A

RESEARCH PROJECT REPORT

ON

COMPARATIVE ANALYSIS OF MARKETING

STRATEGIES OF AIRTEL & VODAFONE IN DELHI
& NCR REGION
Submitted for the partial fulfillment
Of
Master of Business Administration
Affiliated to
UTTAR PRADESH TECHNICAL UNIVERSITY LUCKNOW
(Session- 2013-2015)

ARYABHATT COLLEGE OF MANAGEMENT AND

TECHNOLOGY DAULA, BAGHPAT
Submitted to :
U.P.T.U., Lucknow

Internal Supervision of :
Mr. Sanjeev Singh
(H.O.D, MBA Deptt.)

VIKASH KUMAR
MBA-IVth SEM
ROLL NO.1340570114

DECLARATION
I, VIKASH KUMAR being a student of MBA IV Sem of ACMT,
MEERUT.

Hereby

declares

that

the

project

report

under

title

Comparative Analysis of Marketing Strategies of Vodafone & Airtel.

Topics Guidance Ms. Garima Sharma (Faculty Of Management),
Meerut is my own work it is the analysis of the big scale sector of
communication. This project involves the big scale services involved in
telecommunication sector provided by Airtel and Vodafone to its
customers.

Thank You
VIKASH KUMAR
MBA IV SEM
Roll no. 1340570114

ACKNOWLEDGEMENT
I Vikash Kumar, sincerely thankful to all those people who have been
giving me any kind of assistance in the making of this project report.
I express my gratitude to Ms. Garima Sharma, (Faculty Of Management),
ACMT, Meerut who has through his vast experience and knowledge has been
able to guide me, both ably and successfully towards the completion of the
project. I express my gratitude to ACMT, MEERUT
I would hereby, make most of the opportunity by expressing my sincerest
thanks to all my faculties whose teachings gave me conceptual
understanding and clarity of comprehension, which ultimately made my
job more easy. Credit also goes to all my friends whose encouragement
kept me in good stead.

Their continuous support has given me the

strength and confidence to complete the project without any difficulty.

Last of all but not the least I would like to acknowledge my gratitude to
the respondents without whom this survey would have been incomplete.
I am also thankful to authority of Airtel & Vodafone for providing me the
information.

VIKASH KUMAR
MBA IV SEM
Roll no. 1340570114

CONTENT
1. Acknowledgement

2. Contents

3. Declaration

4. Objectives of the study

5. Introduction

6. Need of the study

7. SYNOPSIS

8. Introduction of the topic

10

Telecom sector in India

Airtel

Vodafone

Background

12

Company profile of Airtel

13

The magic

22

Comparison between marketing strategy of Bharti Airtel and Vodafone

31

9. Research Methodology

41

Type of research methodology

42

Data collection method

43

Method of collection

45

10. Data Analysis and Interpretation

62

11. Swot analysis

79

12. Suggestion & Conclusion

82

13. Recommendations

84

14. Bibliography
15. Questionnaire

87

NEED OF THE STUDY

1.

To identify the difference between market performance of Airtel industry and

Vodafone.

2.

To study the market of Airtel Industry and Vodafone on big scale

telecommunication sector.

3.

To compare various parameters of marketing strategies, manufacturing

process, technology adopted production policy, advertising, collaboration,
export scenario, future prospect for the two companies and government
policies.

4.

To study the level of customer satisfaction in Airtel & Vodafone.

5.

To study customer buying behavior and factors which influence the purchase
decision process.

6.

To study consumer preferences.

7.

To study the consumer trend in telecommunication sector.

8.

To study competitive marketing strategies adopted by Airtel and Vodafone.

OBJECTIVE OF THE STUDY

1. Every organization has to achieve its organization goals. For this it is very essential for an
organization to know about the view of consumers and their competitive products. This
survey research may be also aimed as to estimate potential buyer for the product. The
objective of the study is as under:-

2. To identify the difference between market performance of Airtel industry and Vodafone.
3. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.
4. To compare various parameters of marketing strategies, manufacturing process,
technology adopted production policy, advertising, collaboration, export
scenario, future prospect for the two companies and government policies .
5. To study customer buying behavior and factors which influence the purchase decision
process.
6. To know how the company has been successful in encountering the aggressive marketing
strategies of competitors.

SYNOPSIS
Telecom Sector In India
Than 125 million telephones network is one of the largest communication networks in
world, which continues to grow at a blistering pace.
The rapid growth in the telecom sector can be attributed to the various pro-active and
positive policy measures taken by the government as well as the dynamic and
entrepreneurial spirit of the various telecom service providers both in private and public
sector. The telecom sector has shown impressive growth during the past decade. Today,
more
Two striking features of this growth viz. increasing preference for mobile phones and
higher contribution of private sector in the incremental growth have predominated the
telecom sector. The share of mobile phones (including WLL mobile) has overtaken the
share of landlines with 62% in the total number of phones. The private sector's contribution
is also increasing rapidly. Currently more than 30 lakh phones are being added each month
and it is targeted that by the end of 2012 the total number of phones may reach a level of
350 million taking the tele-density to more than 30% which is currently at 24.63%.
Network Expansion: The total number of telephone subscribers has reached 281.62
million at the end of January 2012 as compared to 232.87 million in July 2007. The overall
Teledensity has increased to 23.63% in January 2012 as compared to 21.20% in August
2007.
Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last month
compared to 8.17 million in December2007. This pushed the total wireless subscribers base
to 242.40 million by Jan 31 2012.
Wire line Subscribers: The wire line segment subscriber base stood at 39.73 million with
a decrease of 0.16 million at the end of January 2012.
Teledensity: The gross subscriber base reached 206.83 million at the end of March 2007.
The Teledensity is 24.63%at the end of January 2012 as compared to 18.31% at the end of
March 2007, registering an increase of 6%.

