An

Assignment

On

Comparison between any two Competitive Companies

Submitted in partial fulfilment of the requirement

For the Award

Master of Management Studies

Under the Guidance of

Prof. Mona Sinha

Submitted by:-

Vailankanni D’souza

MMS SEM I

Roll no. 12

INTRODUCTION

Why Airtel v/s Vodafone

The dominant players in India are Airtel, Reliance Infocomm, Vodafone, Idea cellular and

BSNL/MTNL but Vodafone drew my attention with its marketing strategy and Airtel with its

Innovations and product development. To me both are striving hard to sustain the market

pressure, playing their cards well & very good competition for each other.

Industry Profile

A midst all the talk of slowdown in the Global world, telecom is one sector that has had a

fairly good year in terms of subscriber additions and revenue growth in 2009. However, even

as this gives some reason to cheer for the telecom incumbents, there are a few trends in key

metrics of the companies that suggest increasing pressure on margins. After the

telecommunication policies were revised to allow private operators, companies such as Bharti

Telecom, Tata Indicom, Reliance MTNL, Idea, Vodafone and BPL have entered the space as

Major Operators in India.

COMPANY PROFILE

Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom services

providers with operations in India and Sri Lanka. Bharti Airtel since its inception has been at

the forefront of technology and has pioneered several innovations in the telecom sector.

The largest wireless service provider in the country, based on the number of customers as

of September 30, 2009.

Offers an integrated suite of telecom solutions to our enterprise customers, in addition to

providing long distance connectivity both nationally and internationally. We also offer

DTH and IPTV Services.

The company also deploys, owns and manages passive infrastructure pertaining to telecom

operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus

Towers Limited. Bharti Infratel and Indus Towers are the two top providers of passive

infrastructure services in India.

With effect from April 24, 2006, the name of the Company has been changed from Bharti

Tele-Ventures Limited (‘BTVL’) to Bharti Airtel Limited.

Fact sheet

Name Bharti Airtel Limited.

Business Description Provides GSM mobile services in all the 22 telecom circles in India, and was the first private operator to have an all India presence. Provides Telemedia services (fixed line and broadband services through DSL) in 95 cities in India.

Established July 07, 1995, as a Public Limited Company

Revenue: Rs. 369,615 million (year ended March 31, 2009-Audited)

EBITDA: Rs. 151,678 million (year ended March 31, 2009 - Audited)

Shares in issue: 3,796,842,330 as at Sept 30, 2009

Listings: The Stock Exchange, Mumbai (BSE)The National Stock Exchange of India Limited (NSE)

Market capitalisation: Approximately Rs 1,236 billion as on 30th Dec 2009

Customer base: 110,511,416 GSM mobile and 2,928,254 .Telemedia Customers (status as on Sept 30, 2009).

Operational Network Provides GSM mobile services in all the 22 telecom circles in India, and was the first private operator to have an all India presence. Provides Telemedia services (fixed line) in 95 cities in India

Brand names: Operates under the brand name Airtel. Passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited.

Registered office: Bharti Airtel Limited, (A Bharti Enterprise), Aravali Crescent, 1 Nelson Mandela Road, Vasant Kunj Phase II, New Delhi - 110 070Tel.No.:+91 11 4666 6100Fax No.: +91 11 4666 6411

Organizational Structure of Airtel

Business Divisions

For management reporting purposes, the Group’s business segment results are reported in five

reportable business segments

Mobile Services - These services cover telecom services provided through cellular mobile

technology wherein a subscriber is connected to the network through wireless equipment.

The subscriber can freely roam around anywhere and stay connected wherever the wireless

network coverage is available.

Telemedia Services (formerly Broadband and Telephone Services) — these services are

provided through wire-line connectivity to the subscriber. The end-user equipment is

connected through cables from main network equipment (i.e. switch) to subscriber’s

premises.

Enterprise Services Carriers — the domestic and international long distance services are

intermediary services provided to the service providers of cellular or fixed line services.

Using these services, these other service providers route their long distance calls i.e.

outside local boundaries of a city area.

Enterprise Services Corporate — these services include internet services, broadband

services, providing bandwidth and other network solutions to corporate customers.

PRODUCTS & SERVICES

Mobile :

Prepaid service : Payment is made before using the service

Postpaid service : Payment is made after using the service

Home Phones: Fixed Line Service by Airtel phone instrument

Broadband and Internet: Provides simple and secure access to the internet and to

business customers’ systems such as email, corporate applications and company intranets.

