Marketing Strategy of Bharti Airtel Limited(3)

SUMMER TRAINING PROJECT “A STUDY OF MARKETING STRATEGIES OF BHARTI AIRTEL LIMITED” Undertaken At

BHARTI AIRTEL LIMITED In the partial fulfillment of Bachelor of Business Administration (2009-2010)

SUBMITTED TO:

SUBMITTED BY:

Prof. Ajai Pal Sharma

Isha Arora

Faculty Guide, Marketing

Enrolment No. 0621701707 BBA- Vth Semester

TECNIA INSTITUTE OF ADVANCED STUDIES (Approved by AICTE, Ministry of HRD, Govt. of India) Affiliated To Guru Gobind Singh Indraprastha University, Delhi INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085 E-Mail:[email protected], Website: www.tecniaindia.org Fax No: 27555120, Tel: 27555121-24

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TO WHOM IT MAY CONCERN

This is to certify that this summer training project report made by ISHA ARORA, student of BBA (Vth SEMESTER), ENROLLMENT NO- 0621701707(TIAS), is an authentic work carried out by her under my supervision and guidance.

Her work has been found satisfactory for the partial fulfillment of the degree of BBA.

___________________ Prof. Ajai Pal Sharma (Faculty Guide)

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ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a key role in the success of any venture. Working on this project was a challenge and made me a bit filtery in the beginning. At this level of understanding, it is often difficult to understand a wide spectrum of knowledge without proper guidance and advice. Hence, I take this opportunity to express my heartfelt gratitude to Advest Marketing Services Pvt. Ltd. (Corporate Sales Associates of Bharti Airtel Limited.) I also extend my sincere gratitude to Mr. Rakesh Malhotra (Senior Sales Manager) for his round o’clock enthusiastic support and commentaries which made this project successful. I’m thankful to him for his inspiration, encouragement and for the impetus obtained throughout the course of our project. Finally, I would like to thank Prof. Ajai Pal Sharma for his motivation and encouragement throughout my endeavor and making impossible look easy for me. .

NAME- ISHA ARORA ENROLMENT NO- 0621701707 BBA-Vth SEMESTER

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PREFACE Summer Training is an integrated part of B.B.A. course. The emphasis in the course is providing the student an insight into the Corporate World. The Project is designed to enhance the knowledge. The Education for becoming successful in the corporate world would be incomplete without an exposure to work in an Organization. Therefore, Summer Training is essential requirement for all the students. The Project is made in order to understand the how an Insurance Company works, what are the things that are to be considered while investing the money, how we can make our Investments beneficial to us, where one should invest in order to get the best results & many more things. The Title of my project is “A STUDY OF MARKETING STRATEGIES OF BHARTI AIRTEL LIMITED”. The objective of this report is to find out certain objectives regarding the strategic approach adopted by Airtel to stand strongly in the competitive telecom market. Airtel’s marketing strategies are analyzed through SWOT Analysis. This report on Bharti Airtel Limited not just gives a description about the company but it also talks about the various marketing strategies adopted by the company. This project is written in simple words & clarity has been given the top priority throughout. Special care has been taken to present the Project in a simple & easy to understand style.

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DECLARATION

I, Isha Arora, Enrolment No. 0621701707 of BBA- Vth Semester of Tecnia Institute of Advanced Studies, Rohini, Delhi hereby declare that the Summer Training Project Report entitled “MARKETING

STRATEGIES

OF

BHARTI

AIRTEL

LIMITED”

is an original work and the same has not been submitted to any other Institute for the award of any other degree. A seminar presentation of the Summer Training Report was made on _______________________ and the suggestions as approved by the faculty were duly incorporated.

Signature of Researcher

Countersigned Signature of faculty Guide

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TABLE OF CONTENTS 1. CHAPTER – I

PAGE NO.

PROBLEM AND PURPOSE OF RESEARCH 1.1 COMPANY PROFILE

...............

1.2 VISION AND MISSION

...............

1.3 INDUSTRY PROFILE

...............

1.4 INTRODUCTION

...............

1.5 OBJECTIVES OF STUDY

...............

1.6 PURPOSE AND SCOPE OF STUDY

...............