Increasing Role of Private Sector: The private sector has played a significant role in the
growth of telecom sector. The share of private sector has risen to 85 per cent in December
2007 from 64.14 per cent in November 2011.
Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to
increased competition. The minimum effective charges for local calls have fallen
considerably in recent months especially for cellular service. The long distance domestic as
well as international charges have also fallen considerably.
Telecom Regulatory Authority of India (TRAI): TRAI was established under the
Telecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goals
and objectives of TRAI are focused towards providing a regulatory framework that
facilitates achievement of the objectives of New Technology Policy

(NTP)

1999.

TRAI has endeavored to encourage greater corporation in the telecom sector together with
better quality and affordable prices.

AIRTEL

Airtel is a brand of telecommunication services in India operated by Bharti Airtel.

Airtel is the largest cellular service provider in India in terms of number of
subscribers. Bharti Airtel owns the Airtel brand and provides the following services
under the brand name Airtel: Mobile Services (using GSM Technology), Broadband &
Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long
Distance Services and Enterprise Services (Telecommunications Consulting for
corporates). It has presence in all 23 circles of the country and covers 71% of the
current population (as of FY07).
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.

VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India Despite the official name being Vodafone Essar, its products are
simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage
throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 license areas.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India . Despite the official name being Vodafone Essar, its products are
simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage
throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 license areas.

10

Introduction
of
the topic

11

BACKGROUND

The project is an extensive report on how the Airtel Company markets its strategies and
how the company has been able in tackling the present tough competition and how it is
scooping up by the allegations of the quality of its products. The report begins with the
history of the products and the introduction of the Airtel Company. This report also
contains the basic marketing strategies that are used by the Airtel Company of
manufacturing process, technology, production policy, advertising, collaboration, export
scenario, future prospect and government policies. The report includes some of the key
salient features of market trend issues.
In todays world of cutthroat fierce competition, it is very essential to not only exist but
also to excel in the market. Todays market is enormously more complex. Hence forth,
to survive in the market, the company not only needs to maximize its profit but also
needs to satisfy its customers and should try to build upon from there.

12

COMPANY PROFILE
OF
AIRTEL

13

Vision
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus
remains unchanged: seek out the best technology in the world and put it at the service of our
ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan of action.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and
innovations to its credit, ranging from being the first mobile service in Delhi, first private basic
telephone service provider in the country, first Indian company to provide comprehensive telecom
services outside India in Seychelles and first private sector service provider to launch National
Long Distance Services in India. Bharti had approximately 3.21 million total customers nearly
2.88 million mobile and 334,000 fixed line customers.
Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi,
Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle,
Maharashtra circle, MuPGDM-Mi, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In
addition, it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh,
Haryana, Delhi, Karnataka and Tamil Nadu and nationwide broadband and long distance networks.
Bharti has recently launched national long distance services by offering data transmission services
and voice transmission services for calls originating and terminating on most of India's mobile
networks.
The Company is also implementing a submarine cable project connecting Chennai-Singapore for
providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart
from being the largest manufacturer of telephone instruments, it is also the first telecom company
to export its products to the USA.
Bharti Tele-Ventures' strategic objective is to capitalize on the growth opportunities that the
Company believes are available in the Indian telecommunications market and consolidate its
position to be the leading integrated telecommunications services provider in key markets in India,
with a focus on providing mobile services.
14

1. The Company has developed the following strategies to achieve its strategic objective:
2. Focus on maximizing revenues and margins;
3. Capture maximum telecommunications revenue potential with minimum geographical
coverage;
4. Offer multiple telecommunications services to provide customers with a "one-stop
shop" solution;
5. Position itself to tap data transmission opportunities and offer advanced mobile data
services;
6. Focus on satisfying and retaining customers by ensuring high level of customer
satisfaction;
7. Leverage strengths of its strategic and financial partners; and
8. Emphasize on human resource development to achieve operational efficiencies.

15

Businesses

Bharti Tele-Ventures current businesses include

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Broadband services with DSL and Wi-Fi network

Competitive Strengths
1. Bharti Tele-Ventures believes that the following elements will contribute to the Company's
success as an integrated telecommunication services provider in India and will provide the
Company with a solid foundation to execute its business strategy:
2. Nationwide Footprint - approximately 92% of India's total mobile subscribers resided in
the Company's fifteen mobile circles. These 15 circles collectively accounted for
approximately 56% of India's land mass;
3. Focus on telecommunications to enable the Company to better anticipate industry trends
and capitalize on new telecommunications-related business opportunities.
4. The strong brand name recognition and a reputation for offering high quality service to its
customers;
5. Quality management team with vision and proven execution skills; and
6. The Company's strong relationships with international strategic and financial investors
such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure
Fund Group and New York Life Insurance.

16

Brand Architecture:
Bharti is working on a complex three-layered branding architecture to:

Create specific brands for each service,

Build sub-brands within each of these services and

Use Bharti as the mother brand providing the group its corporate identity as well

as defining its goal to become a national builder of telecoms infrastructure.

BHARTI

AIRTEL

TOUCHTEL

(Cellular
Operations)

(Basic Service
Operations)

INDIA ONE
(National Long
Distance)

Airtel - The flagship brand for cellular operations all across the Indian
country.
Touchtel - The brand earmarked for basic service operations.
India One - The brand for national long distance (NLD) telephony

17

Though the costs of creating new brands are heavy but the group wants to
create distinct independent brands to address different customers and
profiles.

Brand Strategy:
To understand the brand strategy, lets first look at the brand building exercise associated with
Airtel a brand that had to be repositioned recently to address new needs in the market.
When the brand was launched seven years ago, cellular telephony wasnt a mass market by any
means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a
minute) as well as instrument prices were steep sometimes as much as buying a second-hand
car.
Bharti could have addressed the customer by rationally explaining to him the economic advantage
of using a mobile phone. But Sachdev 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 with the cost.
Instead of the value-proposition model, we decided to address the sensory benefit it gave to the
customer as the main selling tack. The idea was to become a badge value brand, he explains.
So the Airtel leadership series campaign was launched showing successful men with their
laptops and in their deluxe cars using the mobile phone. In simple terms, it meant Airtel was
positioned as an inspirational 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 leadership, dynamism and performance.
These were valuable qualities, but they only took Airtel far enough to establish its presence in the
market. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience.
And the various brand-tracking exercises showed that despite all these good things, there was no
emotional dimension to the brand it was perceived as cold, distant and efficient.
Sachdev and his team realized that in a business in which customer relationships were the core this
could be a major weakness. The reason with tariffs identical to competitor Vodafone telecomm and
roughly the same level of service and schemes, it had now become important for Bharti to
humanize Airtel and use that relationship as a major differentiation.

