ST ROCKS COLLEGE OF COMMERCE

AND SCIENCE
BORIVALI (West), MUMBAI-400092.

Project Report On:

VODAFONE

DETAILED ANALYSIS OF AIRTEL AND

Is submitted in partial fulfillment for the degree of

Bachelors of Management Studies
(B.M.S)

Submitted by
EMMANUEL VEIGAS
TY BMS
SEMESTER V
Department of Bachelor of Management Studies
Project Guide
PROF. MOHIT SIR

Affiliated to
1

University of Mumbai
ACKNOWLEDGEMENT
It is not possible to prepare a project report without the assistance & encouragement
of other people. This one is certainly no exception.
On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this endeavor. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I am extremely thankful and pay my gratitude to my Project Guide Prof Mohit Sharma
for his valuable guidance and support on completion of this project in its presently.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents
and member of my family, who has always supported me morally as well as
economically.
At last but not least gratitude goes to all of my friends and respondents who directly
or indirectly helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.

DECLARTAION
I, Mr. Emmanuel veigas student of S.T ROCKS COLLEGE OF COMMERCE AND SCIENCE
T.Y.B.M.S (5th semester) hereby declare that i have completed university project on detailed
analysis between Airtel and Vodafone during the academic year of 2016-2017
The information submitted is true and original to the best of my knowledge

DATE OF SUBMISSION
(EMMANUEL VEIGAS)

INDEX
Chapters
1.
2.
3.
4.

5.

6.
7.
8.
9.
10
11
12
13
14
15
16
17
18
19
20
4

Particulars
Need of the study
Objective of the study
Scope of the study
Research Methodology
4.1 Primary data
4.2 secondary data
4.2.1 Sources of secondary data
4.3 method of collection
Introduction
5.1 Indian cellular Market
5.1.1 Roadblocks
5.1.2 Current Position
5.1.3 problems in Financial Closure
5.1.4 Foreign Ownership
Introduction of Airtel
6.1 Company Profile
6.1.2 Business
Introduction to Vodafone
7.1 Company Profile of Vodafone
7.1.2 Swot Analysis
Comparison of marketing Strategies of Airtel

Page No.
5
6
7
8
9
9
10
10
11
11
11
12
13
13
14
14
15
16
16
17
18

And Vodafone
Brand Positioning of Airtel
9.1 market Segmentation
9.2 Target Segmentation
Market Mix
10.1 4 Ps of Airtel
Marketing Strategies of Vodafone
Brand Positioning by Vodafone
Marketing Mix Vodafone
Services Provided by Vodafone
Services provided by Airtel
Analysis Done
Swot analysis
Future trends and Developments
New Compactions in the Market
Questionnaires

19
19
19
20
20
23
24
24
26
26
28
36
38
39
46

21
22
23
24
25
26

Limitations
Suggestions
Recommendations
Conclusion
Annexure
Bibliography

50
51
52
53
54

1. NEED OF THE STUDY

1.

To identify the difference between market performance of Airtel industry and Vodafone.

2.

To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.

3.

To compare various parameters of marketing strategies, manufacturing process,

technology adopted production policy, advertising, collaboration, export scenario,
future prospect for the two companies and government policies .

4.

To study the level of customer satisfaction in Airtel & Vodafone.

5.

To study customer buying behavior and factors which influence the purchase decision process.

6.

To study consumer preferences.

7.

To study the consumer trend in telecommunication sector.

8.

To study competitive marketing strategies adopted by Airtel and Vodafone.

2. OBJECTIVE OF THE STUDY

6

This survey research may be also aimed as to estimate potential buyer for the product. The
objective of the study is as under:1.

To identify the difference between market performance of Airtel industry and Vodafone.

2.

To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.

3.

To compare various parameters of marketing strategies, manufacturing process,

technology adopted production policy, advertising, collaboration, export scenario,
future prospect for the two companies and government policies .

4.

To study customer buying behavior and factors which influence the purchase decision process.

5.

To know how the company has been successful in encountering the aggressive marketing
strategies of competitors

3. SCOPE OF THE STUDY

7

To conduct this research the target population was the mobile users, Who are using GSM
technology.

Targeted geographic area and Sample size of 30 persons was taken.

To these 50 people a questionnaire was given, the questionnaire was a combination of both
open ended and closed ended questions.

