A PROJECT REPORT

ON

Comparative Analysis of Marketing Strategies Related to Airtel &

Vodafone
By
AJEET KUMAR UPADHYAY
REG.NO. 1208015728
A PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

IN
MARKETING

CENTERE CODE-3377
GHAZIPUR, UTTER PRADESH

DECLARATION

This is to certify that the project Report entitled Comparative Analysis of

Marketing Strategies Related to Airtel & Vodafone is my original work and this has
not been submitted in part or full to this or any other university/institution for the
award of any degree or diploma.

NAME: AJEET KUMAR UPADHYAY

DATE:

(Signature)

ACKNOWLEDGEMENT

With a deep sense of gratitude I express thanks to all those who have been
instrumental in the development of the project report.
I am also grate full to Sikkim Manipal University of who gave me a valuable
opportunity of involving me in real live business project. I am thankful to all the
professors whose positive attitude, guidance and faith in my ability spurred me to
perform well.
I am also indebted to all lecturers, friends and associates for their valuable advice,
stimulated suggestions and overwhelming support without which the project would
not have been a success.

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

Telecom sector in India

Airtel

Vodafone

Background

Company profile of Airtel

The magic

Comparison between marketing strategy of Bharti Airtel and Vodafone

8. Research Methodology

Type of research methodology

Data collection method

Method of collection

9. Data Analysis and Interpretation

10. Swot analysis
11. Suggestion & Conclusion
12. Bibliography
13. Questionnaire

NEED OF THE STUDY

1.

To identify the difference between market performance of Airtel and Vodafone.

2.

To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.

3.

To compare various parameters of marketing strategies, manufacturing process, technology

adopted production policy, advertising, collaboration, export scenario, future prospect
for the two companies and government policies .

4.

To study the level of customer satisfaction in Airtel & Vodafone.

5.

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

6.

To study consumer preferences.

7.

To study the consumer trend in telecommunication sector.

8.

To study competitive marketing strategies adopted by Airtel and Vodafone.

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is very essential for an
organization to know about the view of consumers and their competitive products. This survey
research may be also aimed as to estimate potential buyer for the product. The objective of the
study is as under:-

1.

To identify the difference between market performance of Airtel and Vodafone.

2.

To study the market of Airtel and Vodafone on big scale telecommunication sector.

3.

To compare various parameters of marketing strategies, manufacturing process,

technology adopted production policy, advertising, collaboration, export scenario,
future prospect for the two companies and government policies .

4.

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

5.

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

SYNOPSIS
Telecom Sector In India
Telephones network is one of the largest communication networks in world, which
continues to grow at a blistering pace.
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.
Network Expansion: The total number of telephone subscribers has reached 281.62
million at the end of January 2008 as compared to 232.87 million in July 2007. The overall
Teledensity has increased to 23.63% in January 2008 as compared to 21.20% in August
2007.

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 49.73 million with
a decrease of 0.16 million at the end of January 2008.

Teledensity: The Teledensity is 24.63%at the end of January 2010 as compared to 18.31%
at the end of March 2009, registering an increase of 6%.
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
2010 from 64.14 per cent in November 2009.
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.

AIRTEL
Airtel is a brand of telecommunication services in India operated by Bharti Airtel.
Bharti airtel limited is a leading global telecommunications company with operations in 19
countries across Asia and Africa. The company offers mobile voice & data services, fixed line,
high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national &
international long distance services to carriers. bharti airtel has been ranked among the six best
performing technology companies in the world by business week. bharti airtel had 200 million
customers across its operations.
It has presence in all 23 circles of the India and covers 81% of the current population (as of
FY10).
Leading international telecommunication companies such as SingTel and Nokia held
partial stakes in Bharti Airtel.

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 and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in all 23 of the country's 23 license areas.
Vodafone Essar is the Indian subsidiary of Vodafone Group 67% and Essar Group 33%. It
is the second largest mobile phone operator in terms of revenue behind Bharti Airtel,
and third largest in terms of customers. The company now has operations across the
country with over 113.77 million customers.

Introduction
of
the topic

BACKGROUND

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.
In todays world of cutthroat fierce competition, it is very essential to not only exist but
also to excel in the market. Todays market is enormously more complex. Hence forth,
to survive in the market, the company not only needs to maximize its profit but also
needs to satisfy its customers and should try to build upon from there.