18

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 cellular market was changing.
The leadership series was okay when you were wooing the crme de la crme of society. Once you
reached them you had to expand the market so there was need to address to new customers.
By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3.77 lakh (it
now has 1.8 million customers). And with tariffs becoming more affordable as cell companies
started cutting prices it was time to expand the market.
How could Bharti leverage this leadership position down the value chain? Surveys showed that the
concept of leadership in the customers minds was also changing. Leadership did not mean
directing subordinates to execute orders but to work along with a team to achieve common
objectives it was, again, a relationship game that needed to be reflected in the Airtel brand.

Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly
through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers
were an important tool for market expansion and Bharti now focused on building closer
relationships with them.
That is precisely what the brand tried to achieve through its new positioning under the Airtel
Touch Tomorrow brand campaign. This set of campaigns portrayed mobile users surrounded by
caring family members. Says Sachdev: The new campaign and positioning was designed to
highlight the relationship angle and make the brand softer and more sensitive.
As it looks to expand its cellular services nationwide to eight new circles apart from the seven in
which it already operates Bharti is now realizing that there are new compulsions to rework the
Airtel brand, and a new exercise is being launched to this effect. Right now, the company is
unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning Airtel as
a power brand with numerous regional sub-brands reflecting customer needs in various parts of the
country.
If Airtel is becoming more humane and more sensitive as a brand, Bharti has also understood that
one common brand for all cellular operations might not always work in urban markets that are now
getting increasingly saturated.

19

To bring in new customers, the company decided that it needed to segment the market. One such
experiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age bracket
and for those who are young at heart. With its earlier positioning, Airtel was perceived as a brand
for the well-heeled older customer; there was nothing for younger people. With Youtopia, Airtel
hoped to reverse that.
In order to deliver the concept, Airtel offered rock bottom tariff rates (25 paise for 30 seconds) at
night to Youtopia customers a time when they make the maximum number of calls. It also set
up merchandising exercises around the scheme like a special portal for young people to buy
things or bid for goods.
The company is now looking at offering other services at affordable prices to this segment which
include music downloads on the mobile and bundling SMS rates with normal calls to make it
cheaper for young people to use.
The other experiment that Bharti has worked on is to go in for product segmentation through the
Tango brand name. The brand was created to offer mobile users Internet-interface services or what
is known as WAP (Wireless Application Protocol).
The idea was to bring Internet and mobile in perfect harmony. The name was chosen from the
popular movie title It Takes Two to Tango: basically, you need the two services to tango to offer
customers a new choice, says Sachdev.
This, however, had less to do with the branding exercise as with inefficiency of service (accusingly
slow download speeds) and the limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise
could be revived because Tango will be the brand to offer GPRS services or permanent Internet
connectivity on the mobile phone which Airtel is expected to launch soon.

20

The Magic
Perhaps the more ambitious experiment has been with Magic the pre-paid card. The idea was to
make the brand affordable, accessible and, most importantly, feasible as a means of expanding the
market even faster.

PHASE I
Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him
that he would have to pay only if he made a call. Such a customer used the phone sparingly
mostly for emergencies and was not willing to pick up a normal mobile connection with its
relatively high rentals (pre-paid cards do not include rental charges).
To achieve its objectives Bharti did three things.

One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no strings
attached and was simple to operate.

Two, the product was made accessible and distributed through small stores, telephone booths and
even kirana shops so that the offering was well within arms reach.

Third, to make the product more approachable to the customer, the company came with
vernacular ad campaigns
Like Magic Daalo Say Hello which appealed to local sensibilities.
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 number of subscribers go up from 5.47 lakh to 1.2 million
today, overtaking Essars branded pre-paid card Speed, which was launched much ahead of Magic.
The company is now re-working its Magic strategy even further.
Earlier, the branding strategy was aimed at roping in only interested customers that is,
customers who were already inclined to opt for mobile services. But now, with basic service
providers having been allowed limited mobility at far cheaper rates, mobile service providers could
find themselves under threat again.
That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is under
wraps, insiders say the new branding strategy would be aimed at offering them value which they
had not perceived would be available from using a pre-paid card.
21

PHASE II 1. Bharti used Airtel Magic to build a strong value proposition and accelerate market
expansion through Indias first national pre-paid card TV brand campaign
2. First time ever in India - any pre-paid card brand goes on TV
3. A combination of the film genre exposed through the TV medium designed to connect with
the masses of India
4. Youth based - romance driven strategy platform makes the value proposition of Airtel
Magic - Mumkin Hai come alive
5. All elements - user imagery, context, tone & language created to connect the category to
the lives of the SEC B & SEC C segment the middle class non-mobile user.
6. Airtel Magic positions itself on the platform of being excellent for emergency situations increasing productivity as a part of everyday life.
7. Sharukh Khan makes everything in life possible while romancing pretty Kareena Kapoor
with Airtel Magic, Indias leading pre-paid mobile card.
8. Airtel today unveiled its strategy for market expansion with the launch of its new Airtel
Magic pre-paid card brand campaign Magic hai to Mumkin hai. The strategy is
targeted at the non-user
segment defined as young adults, 15-30 years of age; in the Sec B & C segment is aimed at
accelerating market expansion. The value proposition is centered around a persons desire to make
all his / her dreams, ambitions & aspirations instantly possible. The new campaign for Airtel
Magic is all about empowering millions of Indians to be on top of their lives.
The brand is positioned to be relevant to the mass-market who want to make all their dreams,
hopes & desires come alive instantly. (At just Rs.300/- per month Airtel Magic is so easy to
buy.) Improving productivity, letting you befriend the world and opening up new horizons. It
gives you the freedom to control your life in a way never possible before. Indeed, anything that
you think is possible is possible with Airtel Magic. The new brand slogan Magic hai to Mumkin
hai has been specially created to capture this effectively.
This strategy is designed to help us talk to this segment directly in the tone, manner & language of
the masses. The Mumkin hai value proposition will help us expand the market and gain a higher
percentage of market shares in the process.
22

