to reflect our corporate ethos but also business strategy". The new identity will have the logo in Red, Black and White colours along with lower case typography to convey warmth. AirTel will incorporate the latest branding in all of its communication and will soon be going in for an enhanced promotional drive to establish the brand's presence.
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3.2.COMPETITIVE SITUATION
Airtel launched its services before Essar and skimmed the market picking up the bulk of the high usage premium clients. This is a very competitive industry with the two companies differentiating either on value-added services or price. Airtel is perceived as the high quality provider and has a premium image. Essar, on the other hand, is perceived as the lower end service provider. Airtel positions itself as the market leader on the basis of the number of subscribers. Essar is trying to counter this by emphasizing on the reach of its network and the quality of its service. However, Essar is somewhat not been very success full largely due to the inconsistency in advertising. To promote themselves, both the players have been dependent on tactical advertising However, they have restrained from using comparative advertising Hoardings have been a very popular medium for carrying the advertisements Airtel has also been advertising on television using the Bharti Telecom name.

3.3.MARKET SEGMENTATION
Segmentation is beneficial because of better predictability of the target consumer group, minimization of risk exposure, better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income In evaluating different market segments the company looks at two factors The overall attractiveness of the segments and the companys objectives & resources The present market for Cellular phones, pagers and conventional phones is as follows.

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Cellular phones pager Conventional phones

premium upper lower X X X X X X

middle economy upper lower upper lower X X X X X X -

TARGET MARKET SEGMENT Airtel has targeted the premium and upper middle class. The rationale behind it is that only those segments should be targeted who value time and have the paying capacity. It Is also planning to target the business tourists during their stay in the capital About 60% of the clientele are top executives of corporate houses. About 15% are foreign organizations and the rest are professionals and small businessmen. During the introduction stage there was intense pressure to get consumers across to hook up with their brand, because getting them to switch brand loyalty later would be hard So far Airtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has beer) built up and prices have declined to a certain extent they are planning to venture further a field. POSITIONING The product is sought to be positioned as a business efficiency tool. a lifestyle revolution and a status symbol The emphasis is to remove misconception that the cell phone is an expensive means of communication and drive home the point that the cell phone is actually a day-to-day utility.

3.4.PRODUCT POLICY AND PLANNING

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The product or service is the heart of the marketing mix. Without a product or a service customers' needs cannot be satisfied. The basic product promise by Airtel is mobility. Airtel's main marketing strategy is to be a first mover all the time. It has recognized the significance of making the first move because in the field of Communication & Information Technology changes occur at a tremendous pace. Effective product segmentation hasto be carried on continu-ously because basic services can be and will be copied and in time become expected component of the product. Airtel seeks to carry out this segmentation through provision of new information services and making new facilities available. The product policy and planning depends on the stage of t h e p r o d u c t l i f e c y c l e . A t p r e s e n t t h e c e l l u l a r p h o n e m a r k e t h a s r e a c h e d t h e maturitystage.Sin ce, the premium segment is nearing saturation the company targeting the upper middle and middle-middle class. In order to do so Airtel is trying to optimize the price performance package by offering suitable "product bundling".This involves the selection of the suitable h ardware (handset)and its software (itsservices.) with reasonable price in order to deliver maximum price performance to its customers. In addition, it offers free Airtime services and other concessions to make the prices and thus the product more attractive. It has also opened a 24 hours customer service. Only price doesn't serve as an effective differentiator, value added services become the effective differentiator. The "Value Added Services" provided from Airtel are:i). Voice Mail service: This system is similar to the answering machine - if the user is not able to answer a
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call for some reason the caller can leave messages in the voice mail box which can be later retrieved by the user ii) Short Message Service:The short message service is like a two-way pager. It gives an option of sending andrecei vi ng text me s s a g e s di re c tl y fro m o n em o b i l e phone to another wi th o u t th e intervention of an operator. iii) Mobile Fax 1 Data Service: This service helps the subscriber to send and receive Faxes, access E-mail, download computer files from other systems and remotely log on to another computer and surf the Internet. iv) Cash Card: The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time in advance. All it requires is the payment of an initial amount. This is a useful service for people who travel to Delhi often and those who want to control the expenses on their calls. v) Caller ID: Displays calling person's number. vi) Outgoing call restriction: To prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude one or several countries or any geographical region, to permit only local calls, or to limit the outgoing calls to a listed number. vii) Call forward: Incoming calls can be forwarded to another fixed or mobile phone. Besides these some other services provided by Airtel are Call conferencing, Call Broadcast et cetera. It is in the operators -Interest that they not only get many subscribers but also get them to use the mobile facility frequently. In the early stages getting increases to subscribe may be easier than getting them to talk since they will find it costlier to
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use the mobile phone as compared to a conventional phone [if is believed that initially cell phones would be used buy] viii) Roaming Facility: Roaming facility is available while the subscriber is travelling. The billing is done in thehom e network (D e l hi ).R o a m i n g fa c i li ty i s av ai l ab l e m anual l y* as wel l a s s em i -automatically. Once as subscriber is In any other city or country, where a GSM network is available, simply insert the SIM card of the local operator Into your handset and start talking. Manual Roaming means a separate SIM card is provided for each city Semi automatic roaming means one card has the facility for different cities.