COMPANY PROFILE
OF
AIRTEL

Vision
By 2015 Airtel will be the most loved brand, enriching the lives of millions.
Enriching lives means putting the customer at the heart of everything we do. We will meet their
needs based on our deep understanding of their ambitions, wherever they are. By having this focus
we will enrich our own lives and those of our other key stakeholders. Only then will we be thought
of as exciting, innovation, on their side and a truly world class company."
These are the premise on which Bharti Enterprises has based its entire plan of action.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and
innovations to its credit, ranging from being the first mobile service in Delhi, first private basic
telephone service provider in the country, first Indian company to provide comprehensive telecom
services outside India in Seychelles and first private sector service provider to launch National
Long Distance Services in India. Bharti had approximately 143 million total customers in India till
September 2010.
Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi,
Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle,
Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it
also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi,
Karnataka and Tamil Nadu and nationwide broadband and long distance networks.

Bharti has also 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.
Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart
from being the largest manufacturer of telephone instruments, it is also the first telecom company
to export its products to the USA.
Bharti Airtel's strategic objective is to capitalize on the growth opportunities that the Company
believes are available in the Indian telecommunications market and consolidate its position to be
the leading integrated telecommunications services provider in key markets in India, with a focus
on providing mobile services.

The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum geographical

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

shop" solution;
Position itself to tap data transmission opportunities and offer advanced mobile data

services;

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

satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational efficiencies.

Businesses
Bharti Airtels current businesses include

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Broadband services with DSL and Wi-Fi network

DTH Services

Competitive Strengths
Bharti Airtel believes that the following elements will contribute to the Company's success as an
integrated telecommunication services provider in India and will provide the Company with a solid
foundation to execute its business strategy:

Nationwide Footprint Bharti Airtel operates in all 23 telecom circles of India, thus it
covers majority of India

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

and capitalize on new telecommunications-related business opportunities.

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

Quality management team with vision and proven execution skills; and

The Company's strong relationships with international strategic and financial investors such
as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group
and New York Life Insurance.

Brand Architecture:
Bharti is working on a complex three-layered branding architecture to:

Create specific brands for each service,

Build sub-brands within each of these services and

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

AIRTEL

TOUCHTEL

(Cellular
Operations)

(Basic Service
Operations)

INDIA ONE
(National Long
Distance)

Airtel - The flagship brand for cellular operations all across the Indian country.
Touchtel - The brand earmarked for basic service operations.
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, lets 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 wasnt 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.
Instead of the value-proposition model, we decided to address the sensory benefit it gave to the
customer as the main selling tack. The idea was to become a badge value brand, he explains.

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.
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 crme de la crme 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 Delhi 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 customers 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.
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.
The other experiment that Bharti has worked on is to go in for product segmentation through the
Tango brand name. The brand was created to offer 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).
To achieve its objectives Bharti did three things.

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.

Third, to make the product more approachable to the customer, the company came with
vernacular ad campaigns
Like Magic Daalo Say Hello which appealed to local sensibilities.
This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign
all across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 1.2 million

today, overtaking Essars 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 Indias first national pre-paid card TV brand campaign

First time ever in India - any pre-paid card brand goes on TV

A combination of the film genre exposed through the TV medium designed to connect with the
masses of India

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.

Airtel Magic positions itself on the platform of being excellent for emergency situations increasing productivity as a part of everyday life.

Sharukh Khan makes everything in life possible while romancing pretty Kareena Kapoor
with Airtel Magic, Indias leading pre-paid mobile card.
Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic prepaid 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 persons 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 Indias top film star and national heartthrob. Kareenas 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 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 Airtels 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 Magics 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 Indias 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

A combination of the film genre exposed through the TV medium designed to connect with the
masses of India

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 persons 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 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.

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.
The focus, of course, is to offer better quality of service.

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.

To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000
frequently asked questions and their answers have been stored on the computers.

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 dont 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 dont 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.

Another key area which Bharti is concentrating its attention upon is a new roaming service
launched in Delhi 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.

The company also offers multi-media messaging systems under which customers having a
specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the
phone. The cost per picture is between Rs 5 to Rs 7.

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.