Blackberry: BlackBerry from Airtel is an 'always connected' wireless solution providing

easy and secure access to your email and data.

Calling cards: Calling Card is a prepaid card that you can use with your Airtel mobile

phone to make STD & ISD calls. They even help you keep a tab on your long-distance call

expenses. Plus no security deposit.

Wireless Internet: Airtel Wireless Internet is an easy way to access the

internet without the need for a landline. It allows you to stay in touch

whilst being on the move. Just plug your Airtel USB Modem into your

computer for an instant Internet connection to take with you on the

move.

Digital TV: The digital entertainment with Universal Remote ,Superior MPEG4 DVB S2

pictureandSound,UniqueinteractiveservicesonairtelDigitalTV.

COMPANY PROFILE

Vodafone Group Plc is the world's leading mobile telecommunications company, with a

significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States

through the Company's subsidiary undertakings, joint ventures, associated undertakings and

investment

Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in

1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai.

The company now has operations across the country with over 85.82 million customers**.

Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most

Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most

Creative and Most Effective Advertiser of the Year’.

Vodafone is the world's leading international mobile communications group with

approximately 315 million proportionate customers as on 30 June 2009.

Vodafone currently has equity interests in 31 countries across five continents and around

40 partner networks worldwide.

Fact Sheet

Description: Vodafone Group Plc is the world's leading

mobile telecommunications group

What we do: Provide a total telecommunications service

Supply mobile voice, messaging, data and

fixed broadband services

Established: Awarded mobile licence in the UK in 1982

Revenue: £21,761 million (half-year ended 30

September 2009)

Group EBITDA:£7,455 million (half-year ended 30 September

2009)

Shares in issue: 52,599 million as at 12 November 2009

Listings: London and NASDAQ

Market capitalisation:Approximately £71.2 billion at 12 November

2009

Employees:Approximately 79,000 during year ended 31

March 2009

Customer base:

Approximately 323 million registered

proportionate customers and approximately

1,067 million venture customers as at 30

September 2009

Global network:

Equity interests in 31 countries, with a

significant presence in Europe, the Middle

East, Africa, Asia Pacific and the United States

Around 40 partner networks worldwide

Brand names:

Our mobile subsidiaries operate under the

brand name Vodafone

In the United States, our associated

undertaking operates as Verizon Wireless

Registered and head office: Vodafone House,The Connection,Newbury

Berkshire,RG14 2FN,England

Tel: +44 (0) 1635 33251

Fax: +44 (0) 1635 45713

Registered details: Registered in England No. 1833679

PRODUCTS & SERVICES

Handsets

A wide ranging handset portfolio covers different customer segments, price points and an

increasing variety of designs. 67 new models released in the 2009 financial year. 16 exclusive

devices launched, including the BlackBerry Storm touch screen device. iPhone launched in 11

markets.

Product focus: BlackBerry Storm

First touch screen device from BlackBerry • available to Vodafone’s customers in 14

markets, exclusively in 11. Won best mobile technology • breakthrough award at the 2009

GSMA global mobile awards.

Vodafone Mobile Broadband

Provides simple and secure access to the internet and to business customers’ systems

such as email, corporate applications and company intranets.

A wide variety of laptop models are available with built-in 3G broadband and

Vodafone SIM cards fitted at point of manufacture. Vodafone’s partners Dell and

Lenovo fit a Vodafone SIM at point of manufacture.

A number of netbooks are available with built in 3G broadband, which are much

smaller and lighter than a regular laptop, including the

new Dell mini 9 netbook

Product focus: Vodafone Mobile Broadband USB

modems.

Won the iF design award recognising best product design in the world, run by the International

Design Forum in Hanover, Germany.

Routers

Vodafone offers broadband services through digital subscriber line (‘DSL’) and supplies

routers to enable customers to access these services, in some cases with mobile broadband built

in for fast activation and as backup.

Prepaid - Pay before using the service

Postpaid – Pay after using the service

Calling cards:

World Calling Card is a prepaid card that you can use with your Vodafone mobile phone to

make STD & ISD calls. They even help you keep a tab on your long-distance call expenses.

Plus no security deposit.

Vodafone PCO:

Services

Voice

Vodafone’s core service to customers is to provide mobile voice communications and this

continues to make up the largest proportion of the Group’s revenue.

Messaging

Allows customers to send and receive text, picture and video messages using mobile

devices.

