Chapter 1-Marketing Strategy

Meaning of Marketing Strategy

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.[1] Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives.[2]

Definition of Marketing Strategy. A strategy that integrates an organization's marketing goals into a cohesive whole. Ideally drawn from market research, it focuses on the ideal product mix to achieve maximum profit potential. The marketing strategy is set out in a marketing plan.

Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

Leader Challenger Follower

Nicer

Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. ** Product differentiation ** Cost leadership ** Market segmentation * Innovation strategies This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: ** Pioneers ** Close followers ** Late followers * Growth strategies in this scheme we ask the question, How should the firm grow? There are a number of different ways of answering that question, but the most common gives four answers:

Horizontal integration Vertical integration Diversification Intensification

Strategic models Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An off Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered on Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges. The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.
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Diversification (marketing strategy)

Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally very interesting entering a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market an off matrix

The different types of diversification strategies

The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final

strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company. There are three types of diversification: concentric, horizontal, and conglomerate. Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch a new product that helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing "Magi" brand processed items of Food Specialties Ltd. is an example of technological-related concentric diversification. The company could seek new products that have technological or marketing synergies with existi ng product lines appealing to a new group of customers.This also helps the company to tap that part of the market which remains untapped, and which presents an opportunity to earn profits. Horizontal diversification The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. In a competitive environment, this form of diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. In other words, this strategy tends to increase the firm's dependence on certain market segments. For example, a company that was making notebooks earlier may also enter the pen market with its new product. When Horizontal diversification is desirable? Horizontal diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability.

Another interpretation Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations. For example, Avon's move to market jewelry through its door-to-door sales force involved marketing new products through existing channels of distribution. An alternative form of that Avon has also undertaken is selling its products by mail order (e.g., clothing, plastic products) and through retail stores (e.g., Tiffanys). In both cases, Avon is still at the retail stage of the production process. Conglomerate diversification (or lateral diversification) Main article: Conglomerate (company) The company markets new products or services that have no technological or commercial synergies with current products but that may appeal to new groups of customers. The conglomerate diversification has very little relationship with the firm's current business. Therefore, the main reasons of adopting such a strategy are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital markets as the company gets bigger. Even if this strategy is very risky, it could also, if successful, provide increased growth and profitability. Market penetration Market penetration is one of the four growth strategies of the Product-Market Growth Matrix as defined by an off. Market penetration occurs when a company penetrates a market in which current products already exist. The best way [citation needed] to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc.). An off developed the Product-Market Growth Matrix to help firms recognize if there was any advantage of entering a market. The other three growth strategies in the Product-Market Growth Matrix are:

Product development (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers. Market development (new markets, existing products): Lucozade was first marketed for sick children and then rebranded to target athletes. Diversification (new markets, new products): Mohan A.S, Boon Products, Solectron Ltd, by
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"Penetration is a measure of brand or category popularity. It is defined as the number of people who buy a specific brand or a category of goods at least once in a given period, divided by the size of the relevant market population. Market development A market development strategy targets non-buying customers in currently targeted segments. It also targets new customers in new segments. (Winer) Market development strategy entails expanding the potential market through new users or new uses. New users can be defined as: new geographic segments, new demographic segments, new institutional segments or new psychographic segments. Another way is to expand sales through new uses for the product. A marketing manager has to think about the following questions before implementing a market development strategy: Is it profitable? Will it require the introduction of new or modified products? Is the customer and channel well enough researched and understood? The marketing manager uses these four groups to give more focus to the market segment decision: existing customers, competitor customers, non-buying in current segments, new segments. New product development In business and engineering, new product development (NPD) is the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief). There are two parallel paths involved in the NPD process: one involves the idea generation, product and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new product within the overall strategic process of product life cycle management used to maintain or grow their market share.

How to Develop a Marketing Strategy

Developing a strategic marketing plan takes work - a firm understanding of the markets you plan to sell to, the products you and your competitors offer, your business objectives, and budget. Part One- Market: Objective: Identify and learn about the market segments you currently target and wish to target in the future what motivates them to consider your products, what is their buying process, how do they consume media and how can we leverage former customer into longer term value for the business. Steps to Accomplish:

Learn Current Market Segmentation- Geographic, Demographic, Psychographic, Behavioral Profile Market Segments- Revenue potential, Market share potential, Profitability potential, Lifetime customer value Market Research- Primary (research you've commissioned on your own) and Secondary (industry research)

Part Two-Product: Objective: Learn about the current portfolio of products and new product introductions being planned, primary and secondary uses, usage differences by market, core product benefits, competitors and competitive differentiators, seasonality, historical offers and measurement, lifecycle plan, profitability, complementary products in portfolio or outside portfolio, pricing and profitability. Steps to Accomplish:

Product management presentations on above Sample analysis and review Competitive analysis and technology trends Usage and satisfaction research- primary, secondary

Part Three- Business Objectives: Objective: Understand key business initiatives, market conditions and revenue goals that will guide decision making. Steps to Accomplish: This year's Business Plan define objectives for the business in the short and long-term. Part Four- Marketing budget, Prior efforts & results, other planned tactics & timing: Objective: Learn the parameters of the marketing plan including budget, previous efforts and success measurements, planned tactics such as committed resources, major sales campaigns and tradeshow events. Steps to Accomplish: Marketing meeting to review information and develop calendar of know tactics and market touch points. Market Plan recommendation will include: At the completion of this four step process, you should assemble a complete integrated marketing plan based on your business objectives, market segments, market research, product offerings, competitive positioning, and history of marketing success. This document should contain: An overview of learnings, challenges and trends Customer and prospect constituent groups Key market touch points and communications strategies Tactical recommendations Measurement Budget, Return, ROI

It is highly recommended that the plan incorporate a certain level of flexibility at the tactical level. As with any marketing campaign strategy, tactics should incorporate split tests, review and

rework of marketing tactics. Budget should be repositioned to support marketing campaigns that show the greatest success.

