Professional Documents
Culture Documents
By
Gajendra Singh Sisodiya
Student (MBA)
ACKNOWLEDGEMENT
I Gajendra Singh, sincerely thankful to all those people who have been giving
me any kind of assistance in the making of this project report.
I express my gratitude to Mr. Nikhil Verghise, who has through her vast experien
ce and knowledge has been able to guide me, both ably and successfully towards t
he completion of the project. I express my gratitude to Pioneer Institute of M
anagement, Udaipur.
I would hereby, make most of the opportunity by expressing my sincerest thanks t
o all my faculties whose teachings gave me conceptual understanding and clarity
of comprehension, which ultimately made my job more easy. Credit also goes to al
l my friends whose encouragement kept me in good stead. Their continuous support
has given me the strength and confidence to complete the project without any di
fficulty.
Last of all but not the least I would like to acknowledge my gratitude t
o the respondents without whom this survey would have been incomplete.
I am also thankful to authority of Airtel & Vodafone for providing me the inform
ation.
(Gajendr
a Singh)
Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. India ha
s nearly 200 million telephone lines making it the third largest network in the
world after China and USA. With a growth rate of 45%, Indian telecom industry ha
s the highest growth rate in the world.
- Much of the growth in Asia Pacific Wireless Telecommunication Market is spurr
ed by
the growth in demand in countries like India and China.
- India‘s mobile phone subscriber base is growing at a rate of 82.2%.
- China is the biggest market in Asia Pacific with a subscriber base of 48% of
the total
subscribers in Asia Pacific. Compared to that India ’s share in Asia Pacific
Mobile
Phone
market is 6.4%. Considering the fact that India and China have almost compara
ble
populations, India’s low mobile penetration offers huge scope for growth.
Cellular Service
Overview
1. There are five private service operators in each area, and an incumbent
state operator. Almost 80% of the cellular subscriber base belongs to the pre-pa
id segment.
2. The DoT has allowed cellular companies to buy rivals within the same ope
rating circle provided their combined market share did not exceed 67 per cent. P
reviously, they were only allowed to buy companies outside their circle.
Growth Drivers
Opening up of international and domestic long distance telephony services are gr
owth drivers in the industry. Cellular operators now get substantial revenue fro
m these services, and compensate them for reduction in tariffs on air time, whic
h along with rental was the main source of revenue. The reduction in tariffs for
airtime, national long distance, international long distance, and handset price
s has driven demand.
The total number of telephone subscribers has reached 241.02 million at the end
of August 2007 as compared to 232.87 million in July 2007. The overall teledensi
ty
has increased to 21.20% in August 2007 as compared to 20.52% in July 2007.
In the wireless segment, 8.31 million subscribers have been added in August 2007
while 8.06 million subscribers were added in July 2007. The total wireless subs
cribers (GSM, CDMA & WLL(F)) base reaches 201.29 million at the end of August 20
07.
The wireline segment subscriber base stood at 39.73 million with a decrease of 0
.16 million at the end of August 2007. Circle wise wire line subscriber base of
service providers is given at following chart ..
CONTENT
1. Acknowledgement
2. Contents
3. Declaration
4. Synopsis
5. introduction
6. Need of the study
7. objectives of the study
8. 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
9. Research Methodology
• Type of research methodology
• Data collection method
• Method of collection
10. Data Analysis and Interpretation
11. Swot analysis
12. Suggestion & Conclusion
13. Recommendations
14. Bibliography
15. Questionnaire
Declaration
I,Gajendra Singh Siosodiya being a student of MBA ofPioneer Institute of Managem
ent. Udaipur. Hereby declares that the project report under title “A Comprehensi
ve stusy of value added services provided byTelecom service Provider .” Is my o
wn work it is the analysis of the big scale sector of communication. This projec
t involves the big scale services involved in telecommunication sector provided
by Airtel and Vodafone to its customers. The survey was conducted so as to analy
ze the big scale sector prevailing in the current industry and the improvement t
hat can be made upon it. All care has been taken to keep this report error free
and I sincerely regret for any unintended discrepancies that might have crept in
to this report. I shall be highly obliged if errors (if any) be brought to my at
tention.
Thank You
Gajendra Singh Siosdiya
NEED OF THE STUDY
1. To identify the difference between market performance of Airtel industry
and Vodafone.
2. To study the market of Airtel Industry and Vodafone on big scale telecom
munication sector.