The date during which questionnaires were filled.

Some dealers were also interviewed to know their prospective. Interviews with the
managers of GSM service providers were also conducted.

Finally the collected data and information was analyzed and compiled to arrive at the
conclusion and recommendations given.

4. RESEARCH METHODOLOGY
8

Achieving accuracy in any research requires a deep study regarding the subject. The prime
objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market
and the impact of WLL on Airtel.
The research methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary data has been used to
support primary data wherever needed.

DATA COLLECTION METHOD

There two type of method of data collection.

1. Primary data
2. Secondary data

4.1 PRIMARY DATA:

1. Questionnaire Method
2. Direct Interview Method and
3. Observation Method
Data used for the research work was primary in nature. Primary data:
Primary data is that which is the collected for the fist time and thus happen to be originated
in character.
Questionnaire survey:
In the studies a questionnaire is prepared. The questionnaire consists of 10 questions.

The main tool used was, the questionnaire method. Further direct interview method, where a faceto-face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.
9

4.2 SECONDARY DATA:

Secondary data refer to the data that has been already collected .the secondary data, which has
been used to carry out this study, are as follow:
Books, journals, magazines, newspapers
Industry reports
Companys internet site
someother relevant study material and websites..

4.2.1 Sources of secondary data:Used to obtain information on, Bhartis history, current issues, policies, procedures etc, wherever
required

Internet

Magazines

Newspapers

Journals

Bharti Circulars Store

Bharti News Letters

Vodafone Mini store

The research process was done by interacting with number of customers during the activities
performed, which included, markets, cold calling, canopies, etc.
random sampling.

Sample size:
size: - 125 people

4.3 METHOD OF COLLECTION: -

10

Sample design consists of

Field procedure for gathering primary data included observation and interview schedule in which
the questionnaires were filed by the interviewer.
Personal interviews through self administered survey was done to collect the data, market research
was undertaken, that was accomplished by performing various activities designed.

Research instrument:
instrument:
Questionnaire

The questionnaire was formulated by keep in mind the following points:

points: -

Giving the respondents. Clear comprehension of the question.

Inducing the respondents to co-operate.

Giving instructions as to what is needed.

Identifying the needs to be known.

11

5. INTRODUCTION

TELECOM SECTOR IN INDIA

More than 125 million telephones network is one of the largest communication networks in
world, which continues to grow at a blistering pace.
The rapid growth in the telecom sector can be attributed to the various pro-active and
positive policy measures taken by the government as well as the dynamic and
entrepreneurial spirit of the various telecom service providers both in private and public
sector. The telecom sector has shown impressive growth during the past decade. Today,
more
Two striking features of this growth viz. increasing preference for mobile phones and
higher contribution of private sector in the incremental growth have predominated the
telecom sector. The share of mobile phones (including WLL mobile) has overtaken the
share of landlines with 62% in the total number of phones. The private sector's contribution
is also increasing rapidly. Currently more than 30 lakh phones are being added each month
and it is targeted that by the end of 2008 the total number of phones may reach a level of
350 million taking the tele-density to more than 30% which is currently at 24.63%.
Network Expansion: The total number of telephone subscribers has reached 281.62 million
at the end of January 2008 as compared to 232.87 million in July 2007. The overall
Teledensity has increased to 23.63% in January 2008 as compared to 21.20% in August
2007.
Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last month
compared to 8.17 million in December2007. This pushed the total wireless subscribers base
to 242.40 million by Jan 31 2008.
Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom
Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goals and
objectives of TRAI are focused towards providing a regulatory framework that facilitates
achievement of the objectives of New Technology Policy

(NTP)

1999.

TRAI

has

endeavored to encourage greater corporation in the telecom sector together with better
quality and affordable prices.
12

5.1INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND

THEIR RESOLUTION
Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by
several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of
these roadblocks / current position is tabulated below:

13

5.1.1ROADBLOCKS
5.1.2URRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of
license fees.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at over 60% per annum, while
businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5
major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all
operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making
roles vested in different bodies.
Issues relating to unfavorable interconnect terms for private operators, pass through income, intra
circle long distance, spectrum availability and allocation and the like remained unresolved for long
periods.
Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI
(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in
methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared
with vacation of frequencies for usage by GSM operators.

