Escolar Documentos
Profissional Documentos
Cultura Documentos
CONTENT
Chapter 1
Introduction
Methodology
Limitations
2. Company Profile
Airtel
Vodafone
Background
Company profile of Airtel
The Magic
Comparison between marketing strategy of Bharti Airtel and Vodafone
3. Product Profile
4. Data Analysis and Interpretation
5. Suggestions and Conclusion
Annexure
Bibliography
Questionnaire
1
CHAPTER 1
INTRODUCTION
INTRODUCTION
NEED OF THE STUDY
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS
2
Executive Summary
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.
3
Chapter 1
Introduction
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.
4
To study customer buying behavior and factors which influence the purchase
decision process.
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:-
To study customer buying behavior and factors which influence the purchase
decision process.
To know how the company has been successful in encountering the aggressive
marketing strategies of competitors.
To study the various ways through which the companies competing with
packages.
5
Scope of the Study
The study of the short message service has been taken from 100 respondents. The
survey has been conducted through questionnaire in Shivamogga city from the
following categories: Students, Employees, Businessmen and Homemaker
To conduct this research the target population was the mobile users, Who are using
GSM technology. 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 given.
RESEARCH METHODOLOGY
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.
Questionnaire Method
Observation Method
The main tool used was, the questionnaire method. Further direct interview
method, where a face-to-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.
6
Data Collection method
Primary data
Secondary data
Questionnaire Method
Observation Method
The main tool used was, the questionnaire method. Further direct interview
method, where a face-to-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:
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:
Industry Reports
7
Used to obtain information on, Bharti’s history, current issues, policies,
procedures etc, wherever required.
Internet
Magazines
Newspapers
Journals
Vodafone Store
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.
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:
The questionnaire was formulated by keep in mind the following Points: -
8
Limitations
The project was done with all the possible accuracy and honesty. However, there
were some limitations of the project due to which there may be some deviations in
the findings.
Some of the limitations are as follows:
The covered region was not whole Shivamogga city area, it was randomly
taken area in Shivamogga .
The respondents were not always ready to answer.
Due to time limit and business, respondents were Reluctant to answer.
In some cases there were absence of Decision maker.
9
Chapter 2
Company Profile
10
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,
Mumbai, 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. Thirty-four 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.
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
revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to
be paid to the government.
11
Indian cellular market - earlier roadblocks and their resolution
12
Roadblocks
current position
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.
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.
13
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.
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.
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with
corrective measures taken, market / subscriber base expected to zoom.
14
DEVELOPMENTS IN THE CELLULAR INDUSTRY
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.
15
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 Hutchison have
already commenced operations in all the circles while Idea is set to launch in
Shivamogga. Escotel and Vodafone have not made any headway.
BHARTI, the third cellular operator for Shivamogga and Mumbai, 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.
16
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.
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 Mumbai
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.
17
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.
18
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.
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.
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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 1994, 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
1994 Licenses for paging
1994 Telecom policy announced
September 1994 Guidelines for private sector participation in basic services
November 1994 Cellular licenses issued for metros
December 1994 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 1994 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. Mumbai falls in Maharashtra circle and Shivamogga in itself a circle.
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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 1994 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.
21
Telecom Sector in India
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 2008 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%.
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 2008.
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 2008.
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 2008 as compared to 18.31%
at the end of March 2007, registering an increase of 6%.
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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 2006.
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.
23
AIRTEL
VODAFONE ESSAR
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 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.
24
COMPANY PROFILE OF AIRTEL
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 Shivamogga, 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.
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.
25
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.
The Company has developed the following strategies to achieve its strategic
objective:
Position itself to tap data transmission opportunities and offer advanced mobile
data services;
26
Businesses
Mobile services
Fixed-line
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:
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
27
Brand Architecture:
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
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Airtel - The flagship brand for cellular operations all across the Indian country.
India One - The brand for national long distance (NLD) telephony
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, let’s 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 wasn’t 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.
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.
29
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.
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 crème de la crème 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 Shivamogga
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 customer’s 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.
30
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.
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.
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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.
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).
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.