3. To compare various parameters of marketing strategies, manufacturing pro
cess, technology adopted production policy, advertising, collaboration, export s
cenario, 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 purcha
se 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 es
sential for an organization to know about the view of consumers and their compet
itive 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 industry
and Vodafone.
2. To study the market of Airtel Industry and Vodafone on big scale telecom
munication sector.
3. To compare various parameters of marketing strategies, manufacturing pro
cess, technology adopted production policy, advertising, collaboration, export s
cenario, future prospect for the two companies and government policies.
4. To study customer buying behavior and factors which influence the purcha
se decision process.
5. To know how the company has been successful in encountering the aggressi
ve marketing strategies of competitors.
SYNOPSIS
Than 125 million 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-acti
ve and positive policy measures taken by the government as well as the dynamic a
nd entrepreneurial spirit of the various telecom service providers both in priva
te 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 phone
s and higher contribution of private sector in the incremental growth have predo
minated the telecom sector. The share of mobile phones (including WLL mobile) ha
s overtaken the share of landlines with 62% in the total number of phones. The p
rivate sector s contribution is also increasing rapidly. Currently more than 30
lakh phones are being added each month and it is targeted that by the end of 200
8 the total number of phones may reach a level of 350 million taking the tele-de
nsity to more than 30% which is currently at 24.63%.
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 compar
ed to 21.20% in August 2007.
Wireless Service: The wireless segment saw a surge of 8.77 million subscribers l
ast month compared to 8.17 million in December2007. This pushed the total wirele
ss subscribers base to 242.40 million by Jan 31 2008.
Wire line Subscribers: The wire line segment subscriber base stood at 39.73 mill
ion with a decrease of 0.16 million at the end of January 2008.
Teledensity: The gross subscriber base reached 206.83 million at the end of Marc
h 2007. The Teledensity is 24.63%at the end of January 2008 as compared to 18.31
% at the end of March 2007, registering an increase of 6%.
Increasing Role of Private Sector: The private sector has played a significant r
ole in the growth of telecom sector. The share of private sector has risen to 85
per cent in December 2007 from 64.14 per cent in November 2006.
Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due t
o increased competition. The minimum effective charges for local calls have fall
en considerably in recent months especially for cellular service. The long dista
nce domestic as well as international charges have also fallen considerably.
Telecom Regulatory Authority of India (TRAI): TRAI was established under the Tel
ecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goals
and objectives of TRAI are focused towards providing a regulatory framework tha
t facilitates achievement of the objectives of New Technology Policy (NTP) 19
99. TRAI has endeavored to encourage greater corporation in the telecom sector t
ogether with better quality and affordable prices.
AIRTEL
INTRODUCTION
VODAFONE ESSAR
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that
covers 16 telecom circles in India Despite the official name being Vodafone Ess
ar, its products are simply branded Vodafone. It offers both prepaid and postpai
d GSM cellular phone coverage throughout India and is especially strong in the m
ajor metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM te
chnology, offering voice and data services in 16 of the country s 23 license are
as.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that
covers 16 telecom circles in India . Despite the official name being Vodafone Es
sar, its products are simply branded Vodafone. It offers both prepaid and postpa
id 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 te
chnology, offering voice and data services in 16 of the country s 23 license are
as.
OWNERSHIP:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian natio
nals, 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 Relian
ce Communications, Hinduja Group, and Essar Group, which is the owner of the rem
aining 33%. The whole company was valued at USD 18.8 billion . The transaction c
losed on May 8, 2007.
PREVIOUS BRANDS:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolid
ating its services under a single identity. The Company entered into agreement w
ith NTT DoCoMo to launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previou
s owner, Hutchison. However, the brand was marketed as Hutch. After getting the
necessary government approvals with regards to the acquisition of a majority by
the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing b
rand was officially changed to Vodafone on 20 September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transit
ion exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high
-profile transition being unveiled today. Along with the transition, cheap cell
phones have been launched in the Indian market under the Vodafone brand. There a
re plans to launch co-branded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective i
s to leverage Vodafone Group s global scale in bringing millions of low-cost han
dsets from across-the-world into India."
While there is no revealing the prices of the low-cost Vodafone handsets, the in
dustry is abuzz that prices might start at Rs 666, undercutting Reliance Communi
cations much-hyped Rang Barse with cheap handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized
handset offers -- rather handset-bundled schemes for customers.