Bharti is in the process of launching a new system in alliance with Mumbai-based Company
Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a

card. The system will not only save users the hassle of going out and buying a card every time it
expires but also enable mobile companies to reduce the cost of printing and distributing cards.

Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to
reach its Magic pre-paid cards to subscribers' doorsteps. The 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.

Recent Strategies in booming market

Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based iPhone in the
country.

Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd to launch its
Direct-to-Home (DTH) television services

Bharti Airtel launched the 'Airtel Advantage' initiative. The initiative is aimed at offering the
added advantage to Airtel customers to be in touch with each other at an affordable rate of 50
paise per minute, be it a national long distance call (STD) or a local call.

In order to create products and services for the small, medium and large enterprises, Bharti
Airtel and Cisco announced a strategic business alliance. The alliance would combine the
strengths of Airtel's network service and Cisco' Internet Protocol (IP) technologies.

Airtel and mChek announce milestone of 1 Million users and introduce a broad range of new
mCommerce services.

On May 18, 2010, Airtel won 3G spectrum in 13 circles

On 18, November,2010, Bharti Airtel announced a re-branding campaign wherein, they would
be referred as airtel, with a new logo

Bhartis View on its Branding strategy:First, brand building efforts in todays 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.
Unflinching orientation to customer needs is the second key success factor. Customers (be it for
industrial products or consumer goods and services) across the world are more informed and, at the
same time, becoming more individualistic in their needs and far more demanding with the passage
of time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer
needs, and then reacting in real-time are essential to attract and retain customer loyalty a key
element of creating brand equity in the present situation.
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 also the time taken to do so will be
longer and will need sustained and focused efforts.

Rebranding
On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding
strategy. The company unveiled a new logo with 'airtel' written in lower case. Designed by
London-based brand agency, Brand Union, the new logo is the letter 'a' in lowercase, with 'airtel'
written in lowercase under the logo.
Explaining the new look in detail, Sanjay Kapoor, CEO, Bharti Airtel states that the new identity
underlines Airtel's willingness to embrace everything that is new. He adds, "The logo type is
modern, vibrant and friendly and signals our resolution to be accessible to our customers and
stakeholders. And the lowercase is our recognition for humility. The red colour, which is an
integral part of the brand, continues to represent heritage, energy and passion. The new curved and
the gentle highlight almost gives the impression of a living object; at the same time, it represents a
dynamic force of unparalleled energy, brings us closer to consumers and is a symbol which will
help ensure instant recognition across diverse international markets."

Comparison of marketing strategies

between
Bharti Airtel and Vodafone.

Purpose of comparison

The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti
Airtel and its rival Vodafone

The comparison shows how both of the companies have been challenging each other to gain
market shares.

Why comparison with vodafone

Bharti Airtel is the leader in telecommunication sector.

Bharti Airtel holds the lion share of market of communication sector.

However, Vodafone has been giving tough competition to Bharti Airtel.

Vodafone is the second largest player and share holder in Communication sector.

Since its launch Vodafone has been adopting aggressive marketing strategies.

The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month
of its first launch of postpaid subscription in 2002.AD.

With a different technology Vodafone creates its own market.

Vodafone today deals in every business of communication sector.

Vodafone making and changing the strategies to capture the market shares

Brand positioning by Bharti Airtel

Market segmentation

Geographical segment (metropolitans & cities India)

Demographic segment - middle income groups

People age group of 20 to 28 year

In Recent times aggressive marketing in Rural india

Target marketing

People who living in cities and towns.

Poor or middle income group people.

Youngsters in big cities.

Businessmen

Positioning

Creating brands (Sharukh khan & Sachin Tendulker and now Young Cricketers and Ranbeer
Kapoor)

Ads and promotions

Promotion for study of poor childrens.

Marketing mix

Price:

low price strategy

Place:

maximum outlets and service centers

Product:

verities available for various groups

Promotion:

various schemes for pre-paid and post-paid

MARKETING STRATEGIES
OF

VODAFONE.

Vodafone target the rural India

The main targeted customers of Vodafone are from rural India.

By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages
and towns.

Offering cheap handsets

Vodafone offers cheap and free connections to all customers.
The cost for these sets was Rs-799-849-1099\set and onward.

Free support and services

In every district and big towns Vodafone opens its service centers to provide better support and
services.

Strong logistics and supply chain

Vodafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the Vodafone SIM & Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices.