Data

The Group offers email, mobile connectivity and “Internet on Your Mobile” to enhance

customers’ access to data services.

Fixed line

Provides customers with fixed broadband and fixed voice and data solutions to meet their

total communication needs.

Other

Includes mobile advertising and business managed services as well as incoming roaming

and wholesale MVNO.

Vodafone Passport:

Enables customers to “take their • home tariff abroad”

offering greater price transparency and certainty to

customers.

Organizational Structure of Vodafone

Comparing the two rivals, Vodafone and Airtel have more or less the same products

and services but Vodafone products also include The Vodafone PCO where as Airtel

products include Airtel Digital TV and Airtel Home phones.

MARKETING STRATEGY

AIRTEL:

Market

Airtel has targeted the bottom of the pyramid - C K Prahalad Concept

Market segmentation:

Geographical segmentation – metropolitan & cities India

Demographic segmentation - low & middle income group

People age group of 20 to 28

Target market:

People living in cities and towns

Poor and middle income groups

Youngsters in big cities

Businessmen

Positioning

Creating brands

Ads and promotion

Marketing mix

Price-low price strategy

Place-maximum outlets and service centers

Product -varieties available for various group

Promotion -various schemes for prepaid and postpaid

Marketing Strategy

Airtel strategy is to be leader in:-

Innovations

Network

Offers and Services

Strategy of making customers educated about the services like: -

1. “ What is roaming?”

2. “ What is coverage area?”

3. “ How to make international calls?”

Airtel adopted the product driven communication to make their products successful in the

market and also emotional communication to target younger people.

Strategies Introduction Growth Maturity

Marketing objectives Create product awareness and trial

Maximise market share

Maximise profits whole defending market share

Product Offer a basic product/ service.

Offer value added services

Increase in number of value added services.

Price Charge cost- plus Price to penetrate market

Price to match or best competitors

Distribution Build selective distribution

Build Intensive distribution.

Build more intensive distribution.

Advertising Build product awareness among early adopters and dealers.

Build awareness and interest in the mass market

Stress brand differences and benefits.

Sales Promotion Use heavy sales promotion to entice people to subscribe.

Increase to build and maintain relationships with customers.

Increase to encourage brand-switching.

Brand Ambassadors:

Famous celebrities: Shah Rukh Khan, Sachin Tendulkar , A R Rehman, Kareena

Kapoor, Saif Ali khan.

VODAFONE:

Market

Vodafone has targeted the bottom of the pyramid - C K Prahalad Concept

Market segmentation: Vodafone is adopting a multi-segment approach.

Geographical segmentation – metropolitan & cities India

Vodafone wants to expand into the Asian markets.

India has 2nd largest market for mobile. It is growing at the rate of 6 million subscribers

per month.

Demographic segmentation: low & middle income group

Target market:

Market from urban areas from middle and upper middle class families

Youngsters in big cities

Businessmen

Positioning: -

“Where you go the network follows you” by Hutch, now Vodafone

Ads and promotion

Marketing mix:

Price-low price strategy

Place-maximum outlets and service centers

Product -varieties available for various group

Promotion -various schemes for prepaid and postpaid

Marketing Objectives

Vodafone says that they want to be the top mobile service provider of India by

the end of the year 2010

Marketing Strategy

Our strategic objective is Innovate and delivers on our customers’ total

communications needs.

Vodafone, too, needed to educate consumers about cellular telephony: -

Can I call STD?

Can I use my phone in a lift?

What is airtime?

Vodafone also communicates regularly with its customers to keep them well informed of

the benefits of all Vodafone products.

Focus on free cash flow generation and execution

Progress

Drive operational performance

– Value enhancement – Cost reduction

– Launched new products in a number of markets, which offer customers more value in return for increased commitment

– Accelerated £1 billion cost reduction programme; expect to achieve 65% in 2010

Pursue growth opportunities in total communications

– Mobile data– Enterprise– Broadband

– Expanded range of data devices with the BlackBerry Storm, iPhone and netbooks with built-in broadband – Revenue growth of 9% in Vodafone Global Enterprise– 1 million new fixed broadband customers; closing base of 4.6 million

Execute in emerging markets

– Delivery in existing markets – Selective expansion/ cautious approach

– Nationwide footprint in India– Commenced operations in Qatar since year end – Acquired Gateway in Africa to strengthen total communications portfolio

Strengthen capital discipline

– Shareholder returns– Clear priorities for surplus capital

– Returned over 87% of free cash flow before license and spectrum payments to shareholders in the 2009 financial year– In-market consolidation through merger of Vodafone Australia with Hutchison 3G Australia

Brand ambassadors:

Hutch , as a brand, always tried to connect with consumers in a simple, honest and real

manner,

The “The Hutch pug.” and the actor Irfan Khan were retained for the brand promotions.

