INTEGRATED LIVE PROJECT

ON BHARTI AIRTEL

“STUDY ON BRAND

POSITIONING OF AIRTEL”

DONE BY

PRASAD PHAL

1

ACKNWOLEDGEMENT

The project comes directly from my heart with sincere dedication, devotion and

efforts. I would also like to express my deepest gratitude towards those whose

help and contribution cannot be appraised.

I also take the opportunity to thank Mr. Mithun Bhonsle, Area Manager,

BHARTI AIRTEL, Goa unit, without whose help and guidance I would not have

been able to complete my project.

I would also like to express my sincere gratitude to our faculty guide who

helped me in solving the problems and difficulties and in completing the

project.

I would also like thank all the Managers, Executives, Supervisors, and

Workers of the company who provided me relevant information in spite of their

busy work schedule.

2

DECLARATION

I hereby declare that this integrated live project entitled “BHARTI AIRTEL” is

my work, carried out under the guidance of my faculty and my company guide

Mr.Anoop Das. This live project report neither full nor in part has ever been

submitted for award of any degree of either this college or any other college.

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CERTIFICATE

“Certified that this project report is a record of work done by the candidate

himself during the period of study under faculty Guidance and that to the best

of my knowledge it has not previously formed the basis of the award of any

degree or Diploma in ICFAI University or elsewhere.”

__________________

(Faculty guide)

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INDEX

1 INDUSTRY PROFILE 6

2 COMPANY PROFILE 7

3 OBJECTIVE 9

4 LIMITATION 10

5 CHP-1) CASH MANAGEMENT 11

6 CHP-2) PERFORMANCE APPRAISAL 16

7 CHP-3) PRICING POLICY 23

8CHP-4) LEGAL ENVIRONMENT

26

9 CHP-5) BRANDING AND PRODUCT RANGE 29

10 CHP-6) FINDINGS AND ANALYSIS 40

11 CONCLUSION 49

12 BIBLOGRAPHY 51

13 ANNEXURE 52

14 ABBRIVIATION 53

5

INDUSTRY PROFILETelecommunications industry in India

The telecommunications industry is growing at a very rapid pace in India. Also

India is one of the fastest growing telecom markets in Asia. India is the 4 th

largest telecom market in Asia. The telecom Market consists of mobile

phones, cellular service providers, and broadband network.

The telecommunications industry has undergone a lot of change in the last 2

decades. From deregulation to privatization to telecom services, to

liberalization of Indian telecom policies, increase in competition, introduction of

new technologies like black berry phones, and internet and convergence of

technologies. Since the telecom industry is growing at a rapid pace, Bharti

School of telecom has been dedicated to the country.

This telecom revolution has contributed enormously to increased efficiency in

the economy. It has reduced transaction costs. It has increased connectivity

across the length and breadth of our vast subcontinent. It has brought Indians

closer to each other. The telecom sector is driving today the growth of both

incomes and employment. Indeed, this growth is creating new business and

new employment opportunities. India has emerged as a major base for the

telecom industry worldwide and we intend to facilitate the further growth of this

vital industry.

Also new players like Vodafone, one of the leading telecom companies in the

world have entered the Indian telecom market.

6

COMPANY PROFILEBHARTI AIRTEL LTD– An Overview

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The

Bharti Group, has a diverse business portfolio and has created global brands

in the telecommunication sector. Bharti has recently forayed into retail

business as Bharti Retail Pvt. Ltd.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the

first private telecom services provider with a footprint in all the 23 telecom

circles. Bharti Airtel since its inception has been at the forefront of technology

and has steered the course of the telecom sector in the country with its world

class products and services.

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

telecommunications services based on an aggregate of 57,341,120 customers

as on December 31, 2007, consisting of 55,162,944 GSM mobile and

2,178,176 broadband & telephone customers. Bharti Airtel crosses the 60

million customer mark .

The businesses at Bharti Airtel have been structured into three individual

strategic business units (SBU’s) - mobile services, telemedia services (ATS) &

enterprise services. The mobile services group provides GSM mobile services

across India in 23 telecom circles, while the ATS business group provides

broadband & telephone services in 94 cities. The enterprise services group

has two sub-units - carriers (long distance services) and services to

corporates. All these services are provided under the Airtel brand.

7

The company has a strategic alliance with SingTel. The investment made by

SingTel is one of the largest investments made in the world outside

Singapore, in the company.