Incidentally, China s ZTE, which is looking to set-up a manufacturing unit in th
e country, is expected to provide several Vodafone handsets in India. Earlier th
is year, Vodafone penned a global low-cost handset procurement deal with ZTE.
GROWTH OF HUTCHISON ESSAR (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a company
that in 1994 was awarded a licence to provide mobile telecommunications services
in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in
November 1995. Analjit Singh of Max still holds 12% in company.
By the time of Hutchison Telecom s Initial Public Offering in 2004, Hutchison Wh
ampoa had acquired interests in six mobile telecommunications operators providin
g service in 13 of India s 23 licence areas and following the completion of the
acquisition of BPL that number increased to 16. In 2006, it announced the acquis
ition of a company that held licence applications for the seven remaining licenc
e areas.
In a country growing as fast as India, a strategic and well managed business pla
n is critical to success. Initially, the company grew its business in the larges
t wireless markets in India - in cities like Mumbai, Delhi and Kolkata. In these
densely populated urban areas it was able to establish a robust network, well k
nown brand and large distribution network -all vital to long-term success in Ind
ia. Then it also targeted business users and high-end post-paid customers which
helped Hutchison Essar to consistently generate a higher Average Revenue Per Use
r ("ARPU") than its competitors. By adopting this focused growth plan, it was ab
le to establish leading positions in India s largest markets providing the resou
rces to expand its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding
agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and in
direct equity and loan interests in Hutchison Essar Limited for a total cash con
sideration (before costs, expenses and interests) of approximately US$11.1 billi
on or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets throu
gh ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra Prad
esh and Chennai
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajas
tan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch b
rand
2004: Launched in three additional telecom circles of India namely Punjab , Ut
tar Pradesh West and West Bengal
2005: Acquired BPL, another mobile service provider in India
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has s
uccessfully launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G netwo
rk.
Hutch was often praised for its award winning advertisements which all follow a
clean, minimalist look. A recurrent theme is that its message Hello stands out v
isibly though it uses only white letters on red background. Another recent succe
ssful ad campaign in 2003 featured a pug named Cheeka following a boy around in
unlikely places, with the tagline, Wherever you go, our network follows. The sim
ple yet powerful advertisement campaigns won it many admirers.
Introduction
of
the topic
BACKGROUND
The project is an extensive report on how the Airtel Company markets its strateg
ies 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 Airt
el Company. This report also contains the basic marketing strategies that are us
ed by the Airtel Company of manufacturing process, technology, production policy
, advertising, collaboration, export scenario, future prospect and government po
licies. The report includes some of the key salient features of market trend iss
ues.
In today’s world of cutthroat fierce competition, it is very essential to not on
ly exist but also to excel in the market. Today’s market is enormously more comp
lex. Hence forth, to survive in the market, the company not only needs to maximi
ze its profit but also needs to satisfy its customers and should try to build up
on from there.
COMPANY PROFILE
OF
AIRTEL
Vision
"As we spread wings to expand our capabilities and explore new horizons, the fun
damental focus remains unchanged: seek out the best technology in the world and
put it at the service of our ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan of a
ction.
Bharti Enterprises has been at the forefront of technology and has revolutionize
d telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector. W
ith many firsts and innovations to its credit, ranging from being the first mobi
le service in Delhi, first private basic telephone service provider in the count
ry, first Indian company to provide comprehensive telecom services outside India
in Seychelles and first private sector service provider to launch National Long
Distance Services in India. Bharti had approximately 3.21 million total custome
rs – nearly 2.88 million mobile and 334,000 fixed line customers.
Its services sector businesses include mobile operations in Andhra Pradesh, Chen
nai, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madh
ya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Prad
esh (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 recently launched national long distance services by offering data tr
ansmission services and voice transmission services for calls originating and te
rminating on most of India s mobile networks.
The Company is also implementing a submarine cable project connecting Chennai-Si
ngapore for providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and cordles
s 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 Tele-Ventures strategic objective is “to capitalize on the growth opport
unities that the Company believes are available in the Indian telecommunications
market and consolidate its position to be the leading integrated telecommunicat
ions 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 obje
ctive:
• Focus on maximizing revenues and margins;
• Capture maximum telecommunications revenue potential with minimum geogra
phical coverage;
• Offer multiple telecommunications services to provide customers with a "
one-stop shop" solution;
• Position itself to tap data transmission opportunities and offer advance
d mobile data services;
• Focus on satisfying and retaining customers by ensuring high level of cu
stomer satisfaction;
• Leverage strengths of its strategic and financial partners; and
• Emphasize on human resource development to achieve operational efficienc
ies.