2. CHAPTER – II REVIEW OF LITERATURE

...............

3. CHAPTER – III CURRENT SCENARIO 1.1 SWOT ANALYSIS

...............

1.1.1 STRENGTHS 1.1.2 WEAKNESSES 1.1.3 OPPORTUNITIES 1.1.4 THREATS 6

4. CHAPTER – IV RESEARCH METHODOLOGY 1.1 RESEARCH DESIGN

...............

1.2 TYPE OF DATA COLLECTED

...............

1.3 RESEARCH TOOL

...............

1.4 DATA COLLECTION

...............

1.5 SAMPLE SIZE

...............

1.6 PRESENTATION TOOL

...............

1.7 LIMITATIONS AND CONSTRAINTS. . . . . . . . . . . . . . 1.8 DATA ANALYSIS AND INTERPRETATION. . . . . . . .

5. CHAPTER – V

DISCUSSIONS AND FINDINGS OF THE STUDY 1.1 FINDINGS OF STUDY

...............

1.2 SUGGESTIONS AND RECOMMENDATIONS. . . . . . . 1.3 ANNEXURE

...............

1.4 BIBLIOGRAPHY AND REFERENCES. . . . . . . . . . . . . .

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CHAPTER - I PROBLEM AND PURPOSE OF THE RESEARCH 1.1

COMPANY PROFILE

1.2

VISION AND MISSION

1.3

INDUSTRY PROFILE

1.4

INTRODUCTION

1.5

OBJECTIVES OF STUDY

1.6

PURPOSE AND SCOPE OF STUDY

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COMPANY PROFILE Bharti Airtel Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s)- Mobile Services, Airtel Telemedia Services and Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers.

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Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises. The businesses of Bharti Airtel are structured into two main strategic groups - Mobility and Infotel. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Bharti Tele-Ventures provides end-to-end data and enterprise services to corporate customers by leveraging its nationwide fibre-optic backbone, last mile connectivity in fixed-line and mobile circles, By the end of October 2005, Bharti Tele-Ventures was serving more than 14.74 million GSM mobile subscribers and 1.10 million broadband and telephone (fixed line) customers. The equity shares of Bharti Tele-Ventures are currently listed on the National Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE). As of September 30, 2005, the main shareholders of Bharti TeleVentures were: Bharti Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises; Singapore Telecom (15.69%), through its investment division Pastel Ltd; and, Warburg Pincus (5.65%), through its investment company Brentwood Investment Holdings Ltd). Other shareholders with more than a 1% stake were: Citi Group Global Markets Mauritius Pvt. Ltd (2.99%); Euro pacific Growth Fund (2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon (1.33%); Life Insurance Corporation of India (1.34%); and, The Growth Fund of America Inc (1.11%). Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns Airtel), is today, the most celebrated face of the telecom sector in India. He began his journey manufacturing spare parts for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a unique flair for sensing new business opportunities. In the early years, Bharti established itself as a supplier of basic telecom equipment. His true calling came in the mid 1990s when the government opened up the sector and allowed private players to provide telecom services. Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India's largest telecommunications company and one of India's most respected brands. Airtel was launched in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the brand came to symbolize the very essence of mobile services. 10

Product Airtel provides a host of voice and data products and services, including high-speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid' mobile offers, with a range of tariff plans that target different segments. A comprehensive range of value-added, customized services are part of the unique package from Airtel. The company's products reflect a desire to constantly innovate. Some of these are reflected in the fact that Airtel was the first to develop a 'single integrated billing system'. Airtel comes to you from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider with an all India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied customers. Established in 1976, Bharti has many joint ventures with world leaders like SingTel (Singapore Telecom); Warburg Pincus, USA, Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel will soon cover the entire country through a process of acquisitions and green field projects. With a presence in over 1,400 towns, Airtel today has the largest network capacity in the country. An excellent example is Easy Charge - India's first paperless electronic recharging facility for prepaid customers. As evidence of its fine record, Airtel has also been conferred with numerous awards. It won the prestigious Techies Award for 'being the best cellular services provider' for four consecutive years between 1997 and 2000 - a record that is still unmatched. And in 2003, it received the Voice & Data Award for being 'India's largest cellular service provider' amongst others.. 11