The brand aPGDM-Mssadors Shahrukh Khan and Kareena Kapoor embody this can do or
Mumkin Hai spirit (infact that is the reason they were selected as brand aPGDM-Mssadors).
Sharukh rose from a TV actor to become Indias top film star and national heartthrob. Kareenas
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 Mumkin hai and made it happen for themselves.
The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions
across India.

The spirit of romance, dancing the Indian cinema, well known to most as

Bollywood, holds millions of Indians together as one.

The new TV campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the empowering
optimism of Mumkin Hai, in the endearing situation of a boy-girl romance. Where Sharukh
Khan, sets his eyes on Kareena Kapoor and wins her love with the help of Airtel Magic.
(Poignantly conveying that special feeling we all get when a dream is made possible and a victory
of the heart is won).
The strategy & new brand campaign is targeted at the large untapped base of intending mobile
customers from Sec A, B & C. The estimated addressable market of such customers in the next
two years is around 25 million in Airtels 16 states. The new strategy aims at correcting the
perception that the mobile category is useful mainly for business or work related scenarios.
The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide
research and is an integral part of Airtel Magics new multi-media campaign. The campaign has
been created by Percept Advertising.

23

PHASE III Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion
through Indias first national pre-paid card TV brand campaign

First time ever in India - any pre-paid card brand gives such freedom to recharge any value

A combination of the film genre exposed through the TV medium designed to connect with the
masses of India

Youth based - romance driven strategy platform makes the value proposition of Airtel Magic Aisi azaadi aur kahan? come alive

Sharukh Khan Makes everything in life possible Airtel today unveiled its strategy for market
expansion with the launch of its new Airtel Magic pre-paid card brand campaign Magic Hai to
Mumkin Hai. . The value proposition is centered on a persons desire to make all his / her
dreams, ambitions & aspirations instantly possible. The new campaign for Airtel Magic is all
about empowering millions of Indians to be on top of their lives.
The brand is positioned to be relevant to the mass-market who want to 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 in a way never possible
before. Indeed, anything that you think is possible is possible with Airtel Magic. The new brand
slogan Aisi azadi aur kahan has been specially created to capture this effectively.

24

Other Brand Building Initiatives:The main idea is to stay ahead of competition for at least six months. Working on the above game
plan Bharti is constantly coming up with newer product offerings for the customers.
The focus, of course, is to offer better quality of service.

To make the service simpler for customers using roaming facilities, Airtel has devised common
numbers for subscribers across the country for services like customer care, food services and
cinema amongst others.

It will also launch a unified billing system across circles so, customers moving from one place to
another do not have to close and then again open new accounts at another place.

To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000
frequently asked questions and their answers have been stored on the computers.

Bharti expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of
the total new subscriber base) would come from the pre-paid card segment. So, they must be given
value-added products and services which competitors dont provide.

Bharti, for the first time for a cellular operator, has decided to offer roaming services even to its
pre-paid customers, but the facility would be limited to the region in which they buy the card. To
ensure that customers dont migrate to other competing services (which is known as churn and
ranges from 10 to 15 per cent of the customer base every month), the company is also working on
a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of
the phone.

The loyalty program will not be only for a badge value, it will provide real benefits to customers.
The idea is to create an Airtel community.

Another key area which Bharti is concentrating its attention upon is a new roaming service
launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed
directly to his mobile instead of traveling via his home network.

The company also offers multi-media messaging systems under which customers having a
specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the
phone. The cost per picture is between Rs 5 to Rs 7.

25

Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than it is
today. A key area is to increase the number of activation centers. Earlier Bharti had 250 Airtel
Connect stores which were exclusive outlets (for its services) and about 250 Airtel Points which
were kiosks in larger shops. Now activation can be done by all of them, and not only by Connect
outlets, all within 15 to 20 minutes. In comparison, the competition takes two to four hours.

Pre- paid cards are really catching up with the mobile phone users and it is actually helping the
market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, one
need not pay security deposits for picking up a pre-paid card. It is often available even with
paanwalas. As befits a fast-moving consumer service, the game is now moving beyond price to
expanding distribution reach and servicing a well-spread-out clientele with technology and
strategic alliances. Bharti is focusing on two factors to make pre-paid cards more attractive.
Keeping the entry cost low for consumers and making recharging more convenience.

Bharti is in the process of launching a new system in alliance with MuPGDM-Mi-based Company
Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping
a 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 companies to reduce the cost of printing and distributing cards.

Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to
reach its Magic pre-paid cards to subscribers' doorsteps. The company is also joining hands with
local grocery shops which will enable users to recharge their cards by just making a phone call to
the shop. Apart from improving the convenience of recharging, mobile operators are beefing up
their distribution channels. The company is constantly innovating to enhance the value proposition
for its pre-paid service. They are leveraging technology to expand their distribution network and
deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers.

Bharti Cellular has also launched a special service, CareTouch, for high-value, corporate
customers, providing them with instant, single-point access for any assistance they require.
Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills,
service on priority basis, and value-added services without any additional paper work. Bharti
Cellular is offering a range of services without going through an interactive voice recorder
ensuring that they save time. Dedicated CareTouch executives are expected to assist customers
with any service on priority basis. Besides the regular proactive reminder calls for bill payment,
customers can also call CareTouch for bill payments at free of cost.