BRAND POSITIONING
BY
VODAFONE

Market segmentation

Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

Marketing mix

Price : low price strategy

Place : maximum outlets and service centers

Product : verities available for various groups

Promotion: Creative Ads (Eg. - Zoo Zoo advertisements)

Services provided by Bharti Airtel

Mobile services with GSM technology

Fixed-line connections

National and international long distance services

VSAT, Internet services and network solutions

Broadband services

DTH Services

Services provided by Vodafone.

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

RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep study regarding the subject. The prime
objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market
and the impact of Prepaid on Airtel.
The research methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary data has been used to
support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a faceto-face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.

Type of The Research Methodology

EXPLORATORY:

TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE; THE OBJECTIVE

OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA WHERE THE
DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE COURSE OF
ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVED USEFUL FOR
GIVING RIGHT SUGGESTION TO THE COMPANY.

DATA COLLECTION METHOD

THERE TWO TYPE OF METHOD OF DATA COLLECTION.
COLLECTION.

PRIMARY DATA

SECONDARY DATA

Primary data was collected using the following techniques

Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a faceto-face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.

DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. PRIMARY DATA:
DATA:
PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME
AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER.
QUESTIONNAIRE SURVEY:
IN THE STUDIES A QUESTIONNAIRE IS PREPARED. THE QUESTIONNAIRE
CONSISTS OF 14 QUESTIONS.

SECONDARY DATA:
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:

BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS

INDUSTRY REPORTS

COMPANYS INTERNET SITE

SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES..

SAMPLE UNIT:
UNIT: - DELHI & NCR.

THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OF

CUSTOMERS DURING THE ACTIVITIES PERFORMED, WHICH INCLUDED, MARKETS,
COLD CALLING, MAILING TO FRIENDS ETC.
RANDOM SAMPLING.

SAMPLE SIZE:
SIZE: - 100 PEOPLE

SAMPLE DESIGN CONSISTS OF

METHOD OF COLLECTION: FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATION AND
INTERVIEW SCHEDULE IN WHICH THE QUESTIONNAIRES WERE FILED BY THE
INTERVIEWER.
PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS DONE TO
COLLECT THE DATA, MARKET RESEARCH WAS UNDERTAKEN, THAT WAS
ACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES DESIGNED.

RESEARCH INSTRUMENT:
INSTRUMENT:
QUESTIONNAIRE

THE QUESTIONNAIRE WAS FORMULATED BY KEEPING IN MIND THE

FOLLOWING POINTS:
POINTS: -

GIVING THE RESPONDENTS. CLEAR COMPREHENSION OF THE QUESTION.

INDUCING THE RESPONDENTS TO CO-OPERATE.

GIVING INSTRUCTIONS AS TO WHAT IS NEEDED.

IDENTIFYING THE NEEDS TO BE KNOWN.

A brief 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.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha,
and the president officially announced the TRAI ordinance on 25 January 1997. The government
decided to set up TRAI to separate regulatory functions from policy formulation, licensing and
telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of
the DOT.
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 revenuesharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the
government.
INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION
Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by
several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of
these roadblocks / current position is tabulated below:

ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of
license fees.
Inadequately funded businesses / weak and fragmented promoters
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.
Regulatory authority not in place
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.
Issues relating to unfavorable interconnect terms for private operators, pass through income, intra
circle long distance, spectrum availability and allocation and the like remained unresolved for long
periods.
Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI
(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in
methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared
with vacation of frequencies for usage by GSM operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

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.

Licensing tenure increased from 10 to 20 years

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.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing
ease of entry / exit - paves the way for full control of businesses by foreign companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
measures taken, market / subscriber base expected to zoom.

2.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased
against the former.
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.
The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping
across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via
Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999),
Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership with local
company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha
Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian cellular
operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not

to be outdone, Bharti Enterprises another major cellular player acquired control of JT

Telecom, which was later renamed Bharti Mobile (December 1999), and Skycell Communications
renamed Bharti Mobinet (August 2000). Bharti also acquired the 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
Delhi. Escotel and Vodafone have not made any headway.
BHARTI, the third cellular operator for Delhi 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.