CORPORATE STRUCTURE

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The Company is a part of Bharti Enterprises, and is India's leading provider of telecommunications services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 90 cities. The Enterprise services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand. It includes:

SERVICES OF BHARTI AIRTEL LIMITED

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Bharti Airtel became the first private fixed-line service provider in India. It is now promoted under the Airtel brand. Recently, the Government opened the fixed-line industry to unlimited competition. Airtel has subsequently started providing fixed-line services in the four circles of Delhi, Haryana, Madhya Pradesh, Karnataka, and Tamil Nadu & UP (West). Airtel Enterprise Services, India's premium telecommunication service, brings to you a whole new experience in telephony. From integrated telephone services for Enterprises and small business enterprises to user-friendly plans for Broadband Internet Services (DSL), we bring innovative, costeffective, comprehensive and multi-product solutions to cater to all your telecom and data needs.

1. Voice - Product Portfolio Airtel Enterprise Services telephone services go beyond basic telephony to offer our users a whole host of Value Added Services as well as premium add-ons. Each telephone connection from Airtel Enterprise Services is backed by a superior fibre-optic backbone for enhanced reliability and quality telephony. Few of the Value Added Services offered are Calling Line Identification, Three Party Conferencing, Dynamic Lock, Hunting Numbers, and Parallel Ringing etc. Airtel Enterprise Services Voice Services provide Free Dial-up Internet access that is bundled along with your Telephone connection from Airtel. It’s fast, reliable and gives you unlimited Internet access.

2. Mobile Services Airtel’s mobile footprint extends across the country in 21 telecom circles. It’s service standards compare with the very best in the world. In fact, that’s how Bharti has managed to win the trust of millions of customers and makes it one of the top 5 operators in the world, in terms of service and subscriber base.

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The company has several Firsts to its credit:

• The First to launch full roaming service on pre-paid in the country. • The First to launch 32K SIM cards. • The First in Asia to deploy the multi band feature in a wireless network for efficient usage of spectrum.

• The First to deploy Voice Quality Enhancers to improve voice quality and acoustics • The First telecom company in the world to receive the ISO 9001:2000 certification from British Standards Institute.

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3. Satellite Services Airtel Enterprise Services provides you connectivity where ever you take your business Our Satellite Services bring you the benefits of access in remote locations. Airtel Enterprise Services is a leading provider of broadband IP satellite services and DAMA/PAMA services in India. Our solutions support audio, video and voice applications on demand. Satellite Services include: •

PAMA/DAMA

•

BIT - Internet

•

VPN

•

Satellite based IPLCs for redundancy reasons

4. Managed Data & Internet Services Airtel Enterprise Services brings you a comprehensive suite of data technologies. So we are able to support all types of networks and ensure that our customers can migrate their network in future seamlessly. Our Managed Data & Internet services make our customers future proof. Managed Data & Internet Services include: •

MPLS

•

ATM

•

FR

•

Internet

•

IPLC

•

Leased Lines

•

Customized Solutions

•

International Managed Services

•

Metro Ethernet 16

5. Managed e-Business Services Airtel Enterprise Services offers an internationally benchmarked, carrier class hosting, storage and business continuity services. A range of services that help to keep your business running the way you want- 24x7. Thanks to our world-class high tech Data Centers. Managed e-Business Services include:

• Co-lo: Dedicated and Shared • BCRS Services • Web hosting

THE BRAND-“Airtel” Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A spirit charged with energy, creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service. Airtel, in just ten years of operations, rose to the pinnacle to achievement and continues to lead. As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms, contributing to its economic resurgence. Today ‘Airtel’ touches people’s lives with the Mobile services, Telemedia services to connect India's leading 1000+ corporates. The brand also connects Indians living in USA, UK and Canada with our call home service.

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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 bit more.

