An

Assignment
On

Comparison between any two Competitive Companies

Submitted in partial fulfilment of the requirement

For the Award
Master of Management Studies

Under the Guidance of

Prof. Mona Sinha

Submitted by:-
Vailankanni D’souza
MMS SEM I
Roll no. 12
 INTRODUCTION

Why Airtel v/s Vodafone

The dominant players in India are Airtel, Reliance Infocomm, Vodafone, Idea cellular and
BSNL/MTNL but Vodafone drew my attention with its marketing strategy and Airtel with its
Innovations and product development. To me both are striving hard to sustain the market
pressure, playing their cards well & very good competition for each other.

Industry Profile
A midst all the talk of slowdown in the Global world, telecom is one sector that has had a
fairly good year in terms of subscriber additions and revenue growth in 2009. However, even
as this gives some reason to cheer for the telecom incumbents, there are a few trends in key
metrics of the companies that suggest increasing pressure on margins. After the
telecommunication policies were revised to allow private operators, companies such as Bharti
Telecom, Tata Indicom, Reliance MTNL, Idea, Vodafone and BPL have entered the space as
Major Operators in India.

COMPANY PROFILE
Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom services
providers with operations in India and Sri Lanka. Bharti Airtel since its inception has been at the
forefront of technology and has pioneered several innovations in the telecom sector.
• The largest wireless service provider in the country, based on the number of customers
as of September 30, 2009.
• Offers an integrated suite of telecom solutions to our enterprise customers, in addition to
providing long distance connectivity both nationally and internationally. We also offer DTH
and IPTV Services.
• The company also deploys, owns and manages passive infrastructure pertaining to
telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of
Indus Towers Limited. Bharti Infratel and Indus Towers are the two top providers of passive
infrastructure services in India.
• With effect from April 24, 2006, the name of the Company has been changed from
Bharti Tele-Ventures Limited (‘BTVL’) to Bharti Airtel Limited.
Fact sheet
Name Bharti Airtel Limited.

Business Description Provides GSM mobile services in all the 22

telecom circles in India, and was the first private
operator to have an all India presence. Provides
Telemedia services (fixed line and broadband
services through DSL) in 95 cities in India.

Established July 07, 1995, as a Public Limited Company

Revenue: Rs. 369,615 million (year ended March 31,

2009-Audited)

EBITDA: Rs. 151,678 million (year ended March 31, 2009

- Audited)

Shares in issue: 3,796,842,330 as at Sept 30, 2009

Listings: The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited
(NSE)

Market capitalisation: Approximately Rs 1,236 billion as on 30th Dec

2009

Customer base: 110,511,416 GSM mobile and 2,928,254

.Telemedia Customers (status as on Sept 30,
 MARKETING STRATEGY

AIRTEL:

Market
Airtel has targeted the bottom of the pyramid - C K Prahalad Concept

Market segmentation:
•Geographical segmentation – metropolitan & cities India
•Demographic segmentation - low & middle income group
•People age group of 20 to 28

Target market:

• People living in cities and towns

• Poor and middle income groups
• Youngsters in big cities
• Businessmen

Positioning
• Creating brands
• Ads and promotion

Marketing mix
• Price-low price strategy
• Place-maximum outlets and service centers
• Product -varieties available for various group
• Promotion -various schemes for prepaid and postpaid

Marketing Strategy
Airtel strategy is to be leader in:-
 Innovations
 Network
 Offers and Services
Strategy of making customers educated about the services like: -
 1. “ What is roaming?”
2. “ What is coverage area?”
3. “ How to make international calls?”
 Airtel adopted the product driven communication to make their
products successful in the market and also emotional communication to target younger
people.

Strategies Introduction Growth Maturity

Create product Maximise market Maximise profits whole
Marketing objectives
awareness and trial share defending market share

Product Offer a basic Offer value added Increase in number of

product/ service. services value added services.