The company’s mobile network equipment partners include Ericsson and

Nokia. In the case of the broadband and telephone services and enterprise

services (carriers), equipment suppliers include Siemens, Nortel, Corning,

among others. The Company also has an information technology alliance with

IBM for its group-wide information technology requirements and with Nortel for

call center technology requirements. The call center operations for the mobile

services have been outsourced to IBM Daksh, Hinduja TMT, Teletech &

Mphasis. Bharti Airtel is the only Indian company in the top 10 list. Bharti Airtel

has ranked ahead of companies like Motorola (Rank 11), Google (Rank 13),

Microsoft (Rank 37), Hewlett Packard (Rank 44) and Oracle (Rank 51)

The mobile business provides mobile & fixed wireless services using GSM

technology across 23 telecom circles while the B&T business offers

broadband & telephone services in 94 cities.

Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under

a MoU with Wal-Mart for the cash & carry business. It has successfully

launched an international venture with EL Rothschild Group to export fresh

agri products exclusively to markets in Europe and USA and has launched

Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world

leader in financial protection and wealth management The company’s mobile

network equipment partners include Ericsson and Nokia. In the case of the

broadband and telephone services and enterprise services (carriers),

equipment suppliers include Siemens, Nortel, Corning, among others. The

Company also has an information technology alliance with IBM for its group-

wide information technology requirements and with Nortel for call center

technology requirements. The call center operations for the mobile services

have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

8

OBJECTIVE

To study concept cash management in the company.

To study performance appraisal system in the company.

To study the concept pricing policy of the company.

To study the concept of political and

To study the concept of branding and product range.

Findings and analyzing on the survey coducted .

9

LIMITATIONS

A major limitation of this study is that it is very difficult to contact

the concerned person as it was difficult to fix appointments with

them due to their busy schedules due to which the true information

cannot be revealed.

Retailers were not ready to respond to the questionnaire as they had

tie ups or contracts with other service providers and thus refused to

entertain.

Survey was restricted to customers in Goa region only.

10

CASH MANAGEMENT

Objective: To study the Cash management of Bharti Airtel

Cash, the most liquid asset and also referred to as the life blood of a business

enterprise is of vital importance to the daily operation of business firms. Its

efficient management is crucial to the solvency of business because cash is

the focal point of the fund flows in a business.

There are two ways of viewing the term ‘cash’. It includes actual cash in the

form of notes and coins and bank drafts held by a firm and the deposits

withdraw able on demand. It also includes marketable securities which can be

easily sold or converted into cash.

Need for Cash Management

Cash in hand or at bank is the most liquid of all the current assets. Thus larger

cash and bank balances indicate high liquidity position of a company. Why do

companies hold cash? This is an important question to deal with. Different

reason for holding cash are given as

Transaction Motive: Airtel has post paid and prepaid connection. If the

customers uses post paid connection then sum amount is charged as service

charges to the customer by the company but when the bill is given to the

customer then there is always a chances that the customer don’t pay the bill

which some time incurs loss to the company, entering into transactions with

other entities. Transaction means either buying or selling of different products.

While some of these transactions may not result in immediate inflow/outflow of

cash (example credit purchases and sales), while other transactions cause

11

immediate cash inflow and outflows. Therefore this company always keeps a

certain amount as cash to deal with routine transactions where immediate

payment is required.

Precautionary Motive: Contingencies may crop up when they are least

expected to occur. A sudden fire may break out, accidents may happen,

creditors may present bills earlier than expected or debtors may make

payments later than warranted. For all such surprises Bharati Airtel co is

always prepared so as to minimize losses. And therefore this company

maintains certain amount in the form of cash.

Speculative Motive: companies also maintain cash balances in order to take

advantages of opportunities that do not take place in the course of routine

business activities. Say suppose there may be sudden decrease the rental

charges of postpaid connection which is not expected to last long. These are

the transactions which are speculative in nature and for which the company

needs cash.

Objectives of Cash Management

The objective of cash management can be regarded as one of making of short

term forecasts of cash position, finding avenues for financing during periods

when cash deficits are anticipated and arranging for repayments during

periods when cash surpluses are anticipated with a view to minimizing idle

cash as far as possible. Some of the objectives of cash management are as

follows

Cash Forecasting and Budget: it is very important for Bharati Airtel to carry

out proper forecasting for future cash requirements which may be because of

different costs associated with the business proceedings, The stocks are

12

required to meet the customer requirements as when demanded. Short-term

forecasting is prepared under the receipt and payment method, showing the

time and magnitude of expected cash payments and receipts.