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Chapter 2-COMPANY PROFILE

INTRODUCTION

Aortal (Bhatia Aortal Ltd.) Bharti Airtel Limited was incorporated on July 7, 1995 forpromoting investments in telecommun ications services. Itssubsidiaries operate telecom services across India. Bhatia Aortal is India's leading private sector provider of telecommunicationsservices based on a strong customer base consisting of 50million total customers, which constitute, 44.6 million mobile and5.4 million fixed line customers, as of March 31, 2007.Airtel comes to us from Bharti Airtel Limited a part of thebiggest private integrated telecom conglomerate, BhartiEnterprises. Bhatia provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bhatia also 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. Bhatia has also put its footsteps into Insurance and Retail segment in collaboration withMultiNational giants. Bhatia is the leading cellular service provider, with a footprint in 23 states covering all four metros and more than 50 million satisfied customers. Telecom giant Bhatia Aortal is the flagship company of Bhatia Enterprises. TheBhartiGroup has a diverse business portfolio and has created global brands inthetelecommunication sector. Bhatia has recently forayed into retail business asBhartiRetail Pvt. Ltd. under a Moue with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group toexportfresh agric products exclusively to markets in Europe and USA and has launchedBhartiAXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management.Airtel comes to you from Bhatia Aortal Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. BhartiAirtel since its inception has been at the forefront of technology and has steered thecourseof the telecom sector in the country with its world class products and services .The businesses at Bhatia Aortal have been structured into three individual
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strategic business units (SBUs) - Mobile Services, Aortal Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across23 telecom circles while the Aortal Telemedia Services business suffers broadband &telephone services in 95 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long-distance services to carriers. All these services are provided under the Aortal brand. OUR BRAND Aortal was born free, a force unleashed into the market with a relentless andunwaveringdetermination to succeed. A spirit charged with energy, creativity and abeam driven to seize the day with an ambition to become the most globallyadmiredtelecom service.Airtel, in just ten years of operations, rose to the pinnacle of achievement. As India's leading telecommunications company Aortal brand has played the role as major catalyst in India's reforms, contributing to its economic resurgence. Today we touch peoples lives with our Mobile services, Telemedia services, toconnectingIndia's leading 1000+ corporate. We also connect Indians living in USA, UK and Canada with our call home service. OUR VISION & PROMISES By 2010 Aortal will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses We at Aortal always think in fresh and innovative ways about the needs of ourcustomersand how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more

EMPLOYEES

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We believe that one of the most important drivers of growth and success for any organization is its people. At Bhatia Aortal, our Mantra for employee delightfocuseson 5 Ps- People, Pride, Passion, Processes and Performance. Bhatia Aortal has been recognized among the Best Employers in the Country for two successive years being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable position of the 2nd Best Employer in the Country in2004.This is a clear demonstration & acknowledgement of the robust, progressive, people swell as business aligned Human Resource practices, which the organizationhasdeveloped and implemented remarkably in a very short span of time. Bhatia Aortal follows an open door policy to approach the management, whichhelpsresolve issues with mutual agreements. We encourage people to stand up againstanyunfair treatment for which we have the Office of the Ombudsman, whereemployeescan raise any issues regarding business and workplace conduct. Bhartiensurestransparency through the various communication policies, strategies and plans...Regular Employee Communication Forums provides a platform for the employeestoraise issues that require resolution. Our leaders strongly believe in facilitating and initiating activities that helpemployeesmanage their health and well-being. Our focus always remains to redefineleadership; we develop leaders who enable performance and inspire their people to unleash their potential. Our people orientation reflects in our vision of being targeted by top talent, and a key aspect of our business focus building a best-in-class leadership team that nurtures talent at every level. Employee friendly HR policies have been put in place, which amply reflecttheorganizations concern for its people. Some typical examples of these policies and practices include a familyday at office, half day leave for birthdays, giftsforanniversaries, compulsory 10 days off, festival celebration with family, noofficialmeetings on weekends, five day weeks, concierge services, call centreengagementprograms etc. These care policies and practices are applied across theorganizationallevels without any discrimination.

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From self-management workshops to aerobics sessions, yoga classes to provisionofrelaxation/meditation rooms, we ensure that every employee keeps a check on his/her fitness. Tie-ups with leading health service organizations enable our employeestoundertake periodical health check-ups depending upon their age. This facility isalsoextended to employee family members at discounted rates. The company provides Flexible Group Medicaid insurance to all employees, covering all kinds of illnesses, accidents and hospital coverage for serious ailments. Apart from thesespecificengagements, we regularly organize health check up camps, eye check-up camps and stress management sessions. Some of our offices have opened gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time constraints to remain fit. At many of our locations, we have hired psychologists who undertake personal counseling sessions for employees.Bharti Aortal 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. Our 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. Our leaders and managers understand the need to bring clarity to employees about how their roles, goals and actions align the realization of organizations vision and goals. 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. Environment, Health and Safety At Bhatia we believe in the philosophy to refuse, reduce, reuse and recycle. Thecompanyhas taken many initiatives in this regard, both within the offices for the benefit of our employees; and for outside world for the convenience of the people few examples of the initiatives taken are mentioned below: (a) Most of the new Aortal buildings recycle waste water for sanitary and cooling of equipment purposes e.g. DG sets and AC systems. These buildings also have rain water harvesting systems for ground water replenishment where appropriate.