26

Airtel presented MTV Inbox; the first on-air SMS based interactive music dedication show
exclusively for Airtel and Airtel Magic customers. Highly interactive VJ based show with real-time
feedback mechanism. Both brands joined hands to target the high growth youth segment.

27

Bhartis View on its Branding strategy:First, brand building efforts in todays context have to be seen in a more holistic manner.
Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.
Unflinching orientation to customer needs is the second key success factor. Customers (be it for
industrial products or consumer goods and services) across the world are more informed and, at the
same time, becoming more individualistic in their needs and far more demanding with the passage
of time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer
needs, and then reacting in real-time are essential to attract and retain customer loyalty a key
element of creating brand equity in the present situation.
Customizing the product (and communication of its benefit) to meet the specific needs of various
consumer/customer sub-segments is the third element in creating brand appreciation.
As far as allocation of time and financial resources are concerned, too many companies mistakenly
allocate a disproportionate amount on mere advertising and promotion. This is not to say that
advertising and promotion are less relevant. On the contrary, with more choices and higher media
clutter, businesses need to budget for an increasingly higher spend on their brand promotion but
this has to be undertaken in tandem with enterprise-wide reengineering of the business
philosophy and core design, production, and delivery operations for the product itself.
The positive spin to this argument is that by first addressing the fundamentals, the enterprise itself
becomes more competitive. This can be the beginning of a virtuous cycle wherein brand equity
continues to increase as the enterprise sustains delivery of an appropriate product or service at an
ever increasing value.
It is, however, crucial to note that in the years to come, not only will the cost of building a regional
or a national (or an international) brand will continue to rise but also the time taken to do so will be
longer and will need sustained and focused efforts.

28

Comparison of marketing strategies

between
Bharti Airtel and Vodafone.

29

Purpose of comparison

The sub main purpose of this report is to compare the marketing Strategies adopted by
Bharti Airtel and its rival Vodafone
The comparison shows how both of the companies have been challenging each other to
gain market shares.

Why comparison with vodafone

Bharti Airtel is the leader in telecommunication sector.

Bharti Airtel holds the lion share of market of communication sector.

However, Vodafone has been giving tough competition to Bharti Airtel.

Vodafone is the second largest player and share holder in Communication sector.

Since its launch Vodafone has been adopting aggressive marketing strategies.

The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one
month of its first launch of postpaid subscription in 2002.AD.

30

With a different technology Vodafone creates its own market.

Vodafone odafone. Today deals in every business of communication sector.

Vodafone making and changing the strategies to capture the market shares

31

Brand positioning by Bharti Airtel

Market segmentation

Geographical segment (metropolitans & cities India)

Demographic segment - middle income groups

People age group of 20 to 28 year

Target marketing

People who living in cities and towns.

Poor or middle income group people.

Youngsters in big cities.

Businessmen

Positioning

Creating brands (Sharukh khan & Sachin Tendulker)

Ads and promotions

Promotion for study of poor childrens.

32

Marketing mix

Price:

low price strategy

Place:

maximum outlets and service centers

Product:

verities available for various groups

Promotion:

various schemes for pre-paid and post-paid

33

MARKETING STRATEGIES
OF

VODAFONE.

34

Vodafone target the rural India

The main targeted customers of Vodafone are from rural India.

By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages
and towns.

Offering cheap handsets

Vodafone offers cheap and free connections to all customers.
The cost for these sets was Rs-799-849-1099\set and onward.

Free support and services

In every district and big towns Vodafone opens its service centers to provide better support and
services.

Strong logistics and supply chain

Vodafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the Vodafone SIM & Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices.

35

BRAND POSITIONING
BY
VODAFONE

36

Market segmentation

Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

Marketing mix

Price : low price strategy

Place : maximum outlets and service centers

Product : verities available for various groups

Promotion: various schemes for pre-paid and post-paid

37

Services provided by Bharti Airtel

Mobile services with GSM technology

Fixed-line connections

National and international long distance services

VSAT, Internet services and network solutions

Broadband services

Services provided by Vodafone.

1. mobile services with GSM technology
2. fixed-line telephone services
3. Universal Internetworking
4. VoIP (Voice over Internet Protocol)
5. Interactive Television
6. Visual Communication
7. Broadband Portal
8. Telecommuting

38

RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep study regarding the subject. The prime
objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market
and the impact of WLL on Airtel.
The research methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary data has been used to
support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a faceto-face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.

39

Type of Research Methodology

EXPLORATORY:

TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE; THE OBJECTIVE

OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA WHERE THE
DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE COURSE OF
ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVED USEFUL FOR
GIVING RIGHT SUGGESTION TO THE COMPANY.

40

DATA COLLECTION METHOD

THERE TWO TYPE OF METHOD OF DATA COLLECTION.
COLLECTION.

PRIMARY DATA

SECONDARY DATA

Primary data was collected using the following techniques

Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a faceto-face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.

DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. PRIMARY DATA:
DATA:
PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME
AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER.

QUESTIONNAIRE SURVEY:
IN THE STUDIES A QUESTIONNAIRE IS PREPARED. THE QUESTIONNAIRE
CONSISTS OF 15 QUESTIONS.

SECONDARY DATA:
DATA:
SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY
COLLECTED .THE SECONDARY DATA, WHICH HAS BEEN USED TO CARRY OUT THIS
STUDY, ARE AS FOLLOW:

41

BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS

INDUSTRY REPORTS

COMPANYS INTERNET SITE

SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES..

SAMPLE UNIT:
UNIT: - DELHI & NCR.

THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OF

CUSTOMERS DURING THE ACTIVITIES PERFORMED, WHICH INCLUDED, MARKETS,
COLD CALLING, CANOPIES, ETC.

SAMPLE DESIGN CONSISTS OF RANDOM

SAMPLING.

SAMPLE SIZE:
SIZE: - 50 PEOPLE

42

METHOD OF COLLECTION: FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATION AND
INTERVIEW SCHEDULE IN WHICH THE QUESTIONNAIRES WERE FILED BY THE
INTERVIEWER.
PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS DONE TO
COLLECT THE DATA, MARKET RESEARCH WAS UNDERTAKEN, THAT WAS
ACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES DESIGNED.