Price Charge cost- plus Price to penetrate Price to match or best

market competitors

Distribution Build selective Build Intensive Build more intensive

distribution distribution. distribution.

Advertising Build product Build awareness and Stress brand differences

awareness among interest in the mass and benefits.
early adopters and market
dealers.

Sales Promotion Use heavy sales Increase to build and Increase to encourage
promotion to entice maintain relationships brand-switching.
people to subscribe. with customers.

Brand Ambassadors:
• Famous celebrities: Shah Rukh Khan, Sachin Tendulkar , A R Rehman,
Kareena Kapoor, Saif Ali khan.
 VODAFONE:

Market

Vodafone has targeted the bottom of the pyramid - C K Prahalad Concept

Market segmentation: Vodafone is adopting a multi-segment approach.

Geographical segmentation – metropolitan & cities India

• Vodafone wants to expand into the Asian markets.
• India has 2nd largest market for mobile. It is growing at the rate of 6 million
subscribers per month.
Demographic segmentation: low & middle income group

Target market:
• Market from urban areas from middle and upper middle class families
• Youngsters in big cities
• Businessmen

Positioning: -
• “Where you go the network follows you” by Hutch, now Vodafone
• Ads and promotion

Marketing mix:
• Price-low price strategy
• Place-maximum outlets and service centers
• Product -varieties available for various group
• Promotion -various schemes for prepaid and postpaid

Marketing Objectives
Vodafone says that they want to be the top mobile service provider of India by
the end of the year 2010
 Marketing Strategy
• Our strategic objective is Innovate and delivers on our customers’ total
communications needs.
• Vodafone, too, needed to educate consumers about cellular telephony: -
− Can I call STD?
− Can I use my phone in a lift?
− What is airtime?
• Vodafone also communicates regularly with its customers to keep them well informed
of the benefits of all Vodafone products.

Focus on free cash flow generation and Progress

execution
Drive operational – Value enhancement – Launched new products in a number of markets,
performance which offer customers more value in return for
– Cost reduction increased commitment
– Accelerated £1 billion cost reduction programme;
expect to achieve 65% in 2010
Pursue growth – Mobile data – Expanded range of data devices with the
opportunities in – Enterprise BlackBerry Storm, iPhone and netbooks with built-
total in broadband
communications – Broadband – Revenue growth of 9% in Vodafone Global
Enterprise
– 1 million new fixed broadband customers; closing
base of 4.6 million
Execute in emerging – Delivery in existing – Nationwide footprint in India
markets markets – Commenced operations in Qatar since year end
– Acquired Gateway in Africa to strengthen total
– Selective communications portfolio
expansion/ cautious
approach
Strengthen capital – Shareholder returns – Returned over 87% of free cash flow before
discipline license and spectrum payments to shareholders in
– Clear priorities for the 2009 financial year
surplus capital – In-market consolidation through merger of
Vodafone Australia with Hutchison 3G Australia
Brand ambassadors:

• Hutch, as a brand, always tried to connect with consumers in a simple, honest and real
manner,
• The “The Hutch pug.” and the actor Irfan Khan were retained for the brand
promotions.
While Vodafone - a younger and fun brand. Zoozoo enters market
• ZooZoo, small pseudo-animated character with big egg-shaped head, round belly but
extremely thin arms and legs, the new brand ambassador of Vodafone, has created a furor
in the advertising industry. Zoozoos have been successful in giving Vodafone a makeover
and establishing maximum brand presence.

Comparing the two rivals,

Competitive Analysis (positioning strategy)

Vodafone has veered towards
warmth and emotions
Vodafone used the powerful visual
imagery of a dog.
Vodafone introduces Zoozoo, a
character making place in people’s
heart
Airtel is focused on functionality and
efficiency.
Airtel chose to use music, which is
not nearly as effectively
Airtel still uses the Celebrities and
Music comparatively nowhere next to
Zoozoo
 HUMAN RESOURCE POLICIES

AIRTEL:
Human resource:

Airtel values its human resources and its HR policies are aimed at targeting and retaining best
talent in the industry.