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(b) All Aortal offices have energy efficient light fittings and DG sets. We also ensure automation that enables energy savings in our buildings. Building Management System (BMS) Intelligent Building concept is being followed in all the new Aortal building and campuses that are coming up. Thebes controls The Heating, Ventilation and Air-conditioning (HVAC) system,, electricity load management, water management, parking management, security and safety systems to ensure an efficiently run building on optimal resources. (c) New buildings also incorporate the concept of and Energy Wheel which optimisesenergy efficiency in buildings. The AC system in our buildings adds a certain amount of fresh air periodically; In the process of adding this fresh air the cool air withinthebuilding vents out which may result into higher usage of energy to bring the cooling/temperature back. The Energy Wheel concept ensures that as we bring the fresh air in its pre-cooled thereby optimizing energy efficiency. (d) Air quality is checked periodically in all Bhatia Aortal offices, and based on the results, duct cleaning, carpet cleaning, chair and sofa shampooing is undertaken. Water quality is also monitored in cooling towers for DG sets and Air Conditioner systems so that water born diseases such as legionella, etc. are avoided. (e) Use of air curtains on major office exits and double glazing also results insignificant energy saving. (f)At the time of oil change in DG sets etc. the discarded oil for disposal is only sent to companies/ vendors approved by the Central Pollution Control Board (CPCB) for proper disposal as per CPCB approved processes. All Bhatia Aortal offices follow the basic requirements specified by the Pollution Control Board) and ensure statutory compliance. (g) All Bhatia Aortal offices have fire alarm systems. Periodic fire drills are carried outing Bhatia Aortal offices as a practice. All Aortal offices are provided with First Aid boxes and have identified people as First Aid specialists. Community Initiatives Corporate Social Responsibility is embedded in, and built upon, the stated values of Bhatia the institution. These values guide all our activities and each employee is encouraged to take
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decisions and design business-linked processes that are sensitive to communities and environment. We have an obligation to fulfill to society and the communities in which we operate, and help improve the quality of life for everyone, today and in the future.Based on the basic guidelines and direction provided in the Code of Conduct, Barthes undertaken many community programs.Bhartis contribution to society is structured through two channels, namely, (a) Bhatias Corporate Social Responsibility (CSR) Initiatives, including initiatives undertaken by way of employee mobilization as well as running environment related programs; and (b) Bhatia Foundation, a separate vehicle established in 2000 to lead the CSR agenda of Bhatia Group of Companies Business division Bhatia Aortal offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with Indias best direct to home (DTH) service digital TV in more than 150 cities. Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as the trusted communications partner to India's leading organizations, helping them to meet the challenges of growth. Discover the magical experience of digital entertainment with Aortal. From DVD quality picture and sound, the best and widest variety of channels and programmers to the best on-demand content on Aortal Live, your TV viewing experience change forever with digital TV from Aortal! Broadband & Internet Broadband Advantage
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Now experience the internet in a new way with Aortal Broadband. It is powered by DSLtechnology which gives you blazing-fast; secure Internet accesses soon as you switch on your computer .We give you the power of limitless discovery on Internet from shopping to banking, paying bills to making new friends and not to mention endless fun & learning for children. Switch today to aortal Broadband! Why wait to connect? With Aortal Broadband, the internet is always ON, always available! No more waiting for dialup to connect. You are ready to use the internet as soon as you switch on your computer. Power Surfing With speed of up to 2Mbps, feel the excitement of doing more on Internet.Shop,download MP3, exchange heavy files and chat at an enviable speed, all thanks toanextensive Broadband Services infrastructure. No more disconnections in the middleofdownload. Surf while you talk! No more missed calls or blocked telephone lines while using the internet.AirtelBroadband Services connection does not block existing telephone lines and allowsonefamily member to use the phone while another member surfs the net. No moremissedcalls and no more fight! Robust installation Our world class infrastructure & end-to-end digital network of underground coppercablelines ensure an extremely robust connection that eliminates the risk of damage.Superior server technology and a dedicated port provide total security to data storageandinformation exchange through the Internet. 24x7 customer support We are just an email or a phone call away. Round-the-clock, 365 days a year! To helpusserve you even better, we look forward to your feedback. Your suggestions for improvement, brickbats and even an occasional bouquet, will only help us realizeourpromise! Hot and Happening
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Speed on Demand With our innovative service, you can enjoy a dedicated speed of up to2 Mbps without having to change your subscription plan. Whats more, you only pay for what you use. With a view to simplify the process for our customers, we have set up awfully automated online process that delivers bandwidth up gradation as and when required. Key benefits of Speed on Demand: Upgrade to higher bandwidth instantly No need to change your tariff plan Pay only as much as you use Reach Aortal Our aim is to help you as quickly and as efficiently as possible at first point of contact.Inthis section you'll find an opportunity to email us directly, useful telephonenumbers, quick links to store locations, payment centers and much more. Customer Support As an Aortal customer you have the convenience to access our 24-hr customer service number from any part of India, from your Aortal phone. What's more, you can access us from your landline too. Aortal Relationship Centers Need to get yourself a new Aortal connection, subscribe to any of our value addedservicesand get more information on them, pay your bill or get a new handset? Visit the nearestAirtel Relationship Centre Technology Aortal Broadband is powered by DSL technologys provides blazing-fast, secure Internet access and can be delivered to both homesandto businesses. Delivered right through a regular telephone line, data rates can varyfrom128Kb to 8Mb per second depending on the type and cost of the service.

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Instant Access Digital Subscriber Line (DSL) technology provides instant Internet and network accessatspeeds up to 50 times faster than a 28.8Kbps modem on a standard analogue phoneline.There are no dial-up delays, no busy signals. What used to take minutes or hourstodownload, will now take just seconds or minutes. Experience Multimedia With DSL Internet Service you can download graphics-heavy files, largedocuments, software, photos, email attachments, and more, instantly. It's perfect for real-time interactive multimedia, broadcast quality video, distance learning, and video-on-demand. And because DSL Internet Service sends data and voice over the same line, youcan talk on the phone while you are online. Never Wait! It's also a service that you don't have to dial into. Just turn on your PC, open a browser, and you're ready to surf. (No more hearing those annoying beeps and tones, thenwaiting to be connected. You're always connected whenever you wish to!).Beyond Internet access, DSL also has the ability to carry additional phone linesandentertainment services using the same pair of wires. High-speed Internet access through DSL, changes your Internet experience perceptibly. Services Video Surveillance Solutions Control your business. 24x7 now you can observe your office, warehouse, shop and staff from your PC from anywhere and at all times, with the Video Surveillance Solution. BusinessLive@24X7 With BusinessLive@24X7, it's like being there! 24 hours a day, 365 days year. BusinessLive@24X7 is a PC based multi-channel system that utilizes themostadvanced digital video compression technologies to bring you the highest stillpicturequality and video clarity. It is a custom-made, remote, digital VideoSurveillanceSolution, that will let you keep an eye from your office or home on what is going on at specific location. It ensures safety and peace of mind along with quality service, technical warranty and maintenance.
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Unmatched features empowering businesses Virtual Control Even when you are away from your premises, you can observe, record and be incontrol.BusinessLive@24X7 makes multiple viewing possible. While you are travelling, you can see your business run smoothly from a distance 16 Videos on One Screen Click on different display mode icons and monitor live! Activate the built-in switcher and have different cameras display sequentially, one after the other, as per your time setting, in single or multiple windows. Monitor multiple sites with multiple cameras, simultaneously. Digital Video Playback Use your PC like a digital video player to playback the recorded video or browse frame by frame. And just in case you want to review something before the recording is over, you can! Your recording will continue, virtually uninterrupted. You can playback one camera at a time, or even multiple cameras (up to 4). Secure and Reliable BusinessLive@24X7 is completely network ready and you can set up all levelsofpasswords and access within the network or use the two-level, multiple-user password protection Give yourself the advantage You will be delighted to know that adding these huge benefits to your business doesnotmean huge costs. All you need is our Video Surveillance Solution that comes at surprisingly low investment. In Touch Create and share your precious moments with your loved ones with In Touch. In Touch is more fun and personal than email or voicemail. Its a great way to reach out to your loved ones who are far away.
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What is In Touch? In Touch is a great way to stay connected. It is an easy-to-use personal communications service that connects you with your friends and family, using a PC or a TV and a Broadband (high speed) Internet connection. What can I do with In Touch? Video Message & Audio Message After years of using e-mail, finally, heres a really unique way to communicatewithfriends, family & even colleagues using In Touch services. Our service allows you to create, review, send & receive video messages. It also allows you to create, review, send& receive Audio messages Video Call & Voice Call Enjoy full motion video and voice telephony with a service, thats as simple tousle as your phone. Our service allows you to make or receive Video/Voice Calls to In Touch users quickly and easily. Video Postcard TM Here's a really unique way to communicate with family, friends, business associates &colleagues, even if they're not In Touch subscribers. Our service allows you to create, review and send a Video Post Card TM to any valid e-mailed. They get an e-mail that links to your Video Post Card TM recorded in full motion video and sound. Security An important feature of the In Touch system is the security of your communications. Our secure network ensures that your profile information remains completely confidential. In Touch will not publish your name in any directory (online or print). You can receive messages or calls from family and friends only. In Touch does not offer the option to find-a-friend (common among many community solutions) as this has proven to be source of abuse and spam.