While Vodafone - a younger and fun brand. Zoozoo enters market

ZooZoo, small pseudo-animated character with big egg-shaped head, round belly but

extremely thin arms and legs, the new brand ambassador of Vodafone, has created a furor

in the advertising industry. Zoozoos have been successful in giving Vodafone a makeover

and establishing maximum brand presence.

Comparing the two rivals,

Competitive Analysis (positioning strategy)

Vodafone has veered towards

warmth and emotions

Airtel is focused on functionality and

efficiency.

Vodafone used the powerful visual

imagery of a dog.

Airtel chose to use music, which is

not nearly as effectively

Vodafone introduces Zoozoo, a

character making place in people’s

heart

Airtel still uses the Celebrities and

Music comparatively nowhere next to

Zoozoo

HUMAN RESOURCE POLICIES

AIRTEL:

Human resource:

Airtel values its human resources and its HR policies are aimed at targeting and retaining best

talent in the industry.

The key functions of the HR Committee include the followings:

Employees Development Strategies.

Compensation (including salaries and salary adjustments, incentives/benefits bonuses,

stock options) and performance targets for the Chairman and Managing Director (CMD)

and Joint Managing Directors (JMDs) Executive Directors.

All Human Resources related issues

Attraction and Retention strategies for employees.

Other key issues / matters as may be referred by the Board or as may be necessary in view

of Clause 49 of the Listing Agreement or any statutory provisions.

Some Hr policies and practices include:

A family-day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10

days off, festival celebration with family, no official meetings on weekends, five day

weeks, concierge services, call center engagement programs etc. These “care” policies

and practices are applied across the organizational levels without any discrimination

At Bharti Airtel, the ‘Mantra’ for employee delight focuses on 5 Ps – People, Pride, Passion,

Processes and Performance.

From self-management workshops to aerobics sessions, yoga classes to provision of

relaxation/meditation rooms, the company ensures that every employee keeps a

check on his/her fitness. Tie-ups with leading health service organizations enable the

employees to undertake periodical health check-ups depending upon their age. This

facility is also extended to employee family members at discounted rates. The

company provides Flexible Group Mediclaim insurance to all employees, covering

all kinds of illnesses, accidents and hospital coverage for serious ailments. Apart

from these specific engagements, they regularly organize health check up camps, eye

check-up camps and stress management sessions. At many of the locations, the

company has hired psychologists who undertake personal counseling sessions for

employees.

Bharti Airtel offers a flexible compensation structure to its employees wherein the

employees have the flexibility to structure their fixed component of their compensation

according to their requirements within the ambit of legislation.

Performance Linked Incentive (PLI) schemes are linked with the variable component of

our compensation structure. This component is linked to both the individual performance

against his/ her set KRAs (Key Result Areas) and the overall performance of the business

entity that an employee belongs to.

The mechanisms like Performance Management System (PMS) and Talent Management

Process (TMP) are the key sources of identifying the training needs of the employees and

check to competency levels for promotion.

Steps Undertaken Benefits

Young team policy-Average 26 years Has helped the HR department to mould the young entrants to the company.

Invite criticism from the employees With better interaction with the senior managers, the Employees have began to play a more pro-active role in team-building efforts

Employees decide their training needs Improve Skills and efficiency of the employeesSeeks to certify every employee on quality and IT.

To train, develop and re-certify the employees on a continuous basis

Set up a state-of-the-art learning centre To encourage learning within the organisationHR steering committee (HRSC) The committee meets once a week to discuss various

initiatives and the plan of action on the same.Constant monitoring of employees-given individual targets

Performance indicators

Conducts an internal employee satisfaction survey (PACE)

The inputs of which go into the company's annual strategy.

Formal job description documents issued

Helped in communicating to each of the employees about our expectations from them, and established role clarity

‘open house' conducted Departments and HR takes up individual grievances Family group meetings Where in issues other than those related to work are

discussed.HR interface Every member of the HR department has been assigned two

departments each to discuss and sort out all HR, personnel and administration issues.

