A Market Orientation

June – July 2008

Bhisham Padha 45 MBA 07
 In Debt & Acknowledgement
Gagan Bakshi
Manager, Acquisition
“Our guide and mentor for the summer who facilitated this study at every leve==l”

Prof.B.C.Sharma
Co-ordinator, Placement
“For your kindness and encouragement in-addition to getting us to the company of our choice”

Prof.Keshav Sharma
Director
The Business School, University of Jammu

The Placement Team

“We shall forever be indebted to all of you for giving us an

opportunity to learn about business”
A sincere thanks to all the
distributors and retailers of
the Airtel® Brand.
June & July 2008 saw an unprecedented secular peoples movement and public
uprise in the history of the country. The virtually complete bandh self-imposed and
government imposed brought business to a standstill in the city for two months. The
public protest manifested in different ways such as the “Jail Bharo Andolan” where
more than 2,00,000 people participated defying curfew.

Several hundred activists sustained injuries and some even attained martyrdom.

There was an approx 4000 Crore impact on local

Time Management
 The World & GSM
• There are 3,773,502,786 active GSM
connections in the world as of 1
September 2008.

• Global system for mobile

communication (GSM) is a globally
accepted standard for digital cellular
communication. GSM is the name of a
standardization group established in
1982 to create a common European
mobile telephone standard that would
 Number of
Connections, GSM
Source: Wireless Intelligence Inc
 World Trends & The Immediate Future
 
First, the convergence of the mobile and internet worlds is
fully underway and presents both great oppurtunities and
significant technological and other challenges. 

Second, it is now clear that the mobile industry has

considerable and positive impact on the social and
economic well-being of individuals, businesses and nations. 

Thirdly, the pace of innovations and development in mobile is

increasing, with the market demanding that effective
soulutions at faster speeds and lower costs.
India Market
 Telecom Sector
• Telecoms markets are a typical indicator of economic
growth and industrialization.
• India is now the fastest growing market in the world.
• Every month another 9 million people become mobile
subscribers, making India second only to China in market
size.
• Informa Telecoms & Media estimates that today’s 242
million mobile subscriber base will have more than doubled
to 582 million by 2013. India’s telecommunications
revolution is a source of great wealth and employment.
• More than 350 million people still live on less than a dollar a
day, the international yardstick of extreme poverty, and 1
million die each year because of a lack of basic healthcare.
• Rural teledensity is just 6% of the population.
 Rural / Suburban Markets
• With use of low ARPU business
models, operators are beginning to
address the rural communications
market. According to Telecoms
Regulatory Authority India (TRAI),
rural mobile subscribers increased
18% in the first quarter of 2008 to 62
million, compared to a 1% fall in rural
fixed lines to 11 million.
 Sector Cntd
India is the world’s second most populated country with a low mobile penetration of
approx 15%. Can go upto 50% of the complete population.

Approx 7.5% growth rate

Strong telecom growth driven by

low mobile penetration
– low calling prices
– strong economy
– increasing disposable income

Mobile share of growth expected to be over-proportionate

Government has clear teledensity targets

– 500m subscribers by 2010

– 20m broadband subscribers by 2010
 India Summary
India has a large, fast growing and under
penetrated market with significant
regulation by the Government.

Classic business theory suggests the following strategic objectives for a

market like India

1.Expand distribution and network

coverage to capture market share
2.Drive a customer focused approach
3.Leverage Airtel products and
services
4.Manage and lower costs to sustain
Domain Dashboard
The Connections Basis

Number of connections (pre-paid/contract)

Number of connections (by technology)
Current rank by connections
Market share of connections
Growth rate of connections (quarterly/yearly)
% of connections
Market penetration
Net additions
Market share of net additions
Gross additions
Disconnections
 Study Summary
The telecommunication industry is a
very complex one. It needs much
time to understand the dynamics of
the industry let alone coming out
with suggestions and
recommendations which are
insightful or clever enough to change
the way business is done.
Nevertheless, we believe that strong
fundamentals and an attempt at
understanding the basics of the
telecommunication sector and its
revenue model is inherent to
understanding the Company’s role in
the industry. We need to continually
understand and study how our
product is being used in the market
and what consumers could possibly
 Insight Gained
We identified the key variables under the three operational basis heads of
connections, operational and financials. In the future the study team
will work on bringing an online version of the key variables. The
development of a domain dashboard is an original document.

India is a huge and complex market presently at 19% penetration with a

customer base of approx 285 million people. Around 32% of the
customer base is in the youth segment.

Past : business present: FMCG future: commodity

Pricing : advance pricing policy

Cellular service is a Virtual Product with Real Time Pricing, unlike

traditional goods the product is not tangible and could be safely
classified as service. Increased competition from all quarters and
government regulation is insuring that the business rapidly responds
to market conditions.
Regulation : Number Portability, SMS Banning,
Internal Security

Operating Environment : of a business such as the socio-

political stability of the J&K circle

The business and industry is technology intensive and

dependent.

With a couple of Airtel’s critical business functions now

outsourced, will any SLA's be affected in view of the
current economic crisis of the economic world. This
question needs to be deliberated.
Everyone uses the telephone the lower, middle and upper
segments of the society, with a customer base of ~ 250
million soon, its not easy to group or classify consumers.
Perhaps an attempt could be made using Business
Intelligence software to arrive at eminent clusters, hence
no matter what sample size you take or the way you design
your questionnaire it would always have an inherent
skewness.

The entry of CDMA players in the local service area will impact
Airtel’s customer base esp in the area of New Additions or
Acquisition. To an extent the change is natural.
 Company Profile

• Bharti Airtel is one of India's leading private sector providers of

telecommunications services based on an aggregate of
71,777,448 customers as on June 30, 2008, consisting of
69,383,716 GSM mobile and 2,393,732 Bharti Telemedia
subscribers.