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Requirement You must be a registered member to use this service. Tariffs Experience a Broadband life and discover endless possibilities. Download yourfavouritesongs, play exclusive games, send or receive large documents photos as emailattachmentson a lightning fast, secure & reliable Internet connection. With Airtelshigh speed Broadband, enjoy superior way to access rich information of internet with enough fun & learning for everyone. To find out the Aortal broadband & internet tariffs available in your city, please select your location from the drop-down. Broadband internet definition as per the TRAI -Always on connection with minimum download speed of 256 kbps. What is Wife? Wife is a wireless technology brand by the Wife Alliance that gives you a host offantasticadvantages ranging from reliability to security. The simple installation procedure gives you access to unsurpassed performance instantly. Common applications for Wife include Internet and VoIP phone access, gaming, and network connectivity for consumer electronics such as televisions, DVD players, and digital cameras. Just like cell phones, televisions and radios, the wireless network also uses radio waves. Wireless technology is clearly the future of networking Aortal Prepaid Aortal Prepaid, the Ready Cellular Card from Aortal comes to youfrom Bharti Enterprises, India's leading integrated telecomservice provider. Going mobile with Aortal Prepaid is a new way of life. With a host of great features, also simple to use, AirtelPrepaid makes everything that you dreamt and believed, possible. Total Cost Control You can control your Aortal Prepaid like never before. No more rentals or deposits simply recharge as much as you need to from as low as Rs. 10, to as high as Rs. 10,000/-.

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Pre activated STD/ISD without deposits or rentals You can now enjoy a pre-activated STD/ISD on your AirtelPrepaid. No more paying deposits or having a minimum balance in your account to make an STD/ISD call. Hassle-free calls are here to stay! Strong Network Coverage Enjoy complete clarity when calling with Ariels world-class technology and unbreakable network coverage that spans over23 circles across the country. Instant Balance and Validity Enquiry Your account balance is updated on the screen of your hand set at the end of each chargeable call. You can also call 123 from your mobile phone and listen to the voice announcement or simply dial *123#, press 'OK' or 'YES' button and your account balance will be displayed on the screen of your handset. Recharge youre Aortal Prepaid Recharging is Easy. The calling value on your card keeps reducing as you make calls or use any other chargeable service. Choose the Aortal Prepaid Recharge Coupon thats right for you, from a variety of tailor made recharge coupons with different denominations, which are available at a number of outlets acrossyour city. Simply follow the procedure mentioned below, torecharge your phone. Prepaid Roaming Aortal Prepaid comes reactivated with 'National Roaming', so you stay connected no matter wherever you are. You can also send or receive MMS, check your email and access other GPR Services while roaming in India as you would in your own city. While traveling abroad you can receive calls & send or receives. Other Services Aortal brings you, a wide range of Services that will change the way you communicate. Try them and discover a whole new world of fun and excitement.
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Call management Services Call waiting, call hold, call divert and Caller Line Identification Presentation all with your Aortal prepaid connection. Voice Mail When your handset is switched off, or youre too busy to answer the phone, Aortal Voicemail will answer your calls and record message. The best part is that there's no extra monthly cost for setting up Voicemail - you just pay for the phone call when you use the service. SMS (Short Messaging Service) Send messages quickly and easily using text, if it's too noisy total or you don't have much time. It's the way to share those interesting one-liners, important reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world. Subscription Alerts Get regular alerts on news, jokes, business, health and films on your Aortal mobile phone with Subscription Services. SMS <SUBNEWS> to 3333 for News, <SUB JOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU>for Vast tips. MMS (Multi-media Messaging Service): Jazz up your messages with pictures, images and video clippings, with MMS from Aortal! To activate MMS on your phone, SMS'MMS' to 56465 and save service settings. Aortal Live! Make your mobile the most happening entertainment destination with Aortal Live! Aortal brings you the latest in entertainment and information services, right on your phone! Aortal Live! WAP Services: Download the latest ring tones, games, wallpapers, videos and much more. You can also getnews clips, watch live TV and download full songs on your phone. To get Aortal Live! Settings on your phone, SMS 'Live' to
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56465and save the settings that you receive as your preferredconnection. Aortal Live! Portal can be accessed from you GPRSenabled phone, by sending a SMS 'FUN' to 56465. Aortal Live! Voice Services: Just Dial 56465, and name the service. For e.g. say ring tones to download your favorite ringtones. You can also choose a variety of content options like Live Cricket Commentary, latest National / International News, Movie Reviews or Stock Market Updates. Aortal Live! SIM Services: Access loads of fun content and exciting services like cricket, stocks, on your phone at the touch of a few buttons with Aortal Live! SIM based Services on your Filmcard menu. To download new services on your Aortal SIM, choose theWhat's new" option under the Aortal services" menu. Aortal Live! SMS Services: You can enjoy a host of services by sending a keyword as an SMS to 56465! Choose Astrology /Horoscope, Cricket, Hollywood / Hollywood / Indi Pop Ring tones. In case you need assistance SMS, Help to 56465. Hello Tunes Tired of that boring old tiring tiring on your phone? Well now when a friend calls, you can make them groove to the hottest new tracks burning up the music charts with Hello Tunes fromAirtel! You get a wide choice of songs in the Popular & New Arrivals categories that are updated regularly. What's more you can directly call the number for your kind of music, e.g. call678005 for English New and 678001 for Hindi New. This would directly take you to your favorite artist's Hello Tunes listing. Copy a Hello Tune Get the tune you want, all you have to do is call 55055 and follow the simple voice instructions to copy your favorite Hello Tunes. Once inside the copy feature, just key in the 10-digitAirtel

25

mobile number you want to copy the Hello Tune from and you get the same Hello Tune assigned to your number. Gift a Hello Tune Forget gifting chocolates, flowers and greeting cards. Say it with a song instead! Gift a Hello Tune to that special someone. Just call 55055 and choose the song that you want to gift. Follow the simple voice instructions and key in the 10-digit Aortal mobile number that you want to gift the Hello Tune to. You will get asks notification upon successful receipt of that gift. Buy Music - Aortal Music Shops Buying your favorite Hello Tune or Ringtone is as simple as recharging your phone with talk time. Simply walk into your earnest Aortal Shop and walk out with your favorite song. Choose from Hollywood Hits to Indi pop Remixes, Hard Rock to GujratiGarba, Bahamans to Jazz, Hangar Beats to foot tapping Tamil Hits from a list of more than 18000 songs. Reach us Anytime Anywhere In case you need assistance, dial '121' - our toll-free number, accessible from anywhere in the country, even while roaming. You can also send us an SMS to 121 or mail us at 121@airtelindia.com . In case of email, mention your mobile no. like, 9810012345, in the subject of the mail for a quicker response. Aortal Postpaid Aortal welcomes you to a vibrant world of unlimited opportunities .More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way. Easy Billing Enjoy a host of rich features only with Aortal e-bill. Register free on My Aortal section and view your monthly bill with call details for last three months. Sort your calls between personal

