Index: A Study On Marketing Strategis of Airtel

A STUDY ON MARKETING STRATEGIS OF AIRTEL
N.M.D.COLLEGE GONDIA Page 1

INDEX

1 .Introduction
2. Company profile
3.Marketing Strategies of Airtel
4. Objectives
5. Scope of study
6. Hypothesis
7. Research Methodology
8. Data Analysis And Interpretation
9. Verification
10. Finding
11. Limitations
12. Conclusion
13. Suggestion
14.Bibliography
15.Appendix



INTRODUCTION


INTRODUCTION
TELECOMMUNICATION MARKET IN INDIA
The Indian telecommunications Network with 250m telephone
connections is the fifth largest in the world and is the second largest among the
emerging economies of Asia. Today it is the fastest growing market in the world
and represents unique opportunities for UK companies in the stagnant global
scenario. Tele-density, which was languishing at 2% in 2006, has shown an
impressive jump to 9.5% in 2010 and 10.5% in 2011 and is set to increase to 20%
in the next five years beating the Govt. target by three years. Accordingly, India
requires incremental investments of USD 20-25 bln for the next five years.
Private operators have made mobile telephony the fastest growing (over
164% p.a.) in India. With more than 33 million users (both CDMA and GSM),
wireless is the principal growth engine of the Indian telecom industry. Given the
current growth trends, cellular connections in India will surpass fixed line by late
2004/early 2005. Intense competition between the four main private groups -
Bharti, Vodafone, Tata and Reliance and with the State incumbents-BSNL and
MTNL has brought about a significant drop in tariffs. There has been almost 74%
in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in
a boom time for the consumers.
The Government has played a key enabling role by deregulating and
liberalizing the industry, ushering in competition and paving the way for growth.
While there were regulatory irregularities earlier, resulting in litigation, these have
all been addressed now. Customs duties on hardware and mobile handsets have
been reduced from 14 percent to 5 percent.


The Indian government has merged the IT and Telecom Ministries to
speed up reforms and decision on the Communication Convergence Bill to enable
the common regulation of the Internet, broadcasting and telecoms will be taken
after the new Government assumes responsibilities in may this year. An
independent regulatory body (TRAI) and dispute settlement body (TDSAT) is fully
functional sector
INDIAN CELLULAR MARKET
The Bharti Group, which operates in 23 circles, continues to be the country's
largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22
circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second
largest cellular operator in terms of subscriber base at the end of the fiscal ending
March 31, 2007, displacing Vodafone from the second position.
Vodafone, which operates in only eighteen circles, is the third largest operator
with a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL,
which operates in Mumbai and Delhi, BSNL has been a very aggressive player in
the market. "Cellular operators who expected BSNL to go the MTNL way, were
taken by surprise and did not take effective steps to counter it, till it was too late in
the day," said a telecom analyst.



COMPANY PROFILE



COMPANY PROFILE

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting
investments in telecommunications services. Its subsidiaries operate telecom
services across India. Bharti Airtel is India's leading private sector provider of
telecommunications services based on a strong customer base consisting of 50
million total customers, which constitute, 44.6 million mobile and 5.4 million fixed
line customers, as of March 31, 2007.
Airtel comes to us from Bharti Airtel Limited - a part of the biggest
private integrated telecom conglomerate, Bharti Enterprises. 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. Bharti has also put its footsteps into Insurance and
Retail segment in collaboration with Multi- National giants. Bharti is the leading
cellular service provider, with a footprint in 23 states covering all four metros and
more than 50 million satisfied customers.

SERVICES
Airtel Prepaid
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from
Bharti Enterprises, India's leading integrated telecom service provider. Going
mobile with Airtel Prepaid is a new way of life. With a host of great features, also


simple to use, Airtel Prepaid makes everything that you dreamt and believed,
possible

Instant Balance and Validity Enquiry
Your account balance is updated on the screen of your handset at the end of
each chargeable call. You can also call 123 from your mobile phone and listen to
the voice announcement or simply dial *123#, press 'OK' or 'YES' button and your
account balance will be displayed on the screen of your handset.
Recharge your Airtel Prepaid
Recharging is Easy. The calling value on your card keeps reducing as you
make calls or use any other chargeable service. Choose the Airtel Prepaid
Recharge Coupon thats right for you, from a variety of tailor made recharge
coupons with different denominations which are available at a number of outlets
across your city. Simply follow the procedure mentioned below, to recharge your
phone.
SMS (Short Messaging Service)
Send messages quickly and easily using text, if it's too noisy to talk or you
don't have much time. It's the way to share those interesting one-liners, important
reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.
SMS (Short Messaging Service)
Send messages quickly and easily using text, if it's too noisy to talk or you
don't have much time. It's the way to share those interesting one-liners, important
reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.