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Third, to make the product more “approachable” to the customer, the company
came with vernacular ad campaigns
This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a
major ad campaign all across Shivamogga, a ruse that saw the number of
subscribers go up from 5.47 lakh to 1.2 million today, overtaking Essar’s 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.
PHASE II -
Bharti used Airtel Magic to build a strong value proposition and accelerate market
expansion through India’s first national pre-paid card TV brand campaign
Youth based - romance driven strategy platform makes the value proposition of
Airtel Magic - ‘Mumkin Hai’ come alive
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.
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Airtel Magic positions itself on the platform of being excellent for emergency
situations - increasing productivity as a part of everyday life.
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 person’s 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.
The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’
or “Mumkin Hai” spirit (infact that is the reason they were selected as brand
ambassadors). Sharukh rose from a TV actor to become India’s top film star and
national heartthrob. Kareena’s 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
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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 Airtel’s 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 Magic’s new multi-media
campaign. The campaign has been created by Percept Advertising.
PHASE III -
Bharti used Airtel Magic to build a strong value proposition and accelerate market
expansion through India’s 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
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 person’s desire to make all his / her dreams, ambitions &
35
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.
36
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.
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.
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 don’t 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 don’t 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.
37
Another key area which Bharti is concentrating its attention upon is a new
roaming service launched in Shivamogga 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.
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.
38
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.
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.
39
Bharti’s View on its Branding strategy:-
First, brand building efforts in today’s 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.
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
40
also the time taken to do so will be longer and will need sustained and focused
efforts.
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.
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.
Vodafone making and changing the strategies to capture the market shares
41
Brand positioning by Bharti Airtel
Market segmentation
Target marketing
Businessmen
Positioning
Marketing mix
42
MARKETING STRATEGIES OF VODAFONE
In every district and big towns Vodafone opens its service centers to provide better
support and services.
In every small town the potential customers can easily purchase the Vodafone SIM
& Sets.
Market segmentation
43
Target marketing
Businessmen
Positioning
Creating brands
Universal Internetworking
Interactive Television
Visual Communication
Broadband Portal
Telecommuting
44
Chapter 3
Product Profile
45
AIRTEL POSTPAID PLANS
46
Airtel Postpaid Plans In Karnataka
47
Plan Details for Starter 149 Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.5 60
Non Airtel Mobiles 0.75 60
All Landlines 1.0 60
National
Airtel Mobile 1.5 60
Non Airtel Mobiles 1.5 60
All Landlines 1.5 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 1.0
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.)
Optional
Activation Charges One Time 199.0 No
Security Deposit One Time 300.0 No
Monthly Rental Monthly 149.0 No
CLIP Monthly 0.0 Yes
Discounts
Destination Description
Voice Call Local
Same SPMobile 200 Local Mins at Rs. 0.0/Min
48
Plan Details for Talk 249 Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.4 60
Non Airtel Mobiles 0.5 60
All Landlines 1.0 60
National
Airtel Mobile 1.0 60
Non Airtel Mobiles 1.0 60
All Landlines 1.0 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 1.0
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.)