HR Intranet Provides information on HR policies, organisational structure, training calendar and the house journal.

VODAFONE:

Human resource:

Employee Rights Policy

This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures with an

interest of 50% or more..

The Policy

It is the policy of the Board of Vodafone Group Plc that the human resources teams will

develop and maintain effective terms and conditions of employment and ensure that they

are applied equitably and consistently and communicated effectively.

It is each Local Company Chief Executive Officer responsibility to implement procedures

to enable employees who believe they have suffered unfair treatment at work, to have

their concerns investigated promptly and objectively.

It is the responsibility of each local HR director to put measures and procedures in place

and communicate them appropriately to ensure the above objectives are met.

Recruitment and Managing our People Policy

This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures with an

interest of 50% or more.

The Policy

It is the policy of the Board of Vodafone Group Plc to ensure that all recruitment

activities are fair and non-discriminatory and both identify and address individual

development needs, potential and opportunities. Recruitment should also recognize the

opportunities, initiatives and changing skill profiles throughout the Group.

Each company will implement programmes to ensure employees will receive continuous

training in respect of induction, leadership, professional and personal development on any

existing or new role.

It is the responsibility of the Local Company Chief Executive Officer to put in place

policies and procedures and communicate them appropriately to ensure the above

objectives are met.

People

As a global organisation, Vodafone employed an average of around 79,000 people worldwide

during the 2009 financial year. The Group aims to attract, develop and retain the best people

by providing a stimulating and safe working environment, offering attractive performance

based incentives and rewarding career opportunities.

Organisation changes

Vodafone changed the shape and size of its organisation during the 2009 financial year to

accommodate growth within the business as well as to create a leaner, more agile structure

with clearer reporting lines and accountabilities across the Group.

As a consequent of these changes, approximately 1,900 jobs were eliminated.

Despite these reductions, the overall number of people working for Vodafone grew by

9%, due to growth in emerging markets and business acquisitions.

People whose jobs were affected by the organizational changes were treated in line with

Vodafone policy and good practice on employee relations and consultation.

Steps Benefits

People engagement - Targets and actions have been identified to build upon and sustain the high level of engagement achieved.

Employee engagement increased by four percentage points to 75%

Performance management- each individual’s performance to be reviewed with his or her manager and career development goals to be set through a performance dialogue.

96% of employees completed performance review.

95% of employees agreed goals.

Training and development- In the 2009 financial year, Vodafone provided an aggregate of 230,000 days of training, an average of three days per employee.

Launched Inspire, a development programme for the leaders of tomorrow

Inspire has a total of 70 delegates from across 17 countries on the programme, with a further intake planned in the 2009 calendar year.

Equal opportunities and diversity - offers equal opportunities for all aspects of employment and advancement regardless of race, nationality, sex, age, marital status, disability or religious or political belief.

13% of senior employees and three operating company CEOs are female.

23 nationalities are represented in top management bands.

People with disabilities are assured of full and fair consideration for all vacancies

Modifications to workplaces are made to provide access and therefore Job opportunities for the disabled.

Every effort is made to continue the employment of people who become disabled

Via job design and the provision of additional facilities and appropriate training.

Reward and recognition Extension of reward differentiation based on individual performance.

A variety of share plans are offered to incentivise and retain employees.

Health, safety and wellbeing Introduction of group wide product safety and assurance policy.

Increasing importance placed on integration into operating companies in developing markets.

Improvement in employee wellbeing initiatives.

Employment policies Policies are developed to reflect local legal, cultural and employment requirements.

Vodafone aims to be recognised as an employer of choice.

Comparison of the two rivals Hr policies,

Both Vodafone and Airtel are giving their best towards the Employee Development but Airtel

excels with the steps undertaken and even won “Company with the Most Innovative HR

Practices in the Asia Pacific Region” at the Asia Pacific HRD conclave held in Mumbai.

CONCLUSION

Bharti Airtel speedy activity is one of its best attributes that has made it gain an

international status across the world. It is always updated with the latest data and is

highly competent. Quality remains the prime concern and is maintained strictly by

the team.

Vodafone sets a perfect example of a well-laid out marketing strategy, Zoozoo

captured attention of nearly two billion people during the IPL. People eagerly

waited for breaks between matches to see more stories about Zoozoo.

Bharti Airtel concentrates more on Innovation and Product Development e.g. IPTV

Services where as Vodafone is known for its Customer Service.