26

and official or analyze your usage, at the click of a button. To change your tariff plan call our IVR at 121 and leave a request. Easy Payment Options. Anytime Anywhere You can choose from a host of convenient payment options only with Aortal. Walk into any Aortal relationship centre and make your payments by cash or credit card. Drop a cherub at any of the drop boxes for making payments or simply log on to My Airtelsection and pay instantly through your credit card. You can also opt for easy payment options like: Standing Instructions You can give us standing instructions to debit your credit card account for your monthly Aortal bills. All you have to do is fill the Standing Instruction Form and mail, fax it to us or drop it any of our relationship centers. Electronic Clearing System Fill an ECS form and mail, fax it to us or drop it any of our relationship centers to directly debit your bank account for your monthly Aortal bill. Pay while roaming Aortal has introduced 'anywhere payment' that offers you the convenience of making payments while you roam. Walk in to anyAirtel Relationship Centre in the country, make payments bycash or credit card and enjoy uninterrupted Aortal Services. Credit limit Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges in control, keeps track of yourusage and ensures that your mobile phone is not misused.Should you exceed your credit limit, you will be informed via voice or a non-voice message to make an interim payment and reduce your account balance below your credit limit. You may also choose to pay us an additional refundable deposit toenhance your credit limit or opt for our conv enient paymentmethod of Credit Card Standing instruction .You can also make use of ECS facility.
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Strong Network Coverage Enjoy complete clarity when calling with Aortal .It offers you world-class technology and unbreakable network coverage that spans over 23 circles across the country. Long Distance Calling Facility Call long distance calls in India and Overseas with STD / IS facility on your Aortal phone. Widest Roaming - National and International Ariels roaming service allows you to stay connected and use your mobile phone to make or receive calls from almost anywhere in India and also over 160 countries, abroad. GPRS - Roaming Use Aortal Post aids GPRS services, while roaming, to access the internet and office mails (egg. BlackBerry services), from almost anywhere in India and abroad. Say it. In more than just words, with Services from Aortal Aortal brings you a wide range of Services that will change the way you communicate. Try them and discover a whole new world of fun and excitement. Call management Services Call waiting, call hold, call divert and Caller Line Identification Presentation, help you do more with your Aortal Postpaid connection! Conference call You can hold a teleconference with 5 people simultaneously with Call Conferencing service from Aortal. In fact, you can set up conference even when the other five are using a landline phone. To know more, call customer service at 121. Missed call alert

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A missed call alert is a SMS that you will receive for all the calls that you missed. The SMS will detail the CLI and the time when the call was made. To activate, dial *135*2# then press the call button and wait for the request to be completed. GPRS (General Packet Radio Services) Log on to the internet, with GPRS that allows data transmission at a higher speed. Access emails and internet across Airtel'span-India presence using 'Mobile Office' with your phone or phone and laptop both. Get the EDGE Browse the internet on your mobile phone with Airtel's EDGEservices. Enjoy live TV, enhanced WAP experience and AirtelData Cards on our high speed network.

TARIFF STRUCTURE Prepaid Tariffs

Airtel Prepaid Ready Cellular Card and Recharge Cards areavailable, all over the city at over retail outlets including 24-houroutlets. Aortal Prepaid Ready Cellular Card and Recharge Cards are available, all over the city at over retail outlets including 24-hour outlets.

Aortal Prepaid Regular

449 SUK Pulse Rate Price of Pack (Rs.) Free Airtime on Pack (Rs.) Incoming Calls (Rs.) 60 sec Rs.449 Nil Free while in home network Aortal GSM/CDMA (10 Digit) LOCAL RATES (Rs./min) STD RATES (Rs./min) Rs. 1.20 Rs. 2.75 Rs. 2.00 Rs. 2.75 Landline/ WLL Rs. 2.40 Rs. 2.75
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ISD (Rs./min) USA, Canada Europe (Fixed Line), Australia, Rs. 6.40 Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the World Cuba, Sao Tome & Principle, Guinea Bissau, Rs. 40.00 Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Norfolk Islands, Sakhalin SMS (Rs.) Local National International * Other Details
Rs 50 Local Aortal Aortal Mobile talk time per month for 6 months First month Airtel-Airtel credit within 72 hrs of activation & balance credit by 1st week of every month. The SMS charge as applicable is per 160 characters . Validity- 24 months.

Rs. 9.20

Rs. 1.20 Rs. 2.00 Rs. 5.00

Postpaid Tariffs :
Aortal Postpaid allows you to choose from a variety of affordable talk plans, convent payment options and host of rich features. So get set to enjoy a world of limitless possibilities! Reference Tariff Packages (RTP) ON TIME CHARGES Activation Charges Rs. 250
30

Membership Fee Security Deposit MONTHLY CHARGES (FIXED) Bill Plan Charge Monthly Rental Clip MONTHLY CHARGES (OPTIONAL) Clip

Rs. 250 NA Rs. 524 Rs. 444 Rs. 150 NA

Rs.99 Aortal GSM /CDMA (10 Digit) Landline/ WLL Rs. 1.99

Local Rates STD Rates 50 200 Km 200 500 Km 500 + Km ISD USA, Caned, Europe, (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Cuba, Sao tome & Principle, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Island, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS Local National International

Rs. 1.99

Rs. 1.99

Rs. 7.20

Rs. 9.99

Rs. 40.00

Rs. 1.00 Rs. 2.00 Rs. 5.00

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Value Added Services (Rs.)

Rs. 3.00

Aortal One Standard 150 ONE TIME CHARGES Activation Charges Membership Fee Rs. 250 Rs. 250 (Converts into security after 24 months) Security Deposit MONTHLY CHARGES (FIXED) Bill plan Charge Monthly Rental Clip MONTHLY CHARGES (OPTIONAL) CLIP Bissau, Diego, Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS Local National International VAS *Other Details This Bill Plan is also available under Advance Rental of Rs. 799 for 2 years. Local Pack Aortal to other local mobiles (non Aortal) At Rs 1 / min
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NA Rs. 150 Rs. 50 Rs. 150 NA

Rs. 50

Rs. 1.00 Rs. 2.00 Rs. 5.00 Rs. 3.00

Monthly rental Rs 25 per months/-

STD Pack Aortal to other mobiles (non Aortal) & fixed lines nos. at Rs 2 /min. Monthly rental Rs 75 per month/Special offer for Aortal Telephone service customers for availing Aortal Mobile services If you already have Aortal Telephone service, you can buy a new Aortal Mobile connection under Aortal One Standard150 Plan. Benefits: Non security deposit. No membership / activation fee Enjoy calls to your Aortal fixed line no. at just 50 P / min. Monthly rent of Rs 25 for reduced call rates to your Aortal fixed line has been waived off for 1 year. For details, call us 516-12345