Preparing Cash Reports: cash budgets are nothing but short-term cash

forecasts. Sometimes the cash inflows and outflows of Bharti Airtel company

remains stable it doesn’t fluctuate. In such cases the monthly report is

produced, while sometimes the cash inflows/outflows fluctuate. In such cases

the weekly or even daily reports are also produced.

Factors for Efficient Cash Management

Cash reports help in monitoring actual data for comparison with the budgeted

amounts, understanding the reasons for deviation the two and controlling and

revising the budget on regular basis. The efficiency of cash management can

be enhanced considerably by keeping a close watch and controlling a few

important factors.

Prompt Billing and Mailing: soon after the connection is provided to

the customers, a time lag occurs from the date of connection to the date

of preparing invoice documents and mailing them to the

customers.Bharati Airtel stresses constantly to reduce this time gap

because this can cause early remittances. Thus accelerating the

process of preparing and mailing bills will help reduce the delay in

remittances and early realization of cash.

Collection of Cheques and remittance of Cash: delay in the receipt

of cheques and depositing the same in the bank will inevitably result in

delayed cash realization. Bharati Airtel reduced these delays by

improving the process of collecting and depositing cheques/cash from

customers. This done by careful monitoring the process.

13

Investment of Surplus Cash: surplus cash is used by the company people to

invest in certain securities, shares, etc.

Insurance Control:

Some attention should be given towards the protection of the company’s

assets. So the insurance component is very important for the company.

Therefore the company deploys some of its funds (required cash) into

insurance policies.

14

PERFORMANCE APPRAISALPerformance appraisal, also known as employee appraisal, is a method

by which the performance of an employee is evaluated (generally in terms

of quality, quantity, cost and time). Performance appraisal is a part of

career development.

Performance appraisals are a regular review of employee performance

within organizations.

Generally, the aims of a scheme are:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions,

disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and

development.

Facilitate communication between employee and administrator.

Validate selection techniques and human resource policies to meet

federal Equal Employment Opportunity requirements.

The most popular methods that are being used as performance appraisal

process are:

Management by objectives (MBO)

360 degree appraisal

Behavioral Observation Scale (BOS)

Behaviorally Anchored Rating Scale (BARS)

15

The following is the performance form:

PERFORMANCE APPRAISAL FORM

FOR THE PERIOD _______________________ TO __________________________

Name of Employee: Based at:

Designation: Present Grade / CTC:

Length of service in the org: Total years of experience:

Emp. Code No. Appraiser:

(To be filled in by Head Office)

Appraisee to complete and return to the appraiser by:

SECTION A

Please evaluate your job performance by checking the appropriate box next to each attribute, according to the following scale:

(NI = needs improvement; S = satisfactory; G = good; VG = very good; E = excellent NA = not applicable)

ATTRIBUTES NI S G VG E NA

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Efficiency of work (qualitative, quantitative and knowledge)

Meets job requirements on time, able to work under pressure Completes assignments with accuracy & thoroughness, Demonstrates professional, administrative, supervisory, and / or specialized knowledge required to perform the job.

Cooperation

Gets along well with colleagues ,Willing to assist others, shows courtesy and effectiveness in dealing with others

Judgment

Makes good job-related decisions, Develops alternative

solutions & recommendations, Selects proper course of

action & understands impact of decisions and actions

Attendance

Reports for work consistently and punctually, Uses company time conscientiously.

Planning & Organizational effectiveness

Meets deadlines , Manages resources, Effectively balances tasks and priorities , Handles tasks in an organized and efficient manner , Able to handle multiple tasks simultaneously & makes effective use of time.

Communication

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Keeps manager / supervisor informed of work progress, Effectively conveys information and ideas to others , Clarity

of oral & written communication.

Integrity

Represents self and situations honestly; Understands and maintains confidentiality

ATTRIBUTES NI S G VG E NA

Initiative and creativity

Resourceful and creative in meeting job objectives , Demonstrates a ‘self-starter- attitude , Follows through on assignments , Initiates or modifies ideas, methods or procedures to meet changing circumstances or requirements.

Dependability

Can be depended on to carry out assignments with careful follow up , Is able to overcome obstacles to meet goals , Assumes responsibilities and ensures tasks are followed to completion.