14

5.1.3 PROBLEMS IN FINANCIAL CLOSURES DUE TO:

Licensing tenure of 10 years

Large upfront cash requirements from promoters due to heavy license fee burden in initial
stages of deployment Asset based financing approach by Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large upfront cash requirements for license fee payments mitigated with migration to
revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project
financing being considered by most financial institutions.

5.1.4 FOREIGN OWNERSHIP / CHANGE OF PARTNER LIMITATIONS

Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing
ease of entry / exit - paves the way for full control of businesses by foreign companies.
Inadequate growth of market / subscribers

15

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
measures taken, market / subscriber base expected to zoom. 6. INTRODUCTION OF

AIRTEL

Airtel is a brand of telecommunication services in India operated by Bharti Airtel.

Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand
name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services
(Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and
Enterprise Services (Telecommunications Consulting for corporates). It has presence in all
23 circles of the country and covers 71% of the current population (as of FY07).
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.

6.1 COMPANY PROFILE OF AIRTEL

Vision
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus
remains unchanged: seek out the best technology in the world and put it at the service of our
ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan of action.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and
innovations to its credit, ranging from being the first mobile service in Delhi, first private basic
telephone service provider in the country, first Indian company to provide comprehensive telecom
services outside India in Seychelles and first private sector service provider to launch National
Long Distance Services in India. Bharti had approximately 3.21 million total customers nearly
2.88 million mobile and 334,000 fixed line customers.

16

The Company is also implementing a submarine cable project connecting Chennai-Singapore for
providing international bandwidth.

17

6.1.1 Businesses
Bharti Tele-Ventures current businesses include

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Broadband services with DSL and Wi-Fi network

Competitive Strengths
Bharti Tele-Ventures believes that the following elements will contribute to the Company's success
as an integrated telecommunication services provider in India and will provide the Company with
a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's total mobile subscribers resided in the
Company's fifteen mobile circles. These 15 circles collectively accounted for approximately 56%
of India's land mass;

Focus on telecommunications to enable the Company to better anticipate industry trends

and capitalize on new telecommunications-related business opportunities.

The strong brand name recognition and a reputation for offering high quality service to its
customers;

Quality management team with vision and proven execution skills; and

The Company's strong relationships with international strategic and financial investors such
as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group
and New York Life Insurance

18

7.

INTRODUCTION TO VODAFONE

Vodafone Group British multinational telecommunications company, with headquarters in

London. Among mobile operator groups globally, Vodafone ranked fifth by revenue and second
(behind China Mobile) in the number of connections (435.9 million) as of 2014.

Vodafone owns and operates networks in 26 countries and has partner networks in over 50
additional countries. Its Vodafone Global Enterprise division provides telecommunications and IT
services to corporate clients in 150 countries.

Vodafone has a primary listing on the London Stock Exchange and is a constituent of
the FTSE 100 Index. It had a market capitalisation of approximately 89.1 billion as of 6 July
2012, the third-largest of any company listed on the London Stock Exchange. It has a secondary
listing on NASDAQ.

7.1 Company profile of Vodafone

In 30 years, a small mobile operator in Newbury has grown into a global business and one
of the most valuable brands in the world. We now operate in around 30 countries and partner with
networks in over 50 more.

In an increasingly connected world, its no longer just about being able to talk and text. Our
network allows people to share images and videos as soon as theyre captured; to share thoughts
and feelings as soon as theyre created. And because we now do more than just mobile in many
markets, more customers look to Vodafone for great value in their fixed line and broadband
services too.

Vodafone understands that businesses need a communications partner with solutions that
scale and adapt as their business needs change. They may need a few smart phones for voice and
email on the move. Or they may require a fully integrated solution that enables sharing of
documents, video conferencing and access to corporate applications from any location. Whatever
their size and whatever their need, we are constantly looking for new, innovative ways to help our
business customers grasp every opportunity in a simple and straightforward way.

19

Our commitment to the community in which we operate extends beyond the products and
services we offer. The cornerstone of our commitment to global social investment is the Vodafone
Group Foundation. Funded by annual contributions from the Vodafone Group

7.1.1 Swot analysis

Vodafone SWOT Analysis.SWOT analysis is a technological tool through which strengths

and weaknesses, as well as opportunities and threats of the business can be identified (Kotler et al,
2008). Strengths and weaknesses are considered to be internal factors affecting the company,
whereas threats and opportunities are external factors.