RESEARCH INSTRUMENT:
INSTRUMENT:
QUESTIONNAIRE

THE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE FOLLOWING

POINTS:
POINTS: -

GIVING THE RESPONDENTS. CLEAR COMPREHENSION OF THE QUESTION.

INDUCING THE RESPONDENTS TO CO-OPERATE.

GIVING INSTRUCTIONS AS TO WHAT IS NEEDED.

IDENTIFYING THE NEEDS TO BE KNOWN.

43

A brief history of Tele sector in India

In the early 1990s, the Indian government adopted a new economic policy aimed at improving
India's competitiveness in the global markets and the rapid growth of exports. Key to achieving
these goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros (New Delhi, MuPGDM-Mi,
Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The circles
are further classified 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 Department of
Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirtyfour licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular
service was provided by, Modi Telstra in Kolkata 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 had only one
bidder each.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha,
and the president officially announced the TRAI ordinance on 25 January 1997. The government
decided to set up TRAI to separate regulatory functions from policy formulation, licensing and
telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of
the DOT.
High license fees and excessive bids for the cellular licenses put tremendous financial burden on
the operators, diverting funds away from network development and enhancements. As a result, by
1999 many operators failed to pay their license fees and were in danger of having their licenses
withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP]
1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenuesharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the
government.

44

INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in 2013-96 was beset by
several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of
these roadblocks / current position is tabulated below:

45

ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of
license fees.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at over 60% per annum, while
businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5
major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all
operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making
roles vested in different bodies.
Issues relating to unfavorable interconnect terms for private operators, pass through income, intra
circle long distance, spectrum availability and allocation and the like remained unresolved for long
periods.
Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI
(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in
methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared
with vacation of frequencies for usage by GSM operators.

46

Problems in Financial closures due to:

Licensing tenure of 10 years

Large upfront cash requirements from promoters due to heavy license fee burden in initial
stages of deployment Asset based financing approach by Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large upfront cash requirements for license fee payments mitigated with migration to
revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project
financing being considered by most financial institutions.

47

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing
ease of entry / exit - paves the way for full control of businesses by foreign companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
measures taken, market / subscriber base expected to zoom.

48

2.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased
against the former.
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 of over one billion people.
In recent years, many foreign companies had pulled out from their cellular joint ventures in India
due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out
from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand
and Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha
Martin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001,
British Telecom exited from Bharti Cellular. Bell South International has also indicated its
intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking to
sell its stake in Spice Communications. First Pacific's (based in Hong Kong) continued
commitment to Escotel is uncertain, and the former is reviewing various options.
The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping
across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via
Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December
1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership with
local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel and
Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian
cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max
Telecom. Not to be outdone, Bharti Enterprises another major cellular player acquired
control of JT Telecom, which was later renamed Bharti Mobile (December 1999), and Skycell
Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab license
of Essar and started operations, giving competition to the lone operator there, Spice
Communications. Going forward, Bharti is likely to merge all its cellular companies into one
entity.
Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four
metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed by
Escotel with four, Hutchison with three, and Vodafone and Idea cellular with one each. Bharti and

49

Hutchison have already commenced operations in all the circles while Idea is set to launch in
Delhi. Escotel and Vodafone have not made any headway.
BHARTI, the third cellular operator for Delhi and MuPGDM-Mi, started services in March 2001.
BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in
January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled
for 2 October 2002. However, this has been postponed until after mid October. Once BSNL rolls
out its service, most telecom circles will have four cellular operators. There will be tremendous
competitive pressure, which will result in lower tariffs. Future rate cuts are expected, which will
drive demand, together with falling handset prices and the introduction of prepaid services.
In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initial
public offering (IPO) in January 2002. 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 be used to fuel its investment in long-distance, basic and cellular
services.
As of October 2002, only BPL Mobile has launched commercial general packet radio service
(GPRS) in MuPGDM-Mi. However, large-scale uptake remains elusive. While both Bharti and
Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly
any applications, the success of GPRS remains a question.

In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was taken over by
the United Kingdom based telecommunication company name Vodafone telecomm services and
comes with the name of Vodafone essar.
Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication Maharashtra
in 2012.
Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take over
first rainbow in Rajasthan with CDMA network criteria.

50

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively promoting their
brand and service portfolio through high-visibility advertising and promotional campaigns.
Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on
hoardings and kiosks. Public transport like the city
rail system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the establishment
of longstanding consumer benefit programs. Orange in MuPGDM-Mi offers "Orange Holidays"
and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare,
food and beverages, among others. Others offer special privileges in retail outlets, cinemas and
music shops.

51

Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators have
concentrated on offering differentiated services for businesses. However, as operators realize that
offering basic voice and Short Message Service (SMS) will get them the numbers but not the
margins, some are now seriously looking at the enterprise segment for provisioning superior
services.
Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and
instant alerts are being offered.
A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the
process of introducing a facility to fleet management companies so that they can improve the
efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route
planning. Premium automakers are also installing a global system for mobile communications
inside a vehicle to help trace lost vehicles and track down stolen cars.
Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls
can be barred, limiting access to select numbers and diverting calls to one single number.
Broadcasting services are also quite popular, especially among fast food centers that have a central
number. Group SMS is quite popular, especially among enterprises both in the service as well as
the fast-moving consumer goods (FMCG) segment that have a large field force and need to
provide regular updates on inventory status, discount schemes and movement of goods from
warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward
transactional alerts to their customers.

2.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.

The implementation of enhanced networks like 2.5G will enable operators to offer data services.
This is an opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI means that prices will no longer be
controlled, thus there is less chance of a cartel being formed.

52

Network coverage in terms of geographic spread and quality of coverage is crucial especially for
the business subscriber.

The bigger the service provider's national presence, the better it is for businesses. On the roaming
front, signing up with a national operator is advantageous.