3.5.AIRTEL'S MARKETING ORIENTATION

Since this is a high-involvement expensive product, the service provider has to fully take care of the customers.) They take personal responsibility to "get" the answer for any problem faced by the customer b) They anticipate customers' problems and take pro-active steps to prevent them) They give answers to the questions & requests, quickly & efficiently) They have a positive tone & manner while interacting with customers) They end the interaction on a positive or a humorous note-making the last30 second Airtel realizes that attracting people 'Is easy but converting them into loyal customers is hard, hence emphasis is on maintaining a Smiling and a Friendly Atmosphere to please and retain the customer.

3.6. PRICE AND PRICING POLICY

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AIRTEL has realized that the Indian market is price sensitive. Therefore it care of the has come up with various innovative tariff schemes to take needs of different category of customers-Generally, the cellular services are more expensive than the landline based telephone services. This is due to the reason that the operating companies are required to pay a fee to the government for using airtime.

3.7.MARKETING STRATEGY A D O P T E D B Y BHARTI AIRTEL

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 a 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
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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. Inthe first four months alone Airtei'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.).Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and a thriving brand. Every company has a goal, which might comprise a sales target and a game plan with due regard to Its competitor. Airtel's campaign strategy is designed keeping in mind its marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey the image of a market leader in terms of its market share. It tries to portray the image of being a "first mover every time" and that of a "market leader". The status of the product in terms of its life cycle has just reached the maturity stage in India. It is still on the rising part of the product life cycle curve in the maturity stage. The diagram on the left hand side shows the percentage of the users classified into heavy, medium and low categories. The right hand side shows the revenue share earned from the three types of users. Airtel, keeping in mind the importance of the customer retention, values its heavy users the most and constantly indulges in service innovation. But, since heavy users comprise only 15 -20% of the population the other segment cannot be neglected. The population which has just realized the importance of cellular phones has to be roped in. It is for
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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 in those strategic are as which most likely to catch the attention of those who need a cellular phone. The product promise (which might cost different1 higher) is an important variable in determining the target audience. Besides this, other promotional strategies that Airtel has adopted are People who have booked Airtel services have been treated to exclusive premiers blockbuster movies. Airtel has tie-up with Lufthansa to offer customer bonus miles on the German airlines frequent flier's programs There have been educational campaigns, image campaigns, prelaunch advertisements, launchadvertisements,congratulatoryadvertisements, promotional advertise-ments, attacking advertisements and tactical advertisements. & now days airtel is targeting the young generations by providing special packs to young generations as there requirement. And they promiting their product by campaign or advertisement carrying slogan HER EK FRIEND JARURI HOTA HAI

3.8.PRODUCT LIFE CYCLE

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The pattern of cellphone subscriber growth observed elsewhere in the world reveals that the growth in the market is Initially slow followed by a sharp acceleration, but so far that has not happened in India. As far as the Product Life Cycle is concerned. Indians are at the beginning of the maturity stage.