BHARTI’S MISSION

“To be globally admired for Telecom Services that delight customers.” We will meet global standatds for Telecom Services that delight customers through:

• Customer service focus • Empowered employees • Cost efficiency • Unified messaging solutions • Innovative products and services • Error-free service delivery

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CORPORATE SOCIAL RESPONSIBILITY Overview At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the stakeholders and environment within their work context. Bharti encourages employees to take decisions and design business-linked processes that are sensitive to communities and environment. Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach programs. It is an integral part of the way Bharti conducts its business. The essence of Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate Values’, which stem from its deepest held beliefs. These values are:

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INDUSTRY PROFILE The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP. The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India has 9 million broadband connections and 18 million internet connections in 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.

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Evolution of the industry-Important Milestones History of Indian Telecommunications:

• 1851 First operational land lines were laid by the government near Calcutta (seat of British power)

• 1881 Telephone service introduced in India • 1883 Merger with the postal system • 1923 Formation of Indian Radio Telegraph Company (IRT) • 1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC)

• 1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications

• 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system)

• 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

• 1997 Telecom Regulatory Authority of India created. • 1999 Cellular Services are launched in India. New National Telecom Policy is adopted. • 2000 DoT becomes a corporation, BSNL

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BSNL On October 1, 2000 the Department of Telecom Operations andGovernment of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now India’s leading Telecommunications Company and the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base.

MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom

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development needs of India’s key metros – Delhi and Mumbai. In the past 17 years, the company has taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating

companies. The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stake in the company. MTNL has over 5 million subscribers and 329,374 mobile subscribers.

RELIANCE INFOCOMM Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator.

IDEA CELLULAR Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in Western India, and has received additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group .

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VODAFONE ESSAR Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India . Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 license areas. It is among the top three GSM mobile operators of India. Vodafone Essar is owned by Vodafone 52%, Essar Group, 33% and other Indian nationals, 15%. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8, 2007.

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MAJOR PLAYERS OF INDIAN TELECOMMUNICATION

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COMPANY MARKET SHARES 26

COMPANY

MILLION SUBSCRIBERS

% SHARE

(January 2009) BSNL

3,03,03,230

19.77

Reliance

43,47,593

2.84

Bharti

4,88,75,664

31.88

MTNL

27,72,120

Vodafone

3,56,57,546

23.26

Idea Cellular

1,86,71,860

12.18

BPL

11,53,357

0.75

Spice

34,81,710

2.27

Aircel

80,39,355

5.24

1.81

MAJOR MARKET TRENDS 27

The telecoms trends in India will have a great impact on everything from the humble PC, internet, broadband (both wireless and fixed), and cable, handset features, talking SMS, IPTV, soft switches, and managed services to the local manufacturing and supply chain. This report discusses key trends in the Indian telecom industry, their drivers and the major impacts of such trends affecting mobile operators, infrastructure and handset vendors. Higher acceptance for wireless services Indian customers are embracing mobile technology in a big way (an average of four million subscribers added every month for the past six months itself). They prefer wireless services compared to wire-line services, which is evident from the fact that while the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006, the wire-line subscriber base growth rate is negligible during the same period. In fact, many customers are returning their wire-line phones to their service providers as mobile provides a more attractive and competitive solution. The main drivers for this trend are quick service delivery for mobile connections, affordable pricing plans in the form of pre-paid cards and increased purchasing power among the 18 to 40 years age group as well as sizeable middle class – a prime market for this service.

MERGERS Demand for new spectrum as the industry grows and the fact the spectrum allocation in done on the basis of number of subscribers will force companies to merge so as to claim large number of subscribers to gain more spectrum as a precursor to the launch of larger and expanded services. However it must also be noted that this may very well never happen on account of low telecom penetration.

INTRODUCTION

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This report on Bharti Airtel Limited is done to find out certain objective regarding the strategic approach Adopted by Airtel to stand strongly in the competitive telecom market. Airtel’s marketing strategies are analyses using various models like SWOT analysis, survey etc. The outcomes of these are properly analyzed to find out the various aspects like companies position and competitors position in the market. This report on Airtel not just gives the description about the company but it also talks about the various marketing strategies adopted by the company. SWOT analysis of Airtel helps to find out the weak points of the company and to find out the way to overcome this problem.