• The businesses at Bharti Airtel have been structured into three

individual strategic business units (SBU’s) - mobile services,
telemedia services (ATS) & enterprise services. The mobile
services group provides GSM mobile services across India in 23
telecom circles, while the ATS business group provides broadband
& telephone services in 94 cities. The enterprise services group
has two sub-units - carriers (long distance services) and services
to corporates. All these services are provided under the Airtel
brand.

• Company shares are listed on The Stock Exchange, Mumbai (BSE)

 Strategic Partners
• The company has a strategic alliance with SingTel. The
investment made by SingTel is one of the largest
investments made in the world outside Singapore, in
the company.

• The company’s mobile network equipment partners

include Ericsson and Nokia. In the case of the
broadband and telephone services and enterprise
services (carriers), equipment suppliers include
Siemens, Nortel, Corning, among others. The
Company also has an information technology alliance
with IBM for its group-wide information technology
requirements and with Nortel for call center
technology requirements. The call center operations
for the mobile services have been outsourced to IBM
Daksh, Hinduja TMT, Teletech & Mphasis.
 Fact Sheet
Name Bharti Airtel Limited
Business Description Provides mobile, telemedia and enterprise services
Established July 07, 1995
Revenue Rs 270,122 million (YE mar 31, 2008)
Rs 184,202 million (YE mar 31,2008)
Indian GAAP
EBITDA Rs 114,018 million (YE mar 31,2008)
Rs 74,407 million (YE Mar 31,2008)
Indian GAAP
Shares In Issue 1,898,020,804 on june 30, 2008.
Listing BSE, NSE
Market Cap Rs 1,391 billion | BSE Rs. 732.90
As on October 08, 2008-10-09
Customer base 69,383,716 GSM mobile and 2,393,732 telemedia customers
Status as at June 30, 2008-10-09
Network Provides GSM mobile services in all the 23 telecom circles in
In
 Brand vision and promise
By 2010 Airtel will be the most admired brand
in India:
 
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
 
“We at Airtel always think in fresh and
innovative ways about the needs of our
customers and how we want them to feel.
We deliver what we promise and go out of
our way to delight the customer with a little
CSR & Environment
 Responsibility
These Values are:
 
• To be responsive to the needs of our customers
• To trust and respect our employees
• To continuously improve our services – innovatively and
expeditiously
• To be transparent and sensitive in our dealings with all
stakeholders 

We encourage our employees to take decisions and design

business processes, keeping in mind the following:
 
• Ethics, fairness and being correct
• Meeting and going beyond compliances and legal
requirements
 Competition
• Competition
• BSNL
• Vodafone
• Tata Indicom
• Reliance
• Aircel
Mobile Market Share
 Product
• Total Cost Control
• Pre activated STD/ISD without deposits
or rentals
• Strong Network coverage
• Instant Balance and Validity Enquiry
• Recharge your Airtel Prepaid
• Prepaid Roaming
• More with Airtel Prepaid
• Reach us Anytime Anywhere
 Market Research
Deficiency of the formal approach to
Marketing research.

“Market research is not about

designing a questionnaire and
sampling and other things marketing
research is about getting information
and knowledge from the market and
leveraging it for business”
Project under summer training:-(The Business School, UNIVERSITY OF JAMMU)
Dear Retailer, the particular survey by the means of Questionnaire is organized to gather your
viewpoint regarding different trade schemes of AIRTEL with reference to BSNL & AIRCEL.
Name ________________ Lappu No._________________
Location_____________

OUESTIONNAIRE
1. Along with Airtelany other Franchises. (Yes/No)
2. Which Company is the main behind your daily sale?
A) Airtel B)BSNL C)Aircel
3. Company that offers most attractive trade schemes.
A) Airtel B)BSNL C)Aircel
4. Best trade scheme of Airtel
A)SimActivation B)LappuCommission C)Lappu SimOffers

D)Recharge Discounts E)Billing Offers F)Other

5. Best competitive trade schemes of other
BSNL
A)SimActivation B)LappuCommission C)Lappu SimOffers

D)Recharge Discounts E)Billing Offers F)Other

Aircel
A)SimActivation B)LappuCommission C)Lappu SimOffers

D)Recharge Discounts E)Billing Offers F)Other

6. Your level of awareness towards schemes of Airtel
A)High B)Moderate C)Low D)Poor
7. Your level of satisfaction towards schemes of Airtel
A)High B)Moderate C)Low D)Poor
8. Best scheme that your Airtel distributor provides you
______________________________________________________________
9 Which Airtel trade shceme may increase your sale
A)SimActivation B)LappuCommission C)Lappu SimOffers
 Trade Schemes

Trade Promotion
Offered by the company or sometimes by
the channel distributor also
Introduced to earn interests of customers
and the retailers
Vary from market to market
Examples:- Sim activation, lappu
commission, lappu sim offers, recharge
discounts, billing offers and others.
 Findings
POSITIVES:
• Airtel is the leader in introducing its trade scheme
• Captured almost more than 65% of the market
• Sim Activation is regarded as the best trade scheme of Airtel
• Regular sms’s for the retailers awareness.
• 80% retailers are highly aware of these trade schemes.
• Highly agreed with Airtel than that of Bsnl, and that of Aircel

NEGATIVES:
some dissatisfaction among retailers causes due to
• Reduction in lappu commission
• Distributors are not promissory to the retailers and sometimes they
hide the related information
• FOS behaviour is not seen good
• Decrease the network range upto 1.5kms along the border regions of
the rural market
• Small inspection done by the company
• Less security for the customers and the retailers also.
Thank You
Research Never Ends..