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4. SWOT ANALYSIS
Following is the SWOT Analysis for AIRTEL STRENGTH
i) The fast-expanding IPLC Market. ii) Latest technology and low Cost advantage. iii) Huge market.

WEAKNESS
i) Price Competition from i) Competition from other BSNL and MTNL Cellular and mobile operators. ii ) Untapped Ruralin market ii) Saturation point Basic Telephony service.

OPPORTUNITIES THREATS
i) Very focused on telecom. ii) Leadership in fast growing cellular segment. iii) Pan-India footprint. iv) The only Indian operator, other than VSNL, that has an international Submarine cable.

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STRENGTH
1) Very Focused On Telecom Bharti Airtel is largely focused on the telecom, around 93% of the total revenue comes from telecom (Total telecom revenue Rs 3,326). 2) 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. 3) 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. 4) 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.

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WEAKNESS
1) Price Competition from BSNL and MTNL Airtel is tough competition from the operators like BSNL and MTNL as these two operators are offering services at a low rate. 2) 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.

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OPPORTUNITIES
1) 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. 2) LATEST Technology & 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. 3) 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
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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.

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THREATS
1) 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. 2) Market Maturity In Basic Telephony SegmentAlthough Airtel entered in the basic telephony market its a biggest there for the company as the basic telephony market has reached.

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5. CONCLUSION
1) 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. 2) Outsourcing the call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis. 3) Overseas Market Airtel is looking for overseas market and already started operation in Nigeria and Seychelles. 4) Competition Airtel is facing strong completion from MTNL and BSNL in spite of the fact they are far away from airtel technologically but these two have a inside rach in rural and urban area and have low tariff Rates. 5) Leader in Telecom market Airtel is holding a position of Market Leader by having 21 percent of the total market share.

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SUMMARY
This report on Bharti Airtel is done to find out certain objective regarding the strategic approach Adopted by Airtel to stand strongly in the competitive telecom market. Airtels business strategies are analyses using models like SWOT analysis. The outcomes of these models are properly analyzed to find out the various aspects like companies position and competitors position in the market. This report on Airtel not just give description about the company but it also talks about the various marketing strategy adopted by the company. SWOT analysis of Airtel helps to find out the weak points of the company and to find out the way to overcome this problem. From this study we get airtel is leading cellular company & its business strategies are better than the its competitors.

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6. RECOMMENDATIONS
After the complete analysis of entire STUDY we put forward a set of Recommendations which are as follows: 1) PRICING Depending on the market conditions / competition from cellular or wll-mobile service providers and also to suit local conditions, there should be flexible pricing mechanism (either at central or local level). 2) IMPROVEMENT IN TECHNOLOGY Airtel should immediately shift to third generation switches by replacing its c-dot switches. This will improve the quality of service to desired level and provide simultaneous integration with the nationwide network. The special distribution of the transmission Towers should be increased to avoid no signal pockets 3) ESTABLISHMENT OF DISTRIBUTION CHANNELS Airtel should establish widespread and conspicuous distribution to match that of the competitors. The distribution network shall make the product visible and available at convenient locations. 4) UNTAPPED RURAL MARKET large part of Indian rural market is still untapped therefore airtel is required to bring that area under mobility.

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7. BIBLIOGRAPHY
IPCL BSNL MTNL TRAI International Private Leased Circuit Bhart Sanchar Nigam Ltd Mahanagar Telephone Nigam Ltd Telephone Regulatory Authority Of India

REFERENCE

www.airtelworld.com www.airtel-broadband.com www.trai.gov.in www.hindustantimes.com www.google.com www.Wikipedia.org

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