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OBJECTIVE OF THE STUDY The objectives of the study are:

• To know that what are the marketing strategy of BHARTI AIRTEL • To know about BHARTI AIRTEL company profile • To make SWOT analysis of BHARTI AIRTEL • To do a survey for marketing of BHARTI AIRTEL

The study will end with a conclusion giving a reflection of whole project and recommendations on the basis of data findings.

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PURPOSE AND SCOPE OF THE STUDY Purpose of the study The main purpose of this study is to analyze (i) the consumer behavior, and (ii) Awareness about the telecom service.

Scope of the project This project will be very helpful to the following:

This project will be an information guide to the company for increasing the sale of products. They will avail with the popularity of the products and services by them and also the consumer behavior and market potential of these products.

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CHAPTER - II REVIEW OF LITERATURE

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India's first private operator to make cellular profits has an aggressive strategy in all areas of fixed and wireless telecoms.Indian telecoms company Bharti Enterprises is undertaking a bold expansion through a series of acquisitions, new network build and forays into the international arena. In so doing the New Delhi-based company is aiming to become a force to compete with the governmentrun Department of Telecommunications (DoT) and state-owned Mahanagar Telephone Nigam Ltd. (MTNL). "We would like to become a customer-driven one-stop-shop for a range of telecoms services, including fixed-line networks, mobile, Internet access [and] VSATs [very small aperture terminals]," said group chairman and managing director, Sunil Mittal.

Most Recent Technology Articles

33

Bharti started out in the Indian telecoms market offering cellular phone services in Delhi in 1992. Its mobile division, Bharti Cellular, is the first private operator to make operational profits in the capital intensive mobile phone business in India, making a net profit of around 165.8 million rupees (US$3.8 million) in the last financial year (1998-99), and its Airtel brand, operating in Delhi and the state of Himachal Pradesh, now has more than 175,000 customers. "For most of India's private operators, telecoms is one of their many business interests, but for Bharti it is the only one," said Mahesh Uppal, a New Delhi-based independent telecoms consultant.This focused approach and some aggressive marketing have helped it grow its user base, According to Mittal the company is adding "about 10,000 cellphone subscribers per month in Delhi."

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Sanjay Kapur, chief operating officer of Bharti Cellular Ltd., said Airtel is offering Web-based short messaging services--such as e-mail alerts and news--and has linked up with financial institutions ICICI Ltd. and Housing Development Finance Corporation Ltd. to offer banking services over its mobile phones.Meanwhile parent company Bharti Enterprises has been raising funds for acquisitions by selling equity stakes in its holding companies--including Bharti Televentures, which has stakes in the cellular interests, and Bharti Telespatial, the holding company for Bharti's foray into Internet access and VSAT services-to strategic investors, including Intel Corp., BT, Telecom Italia and Warbur Pincus. The funds have enabled Bharti Cellular to make a strategic entry into southern India. Last December it acquired an 18% stake in JT Mobile (JTM) for Rs4 billion (US$93 million), and a 51% stake in Skycell for Rs1.2 billion.Now with a combined subscriber strength of around 245,000, Bharti is closing in on India's largest cellular operator, BPL Mobile, which has some 267,000 subscribers.According to the Cellular Operators Association of India (COAI), the total number of subscribers in India is currently 1.6 million. "Bharti's buyout of stakes in JTM and Skycell is a vote of confidence in the [government's] new telecom policy, but it has to turn its purchases into profitable businesses," said T.H. Chowdhry,

director, Centre for Telecom Management & Studies, in Hyderabad. "The company is moving in the right direction and will be a real competitor to DOT/MTNL," he added. With these acquisitions the company's fixed and cellular footprint extends from north and central India to south India and would give the company a major competitive edge for operating national long-distance services.To this end, Bharti is laying around 18,000 kilometers of optical fiber network and leasing more from infrastructure providers. The first phase to lay some 3,800 kilometers of fiber will begin this month.