Interpersonal relationships

Maintains a positive work relationship / attitude with colleagues and management , Listens effectively, Is a team player, Participates with others to accomplish tasks, Accepts constructive criticism positively

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Productivity

Work completion is consistently high , Can be counted on for extra efforts to meet the goals of the organization , Makes effective use of available resources to accomplish tasks.

Flexibility

Adapts well to changes , Accepts new ideas and approaches to work , Responds appropriately to criticism and to suggestions for work improvement

Supervisory ability

Applies sound practices in executing supervisory responsibilities , Demonstrates skill in arousing interest and enthusiasm in subordinates , Effectively selects and develops personnel

Overall Rating

This is to rate overall performance taking into account all the above attributes

SECTION B

Are there any problems outside your control which have reduced your ability to do your job?

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Are there any other aspects not noted elsewhere or any other issues outside this appraisal that you would like to discuss / comment upon?

Would you like to offer any suggestions or comments to your supervisor / management that would help the organization grow, prosper and achieve its goals?

SECTION C

To be completed after the appraisal, with the supervisor / manager.

To be completed during the appraisal by the appraiser / supervisor - where appropriate and safe to do so, certain items can completed by the appraiser before the appraisal, and then discussed and validated or amended in discussion with the appraisee during the appraisal.

SECTION A

With reference to the criteria in self appraisal Section A, rate the appraisee’s capability / attributes in the following areas in terms of their current (and if applicable, next) role requirements. (NI = needs improvement; S = satisfactory; G = good; VG = very good; E = Excellent; NA = not applicable)

ATTRIBUTES NI S G VG E NA

Efficiency of work (qualitative, quantitative & knowledge) Cooperation JudgmentAttendancePlanning / Organizational effectivenessCommunicationInitiative and creativityDependabilityAttitude and Interpersonal relationships

20

ProductivitySupervisory ability Overall rating

SECTION B

Compare & discuss the self appraisal entries in Section B. Note down comments and recommendations as applicable.

SECTION C

To be completed by the employee being reviewed:

I have read the comments / reviews noted by my appraiser and:

I agree with them

I agree with them and wish to add the following points.

I do not agree with them for the following reasons:

Employee’s Signature: Date:

To be completed by the appraiser / supervisor:

I have read and noted the completed section above:

Appraiser’s Signature:Date:

FINAL COMMENTS BY MANAGEMENT

21

Airtel does annual Performance appraisals which are essential for the effective

management and evaluation of staff. Appraisals help to develop individuals,

improve organizational performance, and feed into business planning,Thus

airtel gives recognitions and rewards to the employee which in turn motivates

the employees and the employees take initiative in their work.

Airtel provides Formal performance appraisals which are generally conducted

annually for all staff in the organization. Each staff member is appraised by

their line manager. Directors are appraised by the CEO, who is appraised by

the chairman or company owners.

Annual performance appraisals enable management and monitoring of

standards, agreeing expectations and objectives, and delegation of

responsibilities and tasks. Staff performance appraisals also establish

individual training needs and enable organizational training needs analysis

and planning.

PRICING POLICY

Economics a science that studies allocation of scarce resources by humans

in the world of unlimited needs.

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The term economics comes from the Greek for oikos (house) and nomos

(custom or law), hence "rules of the house (hold)."[1]

A definition that captures much of modern economics is that of Lionel Robbins

in a 1932 essay: "the science which studies human behavior as a relationship

between ends and scarce means which have alternative uses. Scarcity means

that available resources are insufficient to satisfy all wants and needs. Absent

scarcity and alternative uses of available resources, there is no economic

problem. The subject thus defined involves the study of choices as they are

affected by incentives and resources.

Areas of economics may be divided or classified into various types, including:

microeconomics and macroeconomics

positive economics ("what is") and normative economics ("what ought

to be")

mainstream economics and heterodox economics

Fields and broader categories within economics.

One of the uses of economics is to explain how economies, as economic

systems, work and what the relations are between economic players (agents)

in the larger society. Methods of economic analysis have been increasingly

applied to fields that involve people (officials included) making choices in a

social context, such as crime, education, the family, health, law, politics,

religion, social institutions, and war.

Pricing Policy

The simplest way to set price is through uniform pricing. At the profit-

maximizing uniform price, the incremental margin percentage equals the

reciprocal of the absolute value of the price elasticity of demand. The most

23

profitable pricing policy is complete price discrimination, where each unit is

priced at the benefit that the unit provides to its buyer. To implement this

policy, however, the seller must know each potential buyer’s individual

demand curve and be able to set different prices for every unit of the product.