Businesses
Bharti Tele-Ventures 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
Competitive Strengths
Bharti Tele-Ventures believes that the following elements will contribute to the
Company s success as an integrated telecommunication services provider in India
and will provide the Company with a solid foundation to execute its business st
rategy:
• Nationwide Footprint - approximately 92% of India s total mobile subscri
bers resided in the Company s fifteen mobile circles. These 15 circles collectiv
ely accounted for approximately 56% of India s land mass;
• Focus on telecommunications to enable the Company to better anticipate i
ndustry trends and capitalize on new telecommunications-related business opportu
nities.
• The strong brand name recognition and a reputation for offering high qua
lity service to its customers;
• Quality management team with vision and proven execution skills; and
• The Company s strong relationships with international strategic and fina
ncial investors such as SingTel, Warburg Pincus, International Finance Corporati
on, 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 identit
y as well as defining its goal to become a national builder of telecoms infrastr
ucture.
Airtel - The flagship brand for cellular operations all across the Indian countr
y.
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, let’s first look at the brand building exercis
e associated with Airtel — a brand that had to be repositioned recently to addre
ss new needs in the market.
When the brand was launched seven years ago, cellular telephony wasn’t a mass ma
rket by any means. For the average consumer, owning a cellular phone was expensi
ve 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 eco
nomic advantage of using a mobile phone. But Sachdev says that such a strategy w
ould not have worked for the simple reason that the value from using the phone a
t the time was not commensurate with the cost.
“Instead of the value-proposition model, we decided to address the sensory benef
it it gave to the customer as the main selling tack. The idea was to become a ba
dge value brand,” he explains.
So the Airtel “leadership series” campaign was launched showing successful men w
ith their laptops and in their deluxe cars using the mobile phone. In simple ter
ms, 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 fo
r 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 schem
es, it had now become important for Bharti to “humanize” Airtel and use that rel
ationship as a major differentiation.
The brand had become something like Lufthansa — cold and efficient. What they ne
eded was to become Singapore Airlines, efficient but also human. A change in tac
k was important because this was a time when the cellular market was changing.
The leadership series was okay when you were wooing the crème de la crème of soc
iety. Once you reached them you had to expand the market so there was need to ad
dress 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 exp
and the market.
How could Bharti leverage this leadership position down the value chain? Surveys
showed that the concept of leadership in the customer’s minds was also changing
. Leadership did not mean directing subordinates to execute orders but to work a
long with a team to achieve common objectives — it was, again, a relationship ga
me that needed to be reflected in the Airtel brand.
Also, a survey showed that 50 per cent of the new customers choose a mobile phon
e brand mostly through word-of-mouth endorsements from friends, family or collea
gues. Thus, existing customers were an important tool for market expansion and B
harti now focused on building closer relationships with them.
That is precisely what the brand tried to achieve through its new positioning un
der the Airtel “Touch Tomorrow” brand campaign. This set of campaigns portrayed
mobile users surrounded by caring family members. Says Sachdev: “The new campaig
n 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 apa
rt from the seven in which it already operates — Bharti is now realizing that th
ere 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 powe
r brand with numerous regional sub-brands reflecting customer needs in various p
arts 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 w
ork in urban markets that are now getting increasingly saturated.
To bring in new customers, the company decided that it needed to segment the mar
ket. 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 i
ts earlier positioning, Airtel was perceived as a brand for the well-heeled olde
r 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 pai
se for 30 seconds) at night to Youtopia customers — a time when they make the ma
ximum 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 th
is segment which include music downloads on the mobile and bundling SMS rates wi
th 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 segmentat
ion through the Tango brand name. The brand was created to offer mobile users In
ternet-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 chos
en from the popular movie title It Takes Two to Tango: basically, you need the t
wo 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 servic
es.