The key functions of the HR Committee include the followings:

• Employees Development Strategies.

• Compensation (including salaries and salary adjustments, incentives/benefits bonuses,
stock options) and performance targets for the Chairman and Managing Director (CMD)
and Joint Managing Directors (JMDs) Executive Directors.
• All Human Resources related issues
• Attraction and Retention strategies for employees.
• Other key issues / matters as may be referred by the Board or as may be necessary in
view of Clause 49 of the Listing Agreement or any statutory provisions.

Some Hr policies and practices include:

• A family-day at office, half day leave for birthdays, gifts for anniversaries,
compulsory 10 days off, festival celebration with family, no official meetings on
weekends, five day weeks, concierge services, call center engagement programs etc.
These “care” policies and practices are applied across the organizational levels without
any discrimination

At Bharti Airtel, the ‘Mantra’ for employee delight focuses on 5 Ps – People, Pride, Passion,
Processes and Performance.

• From self-management workshops to aerobics sessions, yoga classes to provision of

relaxation/meditation rooms, the company ensures that every employee keeps a check on
his/her fitness. Tie-ups with leading health service organizations enable the employees to
undertake periodical health check-ups depending upon their age. This facility is also
 extended to employee family members at discounted rates. The company provides
Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses,
accidents and hospital coverage for serious ailments. Apart from these specific
engagements, they regularly organize health check up camps, eye check-up camps and
stress management sessions. At many of the locations, the company has hired
psychologists who undertake personal counseling sessions for employees.

• Bharti Airtel offers a flexible compensation structure to its employees wherein the
employees have the flexibility to structure their fixed component of their compensation
according to their requirements within the ambit of legislation.
• Performance Linked Incentive (PLI) schemes are linked with the variable component
of our compensation structure. This component is linked to both the individual
performance against his/ her set KRAs (Key Result Areas) and the overall performance of
the business entity that an employee belongs to.
• The mechanisms like Performance Management System (PMS) and Talent
Management Process (TMP) are the key sources of identifying the training needs of the
employees and check to competency levels for promotion.

Steps Undertaken Benefits

Young team policy-Average 26 years
Invite criticism from the employees
Employees decide their training needs
Seeks to certify every employee on
quality and IT.
Set up a state-of-the-art learning centre
HR steering committee (HRSC)
Constant monitoring of employees-
given individual targets
Conducts an internal employee
satisfaction survey (PACE)
Has helped the HR department to mould the young entrants
to the company.
With better interaction with the senior managers, the
Employees have began to play a more pro-active role in
team-building efforts
Improve Skills and efficiency of the employees
To train, develop and re-certify the employees on a
continuous basis
To encourage learning within the organisation
The committee meets once a week to discuss various
initiatives and the plan of action on the same.
Performance indicators
The inputs of which go into the company's annual strategy.

Formal job description documents Helped in communicating to each of the employees about
issued our expectations from them, and established role clarity
‘open house' conducted Departments and HR takes up individual grievances
Family group meetings Where in issues other than those related to work are
discussed.
HR interface Every member of the HR department has been assigned two
departments each to discuss and sort out all HR, personnel
and administration issues.
HR Intranet Provides information on HR policies, organisational
structure, training calendar and the house journal.

VODAFONE:

Human resource:

Employee Rights Policy

This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures with an
interest of 50% or more..

The Policy

• It is the policy of the Board of Vodafone Group Plc that the human resources teams
will develop and maintain effective terms and conditions of employment and ensure that
they are applied equitably and consistently and communicated effectively.
• It is each Local Company Chief Executive Officer responsibility to implement
procedures to enable employees who believe they have suffered unfair treatment at work,
to have their concerns investigated promptly and objectively.
• It is the responsibility of each local HR director to put measures and procedures in
place and communicate them appropriately to ensure the above objectives are met.