The next most profitable pricing policy is direct segment discrimination. For

this policy the seller must be able to directly identify the various segments. The

third most profitable policy is indirect segment discrimination. This involves

structuring a set of choices around some variable to which the various

segments are differentially sensitive. Uniform pricing is the least profitable way

to set a price.

A commonly used basis for direct segment discrimination is location. This

exploits a difference between free on board and cost including freight prices. A

commonly used method of indirect segment discrimination is bundling. Sellers

may apply either pure or mixed bundling.

Types of pricing policy

Uniform Pricing

Uniform pricing: a pricing policy where a seller charges the same price for

every unit of the product

Price discrimination.

Pricing policy where a seller sets different incremental margins on various

units of the same or similar products.

Complete price discrimination:

The pricing policy where a seller prices each unit of output at the buyer’s

benefit and sells a quantity where the marginal benefit equals the marginal

cost

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Direct segment discrimination:

The pricing policy where a seller charges a different incremental margin to

each identifiable segment (with uniform pricing within each segment). A

segment is a significant group of buyers within a larger market

Indirect segment discrimination:

Pricing policy where a seller (who cannot directly identify the customer

segments) Structures a choice for buyers so as to earn different incremental

margins from each segment

Conclusion

AIRTEL companies are using direct segment discrimination were seller

charges a different incremental margin to each identifiable segment (with

uniform pricing within each segment). A segment is a significant group of

buyers within a larger market. since there are only two connection i.e. post

paid and prepaid but with different plan which are priced separately according

to the customers wants and needs.

LEGAL ENVIRONMENT

FACTORS AFFECTING THE TELECOM SECTOR

25

There are four factors that affect the Telecom sector.

They are:

Political environment

Economic environment

Social environment

Technological environment

1) Political Environment:

Political forces influence the legislations and government regulations under

which the firm operates.

Allotment of Spectrum to GSM Operators:

All telecom companies face political constraints in the form of minimum usage

legislation. These laws, rules and regulations affect a company’s profit.

The COAI made a legal representation to DoT, asking DoT to make available

requisite spectrum to the GSM operators as per the criteria laid down by the

Government. GSM operators had been facing a severe crunch on spectrum

and have been waiting for months or even years to get spectrum. He stated

that the non-availability of spectrum was affecting both new licensees who

were yet to get their initial allotments and also the operators who had far

exceeded the subscriber linkages that had been prescribed by the

Government.

Tower problems:

In Goa & Maharashtra circle there is a Political problem regarding setting up of

towers on Naval base as the Navy people are not allowing telecom companies

to set towers in that area.

2) Economic Environment:

These are the factors that affect the revenues of the company and also the

government. These include:

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1) Licensing liberalization

Several important initiatives have been taken to further liberalize the licensing

norms with the objective of making telecom services available at affordable

prices.

FDI Ceiling increased from 49 per cent to 74 per cent in the telecom

services.

Annual license fee for National Long Distance (NLD), International Long

Distance (ILD), Infrastructure Provider-II, VSAT commercial and Internet

Service Provider (ISP) with internet telephony (restricted) licenses was

reduced to 6% of Adjusted Gross Revenue (AGR) w.e.f. 1-1-2006.

Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100

Crore prospectively i.e. date of issue of amendment to the existing guidelines

to that effect. Entry fee for ILD be reduced to Rs. 2.5 Crore from Rs. 25 Crore.

Lease line charges have been reduced to make the bandwidth available at

competitive prices to facilitate growth in IT enabled services.

The rate of License fee/revenue share has been revised from 10% to 6%

of the AGR w.e.f 01.01.2006.

3) Social Environment:

The social environment is an important factor as changes in the values,

beliefs, attitudes, opinions and life styles in society create potential

opportunities for an organization for a company to grow, it is necessary to take

advantage of societal changes. The cultural, demographic, religious,

educational and ethnic conditioning of individuals in society affects the social

environment.

(i) Rural Telephony

Telecom development in rural areas assumes special significance as more

than 70% of telecom development and overall economic development of a

region. Telecom services are important drivers for development, delivery of

27

public services such as education, health etc. and integration of rural areas

with the rest of the country.

(ii) ONE INDIA PLAN: Telecom companies have started ONE INDIA PLAN in

which subscribers can call anywhere in India @ Rp 1/-.