Advance Rental benefits (1 year scheme) Pay an advance rent of Rs 499 and enjoy Aortal One Standard 150 plan at Zero monthly rental for one year. Advance rental of Rs 499 gives you a rental discount of Rs 150 every month for the next 2 months. All other options and charges are as per the existing Aortal One Standard 150 Plan. Aortal one Standard 299 ONE TIME CHARGES Activation Charges Membership Fee Rs.250 Rs.250 (Converts into Security after 24 months) Security Deposit MONTHLY CHARGES (FIXED) NA Rs.299

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Bill Plan Charge Monthly Rental Clip MONTHLY CHARGES (OPTIONAL) Clip

Rs.150 Rs.299 NA

Rs.50 Aortal / (10 Digit) WLL GSM / CDMA Landline

LOCAL RATES STD RATES 50-200KM 200-500KM 500+KM ISD USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand Gulf, Europe (Mobile), SAARC Countries, Africa & Rest of World Cuba, Sao tome & Principle, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Island, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS Local National International Value Added Services (Rs.) * You also enjoy 25 FREE local mobile SMS

Re.1.00

Rs.1.00

Rs. 2.00 Rs. 2.00 Rs. 2.00

Rs. 2.40 Rs. 2.40 Rs. 2.40

Rs. 2.40 Rs. 2.40 Rs. 2.40

Rs. 7.20

Rs. 9.99

Rs.40.00

Rs. 1.00 Rs. 2.00 Rs. 5.00 Rs. 3.00

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Senior Citizen Plan ONE TIME CHARGES Activation Charges Membership Fee Rs. 250 Rs. 250 (Converts into Security deposit after 24 months) Security Deposit MONTHLY CHARGES (FIXED) Bill Plan Charge Monthly Rental Clip Cuba, Sao Tome & Principle, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Island, Sakhalin SMS Local National International VAS Rs. 1.50 Rs. 2.00 Rs. 5.00 Rs. 3.00 NA Rs. 150 Rs. 51 Rs. 99 NA

With senior citizen plan you can take 3 Friends and Family numbers: Aortal to Aortal (1local no.) Rs. 0.5 / min. Aortal to Aortal (1 STD no.) Rs 1.5 / min ISD calls to US / Canada / South East Asia / Australia / New Zealand) Rs. 9.99 / min

You also get FREE alert subscription worth Rs 30 / alert or 3months on: News Astrology Health Tips

The SMS charges as applicable is per 160 Characters.

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Chapter 3-STRATEGIES OF BHARTI AIRTEL LTD. 1. PROMOTIONAL STRATEGY Aortal to Touch Tomorrow with a new brand vision The Bhatia Mobile promoted Aortal cellular service will go in for repositioning of its brand image. The new brand ethos isportrayed in two distinct fashions - the tag line Touch Tomorrow", which underscores the leading theme for the new brand vision, followed by "The Good Life", which underscores a more caring, more customer centric organization. Aimed at re-engineering its image as just simply a cellular service provider to an all out information communications services provider, Touch Tomorrow is meant to embrace the new generation of mobilecommunication services and the changing scope of customerneeds and aspirations that come along with it The new communication is about a new dimension in the cellular category that goes beyond the Internet, SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless digital broadband services that will constitute tomorrows cellular services. The new campaign is in two phases - the first of which will communicate overall brand philosophy and the second products and services. According to Mr. Jadish Kina, Chief Operating Officer, Bhatia Mobile Limited, Karnataka "We are adopting a new brand platform - Touch Tomorrow - not

only to reflect our corporate ethos but also business strategy". The new identity will have the logo in Red, Black and White colors along with lower case typography to convey warmth. Aortal will incorporate the latest branding in all of its communication and will soon be going in for an enhanced promotional drive to establish the brand's presence. LIFE TIME PLAN PRE-PAID card users need not worry anymore about recharging their coupons every month. Company has launched a plan that allows users to take a pre-paid connection with lifetime validity for a one time payment of Rs. 999. Subscribers availingthemselves of this scheme will also get full talk time for their charge coupon they purchase and also have the option to buy Taiwanese manufactured Bird mobile handsets for as low as Rs.1,399. The move is aimed at stopping the churn in the pre-paidsubscriber base. Once a subscriber takes this plan, he will alwaysbe an Airtel subscriber whether the mobile is being used or not.

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2.COMPETITIVE SITUATION Airtel launched its services before Essar and skimmed the market picking up the bulk of the high usage premium clients. This is a very competitive industry with the two companies differentiating either on value-added services or price. Airtel is perceived as the high quality provider and has a premium image. Essar, on the other hand, is perceived as the lower end service provider. Airtel positions itself as the market leader on the basis of the number of subscribers. Essar is trying to counter this by emphasizing on the reach of its network and the quality of its service. However, Essar is somewhat not been very successful largely due to the inconsistency in advertising. To promote themselves, both the players have been dependent on tactical advertising. However, they have restrained from using comparative advertising Hoardings have been a very popular medium for carrying the advertisements Airtel has also been advertising on television using the Bharti Telecom name.

3. SALES DEPARTMENT AND STRATEGY A.Major Accounts (Direct Channel) Handles corporate (named and famed) accounts Forecasting of sales Mapping the accounts Providing after sales support to the subscribers. Maintaining call reports for records. Providing Feedback to the marketing department regarding the requirement of the market. B.IDC (indirect Channel) Handling distribution Maintaining records and level check of the channel partner Liaisoning between the channel partner and the company.
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 Target achievement Training the executives of the channel Distribution Support 1.Logistics Monitor handset and SIM card requirements of channel partners and co-ordinate with stores Settle areas of concerns such as incentive claims of channel partners 2.Rental Provide cellular services (SIM cards) on rent. Provide cellular phones on rent Useful for people visiting Delhi for a short interval. 3.Telesales Call customers and generate sales lead. Follow up with the customers, if they need any assistance Pass on the sales lead to the channel department. 4 Audit Consultant to the AirTel showrooms. Monitor the operations at the AirTel distribution outlets Organize training. 5.Retail Locate shops to open retail counters. Monitor the retail counters.