Optional
Activation Charges One Time 199.0 No
Security Deposit One Time 300.0 No
CLIP Monthly 0.0 Yes
Monthly Rental Monthly 249.0 No
Discounts
Destination Description
SMS Local
All 100 Local SMS at Rs. 0.25/SMS
VoiceCall Local
SameSPMobile 600 Local Mins at Rs. 0.0/Min
49
Plan Details for Airtel 499 Super Value Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.3 60
Non Airtel Mobiles 0.4 60
All Landlines 1.0 60
National
Airtel Mobile 1.0 60
Non Airtel Mobiles 1.0 60
All Landlines 1.0 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 1.0
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security Deposit One Time 300.0 No
Monthly Rental Monthly 499.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
SMS Local
All 200 Local SMS at Rs. 0.0/SMS
VoiceCall Local
AllMobiles 1000 Local Mins at Rs. 0.0/Min
50
Plan Details for 399 Voice Data Combo Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.3 60
Non Airtel Mobiles 0.3 60
All Landlines 1.0 60
National
Airtel Mobile 1.0 60
Non Airtel Mobiles 1.0 60
All Landlines 1.0 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security deposit One Time 300.0 No
Monthly Rental Monthly 399.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
VoiceCall Local
AllMobiles 600 Local Mins at Rs. 0.0/Min
51
Plan Details for 349 Landline CUG Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.3 60
Non Airtel Mobiles 0.4 60
All Landlines 1.0 60
National
Airtel Mobile 1.0 60
Non Airtel Mobiles 1.0 60
All Landlines 1.0 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security deposit One Time 300.0 No
Monthly Rental Monthly 349.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
VoiceCall Local
AllMobiles 600 Local Mins at Rs. 0.0/Min
52
Plan Details for AirTel Talk 199
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.5 60
Non Airtel Mobiles 0.99 60
All Landlines 1.0 60
National
Airtel Mobile 1.5 60
Non Airtel Mobiles 1.5 60
All Landlines 1.5 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 1.0
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security deposit One Time 300.0 No
Monthly Rental Monthly 199.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
VoiceCall Local
AllMobiles 300 Local Mins at Rs. 0.0/Min
53
Plan Details for Airtel Value 899 Plan-Adv Rental
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.5 60
Non Airtel Mobiles 0.5 60
All Landlines 1.0 60
National
Airtel Mobile 1.5 60
Non Airtel Mobiles 1.5 60
All Landlines 1.5 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Monthly Rental Monthly 75.0 No
Clip Monthly 0.0 Yes
54
Plan Details for Airtel Freedom 549 plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.3 60
Non Airtel Mobiles 0.3 60
All Landlines 0.4 60
National
Airtel Mobile 0.75 60
Non Airtel Mobiles 0.75 60
All Landlines 0.75 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.3
National
All 0.75
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security Deposit One Time 300.0 No
Monthly Rental Monthly 549.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
SMS Local
All 100 Local SMS at Rs. 0.0/SMS
VoiceCall Local
SameSPMobile 800 Local Mins at Rs. 0.0/Min
OtherMobiles 200 Local Mins at Rs. 0.0/Min
VoiceCall National
AllMobiles 100 National Mins at Rs. 0.0/Min
55
Plan Details for Airtel Advantage 199
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.5 60
Non Airtel Mobiles 0.6 60
All Landlines 0.6 60
National
Airtel Mobile 0.5 60
Non Airtel Mobiles 0.6 60
All Landlines 0.6 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 0.6
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security Deposit One Time 300.0 No
Monthly Rental Monthly 199.0 No
Clip Monthly 0.0 No
Discounts
Destination Description
SMS Local
All 150 Local SMS at Rs. 0.0/SMS
VoiceCall Local
All 149 Local Mins at Rs. 0.0/Min
56
Plan Details for Airtel Turbo 249 Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.5 60
All Landlines 0.6 60
Non Airtel Mobiles 0.6 60
National
Airtel Mobile 0.5 60
All Landlines 0.6 60
Non Airtel Mobiles 0.6 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 0.6
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security Depposit One Time 300.0 No
Monthly Rental Monthly 249.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
SMS Local
All 150 Local SMS at Rs. 0.0/SMS
VoiceCall Local
All 149 Local Mins at Rs. 0.0/Min
57
Plan Details for Airtel Freedom 249
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.01 1
All Landlines 0.012 1
Non Airtel Mobiles 0.012 1
National
Airtel Mobile 0.01 1
All Landlines 0.012 1
Non Airtel Mobiles 0.012 1
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 0.5
National
All 0.6
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 199.0 No
Security Deposit One Time 300.0 No
Monthly Rental Monthly 249.0 No
Clip Monthly 0.0 Yes
Discounts
Destination Description
SMS Local
All 150 Local SMS at Rs. 0.0/SMS
VoiceCall Local
All 175 Local Mins at Rs. 0.0/Min
58
Plan Details for Special 5 Plan
Voice Call
Destination Charges (Rs./pulse) Pulse Rate (in sec.)