4) Technological environment:

This environment comprises factors relating to the raw materials and

machines used in manufacturing the service. These factors include Age, 3G,

number portability, EDGE Technological innovations determine how

organizations compete and thrive in the marketplace.

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BRANDING AND PRODUCT RANGE

AIRTEL AS A BRAND

To connect India's leading 1000+ corporate, empower them through

Broadband services and connect Indians living in USA with our call home

service Airtel was born free, a force unleashed into the market with a

relentless and unwavering determination to succeed. A spirit charged with

energy and creativity and a team driven “to seize the day” with an ambition to

become the most globally admired telecom service. Airtel, after just ten years,

has risen to the pinnacle of achievement.

As India's leading telecommunications company serving over 33 million

customers the brand has played the role as a major catalyst in India's reforms,

contributing to its economic resurgence.

Today we touch people’s lives with our Mobile services to connect India's

leading 1000+ corporate, empower them through Broadband services and

connect Indians living in USA with our call home service.

The Airtel Logo

The Airtel logo is a specially drawn wood mark, strong, contemporary and

confident symbol for a brand that is always ahead of the rest.

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The Airtel Image Style

It incorporates two solid, red rectangular forms whose counter-form creates an

open doorway.

The Airtel Typographical Style

The title case lettering with its capital ‘A’ reinforces our leadership position.

The red dot cues in our focus on innovation. Our logo is a reflection of our

identity – a confident symbol of a brand that is always ahead of the rest,

always ‘In-touch’ and on customer’s side. The words ‘Express Yourself’ are

very much of the Brand identity

The Airtel Color Palette

The lettering is grey so that the pure black of Airtel is visually unharmed.

SIGNIFICANCE OF BRAND

Consumers identify brand distinctive capabilities based on their perception

that have themselves been created by the marketer over a period of time.

A brand conveys the following

Attributes: Brand usually highlights the product to inform existing

customer and also attract the potential customer. For e.g. airtel as a

brand name is more popular and their number of post paid connection

is very high.

Benefits: the attributes should eventually transform into emotional and

functional benefits, for the brand to be successful.

Values: Most of the brands associate some value with themselves. For

instant the baseline of airtel, “Express yourself”, communicates a value

30

proposition that the prepaid and postpaid connections make s to

express yourself to other.

Culture: Brands also represents a certain culture. For instant, airtel

projects a culture of togetherness among the people by talking to each

other and express the feelings, thus creating an emotional appeal in the

minds of people to buy the products.

Personality: Brands communicate personality status. For instant airtel

suggest that

It is a brand for all segments of people whether they are rich or poor

and for the people who believes in to maintain human relation.

User: Brand clearly states their user segments. Airtel targeted all

segment of people, right from the common people to the business

oriented people.

PRODUCTS AND SERVICES:

1) Blackberry Services

Send and receive

emails instantly

Read attachments

Blackberry- Airtel introduces a brand new offering - the Blackberry 8700g,

Uncompromising Email, Browsing and Phone Performance in all in one

device.

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2) Postpaid Services

Post Paid Plans- As an Airtel Post-paid customer you can enjoy the following

facilities -Easy Billing, Call Divert, Call Hold and Call Wait, Short Messaging

Service (SMS), Caller Identification, Voice Mail, STD/ISD Facility, Roaming

(National and International), Bill payment on mobile, etc.

3) Prepaid Services

Pre paid Plans- As an Airtel Pre-paid customer you can enjoy the following

facilities - Total Cost Control, No Deposits, No Rentals, STD/ISD Facility to the

last rupee, Instant Balance Inquiry, 60 Second Pulse, Instant Recharge, 24

hour recharge facility, Caller Identification, Call Hold and Call Wait, Short

Messaging Service (SMS), SMS based Information Service, Voice mail

service.

Thus it has found that prepaid connections are more than postpaid

connections.