Airtel Live
Make your mobile the most happening entertainment destination with Airtel
Live! Airtel brings you the latest in entertainment and information services, right
on your phone!
Hello Tunes
Tired of that boring old tring tring on your phone? Well now when a friend
calls, you can make them groove to the hottest new tracks burning up the music
charts with Hello Tunes from Airtel! You get a wide choice of songs in the Popular
& New Arrivals categories that are updated regularly. What's more you can
directly call the number for your kind of music, e.g. call 678005 for English New
and 678001 for Hindi New. This would directly take you to your favorite artist's
Hello Tunes listing.
Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited opportunities. More
exciting, innovative yet simple new ways to communicate, just when you want to,
not just through words but ideas, emotions and feelings. To give you the unlimited
freedom to reach out to your special people in your special way.
GPRS (General Packet Radio Services)
Log on to the internet, with GPRS that allows data transmission at a higher
speed. Access e-mails and internet across Airtel's pan-India presence using 'Mobile
Office' with your phone or a phone and laptop both.
Other Services
Airtel brings you, a wide range of Services that will change the way you
communicate. Try them and discover a whole new world of fun and excitement.



MARKETING
STRATEGIS OF AIRTEL


MARKETING STRATEGIES OF AIRTEL
MARKET SITUATION

AT THE TIME OF LAUNCH
The first mover in the market was Airtel which launched its services in
Delhi in Aug 1995 (Informal launch). Essar Cellphone followed by launching its
services informally in Oct 95. At this point of time, the market was at a nascent
stage, awareness level was low and both operators independently tried to spread
awareness and educate the people

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 successful
largely due to the inconsistency in advertising


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.

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 organisations 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

AIRTEL'S MARKETING ORIENTATION.
Since this is a high-involvement expensive product, the service provider
has to fully take care of the customers.
a) 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
c) They give answers to the questions & requests, quickly & efficiently.
d) They have a positive tone & manner while interacting with customers.


e) They end the interaction on a positive or a humorous note-making the last 30
seconds count.
Airtel realises 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.

PRICE AND PRICING POLICY
AIRTEL has realised 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 land line 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.

MARKETING STRATEGY ADOPTED BY BHARTI

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.
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 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 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 population which has just realized the importance of cellular phones has
to be roped in. It is for this reason that the service provider offers a plethora of
incentives and discounts. Concerts like the "Freedom concert" are being 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 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,
launch advertisements, congratulatory advertisements, promotional advertise-ments,
attacking advertisements and tactical advertisements.



DISTRIBUTION

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

MARKETING OBJECTIVES
Create product
awareness and trial
Maximise market share Maximise profits
whole defending
market share

Introduction Growth Maturity
Company
Franchisee Distributor
Dealers
Dealer
Customer
Customer


STRATEGIES
Product Offer a basic
product/ service.
Offer value
added services
Increase in
number of value
added services.
Price Charge cost-
plus
Price to
penetrate market
Price to match or
best competitors
Distribution Build selective
distribution
Build Intensive
distribution.
Build more
intensive
distribution.
Advertising Build product
awareness
among early
adopters and
dealers.
Build awareness
and interest in
the mass market
Stress brand
differences and
benefits.
Sales Promotion Use heavy sales
promotion to
entice people to
subscribe.
Increase to build
and maintain
relationships
with customers.
Increase to
encourage
brand-switching.



OBJECTIVES



OBJECTIVES OF THE STUDY

Objectives:

To study the importance and development of tele communication industry in
todays scenario.
To understand the various Marketing Strategies which Airtel has adopted to
survive in highly competitive cell phone industry.
To make a comparative study of the major players in Indian Service Provider.



SCOPE OF THE
STUDY


Scope of the study

1. Analyzing present schemes of the market.
2. Analyzing customer satisfaction levels.
3. Analyzing consumer preference towards AirTel.



HYPOTHESIS


HYPOTHESIS

1.This product provide better consumer satisfaction.

2.To know the perception of consumer regarding the service.



RESEARCH
METHODOLOGY


RESEARCH METHODOLOGY

The methodology adopted for this project is exploratory in nature since
there is no hypothesis that has to be tested. The conclusions have been drawn by
exploratory research work.
There have been two sources of information collected:
a) Primary Sources
I have met retailers of the Airtel of the company and have been able to get
first hand information regarding the product, its features and the buying patterns of
the product. Their input has been valuable.
b) Secondary Sources
Secondary source has played a vital role to play in this report. A good
amount of data has been collected from various published articles and reports
found in magazines and journals. Another vital source has been the Internet and
particularly the companies own website.



DATA ANALYSIS
AND
INTREPRETATION


DATA ANALYSIS AND INTREPRETATION

1. Do you believe that India is potentially one of the most exciting mobile
service providers in the world?
Company Yes
No
Airtel 4 1
Vodafone 4 1
Idea 4 1
MTNL 4 1

As according to the above table 16 (80%) out of the total 20 interviewed
people in all the above four specified Indian mobile service providers are of belief
that India is potentially one of the most exciting mobile service providers in the
world, whereas some 4 (20%) of them do not agree to this view.