Subsequently, the ads were withdrawn, but the company re-iterated that the brand
ing exercise could be revived because Tango will be the brand to offer GPRS serv
ices — 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. T
he idea was to make the brand affordable, accessible and, most importantly, feas
ible 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 marke
t and assure him that he would have to pay only if he made a call. Such a custom
er used the phone sparingly — mostly for emergencies — and was not willing to pi
ck up a normal mobile connection with its relatively high rentals (pre-paid card
s 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 store
s, telephone booths and even kirana shops so that the offering was well within a
rms reach.
• Third, to make the product more “approachable” to the customer, the comp
any 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 a
d campaign all across Delhi, a ruse that saw the number of subscribers go up fro
m 5.47 lakh to 1.2 million today, overtaking Essar’s branded pre-paid card Speed
, which was launched much ahead of Magic. The company is now re-working its Magi
c 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 n
ow, with basic service providers having been allowed limited mobility at far che
aper 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 usin
g a pre-paid card.
PHASE II -
Bharti used Airtel Magic to build a strong value proposition and accelerate mark
et expansion through India’s 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 t
o connect with the masses of India
• Youth based - romance driven strategy platform makes the value propositi
on 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-m
obile user.
• Airtel Magic positions itself on the platform of being excellent for eme
rgency situations - increasing productivity as a part of everyday life.
• Sharukh Khan makes ‘everything in life possible’ while romancing pretty
Kareena Kapoor with Airtel Magic, India’s leading pre-paid mobile card.
Airtel today unveiled its strategy for market expansion with the launch of its n
ew Airtel Magic pre-paid card brand campaign – ‘Magic hai to Mumkin hai’. The s
trategy 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 arou
nd a person’s desire to make all his / her dreams, ambitions & aspirations insta
ntly possible. The new campaign for Airtel Magic is all about empowering millio
ns 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 t
heir 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 possib
le 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 u
s 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 ambass
adors). Sharukh rose from a TV actor to become India’s top film star and nation
al heartthrob. Kareena’s success is due to her ‘attitude’, talent, hard work an
d 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 conne
cts millions across India. The spirit of romance, dancing… the Indian cinema, w
ell 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 t
he 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 a
ll 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 inte
nding mobile customers from Sec A, B & C. The estimated addressable market of s
uch customers in the next two years is around 25 million in Airtel’s 16 states.
The new strategy aims at correcting the perception that the mobile category is
useful mainly for ‘business’ or ‘work’ related scenarios.
The new strategy, brand positioning & brand slogan is an outcome of an extensive
nationwide research and is an integral part of Airtel Magic’s new multi-media c
ampaign. The campaign has been created by Percept Advertising.
PHASE III -
Bharti used Airtel Magic to build a strong value proposition and accelerate mark
et expansion through India’s first national pre-paid card TV brand campaign
• First time ever in India - any pre-paid card brand gives such freedom t
o recharge any value
• A combination of the film genre exposed through the TV medium designed t
o connect with the masses of India
• Youth based - romance driven strategy platform makes the value propositi
on of Airtel Magic - ‘Aisi azaadi aur kahan?” come alive
• Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled i
ts strategy for market expansion with the launch of its new Airtel Magic pre-pai
d card brand campaign – ‘Magic Hai to Mumkin Hai’. . The value proposition is
centered on a person’s desire to make all his / her dreams, ambitions & aspirati
ons instantly possible. The new campaign for Airtel Magic is all about empoweri
ng 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 t
heir dreams, hopes & desires come alive… instantly .At a amount of your choice y
ou can recharge your account with available validity time .Improving productivit
y, 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.
Purpose of comparison
• The sub main purpose of this report is to compare the marketing Strategi
es adopted by Bharti Airtel and its rival Vodafone
• The comparison shows how both of the companies have been challenging eac
h other to gain market shares.
Since its launch Vodafone has been adopting aggressive marketing strateg
ies.
The comparison shows how Hutchison Essar Telecom. Captured 22% market sh
are in one month of its first launch of postpaid subscription in 2002.AD.
Market segmentation
Geographical segment (metropolitans & cities India)
Demographic segment - middle income groups
People age group of 20 to 28 year
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)
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.
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: various schemes for pre-paid and post-paid
SECONDARY DATA:
SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY COLLECTED .THE SE
CONDARY DATA, WHICH HAS BEEN USED TO CARRY OUT THIS STUDY, ARE AS FOLLOW:
• BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS
• INDUSTRY REPORTS
• COMPANY’S INTERNET SITE
• SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES..
SAMPLE UNIT: - DELHI & NCR.
THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OF CUSTOMERS DURING THE
ACTIVITIES PERFORMED, WHICH INCLUDED, MARKETS, COLD CALLING, CANOPIES, ETC. S
AMPLE DESIGN CONSISTS OF RANDOM SAMPLING.
SAMPLE SIZE: - 50 PEOPLE
METHOD OF COLLECTION: -
FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATION AND INTERVIEW SC
HEDULE IN WHICH THE QUESTIONNAIRES WERE FILED BY THE INTERVIEWER.
PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS DONE TO COLLECT THE DAT
A, MARKET RESEARCH WAS UNDERTAKEN, THAT WAS ACCOMPLISHED BY PERFORMING VARIOUS A
CTIVITIES DESIGNED.
RESEARCH INSTRUMENT:
QUESTIONNAIRE
THE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE FOLLOWING POINTS: -
• GIVING THE RESPONDENTS. CLEAR COMPREHENSION OF THE QUES.
• INDUCING THE RESPONDENTS TO CO-OPERATE.
• GIVING INSTRUCTIONS AS TO WHAT IS NEEDED.
• IDENTIFYING THE NEEDS TO BE KNOWN.
ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requiremen
ts 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 acquisit
ions / 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 th
rough income, intra circle long distance, spectrum availability and allocation a
nd the like remained unresolved for long periods.
Interconnect terms since rationalized, risks on pass through income to DOT / BHA
RTI (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties w
ith changes in methodology / revenue sharing, intra circle long distance allowed
, spectrum availability cleared with vacation of frequencies for usage by GSM op
erators.
The operations of this sector are determined as under the Indian Telegraph Act o
f 1885. A document buried in the sands of time. The next major policy document,
which was produced, was the National Telecom Policy of 1994, a consequence of th
e on going process of liberalization.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
1985 DOT was created
1986 Creation of BHARTI and VSNL
1991 Telecom equipment liberalized
1994 Licenses for paging
1994 Telecom policy announced
September 1994 Guidelines for private sector participation in basic services
November 1994 Cellular licenses issued for metros
December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros
January 1995 Tenders for 2nd operator in basic services apart from DOT on cir
cle basis.
August 1995 VSNL launches Internet services
January 1996 TRAI formed
November 1998 Internet policy announced
The National Telecom Policy of 1994 document, which laid out broad policy guidel
ines rather than a series of action points. Like other policies, it sought to ac
hieve the impossible in finite time like improve quality of service and its avai
lability, wide coverage (a phone in every village), at reasonable rates, etc. Th
e targets in quantifiable terms were installation of 9.5mn additional lines, tel
ephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed
private operators in value added services. To facilitate licensing, the nation
was divided into 20 circles (akin to a state) for basic and 21 circles for cellu
lar telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle.
The basic premise on which competition has been introduced is that every circle
will have one private operator apart from DoT/ BHARTI for basic and two operator
s for cellular. DoT/ BHARTI have the option to become the third cellular operato
r in future.
Government did not achieve most of its stated targets. The basic theme, which wa
s broadening the reach of telephony in India, has not been met. Even liberalizat
ion policies were not implemented properly. The regulator TRAI was set up after
delays and confusion and even after its creation, DoT continued to fight with it
in courts. It was also affected by the resource crunch, and financing options l
ike BOT, BOOT and BOLT was not used at all. The major policy direction it showed
was to allow private sector entry in both basic and value added services. The i
ntention, though noble failed to achieve its goals because of improper implement
ation, the economic costs are still borne by the end user.
The telecom sector has witnessed some fundamental structural and institutional r
eforms in the past decade. Telecom equipment manufacturing was completely deregu
lated in 1991. Value-added services (including cellular services) were thrown op
en to private sector participation in 1992. Basic services were opened to privat
e participation in 1994 by dividing the country into 21 telecom Circles and allo
wing one private operator per Circle to compete with DOT. An independent telecom
regulatory Authority of India was set up in 1997. A new Policy for Internet Ser
vice Policy Providers (ISPs) was announced in 1998 allowing independent service
providers to enter the sector ending the earlier monopoly of VSNL. Reorganizatio
n of DOT, separating policymaking function and service provision and corporatiza
tion of DOT s operational network are two major institutional reforms, which nee
d to be implemented.