Local
Airtel Mobile 0.5 60
All Landlines 0.5 60
Non Airtel Mobiles 0.5 60
National
Airtel Mobile 1.0 60
All Landlines 1.0 60
Non Airtel Mobiles 1.0 60
International
International Group 1 6.4 60
International Group 2 9.2 60
International Group 3 9.2 60
SMS
Destination Charges (Rs. / SMS)
Local
All 1.0
National
All 1.5
International
All 5.0
Fixed Charges
Description Payment Charges (Rs.) Optional
Activation Charges One Time 250.0 No
Security Deposit One Time 250.0 No
Monthly Rental Monthly 249.0 No
Clip Monthly 0.0 No
Discounts
Destination Description
VoiceCall Local
AllMobiles 249 Local Mins at Rs. 0.0/Min
59
Vodafone Prepaid plans in Karnataka
Recharge 205
Plan basic
Local Vodafone to Vodafone 50p/min
Local Vodafone to Other Mobiles 50p/min
Local Vodafone to Landlines 50p/min
STD To mobile phones (<200km) 50p/min
STD To landline phones (<200km) 50p/min
Recharge 206
Plan basic
Local Vodafone to Vodafone 1p/sec
Local Vodafone to Other Mobiles 1p/sec
Local Vodafone to Landlines 1p/sec
STD To mobile phones (<200km) 1p/sec
STD To landline phones (<200km) 1p/sec
60
Bonus Card 14
MRP (Rs) 14
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Calls to China at 9p/sec and Malaysia at 6p/sec for 30days
Validity (Days) 30
Access Fee (Rs) 12.69
Service Tax 10.3
Bonus Card 15
MRP (Rs) 15
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Local Vodafone calls at 10p/min for 7days
Validity (Days) 7
Access Fee (Rs) 13.6
Service Tax 10.3
Bonus Card 16
MRP (Rs) 16
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit 600 MB of data usage Free. Valid for 3days
Validity (Days) 3
Access Fee (Rs) 14.51
Service Tax 10.3
Bonus Card 17
MRP (Rs) 17
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Call US and Canada at 4p/sec for 30days
Validity (Days) 30
Access Fee (Rs) 15.41
Service Tax 10.3
Bonus Card 19
MRP (Rs) 19
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Call Malaysia, Singapore, HongKong, Indonesia & Thailand at
6p/sec and Nepal, China at 7.25/min for 30days
Validity (Days) 30
Access Fee (Rs) 17.23
Service Tax 10.3
Bonus Card 21
MRP (Rs) 21
Recharge/Bonus card Bonus Card
61
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit 55 Local+STD mins valid for 3 days
Validity (Days) Free Mins valid for 3 days
Access Fee (Rs) 19.04
Service Tax 10.3
Bonus Card 22
MRP (Rs) 22
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Local Vodafone calls Free between 11pm to 7am for 15days.
Monthly rentals apply
Validity (Days) 15
Access Fee (Rs) 19.95
Service Tax 10.3
Bonus Card 23
MRP (Rs) 23
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit South STD at 30p/min. Applicable on calls to Tamil Nadu &
Chennai, Kerala, Andhra Pradesh, Maharashtra & Goa (excluding
Mumbai)
Validity (Days) 30
Access Fee (Rs) 20.85
Service Tax 10.3
Bonus Card 24
MRP (Rs) 24
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Call Gulf(Excluding Oman) at 12paisa/second for 30days
Validity (Days) 30
Access Fee (Rs) 21.76
Service Tax 10.3
Bonus Card 27
MRP (Rs) 27
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit East STD at 30p/min. Applicable on calls made to Assam, North
East, Bihar, Orissa, UP East, UP West, West Bengal & Kolkatta
Validity (Days) 30
Access Fee (Rs) 24.48
Service Tax 10.3
Bonus Card 32
MRP (Rs) 32
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
62
(Equivalent mins) 0
Benefit Local Vodafone calls at 30p/min, Other Local calls at 40p/min.
STD at 50p/min. Daily 150 Local & National SMS Free.