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The project is scheduled to be completed by June 2001, and the total cost will be around Rs2O billion (US$465 million).Long-distance building the domestic fixed-line long-distance market, currently monopolized by the DoT, and is scheduled to be opened to competition in the near future. The government has yet to take a decision on the timing, but analysts agree that licenses will be given to operators for basic inter-state services by the end of the year.Meanwhile, VSNL has the monopoly on international long-distance services until 2001. Bharti started offering fixed-line network services in the state of Madhya Pradesh in 1998, competing with state-owned DoT, and has already garnered around 70,000 subscribers, It is the first Indian private operator to offer alternative services in the state, and in many other states the DoT remains the sole provider, with the 1999 telecoms policy to establish competition still not fully implemented. Although licenses have been issued in 7 of the 22 states in India, not all the private operators have begun offering fixed-line services. Bharti was also the first Indian company to offer telecoms services abroad. In October 1999 it was awarded a license to provide a range of domestic and international mobile, fixed and satellite services in the Seychelles, through subsidiary Bharti Global. It aggressively positioned its tariffs 50% lower than those of competitor Cable and Wireless plc, of London, forcing it to reduce its cellphone tariffs.

AIRTEL CURRENT PLANS AND PRODUCTS

AIRTEL PLAN Monthly Rent Free Airtime per month Incoming Call

AIRTEL SUPER 199

AIRTEL MAGIC 199

199 N.A. Free

199 199 mins A2M Local Free 36

Within the group-CUG Outgoing Calls- Local Airtel to Airtel Airtel to Local Airtel to Landline Outgoing Calls- STD Airtel to Airtel Airtel to Local Airtel to Landline SMS Lcal SMS National SMS International SMS Local Free SMS STD Toppings Roaming Charges CLIP CHARGES

0.10 Per Min 0.3 0.5 1 Per Min 1 1 1.32 Per SMS 0.5 1.5 5 N.A. N.A. AT ACTUAL FOC

Pay Rs. 30/- & get CUG @ 10 p Per Min 0.5 0.5 1 Per Min 1 1 1.5 Per SMS 1 1.5 5 N.A. N.A. AT ACTUAL FOC

AIRTEL PLAN Monthly Rent Free Airtime per month Incoming Call Within the group-CUG Outgoing Calls- Local Airtel to Airtel Airtel to Local Airtel to Landline Outgoing Calls- STD Airtel to Airtel Airtel to Local Airtel to Landline SMS Lcal SMS National SMS International SMS Local Free SMS

AIRTEL MAGIC 299

AIRTEL 444

299 600 mins A2M Local Free 0.10 Per Min 0.3 0.3 0.5 Per Min 1 1 1.5 Per SMS 1 1.5 5 N.A.

444 LOCAL & STD 444 Min (A2M) Free Pay Rs. 30/- & get CUG @ 10 p Per Min 0.5 0.5 0.5 Per Min 1 1 1 Per SMS 0.5 1.5 5 444 Local SMS Free 37

STD Toppings Roaming Charges CLIP CHARGES

N.A. AT ACTUAL FOC

AIRTEL PLAN

New AES 699- Advance

Monthly Rent Free Airtime per month Incoming Call Within the group-CUG

Rental 699 (12 Months) 58.25(Effective) N.A. Free Get 500 mins free in CUG

N.A. AT ACTUAL FOC

thereafter @ 10 p Outgoing Calls- Local Airtel to Airtel Airtel to Local Airtel to Landline Outgoing Calls- STD Airtel to Airtel Airtel to Local Airtel to Landline SMS Lcal SMS National SMS International SMS Local Free SMS STD Toppings

Per Min 0.5 0.5 0.5 Per Min 1.5 1.5 1.5 Per SMS 1 1.5 5 50 SMS Free Pay Rs. 35/- & get Airtel to all

Roaming Charges CLIP CHARGES

STD @Rs. 1 per min AT ACTUAL FOC

38

CHAPTER - III CURRENT SCENARIO 1.1

SWOT ANALYSIS

1.1.1 STRENGTHS 1.1.2 WEAKNESSES 1.1.3 OPPORTUNITIES 1.1.4 THREATS

39

SWOT ANALYSIS OF BHARTI AIRTEL LIMITED

Strengths 1. Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers. 2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world.

40

3. The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.

Weaknesses 1.

An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.

2.

Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.

3.

The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.

Opportunities 1.

The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google.

2.

Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

3.

Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a

41

Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns.

4.

The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.

5.

Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.

Threats 1.

Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.

2.

The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Indian industrialist to invest in the new emerging African telecommunications market.

3.

Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.

42

CHAPTER -IV RESEARCH METHODOLOGY 1.1

RESEARCH DESIGN

1.2

TYPE OF DATA COLECTED

1.3

RESEARCH TOOL

1.4

DATA COLLECTION

1.5

SAMPLE SIZE

1.6

PRESENTATION TOOL 43

1.7

LIMITATIONS AND CONSTRAINTS

1.8

DATA ANALYSIS AND INTERPRETATION

RESEARCH METHODOLOGY Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. RESEARCH DESIGN Descriptive Research: The type of research adopted for study is Descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. The objective of such study is to answer the “who, what, when, where and how” of the subject under investigation. There is a general feeling that descriptive studies are factual, very simple and well structured. TYPE OF DATA COLLECTED: There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. RESEARCH TOOL- QUESTIONNAIRE: This is the most popular tool for the data collection. Various customers using Airtel connection were approached and asked to fill the questionnaire designed which is attached in the report. DATA COLLECTION: The data collection is done through random sampling. SAMPLE SIZE: The sample size for customer profile is 300. 44

PRESENTATION TOOL: Bar Diagrams and Pie Charts have been used for presenting the results of survey.

LIMITATIONS AND CONSTRAINTS 1.

Slow pace of the reform process.

2. It would be difficult to make in-roads into the semi-rural and rural areas because of the lack of infrastructure. The service providers have to incur a huge initial fixed cost to make inroads into this market. Achieving break-even under these circumstances may prove to be difficult. 3. The sector requires players with huge financial resources due to the above mentioned constraint. Upfront entry fees and bank guarantees represent a sizeable share of initial investments. While the criteria are important, it tends to support the existing big and older players. Financing these requirements require a little more liberal approach from the policy side. 4. Problem of limited spectrum availability and the issue of interconnection charges between the private and state operators.

45

DATA ANALYSIS AND INTERPRETATION

PLANTAKENBY CUSTOMERS 140 120 100 80 60 40 20 0

299

249

399

Others

PLANS NOOFCUSTOMERS

1 2 3 4

PLAN NO. OF CUSTOMER My plan 299 60 249 delight 30 Super Saver 399 120 Others 90

In my study I found that most of the customers (40%) having Supersaver – 399 plan. My plan 299 (20%), 249 delight- (10%) & others (30%) It is shown in the above bar diagram.

46

1 2 3 4

MODE OF PAYMENT NUMBER OF CUSTOMER Cash 135 Credit Card 105 Cheque 54 Internet Banking 6

In my survey I observed that most of the customers paid their bill through cash (45%) & credit cards (35%) respectively. And the rest pay it through cheque (18%) & Internet banking (2%).

47

Toppingstaken bycustomers Others 5%

Local SMSpack 20% Local Mobilepack 10% STDpack 65%

1 2 3 4

TOPPING CUSTOMER PERCENTAGE STD Pack 195 65% Local SMS Pack 60 20% Local Mobile Pack 30 10% Others 15 5%

In my survey I found that most of the customers have taken STD pack (65%). It is shown in the above pie diagram.

48

CUSTOMER'SPROBLEM TOWARDSPOSTPAID CONNECTION 250

200 150

100

50 0

Bill Payment

NeverGetbill ontime

WronglyCharged

NeverGetbill

NOOFCUSTOMERS

PROBLEM TOWARDS POSTPAID

1

PROBLEM

CUSTOMER

Bill Payment

210

2 Never Get Bill on Time

60

3

Wrongly Charged

21

4

Never Get Bill

9

In my survey I found that most of the customers (70%) have faced their Problems towards bill payment in counter. 20%, 7% & 3% are those who Never receive bill on time, wrongly charged & never get the bill.

49

BILL PAYMENT SYSTEM USED BY CUSTOMER 20%

30% 50%

Airtel Relationship Center E-seva Drop Box

BILL PAYMENT SYSTEM USED BY CUSTOMER Airtel Relationship Center E-seva Drop Box

150 90 60

50 % customer are using airtel relationship centre for bill payment and 30 % using e-seva while 20 % customer are usiing drop box.