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DETAILS OF PRODUCTS

Some of the post paid plans that sell the most are:

Table1. Airtel Value Plan

Monthly RentalRs125 month

Clip No clip charges for first first six months after that 50 rs p/m

Local RatesAirtel Other GSM Landline/CDMA

0.50 0.50 1.00

STD RatesAirtel Other GSM Landline/CDMA

2.00 2.40 2.40

ISD

Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia core, Australia

7.20

SMS

Local Rs. 1/per sms

National Rs. 2/per sms

International Rs. 5/per sms

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Table2. : Airtel Privilege 450/-

Monthly RentalRs450 month

Clip nil

Local RatesAirtel Other GSM Landline/CDMA

0.50 0.50 1.00

One Airtel to Airtel no. Wherein calling is 0.10 paisa

STD RatesAirtel Other GSM Landline/CDMA

1.50 1.50 1.50

ISD

Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia core, Australia

7.20

SMS

Local Rs. 0.50/per sms

National Rs. 1/per sms

International Rs. 5/per sms

34

Table 3. : Airtel Privilege 599 plus

Monthly RentalRs599 month

Clip nil

Local RatesAirtel Other GSM Landline/CDMA

0.30 0.50 0.80

One Airtel to Airtel no. Wherein calling is 0.10 paisa

STD RatesAirtel Other GSM Landline/CDMA

1.25 1.25 1.25

ISD

Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia core, Australia

7.20

SMS

Local Rs. 0.50/per sms

National Rs. 1/per sms

International Rs. 5/per sms

35

Table 4. : Alex 345 Plan

Monthly RentalRs345 month

Clip nil

Local RatesAirtel Other GSM Landline/CDMA

0.30 0.50 0.80

One Airtel to Airtel no. Wherein calling is 0.10 paisa

STD RatesAirtel Other GSM Landline/CDMA

1 1 1

ISD

Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia core, Australia

7.20

SMS

Local Rs. 0.50/per sms

National Rs. 0.50/per sms

International Rs. 5/per sms

Airtel CUG Plans (Group plans)

36

Table 5.: Leader 249

Particulars Rates

Rental249

Clip free

CUG within the group M&G circle 0.10 paisa

Local

Airtel to Airtel 0.50

Airtel to GSm 0.50

Airtel to Fixed LL/WLL 1.00

STD

Airtel to Airtel 1.75

Airtel to GSm 1.75

Airtel to Fixed LL/WLL 1.75

SMS

Local .30

National .30

International 5

TOP UPS

Tops ups local First 200 min @.10 p

Top ups STD First 100 min @.50 p.

SMS First 100 sms free

Table 6: Leader 249 (Head on)

37

Particulars Rates

Rental249

Clip free

CUG within the group M&G circle 0.10 paisa

Local

Airtel to Airtel 0.50

Airtel to GSm 0.50

Airtel to Fixed LL/WLL 1.00

STD

Airtel to Airtel 1.75

Airtel to GSm 1.75

Airtel to Fixed LL/WLL 1.75

SMS

Local .30

National .30

International 5

TOP UPS

Tops ups local First 200 min @.10 p

Top ups STD First 100 min @.50 p.

SMS First 100 sms free

Presence of Airtel in 23 Circles

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North West South East

Himachal Pradesh Maharashtra and Goa Andhra Pradesh

Orissa

Punjab Mumbai Tamil Nadu West Bengal

Delhi Madhya Pradesh Kerala Kolkatta

Gurgaon Rajasthan Karnataka

Jammu and KashmirGujarat

Haryana

UttarPradesh (W)

Uttar Pradesh (E)

FINDINGS & ANALYSIS

39

1. For how long you had been the customer of Airtel?

(a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year

0-3 months 3-6 months 6-12 months > 1year24 13 08 05

48%

26%

16%

10%

0-3 mnths

3-6 mnths

6-12 mnths

>1 years

Around 48% of churn is found among the customers who are with the services

of Airtel for 0-3 months.

2. Were you satisfied with the network of Airtel?

Yes No21 29

42%

58%

Yes No

58% 0f the customers says that they are satisfied with the network of Airtel.

40

3. Were you happy with rental plan offered?

Yes No34 14

71%

29%Yes

No

Majority of the People are happy with the rental plans offered by Airtel. There

is not much difference between the plans offered by Airtel and other operators.

4. Were the plans too expensive?

Yes No14 36

28%

72%

Yes

No

Few customers found that the plans were little expensive. Such customers can

be retained by offering them plans that suits their usage and income.

41

5. Was there any difference between plans discussed and plan offered?

Yes No03 47

6%

94%

Yes

No

In few cases it was found that there was some difference between the plans

discussed and plans offered.

6. Was there sufficient time between bills received date and due date?

Yes No

28 22

56%44% Yes

No

Hypothesis testing

42

Ho: Customers say that 7days is sufficient time between bills received date &

the due date.