Validity (Days) 90days
Access Fee (Rs) 29.01
Service Tax 10.3
Bonus Card 33
MRP (Rs) 33
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit Local Vodafone calls at 10pmin for 30days
Validity (Days) 30
Access Fee (Rs) 29.92
Service Tax 10.3
Bonus Card 49
MRP (Rs) 49
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit 129 Local+STD mins valid for 7 days
Validity (Days) Free Mins valid for 7 days
Access Fee (Rs) 44.42
Service Tax 10.3
Bonus Card 56
MRP (Rs) 56
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit 140 STD MINS valid for 15days
Validity (Days) Free Mins valid for 15days
Access Fee (Rs) 50.77
Service Tax 10.3
Bonus Card 89
MRP (Rs) 89
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit All local calls to Vodafone mobile phones at 10p/min for next
90days
Validity (Days) 90
Access Fee (Rs) 80.69
Service Tax 10.3
Bonus Card 95
MRP (Rs) 95
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit 4GB of data usage Free. Valid for 30days
63
Validity (Days) 30
Access Fee (Rs) 86.13
Service Tax 10.3
Talktime 205
MRP (Rs) 205
Recharge/Bonus card Talktime
Talktime (Rs) 185
(Equivalent mins) 318
Benefit All Local & STD calls at 50p/min for one year
Validity (Days) 365
Access Fee (Rs) 0
Service Tax 10.3
Talktime 206
MRP (Rs) 206
Recharge/Bonus card Talktime
Talktime (Rs) 186
(Equivalent mins) 320
Benefit All Local & STD calls at 1paisa/second for one year
Validity (Days) 365
Access Fee (Rs) 0
Service Tax 10.3
64
Bonus Card 26
MRP (Rs) 26
Recharge/Bonus card Bonus Card
Talktime (Rs) 0.00
(Equivalent mins) 0
Benefit STD at Re.1 for 3 minutes for 90days
Validity (Days) 90
Access Fee (Rs) 23.57
Service Tax 10.3
Recharge 40
MRP (Rs) 40
Recharge/Bonus card validity
Talktime (Rs) 34.26
(Equivalent mins) 58.93
Benefit -0
Validity (Days) 0
Access Fee (Rs) 2
Service Tax 10.3
Recharge 51
MRP (Rs) 51
Recharge/Bonus card validity
Talktime (Rs) 51
(Equivalent mins) 88
Benefit Full Talktime. Talktime valid for 7days. (Pls note that you should
have atleast Re.1 balance to make use of this talktime
Validity (Days) 7
Access Fee (Rs) 0
Service Tax 10.3
Recharge 82
MRP (Rs) 82
Recharge/Bonus card validity
Talktime (Rs) 72.34
(Equivalent mins) 124
Benefit -0
Validity (Days) 0
Access Fee (Rs) 2
Service Tax 10.3
Recharge 199
MRP (Rs) 199
Recharge/Bonus card validity
Talktime (Rs) 219
(Equivalent mins) 376
Benefit Get Talktime of Rs.219 with recharge of Rs.199. Talktime valid for
30days(Pls note that you should have atleast Re.1 balance to make
use of this talktime)
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 222
65
MRP (Rs) 222
Recharge/Bonus card validity
Talktime (Rs) 222
(Equivalent mins) 382
Benefit Get Full Talktime with recharge of Rs.222
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 250
MRP (Rs) 250
Recharge/Bonus card validity
Talktime (Rs) 240
(Equivalent mins) 413
Benefit Get Talktime of Rs.240 with recharge of Rs.250
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 300
MRP (Rs) 300
Recharge/Bonus card validity
Talktime (Rs) 300
(Equivalent mins) 516
Benefit Get Full Talktime with recharge of Rs.300
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 301
MRP (Rs) 301
Recharge/Bonus card validity
Talktime (Rs) 301
(Equivalent mins) 518
Benefit Get Full Talktime with recharge of Rs.301
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 333
MRP (Rs) 333
Recharge/Bonus card validity
Talktime (Rs) 333
(Equivalent mins)
Benefit Get Full Talktime with recharge of Rs.333
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 351
MRP (Rs) 351
Recharge/Bonus card validity
Talktime (Rs) 318.22
(Equivalent mins) 604
66
Benefit Get Talktime with recharge of Rs.351
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 402
MRP (Rs) 402
Recharge/Bonus card validity
Talktime (Rs) 402
(Equivalent mins) 691
Benefit Get Full Talktime with recharge of Rs.402
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 501
MRP (Rs) 501
Recharge/Bonus card validity
Talktime (Rs) 454.22
(Equivalent mins) 862
Benefit Get Talktime with recharge of Rs.501
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 701
MRP (Rs) 701
Recharge/Bonus card validity
Talktime (Rs) 701
(Equivalent mins) 1206
Benefit Get Full Talktime with recharge of Rs.701
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
Recharge 1001
MRP (Rs) 1001
Recharge/Bonus card validity
Talktime (Rs) 1001
(Equivalent mins) 1722
Benefit Get Full Talktime with recharge of Rs.1001
Validity (Days) 0
Access Fee (Rs) 0
Service Tax 10.3
67
Customer Satisfaction
Correct weaknesses.