0
0.5
1
1.5
2
2.5
3
3.5
4
Airtel Vodafone Idea MTNL
Yes
No


2. Do you find that the governments telecom policy has had the most radical
impact on the development of mobile service providers?
Company Yes
No
Airtel 4 1
Vodafone 3 2
Idea 3 2
MTNL 5 1

people in all the above four specified Indian mobile service providers find that the
governments telecom policy has had the most radical impact on the development
of mobile service providers, whereas some 5 (25%) of them deny this.

0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Yes
No


3. Do you believe that one of the challenges facing mobile operators in India is
the diversity of the coverage regions?
Company Yes
No
Airtel 2 3
Vodafone 3 2
Idea 3 2
MTNL 2 3

people in the mobile service providers are of belief that one of the challenges
facing mobile operations in India is the diversify of the coverage regions, whereas
interestingly another 10 (50%) of them deny this.

0
0.5
1
1.5
2
2.5
3
Yes
No


ONSUMER LEVEL
1. Do you believe that mobile service providers comes close to fulfilling the
requirements for a personal communication system?
Company Yes
No
Airtel 9 1
Vodafone 8 2
Idea 8 2
MTNL 5 5

As the above shows 30 (75%) out of total 40 respondents are of the belief
that mobile service providers comes close to fulfilling the requirements for a
personal communication system, whereas 10 (25%) of them are in no way to this
belief.

0
1
2
3
4
5
6
7
8
9
Yes
No


2. Do you find that mobile service providers as the most exciting and
satisfying mobile standard?
Company Yes
No
Airtel 9 1
Vodafone 7 3
Idea 8 2
MTNL 8 2

As the above shows 32 (80%) out of total 40 respondents find that mobile
service providers as the most exciting and satisfying mobile standard, whereas the
remaining 8 (10%) respondents deny this.

0
1
2
3
4
5
6
7
8
9
10
Yes
No



3. Do you believe that your service provider has a genuine commitment to
creating a modern and efficient communications?
Company
Yes
No
Airtel 10 0
Vodafone 8 2
Idea 10 0
MTNL 8 2

As the above shows 36 (90%) out of total 40 respondents are of the belief
that their service providers have a genuine commitment to creating a modern and
efficient communications whereas the remaining 4 (10%) respondents deny this.

0
1
2
3
4
5
6
7
8
9
10
Yes
No



VERIFICATION



VERIFICATION

1. H1: From the analysis and interpretion it is verified that this product provide
better consumer satisfaction.

Thus H1 hypothesis is accepted.

2. H2: From the data analysis and interpretion it is verified that the perception
of onsumer regarding the service is increase.

Thus H2 hypothesis is accepted.



FINDING



FINDING

1. People prefer Airtel for good service provided.
2. Maximum number of consumers is highly satisfied with AirTel.
3. About 70%, 30%respondents will purchase pre-paid, post-paid services
respectively produced by Airtel.



LIMITATIONS



LIMITATIONS

Every attempt will be taken to obtain the error free and meaningful result
but as nothing in this world is 100% perfect I believe that there will still the chance
for error on account of following limitations-
(1) Respondents unavailability.
(2) Time pressure and fatigue on the part of respondents and interviewer.
(3) Courtesy bias.



CONCLUSION



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.



SUGGESTIONS



SUGGESTION

1. Company should concentrate on the rural areas and make their management
proper by giving employment to the educated people.

2. The company should distribute magazines, house journals to the consumers
to aware them about new schemes and offers

3. New promotional strategies should be adopted by company, like personal
service etc.

4. The company should start taking feedback from consumers about their
product through the way of prescribed forms.



BIBLIOGRAPHY



BIBLIOGRAPHY

WEBSITE:-

http://www.airtel.in/

BOOKS:-

SERVISE MARKETING (S.M.JHA)
MODERN MARKETING (R.S.N.PILLAI, BAGAVATHI)



APPENDIX


APENDIX
QUESTIONNAIRE
NAME: ____________________________________
ADDRESS: ____________________________________
OCCUPATION: ____________________________________

1. Do you believe that India is potentially one of the most exciting mobile
service providers in the world?
Company Yes No
Airtel
Vodafone
Idea
MTNL

2. Do you find that the governments telecom policy has had the most radical
impact on the development of mobile service providers?
Company Yes
No
Airtel
Vodafone
Idea
MTNL

3. Do you believe that one of the challenges facing mobile operators in India is
the diversity of the coverage regions?
Company Yes
No
Airtel
Vodafone
Idea
MTNL


CONSUMER LEVEL

1. Do you believe that mobile service providers comes close to fulfilling the
requirements for a personal communication system?
Company Yes
No
Airtel
Vodafone
Idea
MTNL

2. Do you find that mobile service providers as the most exciting and satisfying
mobile standard?
Company Yes
No
Airtel
Vodafone
Idea
MTNL

3. Do you believe that your service provider has a genuine commitment to creating
a modern and efficient communications?
Company Yes
No
Airtel
Vodafone
Idea
MTNL

Index: A Study On Marketing Strategis of Airtel

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A STUDY ON MARKETING STRATEGIS OF AIRTEL

N.M.D.COLLEGE GONDIA Page 1

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