Vodafones leadership position in the market can be considered to be the main strength the
company possesses, because due to this fact the company is better positioned to finance new
projects and to introduce new services to the market. Moreover, Vodafone has a wide geographical
reach and its network infrastructure is considered to be highly developed.

The main weakness Vodafone has relates to its centralised management system that can
cause inflexibility in todays highly competitive marketplace. Pang (2009) informs that customer
churn rate is the degree at which companies are able to retain their current customers. High level of
customer churn rate is another weakness Vodafone has. However this issue is not unique to
Vodafone and has negative effects to many subscriber-based service model companies.

There are range of opportunities for Vodafone that if taken can improve its position in the
marketplace. These opportunities include strengthening its position in new markets, forming
strategic partnerships with technology and internet-related companies in order to increase the
number of its services and the level of global presence of the company, and also focusing more in
utilising 3G technologies.

Threats to the profitability and long-term growth of the company are the level of global
competition intensifying even more, market saturation in developed countries, as well as the
emergence of alternative telecommunications technology.

20

8. Comparison OF MARKETING STRATEGIES OF AIRTEL AND

VODAFONE
Purpose of comparison
The sub main purpose of this report is to compare the marketing Strategies adopted
by Bharti Airtel and its rival Vodafone
The comparison shows how both of the companies have been challenging each other
to gain market shares.
Why comparison with vodafone
Bharti Airtel is the leader in telecommunication sector.
Bharti Airtel holds the lion share of market of communication sector.
However, Vodafone has been giving tough competition to Bharti Airtel.
Vodafone is the second largest player and share holder in Communication sector.
Since its launch Vodafone has been adopting aggressive marketing strategies.
The comparison shows how Hutchison Essar Telecom. Captured 22% market share
in one month of its first launch of postpaid subscription in 2002.AD.
With a different technology Vodafone creates its own market.
Vodafone odafone. Today deals in every business of communication sector.
Vodafone making and changing the strategies to capture the market shares
21

9.Brand positioning by Bharti Airtel

9.1Market segmentation

Geographical segment (metropolitans & cities India)

Demographic segment - middle income groups

People age group of 20 to 28 year

9.2Target marketing

People who living in cities and towns.

Poor or middle income group people.

Youngsters in big cities.

Businessmen

9.3Positioning

Creating brands (Sharukh khan & Sachin Tendulker)

Ads and promotions

Promotion for study of poor childrens.

22

10.Marketing mix
The marketing mix is a business tool used in marketing and bymarketers. The marketing
mix is often crucial when determining a product or brand's offer, and is often associated with the
four P's: price, product, promotion, and place.
10.1 MARKETING MIX: 4 PS OF AIRTEL

1. PRODUCT

Airtel is the one of the largest mobile operator in the world in terms of subscriber base and
has a commercial presence in 20 countries and the Channel Islands.

Followings are product of BHARTI AIRTEL

Airtel Pre-paid
Airtel Post-paid
Blackberry Wireless Handheld
Value Added Services (VAS)
Fixed line and telephony
Broadband and fixed-line internet services
Digital television and IPTV
DTH operator

The different value added services provided by Airtel are

23

Instant Balance Enquiry

24Hr recharge Facility
Caller line identification
Call divert, Call wait & Call Hold
Multimedia messaging service (MMS)
Airtel Live Portal
SMS based Information Service

2.

PRICE

Each of
the VAS
services
offered

is
at a rate of Rs.30 in general.
This price varied for different kinds of services.
Customer based pricing strategies and Flexible pricing mechanism is Controlled by TRAI.

24

PLACE
AIRTEL is getting its products to the market through distributors.
It mainly sells its Products and services through Mobile operators and retailers, which is
common for the industry.
It has wide and extensive presence even in the remotest areas
Airtel Customer Care Touch Points and Distributors like E.g. Paan shops, grocery stores,
chemists, outlet etc. also helps as a place of availability of product.

PROMOTION
Big celebrities like SRK and Sachin are roped in to endorse the product.
In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is the most
downloaded tune in India.
Provides innovations such as Bollywood movie premiers, music services such as ring back
tones & many more.
Airtel uses following promotion ways...
25

Television
The print media
Posters
Internet
Hoardings
Sponsors of various events

CONCLUSION
AIRTELs mission is to regain its leadership position in the Telecom market.
No matter the reason or the season, Airtel focus on giving their customer the best product
from their side.