Recruitment and Managing our People Policy

This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures with an
interest of 50% or more.

The Policy

• It is the policy of the Board of Vodafone Group Plc to ensure that all recruitment
activities are fair and non-discriminatory and both identify and address individual
development needs, potential and opportunities. Recruitment should also recognize the
opportunities, initiatives and changing skill profiles throughout the Group.
 • Each company will implement programmes to ensure employees will receive
continuous training in respect of induction, leadership, professional and personal
development on any existing or new role.
• It is the responsibility of the Local Company Chief Executive Officer to put in place
policies and procedures and communicate them appropriately to ensure the above
objectives are met.

People

As a global organisation, Vodafone employed an average of around 79,000 people worldwide

during the 2009 financial year. The Group aims to attract, develop and retain the best people
by providing a stimulating and safe working environment, offering attractive performance
based incentives and rewarding career opportunities.

Organisation changes

Vodafone changed the shape and size of its organisation during the 2009 financial year to
accommodate growth within the business as well as to create a leaner, more agile structure
with clearer reporting lines and accountabilities across the Group.

• As a consequent of these changes, approximately 1,900 jobs were eliminated.

• Despite these reductions, the overall number of people working for Vodafone grew
by 9%, due to growth in emerging markets and business acquisitions.
• People whose jobs were affected by the organizational changes were treated in line
with Vodafone policy and good practice on employee relations and consultation.

Steps Benefits

People engagement - Targets and actions Employee engagement increased by four

have been identified to build upon and percentage points to 75%
sustain the high level of engagement
achieved.
Performance management- each individual’s • 96% of employees completed
performance to be reviewed with his or her performance review.
manager and career development goals to be
set through a performance dialogue. • 95% of employees agreed goals.
Training and development-
Launched Inspire, a development
programme for the leaders of tomorrow
Equal opportunities and diversity - offers
equal opportunities for all aspects of
employment and advancement regardless of
race, nationality, sex, age, marital status,
disability or religious or political belief.
People with disabilities are assured of full
and fair consideration for all vacancies
Every effort is made to continue the Via job design and the provision of additional
employment of people who become disabled facilities and appropriate training.
Reward and recognition
Health, safety and wellbeing
Employment policies
Comparison of the two rivals Hr policies,
In the 2009 financial year, Vodafone provided
an aggregate of 230,000 days of training, an
average of three days per employee.
Inspire has a total of 70 delegates from across
17 countries on the programme, with a further
intake planned in the 2009 calendar year.
• 13% of senior employees and three
operating company CEOs are female.
• 23 nationalities are represented in top
management bands.
Modifications to workplaces are made to
provide access and therefore Job opportunities
for the disabled.
• Extension of reward differentiation
based on individual performance.
• A variety of share plans are offered to
incentivise and retain employees.
• Introduction of group wide product
safety and assurance policy.
• Increasing importance placed on
integration into operating companies in
developing markets.
• Improvement in employee wellbeing
initiatives.
• Policies are developed to reflect local
legal, cultural and employment
requirements.
• Vodafone aims to be recognised as an
employer of choice.
Both Vodafone and Airtel are giving their best towards the Employee Development but Airtel
excels with the steps undertaken and even won “Company with the Most Innovative HR
Practices in the Asia Pacific Region” at the Asia Pacific HRD conclave held in Mumbai.

CONCLUSION

• Bharti Airtel speedy activity is one of its best attributes that has made it gain an
international status across the world. It is always updated with the latest data and is
highly competent. Quality remains the prime concern and is maintained strictly by
the team.
• Vodafone sets a perfect example of a well-laid out marketing strategy, Zoozoo
captured attention of nearly two billion people during the IPL. People eagerly
waited for breaks between matches to see more stories about Zoozoo.
• Bharti Airtel concentrates more on Innovation and Product Development e.g.
IPTV Services where as Vodafone is known for its Customer Service.