Limited mobility wireless in local-loop services (by fixed network service providers) will be a
disadvantage for cellular operators in the short term. Consequently, operators need to streamline
their customer relation activities and adopt aggressive subscriber acquisition and retention
strategies.

53

2.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A
document buried in the sands of time. The next major policy document, which was produced, was
the National Telecom Policy of 2013, a consequence of the on going process of liberalization.
Year

Event

1851

First telephones in India

1943

Nationalization of telephone companies

1985

DOT was created

1986

Creation of BHARTI and VSNL

1991

Telecom equipment liberalized

2013

Licenses for paging

2013

Telecom policy announced

September 2013

Guidelines for private sector participation in basic services

November 2013

Cellular licenses issued for metros

December 2013

Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995

Tenders for 2nd operator in basic services apart from DOT on

circle basis.

August 1995

VSNL launches Internet services

January 1996

TRAI formed

November 1998

Internet policy announced

The National Telecom Policy of 2013 document, which laid out broad policy guidelines rather than
a series of action points. Like other policies, it sought to achieve the impossible in finite time like
improve quality of service and its availability, wide coverage (a phone in every village), at
reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines,
telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private
operators in value added services. To facilitate licensing, the nation was divided into 20 circles
(akin to a state) for basic and 21 circles for cellular telephony. MuPGDM-Mi falls in Maharashtra
circle and Delhi in itself a circle.

54

The basic premise on which competition has been introduced is that every circle will have one
private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/ BHARTI
have the option to become the third cellular operator in future.
Government did not achieve most of its stated targets. The basic theme, which was broadening the
reach of telephony in India, has not been met. Even liberalization policies were not implemented
properly. 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 affected by the resource crunch, and financing
options like BOT, 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 because of improper implementation, the economic costs are still borne
by the end user.
The telecom sector has witnessed some fundamental structural and institutional reforms in the past
decade. Telecom equipment manufacturing was completely deregulated in 1991. Value-added
services (including cellular services) were thrown open to private sector participation in 1992.
Basic services were opened to private participation in 2013 by dividing the country into 21
telecom Circles and allowing one private operator per Circle to compete with DOT. An
independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet
Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to
enter the sector ending the earlier monopoly of VSNL. Reorganization of DOT, separating
policymaking function and service provision and corporatization of DOT's operational network are
two major institutional reforms, which need to be implemented.

55

Scope of the study

1.

To conduct this research the target population was the mobile users, Who are using GSM
technology.

2. Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.
3. To these 50 people a questionnaire was given, the questionnaire was a combination of both
open ended and closed ended questions.
4. The date during which questionnaires were filled.
5.

Some dealers were also interviewed to know their prospective. Interviews with the
managers of GSM service providers were also conducted.

6.

Finally the collected data and information was analyzed and compiled to arrive at the
conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Bhartis history, current issues, policies, procedures etc, wherever
required.
1. Internet
2. Magazines
3. News papers
4. Journals
5. Bharti Circulars Store
6. Bharti News Letters
7. Vodafone Store
8. Vodafone Ministore

56

Data analysis
And
Interpretation

57

Subscriber numbers in (mn) held by Vodafone and Airtel

Airtel
Vodafone

June-08

Sep-09

Dec-10

Mar-11

Dec-12

Mar-13

3.19
1.82

4.62
4.19

5.50
6.24

6.54
7.26

10.98
10.45

14.07
12.99

Source TRAI:

58

MARKET PLAYERS IN TELE COMMUNICATION

Operator

Market

share Market

Aug''08
Bharti Airtel
19.06
Vodafone
21.81
Vodafonecomm 17.03
Idea Cellular
10.45

Aug''12
22.49
16.96
16.01
8.49

share

59

FINDINGS AND ANALYSIS

Age Group Graph

As we can see from the above graph, the people who are in the age group of 21-28 years are the
ones who are the maximum users of mobile phones. This segment is the one which gives
maximum business to the mobile operators. This segment constitutes the young 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
15% of the total interviewed people.

60

Occupation Graph

OCCUPATION
10%

15%

20%

55%
STUDENTS

EXECUTIVES

HOUSEHOLDS

OTHERS

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 mobile phones. They are the young executives,
managers, Tele - callers etc. who require mobile for their official purposes. The next category is
the households, who are either housewife, small units which operate from their homes etc. They
are 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of
the whole is categories who are the professionals.

61

Service Provider Graph

These are the total market share of mobile user or people captured by the mobile provider
company. There two major company in mobile phone service sector Vodafone and Airtel who
respectively hold the market share with other company as 17% and 20% of total market user
segment of mobile customer.

62

Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

10%

20%

10%
60%
FULLY

PARTIALLY

DISSATISFIED

FULLY DISSATISFIED

As the above graph clearly shows that customer services at Airtel 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 services of Airtel. This could leave an impact on
the mind of the consumer. He can even switch over his brand. 20% of the people seemed partially
satisfied with the customer services and only 10% seem to be fully satisfied with Airtels customer
services, which is a very small amount.

63

Type Of Card Graph

Cash cards seemed quite popular among the people interviewed. 85% 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 having sim connections which is the
regular bill.

64

Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
Monthly Expense

24%

12%

Rs 600
Rs 450
Rs 200

64%

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 connections or
having cash cards and having a lot of business calls on their mobiles.

65

Awareness About WLL Graph

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. Only, 55% people knew what WLL is all about.

66

Awareness of WLL Players Graph

Vodafone was the brand which was popular amongst the interviewed people. As Vodafone had
done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be
one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly,
because of less promotions done by them as compared to Vodafone.
On the basis of analysis of the questionnaire I have found that the maximum no. of people who
use mobile phones is in the age group of 20 to 28. Who are the young executives and other office
goers?
They spend a maximum of RS 500 as their mobile expense.
There is more no. of prepared cards than post paid cards. The mobile users want to spend money
side by side than to spend money at the end of the month on a big bill.
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 services and billing accuracy Airtel is at par or ahead
of its competitor 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 maximum no. of connections, so
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it must improve upon it customer services. As far as WLL is concerned people are aware about it
but not many people are aware about Tata. They only know more about Vodafone. People at this
point of time are not interested to switch over from GSM to WLL

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Customer Response towards

Questionnaire

69

Which Brand you, prefer most?

