Airtel - Idea

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<p>A RESEARCH PROJECT ONMARKETING STRATEGIES OF AIRTEL AND IDEA</p> <p>(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF MASTERS OF BUSINESS ADMINISTRATION)</p> <p>UNDER THE GUIDANCE OF: -</p> <p>SUBMITTED BY:</p> <p>Mr. Ranjeet VermaMBA Faculty</p> <p>Sumit AggarwalMBA 05/09 2005-2007</p> <p>N.C COLLEGE OF ENGINEERING, ISRANA (KURUKSHETRA UNIVERSITY, KURUKSHETRA)</p> <p>CONTENTS1. Acknowledgement 2. Preface 3. Introduction 4. Airtel 5. Idea 6. Objective of the study 7. Research Methodology 8. Analysis and Interpretation 9. Findings 10.Limitations of the study 11.Suggestions and Recommendation 12.Conclusion 13. Annexure i) Bibliography ii) Questionnaire</p> <p>2</p> <p>3</p> <p>DECLARATION</p> <p>I SUMIT AGGARWAL, Roll no-09 M.B.A., 2 nd year of my college N.C. college of Engineering ISRANA, Distt.- PANIPAT, here by declares that final project report entitled Marketing strategy of AIRTEL vs. IDEA is an original work and the same has not been submitted to any other institute for award of any other degree.</p> <p>A seminar presentation of the training report was made on the date _______________ and suggestions as approved by the faculty, were duly incorporated.</p> <p>SUMIT AGGARWAL</p> <p>4</p> <p>PREFACEA determination to succeed is the only way to succeed. For this, it is very important that all knowledge, which we have, should be translated into action. It is only then that we can achieve something. Project work is the way to convert our raw talent into potential management. Classroom knowledge can only then be efficient when it is effectively wedded to the realities of the situation existing outside the classroom. In this project work place an important role. In this regard, I was given a project entitled MARKETING STRATEGY OF AIRTEL AND IDEA (PANIPAT).</p> <p>5</p> <p>ACKNOWLEDGEMENTSuccess is not brought inherited. It is a product of what we put in. Success begins with a good feeling about where we are and a positive attitude about where we want to be. With this willingness, I have started this project. First of all, I would like to thank to the supreme power, the almighty god, who has always guided me to work on the right track of my life and has always blessed me with his blessing by giving me the best. Next to him are my parents, whom I am greatly indebted for having me brought up with love and encouragement. Next comes a person, without whose guidance and encouragement, this project report would not have been successful. So, I would like to express my gratitude towards Ms. Puja Mann, HOD, N.C.College Of Engineering, Israna.</p> <p>SUMIT AGGARWAL</p> <p>6</p> <p>EXECUTIVE SUMMARYFirst of all we have to know the meaning of research, research is increasing the knowledge in existing knowledge or we can say that search for new ideas. So, I am taking out my research to find out the perception of the consumers towards different cellular services, I prepared my questionnaire and record the responses of consumers.</p> <p>The presented report is an effort to find solution for the present day Problem in the cellular service providers. Where the Company interested to find out the solution for the fact that being a AIRTEL the Number one in the cellular service provider I proposed them to undertake a Strategic Market Research where we would Read the Market perception of the AIRTEL and IDEA . Starting with the Retailers perception and then the Companys Perception and finally Customers perception. We have presented this Research study with respect to three different Areas with different samples size and completely different set of response Parameters.</p> <p>The sampling technique used in all the three spheres of Research is Exploratory. The data collected under all the three distinct perception point is completely primary data as I was the prima fascia for theses responses. Primary data are collected taking the view of consumers towards these cellular services. And</p> <p>7</p> <p>secondary data also collected from the secondary sources like the customer care services, business magazines.</p> <p>As a result of this research I have see the loose pools of the company to modify their strategy at certain points with respect to all the three perception nodes. In the Retailers perception segment I have suggested the Company to increase the number of visits at retailer outlet and boost the retailer with emotional support and confidence. In Company perception I suggested them to improve the cellular services and introduce some new schemes to consumers with customer attracting schemes which should be available at dealers.</p> <p>8</p> <p>INTRODUCTION TO COMPANY</p> <p>Today the tele communication sector is very important in INDIA. There is very tough competition between various companies. Now a days telecommunication companies offering various plans or benefits to customers to outstand the competition in the market. So, the telecommunication industry, in a way, creates employment for people. So, I am here to study the marketing strategy of companies on the consumers. After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM), and Tata Indicom. As competition in the telecom arena intensified, service providers took new initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was</p> <p>9</p> <p>the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. Hutch implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. Reliance was another player that cashed on its innovative promotional strategies, which included celebrity endorsements and attractive talk time schemes. Idea relied heavily on its creative media advertising sans celebrities.</p> <p>10</p> <p>AIRTELAirtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. A consortium of giants in the telecommunication business. In it's six years of pursuit of greater customer satisfaction, Airtel has redefined the business through marketing innovations, continuous technological up gradation of the network, introduction of new generation value added services and the highest standard of customer care. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 12 million satisfied customers. Cellular telephony was introduced in India during the early 1990s. At that time, there were only two major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only post-paid services. Initially, the cellular services market registered limited growth. Moreover, these services were mostly restricted to the metros. Other factors such as lack of awareness among people lack of infrastructural facilities, low standard of living, and government regulations were also responsible for the slow growth</p> <p>11</p> <p>of cellular phone services in India. Although the cellular services market in India grew during the late 1990s (as the number of players increased and tariffs and handset prices came down significantly) the growth was rather marginal. This was because the cellular service providers offered only post-paid cellular services, which were still perceived to be very costly as compared to landline communications. Following this realization, the major cellular service providers in India, launched pre-paid cellular services in the late 1990s. The main purpose of these services was to target customers from all sections of society (unlike post-paid services, which were targeted only at the premium segment). Bharti Tele-Ventures is one of India's leading private sector providers of telecommunications services based on an aggregate of 15,844, 382 customers as of October 31, 2005, consisting of 14, 740, 366 GSM mobile and 1, 104, 016 broadband &amp; telephone customers The businesses at Bharti Tele-Ventures have been structured into two main strategic business groups - the Mobility Leaders business group and the Infotel Leaders business group. The Mobility business group provides GSM mobile services across India in twenty-three telecom circles, while the Infotel business group provides broadband &amp; telephone services, long distance services and enterprise services. All these services are provided under the Airtel brand. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in</p> <p>12</p> <p>1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also</p> <p>manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti Tele-Ventures through its subsidiary Bharti Telenet Limited (BTNL) holds the right to establish, maintain and operate a fixed-line telephone network in Haryana through a license valid for 20 years from October 8, 2001. BTNL provides fixed-line services to approximately 114,400 customers as of March 31, 2005 under the brand Airtel. BSNL also operates a fixed-line telephone service within the same geographical area. Bharti is the leading cellular service provider, with a footprint in 16 states covering all four metros. It has over 12 million satisfied customers Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Tele-Ventures</p> <p>13</p> <p>is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bhartis successful foray into the Customer Management Services business, Bharti Enterprises dynamic diversification has continued with the company venturing into telecom software development. Recently, Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA Bharti Tele-Ventures vision for its mobile business is To make mobile communications a way of life and be the customers first choice. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Companys strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 41.03 million subscribers as of March 31, 2005. Despite this rapid growth, the mobile penetration rate in India, at approximately 3.9% as of March 31, 2005, is significantly lower than the average mobile penetration rate in other Asian and international markets.</p> <p>14</p> <p>The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner.</p> <p>15</p> <p>Source:(1) Population estimates are as per National Census, 2001 and are as of March 1, 2001. The population for Uttar Pradesh (West) circle is approximately 37% of the total population</p> <p>(2) Wireless subscriber statistics are as of March 31, 2005 and are based on data released by COAI. Wireless market size comprises the total number of wireless subscribers of all</p> <p>(3) Demographics of Maharashtra and Tamil Nadu do not include demographics of state capitals (metros) Mumbai and Chennai respectively.</p> <p>(4) Demographics of Haryana does not include Faridabad &amp; Gurgaon as they are included in Delhi &amp; NCR. Similarly demographics of Uttar Pradesh (West) &amp; Uttaranchal does not include Noida &amp; Ghaziabad as they are included in Delhi NCR. The significant growth in the Company's mobile business has been through a combination of organic growth and acquisitions of additional licenses and has been summarized below. The information given below is for the total market and is not representative of our market share or network coverage 16</p> <p>. As of Mar 31, As of March 31, 1999 2 1.12 0.21 (in millions) Percentage of market mobile subscribers to total 18% mobile subscribers in India 1) Comprise the circles of Delhi and Himachal Pradesh. 2) Comprise the circles of Delhi, Himachal Pradesh, Karnataka and Andhra Pradesh. 3) Comprise the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and Chennai. 4) Comprise the twenty-one operational circles of Bharti Tele-Ventures. 5) Based on data released by the COAI on the total number of persons subscribing to mobile services in our licensed area 30% 36% 100%(1)</p> <p>Number of Mobile licenses held by us Total mobile subscribers in India (in millions) Market mobile subscribers in our license areas(5)</p> <p>2000 4 1.88 0.57</p> <p>(2)</p> <p>2001 5 3.58 1.28</p> <p>(3)</p> <p>2006 2005(4) 23 41.03 41.03</p> <p>MOBILE STRATEGY 17</p> <p>Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins.</p> <p>Build high quality mobile networks by deploying state-of-the-art technology to offer superior services</p> <p>Airtel values</p> <p>18</p> <p>Inn venturing We will generate and implement entrepreneurial and innovative ideas, which willcontinuously create new growth engines.</p> <p>Customer First We are committed to delivering service beyond the expectations of the customer. Ourquality of customer responsiveness clearly differentiates us from others.</p> <p>Performance Culture We benchmark our processes and performance against world-class standards. Wedistinguish betwe...</p>