The organization.
68
Chapter-4
69
FINDINGS AND ANALYSIS
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.
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2) Occupation
Occupation No. of respondents Percentage
Student 15 15
Executive 55 55
Household 20 20
Others 10 10
Total 100 100
OCCUPATION
10% 15%
20%
55%
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.
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3) Service Provider Graph
Service Provider No. of respondents Percentage
Airtel 20 20
Vodafone 17 17
Reliance 14 14
Idea 13 13
Other 36 36
Total 100 100
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.
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4) Customer Service at Airtel Graph
Satisfaction level No. of respondents Percentage
Fully satisfy 20 20
Partially 10 10
Dissatisfy 60 60
Fully dissatisfy 10 10
Total 100 100
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
Airtel’s customer services, which is a very small amount.
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5) Type of Card Graph
Card type No. of respondents Percentage
Sim card 15 15
Cash card 85 85
Total 100 100
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.
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6) Monthly expense graph
People on an average spend RS 450 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.
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7) Awareness About Wireless local loop (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 know what WLL is all
about.
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8) Awareness of WLL Players Graph
WLL players No. of respondents Percentage
Vodafone 75 75
Airtel 25 25
Total 100 100
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 Shivamogga. 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?
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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 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
Airtel
Vodafone
Reliance
TATA
Idea
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2. 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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3. 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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4. Do you collect any information search before making purchase?
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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.
The company‘s bottom line falls victim to the bloated and highly paid
workforce, which affects its margins.
Weakness:
Opportunities:
Exports of products will also have huge chances in the coming years.
Airtel’s 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
84
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:-
During the study, on many occasions the respondent groups gave us a cold
shoulder.
The respondents from whom primary data was gathered any times displayed
complete ignorance about the complete branded range, which was being
studied.
Some retailers did not answer all the questions or do not have time to answer.
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Chapter -5
86
SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and
image of the products concerned.
1. PRODUCT
2. PLACE
* The brands must be made available easily in, PCO & general stores.
3. PROMOTION
*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.
4. PRICE
I have made following recommendation to the company after doing the project:
The company should modify its credit policy as they only target the cash
paying customers who are not easy to trace.
87
company doesn’t matches with the sample’s 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 company’s side. And if any change they require
in present supplying condition?
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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.
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Annexure
QUESTIONNAIRE
Dear Sir/Madam,
I am doing my project on “comparative analysis of sales and distribution
between vodafone & airtel”. Please give your precious time for filling these
details.
Yours
1) Name:
2) Age:
3) Address:
4) Qualification ____________
5) Annual Income __________
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11) If yes, which sources are used?
Magazines []
Dealers []
Sales Executives []
Operators reference [ ]
Pamphlets and catalogue []
Reference from friends and relatives [ ]
Any other []
12) 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 []
13) Which of these marketing / sales schemes attracts you while purchasing any
connection?
Good Network []
Discount scheme []
Service package []
Any other []
14) If you have to purchase a new connection or product in near future, which
Brand will you go for and why?
15) Are you aware of various promotional activities being run by Airtel, if yes
then how? Are you satisfied with these promotional activities?
Very Satisfied Somewhat Not
Satisfied Satisfied satisfied 16)
Customer Care H
By Ad Films
By Camp
24 hrs call center services
ow would you rate Airtel performance as your expectation on 5 points
scale (5 Highest?)
1 2 3 4 5
After Sale service
Maintenance
Product as per expectation
17) What are you suggestions for improving the product quality, service
availability and parts availability?
__________________________________________________________
Signature
91
BIBLIOGRAPHY
Books :
Websites:
www.Airtelworld.com
www.google.com
www.india.com
www.Vodafone.in
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