Data analysis
And
Interpretation
Subscriber numbers in (mn) held by Vodafone and Airtel
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 cons
titutes 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 a
re at home or have small business units etc. And the next age group is the youn
gest generation who are 15-21 years old. They are school and college going stude
nts and carry mobile phones to flaunt. They are 15% of the total interviewed peo
ple.
Occupation Graph
As the above graph shows that 55% of the total people interviewed are working. S
o, these people are the ones who are the maximum users of mobile phones. They ar
e the young executives, managers, Tele - callers etc. who require mobile for the
ir official purposes. The next category is the households, who are either housew
ife, 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 whol
e is categories who are the professionals.
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 Vodafo
ne and Airtel who respectively hold the market share with other company as 17% a
nd 20% of total market user segment of mobile customer.
Cash cards seemed quite popular among the people interviewed. 85% of the total m
obile users were having cash card connections. This means that the cash cards sh
ould be easily and readily available in the local markets. Airtel should make su
re that Magic is available in each and every nook and corner of the market. 15%
of the people were having sim connections which is the regular bill.
Monthly expense graph
People on an average spend RS 500 per month as their mobile phone expense. 64% p
eople spend this amount. 24% people spend RS 300 per month as their monthly mobi
le expense. And the remaining 12% had an expense more than RS 1000, they could t
he ones having sim connections or having cash cards and having a lot of business
calls on their mobiles.
Awareness About WLL Graph
WLL seemed to be a new word for many of the people. 45% of the people were not a
t all aware of such a technology. So, in order to get the answer for this questi
on they were first explained the concept. Only, 55% people knew what WLL is all
about.
Vodafone was the brand which was popular amongst the interviewed people. As Voda
fone had done so much advertising and has it banners and hoarding spread all ove
r 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 Vodafone.
On the basis of analysis of the questionnaire I have found that the maximum no
. of people who use mobile phones is in the age group of 20 to 28. Who are the y
oung 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 c
onsumer I found that on the basis of Tariff plan, value added services and billi
ng accuracy Airtel is at par or ahead of its competitor but in the case of cust
omer care and availability they lag behind there competitors. As, Airtel has a h
old in the market because it has the maximum no. of connections, so it must impr
ove upon it customer services. As far as WLL is concerned people are aware abo
ut it but not many people are aware about Tata. They only know more about Vodafo
ne. People at this point of time are not interested to switch over from GSM to W
LL
SWOT ANALYSIS
Strengths
• Being one of the largest companies in India the company has achieved a d
egree of focus in its core business of its products.
• It has a strong brand name, superior quality products and an enviable di
stribution network.
• It has a clear and well-defined organization structure and limits of fin
ancial authority.
• Increase in advertisement spends affect the company’s margins.
• The company‘s bottom line falls victim to the bloated and highly paid wo
rkforce, which affects its margins.
Weakness:
• Little efforts over the Advertising of products.
• Distribution channel is not accurately categorized.
• Premium priced products, hence can’t compete in low price segment.
• No separate strategy for rural market.
Opportunities:
• The company s financial performance can receive a major boost from its c
ost 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.
• Airtel’s business has ample scope for gaining market share from the unor
ganized sector. Rural penetration too holds vast potential to bring about growth
.
Threats
• The slowdown in the economy has restricted topline growth of most FMCG m
ajors and for Airtel also it will be difficult to maintain historical growth rat
es in such a depressed scenario.
• Company’s major raw materials are influenced by government policies / co
ntrols as well as vagaries of the monsoons. Fluctuations in the prices of raw m
aterials would have significant impact on costs and margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also increases c
ompany’s production and distribution cost.
FINDINGS
• Few years back mobile connections were not common among the students. Bu
t with the mobile revolution now we can find almost every student with mobile ph
one.
• Most of the students prefer prepaid connections than postpaid connection
s.
• Most preferred cellular company amongst the students is airtel and the
least preferred company is reliance.
• Mostly the students are satisfied with the services provided by the diff
erent cellular companies.
• Maximum number of respondents were attracted towards the coverage facili
ty and the least like the roaming services.
• T.V. and internet are the best media advertisements that put more impact
on the students buying decisions
• The monthly expense of maximum students was ranging from 150-300.
• Maximum number of students are loyal to there particular service provide
rs and they were using there connections since 2 years.
LIMITATIONS
No project is without limitations and it becomes essential to figure out the var
ious constraints that we underwent during the study. The following points in thi
s direction would add to our total deliberations:-
1. During the study, on many occasions the respondent groups gave us a cold sh
oulder.