H1: customers say that 7 days is not sufficient time between bills received

date & the due date.

x x- x (x- x)

28 0 022 -6 36

= 50 = 25

X = 28

= 36 = 18 2

= 12.77

= 28-25 = 3 12.77 12.77

= 0.23

43

Since computed value lies in acceptance region we conclude that there is

sufficient time between bills received date & due date.

7. Were you happy with the billing payment facility offered by Airtel?

Yes No31 19

44

62%

38% Yes

No

Hypothesis testing

Ho : customers are satisfied with the billing payment facility offered by AirtelH1 : customers are not satisfied with the billing payment facility offered by Airtel

X X-X (X-X)31 0 019 -12 144

X = 31

= 50 = 25 2

= 144 = 72 2

45

= 31- 25 = 6 = 0.12 51 51

Since computed value lies in acceptance region we conclude that people are

happy with billing payment facility offered by Airtel.

Few customers are unhappy with the billing payment facility offered by Airtel.

8. Were your queries solved by customer care or concerned person?

Yes No32 18

46

64%

36%Yes

No

36% were found that their queries were not solved. 9. Were you happy with the value added services offered by Airtel?

Yes No38 12

76%

24%

Yes

No

10. Are you willing to join again if your queries are given necessary solutions?

Yes No08 42

47

16%

84%

Yes

No

Though 84% of the churned customers are not willing to join again it is very difficult to get them back again.

48

CONCLUSIONS Around 48% of the churn is found among the customers who are with

the services of Airtel for 0-3 months. These are the customers who

constantly switch over to other operators if they find the services

unsatisfactory. These are the customers who look out for cheaper rental

plans. Though it forms the major portion of the churn retaining of such

customers is very important. Such customers can be retained by

offering them cheaper plans compared to the competitors.

People do find better coverage in urban and semi urban areas but as

you move towards the interior of rural areas people do face the

coverage problem. Though Airtel is coming with more towers in Goa &

Maharastra circles coverage issue will be solved in coming years.

Some customer had to come to city for bill payment. This problem can

be solved by setting up small Airtel galleries at convenient locations

offering both prepaid and post paid services.

36% were found that their queries were not solved. Such special cases

have to be taken into consideration and accordingly a proper retention

tool should be offered.

84% of the churned customers are not willing to join Airtel again even

though if their queries are solved. This can be avoided by keeping a

proper track of why they discontinued and accordingly proper plans can

be designed so as to avoid further problem of churn.

The problem of insufficient time of billing payment can be solved by

customizing the billing payment cycle to particular customer. This can

49

be done at the time of taking the connection by asking the customer

about the date he is convenient of paying.

50

BIBLOGRAPY

1) Web sites:

www.google.com

www.wikipedia.com

www.airtel.com

2) Personal interview with area manager

3) Book reference

4)Questionnaire

51

ANNEXUREQUESTIONNAIRE

1. For how long you had been the customer of Airtel?

(a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year

2. Were you satisfied with the network of Airtel?

(a) Yes (b) No

3. Were you happy with rental plan offered?

(a) Yes (b) No

4. Were the plans too expensive?

(a) Yes (b) No

5. Was there any difference between plans discussed and plan offered?

(a) Yes (b) No

6. Was there sufficient time between bills received date and due date?

(a) Yes (b) No

7. Were you happy with the value added services offered by Airtel?

(a) Yes (b) No

8. Were you happy with the billing payment facility offered by Airtel?

(a) Yes (b) No

9. Were your queries solved by customer care or concerned person?

(a) Yes (b) No

10. Are you willing to join again if your queries are given necessary solutions?

(a) Yes (b) No

52

ABBREVIATIONS

1. TDMA- Time division multiple access

2. GSM – Global Systems for Mobiles

3. CDMA – Code Division Multiple Access

3. GPRS – General Pocket Radio Service

4. EDGE- Enhanced data rate for G.S.M evaluation

5. CLIP – Caller Line Identification Protocol

6. MMS – Multimedia Messaging Service

8. WCC – World Calling Card

9. CUG – Close User Group

10. SMS – Short Messaging Service

11. FOS – Feet On Street

12. P2P – Pre paid 2 Post paid

13. DSA- Direct sales associates

14. ADC- Airtel Data Card

15. VTS- Vehicle Tracking system

16. FCT- Fixed cellular terminal

17. TRAI- Telecom regulatory authority of India

18. MSE- Mobile switch center

19. IMEI- International mobile equipment identity

20. BTS- Base time receiver system

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