50

Unsatisfied 5%

OVERALLSATISFACTION

Excellent 25%

Average 20%

Good 50%

1 2 3 4

SATISFACTION LEVEL CUSTOMER PERCENTAGE Excellent 75 25% Good 150 50% Average 60 20% Unsatisfied 15 5%

In my survey I found that most of the customer’s view towards Airtel Post paid connections & toppings are Good (50%) & Excellent (25%). But Airtel must take care towards unsatisfied customers (5%), if they want to stay at top.

51

CONSISTENCY LEVEL OF CUSTOMER

Lessthan 6 Months 5%

Morethan 2years 50%

1 2 3 4

6monthsto 1 year 10%

1to 2years 35%

CONSISTANCY LEVEL More Than 2 Years 1 to 2 Years 6 Months to 1 Year Less Than 6 Months

CUSTOMER 150 115 30 15

PERCENTAGE 50% 35% 10% 5%

In my survey I observed that (50%) of the customers are constantly buying Post paid connections for the past two years, 35% between 1to2 years, 10% between 6months to 1 year and 5% less than 6 months. The survey indicates good consistency level & commitment of the customers.

52

CHAPTER – V DISCUSSIONS & FINDINGS OF THE STUDY 1.1

FINDINGS OF THE STUDY

1.2

SUGGESTIONS AND RECOMMENDATIONS

1.3

ANNEXURE

1.4

BIBLIOGRAPHY AND REFERANCES

FINDINGS OF THE STUDY

53

1.

Customers are satisfied with various plans.

2.

It was observed that most of the customers expressed their unhappiness over billing

services. Either they were wrongly charged or they never received bills on time. 3.

Senior citizens are very particular about rentals.

4.

Through my survey, I came to know that most of the customers are satisfied with our

plans and toppings. 5.

Through my survey I observed that most of the customers are using STD pack.

6.

I observed that most of the customers are using supersaver-399 plan.

7.

I observed that most of the customers like Airtel advertisement and punch-line.

SUGGESTIONS AND RECOMMENDATIONS 1. To ensure better customer satisfaction & maintain higher level of Customer relationship management, the billing department has to be more effective & efficient.

2. To retain existing customers means offering the best scheme. This would automatically attract new customers. Airtel need not spend on advertisement to attract new customers.

3. Airtel should continue to offer the best toppings to stay at the top. 4. There should be no compromise in quality and the network facility.

54

ANNEXURE

55

QUESTIONNAIRE (A) Customer Name

:

(B) Age

:

(C) Mobile No.

:

(D) Occupation

: Self Employed

[ ]

Government Employee

[ ]

Non Government Employee

[ ]

Student

[ ]

Others

[ ]

(E) Income per month :

Less than Rs 5,000

[ ]

Rs 5001 to 10,000

[ ]

Rs 10,001 to Rs 20,000

[ ]

Above Rs 20,000

[ ]

1. Which plan you are using? (a) My plan-299

(b) 249 Delight

56

(c) Supersaver-399

(d) Others

2. How you pay your bill? (a) By Cash

(b) By Cheque

(c) By Credit card

(d) By Internet Banking

3. What kind of Toppings are preferred by customers? (a) STD Pack

(b) Local SMS Pack

(c) Local Mobile Pack

(d) Others

4. Which type of problem you are facing in postpaid connection? (a) Bill payment

(b) Never get bill on time

(c) Wrongly charged

(d) never get bill

5. Mostly where do you pay your bill? (a) Airtel Relationship Center

(b) E-seva

(c) Drop Box 6. Are you satisfied with Airtel call center executives? (a) Excellent

(b) Good

(c) Satisfied

(d) Unsatisfied

7. How long have you been using Airtel postpaid connection? (a) Less than 6 Months

(b) 6 months to 1 year 57

(c) 1 to 2 years

(d) More than 2 years

BIBLIOGRAPHY 1. Books: a. Marketing management: analysis, planning, implementation, and control by

Philip Kotler - Business & Economics - 1988 2. Internet Sites: a. www.wikipedia.org b. www.google.com c. www.airtel.in 3. Other sources a. Marketing Manual of ‘Bharti Airtel Limited’

58

Marketing Strategy of Bharti Airtel Limited(3)

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