As of October 2002, only BPL Mobile has launched commercial general packet radio service
(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea have
GPRS-enabled networks, there is caution on their part to launch the service. With hardly any
applications, the success of GPRS remains a question.

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.
Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication Maharashtra
in 2008.
Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take over
first rainbow in Rajasthan with CDMA network criteria.

Building visibility and awareness

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, Vodafone and Relianca 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.

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.
Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls
can be barred, limiting access to select numbers and diverting calls to one single number.
Broadcasting services are also quite popular, especially among fast food centers that have a central
number. Group SMS is quite popular, especially among enterprises both in the service as well as
the fast-moving consumer goods (FMCG) segment that have a large field force and need to
provide regular updates on inventory status, discount schemes and movement of goods from
warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward
transactional alerts to their customers.

2.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.

The implementation of enhanced networks like 3G will enable operators to offer data services.
This is an opportunity to customize and differentiate better.

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.

Network coverage in terms of geographic spread and quality of coverage is crucial especially
for the business subscriber.

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.

Limited mobility wireless in local-loop services (by fixed network service providers) will be a
disadvantage for cellular operators in the short term. Consequently, operators need to streamline
their customer relation activities and adopt aggressive subscriber acquisition and retention
strategies.

Scope of the study

# To conduct this research the target population was the mobile users, Who are using GSM
technology.
# Targeted geographic area of Delhi/ NCR. Sample size of 100 persons was taken.
# To these 100 people a questionnaire was given, the questionnaire was a combination of both
open ended and closed ended questions.
# The date during which questionnaires were filled.
# Finally the collected data and information was analyzed and compiled to arrive at the conclusion
and recommendations given.

Sources of secondary data

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

Data analysis
And
Interpretation

Subscriber numbers in (mn) held by Vodafone and Airtel

Airtel
Vodafone

June-05

Sep-06

Dec-07

Mar-08

Mar-09

Sep-10

3.19
1.82

4.62
4.19

5.50
6.24

6.54
7.26

14.07
10.52

14.70
11.9

Source TRAI:

MARKET PLAYERS IN TELE COMMUNICATION

Operator

Market

share Market

Aug''05
Bharti Airtel 19.06
Vodafone
21.81
Rcom
17.03
Idea Cellular 10.45

Aug''10
22.49
16.96
16.01
8.49

share

FINDINGS AND ANALYSIS

Age Group Graph

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.

Occupation Graph

OCCUPATION
10%

15%

20%

55%
STUDENTS

EXECUTIVES

HOUSEHOLDS

OTHERS

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.

Service Provider Graph

These are the total market share of mobile user or people captured by the mobile provider
company. There two major company in mobile phone service sector Vodafone and Airtel who
respectively hold the market share with other company as 17% and 20% of total market user
segment of mobile customer.

Customer Service At Airtel Graph

As the above graph clearly shows that customer services at Airtel seems poor. 46% 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. 12% 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. 14% of the people seemed partially
satisfied with the customer services and only 28% seem to be fully satisfied with Airtels customer
services, which is a very small amount.

Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
Monthly Expense

24%

12%

Rs 600
Rs 450
Rs 200

64%

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 post paid
connections and having a lot of business calls on their mobiles.

Awareness About MNP Graph

Mobile Number Portability 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 knew what MNP is all about.

Awareness of 3G Players Graph

Airtel was the brand which was popular amongst the interviewed people. As Airtel had done so
much advertising and has its banners and hoarding spread all over Delhi. 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 Airtel.

FINDINGS
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?

They spend a maximum of RS 500 as their mobile expense.

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 their 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 3G is concerned people are aware about it but not many people are aware about
Tata. They only know more about Airtel.

Mobile Number Portability is still a new concept in the market, and it will take time

Customer Response towards

Questionnaire

Which Brand you, prefer most?

Airtel

Vodafone

Reliance

TATA

Idea

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.

Do you collect any information search before making purchase?

SWOT ANALYSIS
Strengths

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

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

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

authority.

Increase in advertisement spends affect the companys margins.

The companys bottom line falls victim to the bloated and highly paid workforce,
which affects its margins.
Weakness:

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence cant compete in low price segment.

No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major boost from its cost
reduction efforts.

There is a lot of scope of product and market diversification.

Exports of products will also have huge chances in the coming years.

Airtels business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth.