11.MARKETING STRATEGIES OF VODAFONE

Vodafone target the rural India

The main targeted customers of Vodafone are from rural India.

By offering cheap and light mobile sets Vodafone attracts most of the customers of small
villages and towns.

Offering cheap handsets

Vodafone offers cheap and free connections to all customers.

The cost for these sets was Rs-799-849-1099\set and onward.

26

Free support and services

In every district and big towns Vodafone opens its service centers to provide better support
and services.

Strong logistics and supply chain

Vodafone has a strong logistic and supply all over India.

In every small town the potential customers can easily purchase the Vodafone SIM & Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices.

27

12.BRAND POSITIONING BY VODAFONE

Market segmentation

Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

13. Marketing mix

PRODUCT
VAS services of Vodafone are the products in consideration. As mentioned earlier around
30 different services are provided by
Vodafone.
Major product of Vodafone includes:

28

Fixed line and mobile telephony

Internet services
Digital television
Vodafone branded handsets

PRICE

Each of the VAS

services are offered at
a rate of Rs.30 in general.
This price varied for different kinds of services.
Chota Recharge was available in various price ranges from Rs.10. Other
monthly VAS services were charged accordingly.

PLACE

Most of the VAS services were promoted in urban areas and had urban audiences in mind
while providing services. Since most of the services were luxury services, rural population
could afford to spend extra money on them.
For customer satisfaction Vodafone stores, Mini stores, Customer cares office etc are
provided by the company.

29


PROMOTION

Promotion of Vodafone products to various target audiences is a vital part of the

management function.
Vodafone uses following promotion ways...
o Television
o The print media
o Posters
o Internet
o Hoardings
o Sponsors of various events
The VAS services of Vodafone were promoted using zoozoo ads and various other ads
before zoozoo.
The website has downloadable ringtones, videos, wallpapers, screensavers etc. This allows
for users to spread the message across and thus more marketing can be achieved.

CONCLUSION

30

The prospective customers of Vodafone have changed from teenagers to adults-including

every family member to celebrate any occasion with Vodafone products

14. SERVICES PROVIDED BY BHARTI AIRTEL

Mobile services with GSM technology

Fixed-line connections

National and international long distance services

VSAT, Internet services and network solutions

Broadband services

15. SERVICES PROVIDED BY VODAFONE

mobile services with GSM technology

fixed-line telephone services

Universal Internetworking

VoIP (Voice over Internet Protocol)

Interactive Television

Visual Communication

Broadband Portal

Telecommuting

31

32

16 .ANALYSIS DONE:Age Group Graph

As we can see from the above graph, the people who are in the age group of 21-28 years are the
ones who are the maximum users of mobile phones. This segment is the one which gives
maximum business to the mobile operators. This segment constitutes the young executives and
other office going people. They are 65% of the total people who were interviewed. The next age
group are the

people who are 28-35 years old. They are 20% of the total. They are those who are at home or
have small business units etc. And the next age group is the youngest generation who are 15-21
years old. They are school and college going students and carry mobile phones to flaunt. They are
15% of the total interviewed people.

33

Occupation Graph

OCCUPATION

10%

15%

20%
55%

STUDENTS
HOUSEHOLDS

EXECUTIVES
OTHERS

As the above graph shows that 55% of the total people interviewed are working. So, these people
are the ones who are the maximum users of mobile phones. They are the young executives,
managers, Tele - callers etc. who require mobile for their official purposes. The next category is the
households, who are either housewife, small units which operate from their homes etc. They are
20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of the
whole is categories who are the professionals.

Service Provider Graph

34

These are the total market share of mobile user or people captured by the mobile provider
company. There two major company in mobile phone service sector Vodafone and Airtel who
respectively hold the market share with other company as 17% and 20% of total market user
segment of mobile customer.

35

Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

10%
FULLY

PARTIALLY

DISSATISFIED

20%
FULLY10%
DISSATISFIED

60%

As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people
are dissatisfied with the customer services provided by Airtel. They are the ones who have the
maximum share in the market but they are lagging behind in the customer services. 10% of the
people were fully dissatisfied with the customer services of Airtel. This could leave an impact on
the mind of the consumer. He can even switch over his brand. 20% of the people seemed partially
satisfied with the customer services and only 10% seem to be fully satisfied with Airtels customer
services, which is a very small amount.