Airtel

Vodafone

Reliance

TATA

Idea

70

How long you have been using this Product?

0-2 Years

2-5 Years

5-10 Years

More than 10 years

Consumers response shown in chart for usage

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Are you using other product with Airtel?

Yes

No

Here are the customer responses about the use of the Airtel product and other
product rather than Airtel.
in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown
interest in other telecom products in urban areas.

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Do you collect any information search before making

purchase?

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SWOT ANALYSIS
Strengths
1. Being one of the largest companies in India the company has achieved a degree of
focus in its core business of its products.
2. It has a strong brand name, superior quality products and an enviable distribution
network.
3. It has a clear and well-defined organization structure and limits of financial
authority.
4. Increase in advertisement spends affect the companys margins.
5. The companys bottom line falls victim to the bloated and 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.

Opportunities:

The company's financial performance can receive a major 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.

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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 as vagaries 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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LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints that
we underwent during the study. The following points in this direction would add to our total
deliberations:1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2.

The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/whole sellers refuse to cooperate with the queries.
5. Some retailers/wholesalers gave biased or incomplete information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience due to short period of time.
8. Some retailers did not answer all the questions or do not have time to answer.

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SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and image of the
products concerned.
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.
4. PRICE
* Price should be as competitive as other company maintains
* Distribution of new connection should be in reach of customer pocket

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CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel lagged behind its
competitors as far as customer service and availability is concerned. The maximum no. of people
who use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of
mobile connections, as they are consumer friendly and recharging the connection is not a problem.
Maximum no. of people spends RS 500 on their connections. As Airtel is the only company having
the maximum no of mobile connections so 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 Aisi azaadi aur kahan
has already became popular in market. So we can say that in spite of so many competitors in the
market Airtel is having a good position just because every time, it tries its best to understand the
need of its important customers.
From the comparison and deep analysis of every aspect of business of both the companies we can
conclude that bharti Airtel has to more work in every field of communication business.
It is the time not only to survive but to sustain in the market for a long time.
For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and
when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of population of India
lives in these areas.
The other segment may be costumers of all age groups.

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RECOMMENDATIONS

I have made following recommendation to the company after doing the summer training there:

The company should modify its credit policy as they only target the cash paying customers
who are not easy to trace.

The company should emphasis more on the quality of Pharmaceuticals Products it was
mostly claimed by the exporters that their receipts from company doesnt matches with the
samples quality shown before giving orders.

The company should make its marketing strategy flexible enough in order to face
competition.

The company should keep an eye on the proper delivery of the goods to exporter on time,
as it has been recommended by exporters to make the delivery on time.

The company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then he may continue buy the goods and can be a
permanent customer for the company.

The company should offers such rate in the market so that it may able to catch a bigger
market share and it should be able to compete with the local traders and commission agents while
having a brand name.
The company should take the opinion of exporters from time to time to know what problems they
are facing from the companys side. And if any change they require in present supplying
condition?

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BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in details the following
Books, Magazines/Journals and Web Sites have been referred. All the material detailed below
provides effective help and a guiding layout while designing this text report.
Books :
Principles of Marketing Philip Kotler & Kevin keller edi. 12
Market Research D.D. Sharma
Research Methodology C.R. Kothari
Websites:

www.Airtelworld.com
www.google.com
www.india.com
www.Vodafone.in
http://www.blonnet.com/2004/06/26/stories/2004062602180700.htm, MuPGDM-Mi, June 25,
2013.
com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming.htm, 4 November 2003
Domain, Missed Call, at http://www.domainb
Magazines:
Airtel (2 July to 10 July 2013)
Airtel India page of HT paper (Thursday 1December 2004)
Cowards India (26 December to 4 Jan. 2004)

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QUESTIONNAIRE
Dear Sir/Madam,
I BRIJESH KUMAR, student of MBA of KISHAN INSTITUTE OF
INFORMATION TECHNOLOGY, MEERUT.

I am doing my project on Comparative

analysis of marketing strategy of Vodafone and Airtel. Please give your precious time for
filling these details.
Q.1 Name those companies which provide telecom services now a days?

Airtel

Vodafone

Reliance

TATA

Idea

Q.2 which mobile company services you are using now a days?

Airtel

Vodafone

Reliance

TATA

Idea

Q. 3 Among them, which Brand you, prefer most?

Airtel

Vodafone

Reliance

TATA

Idea

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Q.2 How long you have been using this Product?

0-2 Years

2-5 Years

5-10 Years

More than 10 years

Q.3 Are you using other product instead of Airtel?

Yes

No

Q.5 how would you rate the experience with Brand?

Excellent

Airtel

Vodafone

Reliance

Good

Average Below Average

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Q.6 Do you collect any information search before making purchase?

Yes

No

Q.7 If yes, which sources are used?

Q.8

Magazines

Dealers

Sales Executives

Operators reference

Pamphlets and catalogue

Reference from friends and relatives

Any other

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

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Q.9.

Q.10

Which of these marketing / sales schemes attracts you while purchasing any connection?

Good Network

Discount scheme

Service package

Any other

If you have to purchase a new connection or product in near future, which Brand will you

go for and why?

Q.11

_________________________________________________

_________________________________________________

_________________________________________________

Are you aware of various promotional activities being run by Airtel,

if yes then how?

Are you satisfied with these promotional activities?

Very
Satisfied

Satisfied

Somewhat Not
Satisfied

satisfied

Customer Care
By Ad Films
By Camp
24 hrs call center services

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Q.12 How would you rate Airtel performance as your expectation on 5 points scale (5
Highest?)

After Sale service

Maintenance

Product as per expectation

Q.13

What are you suggestions for improving the product quality, service availability and

parts availability?

______________________________________________________________________
______________________________________________________________________
________________________________________________________

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