A

Project Report
On

Comparative analysis of MARKETING STRATEGIES OF

Vodafone & AIRTEL

ACKNOWLEDGEMENT
I Vijsh Vohra, 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 Mrs.Taxila, who has through her 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 Indian Institute of Technology &
Management, Janak Puri

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.

(Vijesh Vohra)

CONTENT
1. Acknowledgement
2. Contents
3. Synopsis
4. introduction
5. Need of the study
6. objectives of the study
7. introduction of the topic

Telecom sector in India

Airtel

Vodafone

Background

Company profile of Airtel

Comparison between marketing strategy of Bharti Airtel and Vodafone

8. Research Methodology

Type of research methodology

Data collection method

Method of collection

9. Data Analysis and Interpretation

10. Swot analysis
11. Suggestion & Conclusion
12. Recommendations

13. Bibliography
14. Questionnaire

INTRODUCTION OF AIRTEL AND VODAFONE

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.

COMPANY PROFILE
OF
AIRTEL AND VODAFONE
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, Mumbai, 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.
The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum geographical

coverage;

Offer multiple telecommunications services to provide customers with a "one-stop shop"

solution;

Position itself to tap data transmission opportunities and offer advanced mobile data
services;

Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational efficiencies.

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
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:

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;

Focus on telecommunications to enable the Company to better anticipate industry trends

and capitalize on new telecommunications-related business opportunities.

The strong brand name recognition and a reputation for offering high quality service to its
customers;

Quality management team with vision and proven execution skills; and

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.

SWOT ANALYSIS
Strengths

Being one of the largest companies in India the company has achieved a degree of
focus in its core business of its products.

It has a strong brand name, superior quality products and an enviable distribution
network.

It has a clear and well-defined organization structure and limits of financial

authority.

Increase in advertisement spends affect the companys margins.

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.
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.

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

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:-

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

5.

To know how the company has been successful in encountering the aggressive marketing
strategies of competitors.

Comparison of marketing strategies

between
Bharti Airtel and Vodafone.

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.

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

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.

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-

MARKETING STRATEGIES
OF
VODAFONE.

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.

Brand positioning by Vodafone

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

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.

mobile services with GSM technology
fixed-line telephone services
Universal Internetworking
VoIP (Voice over Internet Protocol)
Interactive Television
Visual Communication
Broadband Portal
Telecommuting

CHATER-2
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.

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.

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: 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:
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:

Sources of secondary data

Used to obtain information on, Bhartis history, current issues, policies, procedures etc, wherever
required.
# Internet
# Magazines
# Newspapers
# Journals
# Bharti Circulars Store
# Bharti News Letters
# Vodafone Store
# Vodafone Ministore

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.

Scope of the study

# To conduct this research the target population was the mobile users, Who are using GSM
technology.
# Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.
# To these 50 people a questionnaire was given, the questionnaire was a combination of both open
ended and closed ended questions.
# The date during which questionnaires were filled.
# Some dealers were also interviewed to know their prospective. Interviews with the managers of
GSM service providers were also conducted.
# Finally the collected data and information was analyzed and compiled to arrive at the conclusion
and recommendations giion

DATA ANALYSIS
AND
INTERPRITATION

Q-1Under which age group does the maxima mobile user fall?

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- 15% of the total interviewed people.

OCCUPATION

STUDENTS

20%
OTHERS

EXECUTIVES

10%

15%

HOUSEHOLDS

55%

Q-1What

bare

the

different categories of the mobile user ?

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.

Q-3

Market Share
Airtel

vodafone

Reliance

Idea cellular

Others

20%
36%

17%

13%

14%

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.

Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

10%
FULLY

PARTIALLY

20%
DISSATISFIED

10%
FULLY
DISSATISFIED

60%

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.

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.

Monthly Expense

12%

24%
Rs 600

Rs 450

Rs 200

64%

Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the
remaining 12% had an expense more than RS 1000, they could the ones having sim connections or
having cash cards and having a lot of business calls on their mobiles.

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.

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

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.

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?

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, Mumbai, June 25, 2004.

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 2004)
Airtel India page of HT paper (Thursday 1December 2004)
Cowards India (26 December to 4 Jan. 2004)

QUESTIONNAIRE
Name ______________________
Age ____________
Gender Male/Female
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

Q.4 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

Average Below Average

Airtel

Vodafone

Good

Reliance

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

Yes

No

Q.7 If yes, which sources are used?

Magazines

Dealers

Sales Executives

Operators reference

Pamphlets and catalogue

Reference from friends and relatives

Any other

Q.8

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

Q.9.

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

Good Network

Discount scheme

Service package

Any other

Q.10

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

Films

By Camp

24 hrs call center services

Ad

Q.12 How would you rate Airtel performance as your expectation on 5 points scale (5
Highest?)
1

After Sale service

Maintenance

Product as per expectation

Q.13

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

_
_______________________________________________________________________________
_______________________________________________________________________________
_____________________________________