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4.MARKET SEGMENTATION Segmentation is beneficial because of better predictability of the target consumer group, minimization of risk exposure, better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income. In evaluating different market segments the company looks at two factors the overall attractiveness of the segments and the companys objectives & resources the present market for Cellular phones, pagers and conventional phones is as follows:

Premium Upper Cellular phones Pager x X X x Lower X

Middle Upper x Lower -

Economy Upper Lower -

x x

x x

Conventional x Phones X market segment targeted

5.TARGET MARKET SEGMENT Airtel has targeted the premium and upper middle class. The rationale behind it is that only those segments should be targeted who value time and have the paying capacity. It is also planning to target the business tourists during their stay in the capital About 60% of the clientele are top executives of corporate houses. About 15% are foreign organizations and the rest are professionals and small businessmen. During the introduction stage there was intense pressure to get consumers across to hook up with their brand, because getting them to switch brand loyalty later would be hard So far Airtel marketers have been concentrating totally on the business

39

executive class but now that the basic viable volumes has beer) built up and prices have declined to a certain extent they are planning to venture further afield. POSITIONING The product is sought to be positioned as a business efficiencytool. a lifestyle revolutionand a status symbol The emphasis is toremove misconception that the cellphone is anexpensive means of communication and drive home the point that the cellphone isactually a day-to-day utility

6.PRODUCT POLICY AND PLANNING The product or serviceis the heart of the marketing mix.Without a product or a servicecustomers' needs cannot besatisfied. The basic product promise by Airtel is mobility.Airtel's mainmarketing strategy is to be afirst mover all the time.It hasrecognised the significance of making the first move-- because inthe field of Communication & Information Technology changesoccur at atremendous pace. Effective product segmentation has to be carried on continuouslybecause basic servicescan be and will be copied and in timebecome expected component of the product. Airtelseeks tocarry out this segmentation through provision of new informationservices andmaking new facilities available.The product policyand planning depends on the stage of the product life cycle.Atpresent the cellular phone market has reached thematuritystage.Since, the premium segment is nearing saturation thecompany targeting theupper middle and middlemiddle class.Inorder to do so Airtel is trying to optimise the price performancepackage by offering suitable "product bundling". This involves the selection of the suitable hardware (handset)and its software (itsservices.) with reasonable price in order todeliver maximum price performance to itscustomers. In addition, it offers free Airtime services and other concessions tomake the prices andthus the product more attractive.It hasalso opened a 24 hours customer service.Only price doesn't serve as an effective differentiator, value added services become theeffective differentiator.The "Value Added Services" provided from Airtel are:40

i) Voice Mail service This system is similar to the answering machine - if the user isnot able to answer a callfor some reason the caller can leavemessages in the voice mail box which can be later retrieved bythe user ii) Short Message Service The short message service is like a two-way pager.It gives anoption of sending andreceiving text messages directly from onemobile phone to another without theintervention of an operator. iii) Mobile Fax 1 Data Service This service helps the subscriber to send and receive Faxes,access E-mail, downloadcomputer files from other systems andremotely log on to another computer and surf theInternet. iv) Cash Card The cash card is a pre-paid and pre-activated card which allowsthe buyers to buy air timein advance.All it requires is thepayment of an initial amount.This is a useful service for peoplewho travel to Delhi often and those who want to control theexpenses on their calls. v) Caller ID Displays calling person's number. vi) Outgoing call restriction To prevent or limit outgoing calls, for example, in peak hours.Also possible to excludeone or several countries, or anygeographical region, to permit only local calls, or to limitthe outgoing calls to a listed number. vii) Call forward Incoming calls can be forwarded to another fixed or mobile phone. Besides these some other services provided by Airtel are Call conferencing, Call Broadcast etcetera. It is in the operators -Interest that they not only get many subscribers but also get them tousle the mobile facility
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frequently .In the early stages getting increases to subscribe may be easier than getting them to talk since they will find it costlier to use the mobile phone as compared to a conventional phone [if is believed that initially cell phones would be used buy] viii) Roaming Facility Roaming facility is available while the subscriber is travelling. The billing is done in thehome network (Delhi).Roaming facilityis available manually* as well as semi-automatically. Once a subscriber is in any other city or country, where a GSM network is available, simply insert the SIM card of the local operator into your handset and start talking. Manual Roaming means a separate SIM card is provided for each city Semi automatic roaming means one card has the facility for different cities.

7. AIRTELS MARKETING ORIENTATION Since this is a high-involvement expensive product, the service provider has to fullytake care of the customers. a) They take personal responsibility to "get" the answer for anyproblem faced by the customer b) They anticipate customers' problems and take pro-active steps to prevent them c) They give answers to the questions & requests, quickly & efficiently. d) They have a positive tone & manner while interacting with customers. e) They end the interaction on a positive or a humorous note-making the last 30 sec count Airtel realises that attracting people 'Is easy but converting theminto loyal customers ishard, hence emphasis is on maintaining a'Smiling and a Friendly Atmosphere' to pleaseand retain thecustomer.

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8. PRICE AND PRICING POLICY AIRTEL has realised that the Indian market is price sensitive.Therefore it care of the hascome up with various innovativetariff schemes to take needs of different category of customers-Generally, the cellular services are more expensive than the landline basedtelephone services.This is due to the reason that theoperating companies are required to pay a fee to thegovernment for using airtime.

9. MARKETING STRATEGY ADOPTED BY BHARTI AIRTEL Bhatia has spent a considerable amount on advertising its mobilephone service,Airtel.Besides print advertising, the companyhad put up large no of hoardings and kiosksin and around Delhi.The objective behind designing a promotion campaign for theAirtelservices is to promote the brand awareness and to buildbrand preferences.It istrying to set up a thematic campaign to build a strongerbrand equity for Airtel.Since thecellular phone category itself istoo restricted, also the fact that a Cellular phone is ahighinvolvement product, price doesn't qualify as an effectivedifferentiator.The image of the service provider counts a greatdeal.Given the Cell phone category, it is the network efficiencyand the quality of service that becomes important.What nowthe buyer islooking at is to get the optimum price-performancepackage.This also serves as aneffective differentiator Brand awareness is spread through the' campaigns and brandpreference through brand stature.Airtel's campaign in thecapital began with a seriesof 'teaser' hoardings across the city,'bearing just the company's name and withoutexplaining whatAirtel was.In the next phase the campaign associated Airtel withCellular only thereafter was the Bharti Cellular connection brought up. Vans with Airtel logosroamed the city, handing outbrochures aboutthe company and its services to allconsumers.About 50,000 direct callers were sent out.When the name waswell entrenchedin the Delhiitess mind, the Airtel campaignbegan to focus on the utility of Cellphone.Inthe first fourmonths alone Airtei's advertisement spend exceeded Rs. 4 crores. As of today the awareness level Is 60% unaided.This impliesthat if potential or knowledgeableconsumers are asked to namea Cellular phone service provider that is on the top of his/hermind 60% of them would name Airtel.As for aided it -is 100%(by giving clues andhints etc.).Brand strength of a product or the health of a brand is measuredby the percentage score of
43