2. The respondents from whom primary data was gathered any times displayed comp
lete 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 th
e study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience due to short period of time.
8. 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 i
mage of the products concerned.
1. PRODUCT
*Modification must be brought about in AIRTEL, in terms of quality. Its demand s
hould 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 mus
t be released in different Medias to create brand awareness.
*Free samples should be distributed among the prospects. Sales promotion tools l
ike 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.
Cash cards are the most popular type of mobile connections, as they are consume
r 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 in
to the loop holes of the existing customer service department.
As we know that now Airtel has already launched its product with logo “’ Aisi az
aadi aur kahan”’ has already became popular in market. So we can say that in spi
te of so many competitors in the market Airtel is having a good position just be
cause every time, it tries its best to understand the need of its important cus
tomers.
From the comparison and deep analysis of every aspect of business of both the co
mpanies we can conclude that bharti Airtel has to more work in every field of co
mmunication 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, promotio
n, brand image.etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from t
ime 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.
RECOMMENDATIONS
I have made following recommendation to the company after doing the summer train
ing there:
• The company should modify its credit policy as they only target the cash
paying customers who are not easy to trace.
• The company should emphasis more on the quality of Pharmaceuticals Produ
cts it was mostly claimed by the exporters that their receipts from company does
n’t matches with the sample’s quality shown before giving orders.
• The company should make its marketing strategy flexible enough in order
to face competition.
• The company should keep an eye on the proper delivery of the goods to ex
porter on time, as it has been recommended by exporters to make the delivery on
time.
• The company rate policy must be flexible enough to catch new customers b
ecause if company offers lower price to a new customer then he may continue buy
the goods and can be a permanent customer for the company.
• The company should offers such rate in the market so that it may able to
catch a bigger market share and it should be able to compete with the local tra
ders and commission agents while having a brand name.
The company should take the opinion of exporters from time to time to know what
problems they are facing from the company’s side. And if any change they require
in present supplying condition?
BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in de
tails the following Books, Magazines/Journals and Web Sites have been referred.
All the material detailed below provides effective help and a guiding layout whi
le 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.india.com
www.Vodafone.in
http://www.blonnet.com/2004/06/26/stories/2004062602180700.htm, Mumbai, June 25
, 2004.
com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming.htm, 4 November
2003
Domain, Missed Call, at http://www.domainb
Magazines:
Airtel (2 July to 10 July 2004)
Airtel India page of HT paper (Thursday 1December 2004)
Cowards India (26 December to 4 Jan. 2004)
QUESTIONNAIRE
Dear Sir/Madam,
I Gajendra Singh Sisodiya, student of MBA of Pioneer instituteof
management, Udaipur. I am doing my project on “Comparative analysis of market
ing strategy of Vodafone and Airtel”. Please give your precious time for fillin
g these details.
Q.1 Name those companies which provide telecom services now a days?
Airtel
Vodafone
Reliance
TATA
Idea
Q.2 which mobile company services you are using now a days?
Airtel
Vodafone
Reliance
TATA
Idea
Q. 3 Among them, which Brand you, prefer most?
Airtel
Vodafone
Reliance
TATA
Idea
Q.8 What are the features you look for in a product before making purchase d
ecision? Give preferences (1-Highest, 6- least)
Brand credibility
Price and Discount
After sales services and parts, network
Value for money
Vehicle performance
Add on features or ergonomics of design
Q.9. Which of these marketing / sales schemes attracts you while purchasing a
ny connection?
Good Network
Discount scheme
Service package
Any other
Q.10 If you have to purchase a new connection or product in near future, whic
h Brand will you go for and why?
_________________________________________________
_________________________________________________
_________________________________________________
Q.11 Are you aware of various promotional activities being run by Airtel,
if yes then how? Are you satisfied with these promotional activities?
Very Satisfied Satisfied Somewhat Satisfied Not satisfied
Customer Care
By Ad Films
By Camp
24 hrs call center services
Q.12 How would you rate Airtel performance as your expectation on 5 points sc
ale (5 Highest?)
1 2 3
4 5
After Sale service
Maintenance
Product as per expectation
Q.13 What are you suggestions for improving the product quality, service avai
lability and parts availability?
________________________________________________________________________________
________________________________________________________________________________
____________________________________