3G and Mobile no. portability are areas to look in for Airtel to make new customers
Threats

The slowdown in the economy has restricted top line growth of most FMCG majors and
for Airtel also it will be difficult to maintain historical growth rates in such a depressed
scenario.

Companys major raw materials are influenced by government policies / controls as well
as vagaries of the monsoons. Fluctuations in the prices of raw materials would have
significant impact on costs and margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also increases
companys production and distribution cost.

LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints that
we underwent during the study. The following points in this direction would add to our total
deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2.

The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/whole sellers refuse to cooperate with the queries.
5. Some retailers/wholesalers gave biased or incomplete information regarding the study.
6. Lack of proper information and experience due to short period of time.
7. Some retailers did not answer all the questions or do not have time to answer.

SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and image of the
products concerned.

1. PRODUCT
*Modification must be brought about in AIRTEL, in terms of quality. Its demand should be
increased.

2. PLACE
* The brands must be made available easily in, PCO & general stores.

3. PROMOTION
*Company must undertake extensive promotional activities like advertisements must be released in
different Medias to create brand awareness.
*Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests
and coupons must be given to retailers as well as customers and prospects.
* Catalogues should be distributed among customers.
4. PRICE
* Price should be as competitive as other company maintains
* Distribution of new connection should be in reach of customer pocket

CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel lagged behind its
competitors as far as customer service and availability is concerned. The maximum no. of people
who use the mobile is in the age group of 20 to 28. Prepaid 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 new logo and has already
became popular in market. So we can say that in spite of so many competitors in the market Airtel
is having a good position just because every time, it tries its best to understand the need of its
important customers.
From the comparison and deep analysis of every aspect of business of both the companies we can
conclude that bharti Airtel has to more work in every field of communication business.
It is the time not only to survive but to sustain in the market for a long time.
For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and
when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of population of India
lives in these areas.
The other segment may be costumers of all age groups.

BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the following
Books, Magazines/Journals and Web Sites have been referred. All the material detailed below
provides effective help and a guiding layout while designing this text report.
Books :
Principles of Marketing Philip Kotler & Kevin keller edi. 12
Market Research D.D. Sharma
Research Methodology C.R. Kothari
Websites:
www.Airtelworld.com
www.google.com
www.Vodafone.in

QUESTIONNAIRE
Dear Sir/Madam,
I Ajeet kumar upadhyay, student of MBA at Sikkim Manipal University. I am
doing my project on Comparative analysis and study of marketing strategy of Vodafone

and Airtel. Please give your precious time for filling these details.
Q.1 which mobile company services you are using now a days?

Airtel

Vodafone

Reliance

TATA

Idea
Q. 2 Among them, which Brand you, prefer most?

Airtel

Vodafone

Reliance

TATA

Idea

Q.3 Are you using other product instead of Airtel?

Yes

No

Q.4 How would you rate the experience with Brand?

Excellent

Airtel

Vodafone

Reliance

Good

Average Below Average

Q.5 Do you collect any information search before making purchase?

Yes

No
Q.6 If yes, which sources are used?

Magazines

Dealers

Sales Executives

Operators reference

Pamphlets and catalogue

Reference from friends and relatives

Any other

Q.7

What are the features you look for in a product before making purchase decision? Give

preferences (1-Highest, 5- least)

Brand credibility

Price and Discount

After sales services and parts, network

Value for money

Performance

Q.8.

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

Good Network

Discount scheme

Service package

Any other

Q.9

If you have to purchase a new connection or product in near future, which Brand will you

go for and why?

_________________________________________________
_________________________________________________
_________________________________________________

Q.10

Are you aware of various promotional activities being run by Airtel, if yes then how? Are

you satisfied with these promotional activities?

Very

Customer Care

By Ad Films

By Camp

24 hrs call center services

Satisfied

Satisfied

Somewhat Not
Satisfied

satisfied

Q.11 How would you rate Airtel performance as your expectation on 5 points scale (5
Highest?)
1

After Sale service

Maintenance

Product as per expectation

4 5

Q.12 Are you aware about Mobile Number Portability service in Telecom Sector

Yes

No

Q.13 Do u know about 3G service. If yes, then of which company.

o Airtel
o Vodafone
o Reliance
o Tata
o Idea
o No
Q.14

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

parts availability?
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________