the brand on the above aided and theunaided tests.The figures showthat Airtel is a healthy and athriving brand.Every company has a goal, which mightcomprise a sales targetand a game plan with due regard to Its competitor.Airtel'scampaign strategy is designed keeping in mind its marketingstrategy.The tone, tenor and the stance of the visual ads aredesigned to convey the image of a market leader interms of itsmarket share.It tries to portray the image of being a "firstmover every time"and that of a "market leader". The status of the product in terms of its life cycle has justreached the maturity stage in India.It is still on the rising part ofthe product life cyclecurve in the maturity stage. The diagram on the left hand side shows the percentage of theusers classified into heavy, medium and low categories.Theright hand side shows therevenue share earned from the threetypes of users.Airtel, keeping in mind the importanceof the customer retention, values its heavy users the most and constantly indulgesinservice innovation.But, since heavy users comprise only 15 -20% of the population theother segment cannot be neglected.The population which has just realised the importanceof cellularphones has to be roped in.It is for this reason that the serviceprovider offers a plethora of incentives and discounts.Concertslike the "Freedom concert" are beingorganised by Airtel in orderto promote sales.The media channel is chosen with economyinmind.The target segment is not very concrete but, there is anattempt to focus on thosewho can afford. The printadvertisements and hoarding are placed in those strategicareaswhich most likely to catch the attention of those who need acellular phone.The product promise (which might cost different1 higher) is an important variable indetermining the targetaudience.Besides this, other promotional strategies that Airtel hasadoptedare . 1.People who have booked Airtel services have been treatedto exclusive premiers blockbuster movies.Airtel has tiedup with Lufthansa to offer customer bonusmiles on theGerman airlines frequent flier's programs. 2.There have been educational campaigns, image campaigns, prelaunchadvertisements,launchadvertisements,congratulatoryadvertisements,promotional advertise-ments, attacking advertisementsand tactical advertisements.

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10.DISTRIBUTION

Company

Franchisee

Distributor

Dealer

Dealers

Customers

Customers

The- company whose operations are concentrated in and around Delhi. It 27 Franchisees and 15 Distributors- They also have 8'instant access cash card counters- Each franchises or distributor can have any number of dealers under him as long as the person is approved by the Airtel authority.Each franchises has to investRupees Ten Lakhs. To obtain afran chise and should employ an officer recruited by Airtel. This person acts as a liaison between the company and the franchises. The franchises can it any number of dealers aslong as their territories do not overlap.Butunfortunately Airtel has not been very successful in controlling territorial overlaps of dealers. The franchises can carry out his1her own promotional strategy. For this the.company contributes 75% of the money and the franchises contributes 25% of the money. The dealers under the franchisee receive the same commission. The franchises and the dealer obtain the feedback from the customers and they are sent through the liaison officer on a day-to-day basis to Airtel.The dealer has to invest Rupees. One Lakh as an initial investment. The dealer of Airtel is not allowed to provide any other operators service. Target set for distributors and the dealers is 100 -150 activations per month. Hence the dealers can also go for their own promotions like banners and discounts on festivals etc. The dealer provides service promptly.The consumer on providingthe bill of purchasefor the handset and proof of residence hasonly to wait an hour before getting connected.The staff of thedealers and the franchisees are
45

providedtraining by the Airtel personnel.The complaints encountered by the franchisees and dealers areeither handset being non-functional or the SIM Card not getting activated. Anything more complicated is referred to the main Airtel office in Delhi. WHAT DOES AIRTEL OFFER? With Airtel, the subscriber wouldn't just get a personal phonethat lets him/her be intouch, always, but also gets a host ofbenefits that let him/her manage his/her time likenever before.An Airtel subscriber is provided with a Subscriber Identity ModuleCard(SIM card) - that is the key to operating his/her cellularphone.His card activates Airtelcellular services and contains acomplete micro-computer chip with memory to enable onetoenjoy one's cellular phone thoroughly. Each SIM card contains aPIN code (PersonalIdentity Number) which may be entered byone.Just plug your SIM card into your cellular phone, enter thePIN code and it becomes 'your' personal phone'.

11.PRODUCT LIFE CYCLE The pattern of cellphone subscriber growth observed elsewherein the world reveals thatthe growth in the market is Initially slowfollowed by a sharp acceleration, but so far thathas nothappened in India.As far as the Product Life Cycle is concerned.Indians are at the beginning of the maturity stage. Introduction Marketing Objectives Create product awareness and trail Strategies Poduct Price Distribution Advertising Growth Maximize market share Maturity Maximize profi whole defending market share Increase in value added services Price to match or best competitors Build more intensive distribution Stress brand differences and benefits Increase to encourage brandswitching

Offer a basic product services Charge cost plus Build selective distribution Build product awareness among early adopters and dealers Use heavy sales Promotion to entire people to subscribe

Offer valued services Price to penetrate market Build intensive distribution Build awareness and interest in the mass market Increase to build and maintain relationships with customers

Sales Promotion

46

Chapter 4-OBJECTIVES OF THE STUDY

To study the consumer trends in telecommunication sector.

To study consumer decision-making & preferences.

To study marketing strategies adopted by Airtel.

To study the level of customer satisfaction in Airtel.

To study the market potential.

To study customer purchase decision behaviour.

To understand the needs of different consumer segments. Comparative study of different mobile companies.

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Chapter 5-SWOT ANALYSIS OF AIRTEL STRENGTHS 1. Strong Brand Image. 2. Good Network Connectivity. 3. Wide Network Coverage. 4. Attractive Promotional Schemes. 5. Good Value Added Services. 6. Operating In 65 Countries with 157 Operators. WEAKNESS 1. Perceived As An Expensive Brand. 2. Absence In The Rural And Interior Areas. OPPORTUNITY 1. Poor Network Connectivity of Its Competitors. 2. Large Chunk Of Dissatisfied Customer. 3. Though Being The 4th Entrant,They Are Oprating At 900 Frequencies. THREATS 1. Strong Visibility Of Competitors. 2. Sour Experience With Airtel By Few Can Lead To Bad Word Of Mouth. 3. Continous Improvement In Competitors Services.

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Chapter 6-Findings and Conclusion CONCLUSION Liberalization of th e telecommunications market has entered a new phase:competitionalready exists (albeit in limited form) in some markets, such as the long-distance marketand the market for Internet access via the STN. Other segments, suchas the local loop(essentially the high-speed Internet access market), are being openedup. At this stage, it isno longer simply a question of opening up particular markets,but rather, consolidating the play of competition in those markets that have beenopened as well as developingcompetitive new services. This explains the importanceof high-speed access technologiesfor the future of the sector. To face up to these challenges, regulatory activity is changing. It is constantlyadapting to market trends and to economic situations, which are often difficult.Among its priorities it now counts new economic and social concerns as theinformationsociety develops: national coverage is a major issue and Airtelintends to play its part to protect the interests of all consumers. To this backdrop, a new regulatory organisation is emerging. It must supplyregulatoryactivity with new tools to encourage lasting competition in thetelecommunications sector.It must also contribute to the development of a moreconsistent UP west market that is better able to face up to the challenges of theinformation society within the context of globalisation. After thorough analysis and interpretation of result obtained I studied overallconsumer trends in Airtel Telecommunication Ltd. How people react to its servicesand schemes.How company attract its customer by adopting effective strategies. Inthe last theconclusion is drawn through this research that being the biggest and oldestnetwork of mobile telecommunication in Uttar Pradesh West, having good quality ofservice, takingalong a big part of people aware about Airtel, it is subsisting hard. ForAirtel connectionmost of customers are professional and business segment.

Good service is the way to retain clients

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BIBLOGRAPHY http://www.businessdictionary.com/definition/marketing-strategy.

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