36

Type Of Card Graph

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users
were having cash card connections. This means that the cash cards should be easily and readily
available in the local markets. Airtel should make sure that Magic is available in each and every
nook and corner of the market. 15% of the people were having sim connections which is the
regular bill.

37

Monthly Expense

12%

24%
Rs 600

Rs 450

Rs 200

64%

Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the
remaining 12% had an expense more than RS 1000, they could the ones having sim connections or
having cash cards and having a lot of business calls on their mobiles.

38

Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of
such a technology. So, in order to get the answer for this question they were first explained the
concept. Only, 55% people knew what WLL is all about.

39

Awareness of WLL Players Graph

80%
70%
60%
50%

Vodafone

Airtel

40%
30%
20%
10%
0%
Vodafone was the brand which was popular amongst the interviewed people. As Vodafone had
done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be
one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly,
because of less promotions done by them as compared to Vodafone.
On the basis of analysis of the questionnaire I have found that the maximum no. of people who
use mobile phones is in the age group of 20 to 28. Who are the young executives and other office
goers?
They spend a maximum of RS 500 as their mobile expense.
There is more no. of prepared cards than post paid cards. The mobile users want to spend money
side by side than to spend money at the end of the month on a big bill.
Now when I compared Airtel with its competitor from the point of view of the consumer I found
that on the basis of Tariff plan, value added services and billing accuracy Airtel is at par or ahead
of its competitor but in the case of customer care and availability they lag behind there
competitors. As, Airtel has a hold in the market because it has the maximum no. of connections, so
it must improve upon it customer services.

40

17. SWOT ANALYSIS

Strengths

Being one of the largest companies in India the company has achieved a degree of
focus in its core business of its products.

It has a strong brand name, superior quality products and an enviable distribution
network.

It has a clear and well-defined organization structure and limits of financial

authority.

Increase in advertisement spends affect the companys margins.

The companys bottom line falls victim to the bloated and highly paid workforce,
which affects its margins.

Weakness:

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence cant compete in low price segment.

No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major boost from its cost
reduction efforts.

There is a lot of scope of product and market diversification.

Exports of products will also have huge chances in the coming years.

Airtels business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth.

41

Threats

The slowdown in the economy has restricted topline growth of most FMCG majors and
for Airtel also it will be difficult to maintain historical growth rates in such a depressed
scenario.

Companys major raw materials are influenced by government policies / controls as well
as vagaries of the monsoons. Fluctuations in the prices of raw materials would have
significant impact on costs and margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also increases
companys production and distribution cost.

42

18. FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.

The implementation of enhanced networks like 2.5G will enable operators to offer data
services. This is an opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI means that prices will no longer
be controlled, thus there is less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality of coverage is crucial

especially for the business subscriber.

The bigger the service provider's national presence, the better it is for businesses. On the
roaming front, signing up with a national operator is advantageous.

43

Limited mobility wireless in local-loop services (by fixed network service providers) will be a
disadvantage for cellular operators in the short term. Consequently, operators need to
streamline their customer relation activities and adopt aggressive subscriber acquisition and
retention strategies.

19.

New competitor in the market

Reliance Jio Infocomm Limited, doing business as Jio, is a LTE mobile network operator
in India. It is a wholly owned subsidiary of Reliance Industries headquartered in Mumbai,
that provides wireless 4G LTE service network (without 2G/3G based services) and is the
only 100% VoLTE (Voice over LTE) operator in the country, with coverage across all
22 telecom circles in India.
The services were first beta-launched to Jio's partners and employees on 27 December
2015 on the eve of 83rd birth anniversary of late Dhirubhai Ambani, founder of Reliance
Industries, and later services were commercially launched on 5 September 2016.

19.1 Effects of Jio on Vodafone and airtel

Jio realises that Airtel, Vodafone and Idea are hugely dependent on voice revenues, and is likely
to try every trick in the book to capture the imagination of their lower-end voice customers through
its unlimited voice offers with bundled data, Kapoor said.
In such a scenario, to hold on to higher paying customers, Jios rivals will have to make their offers
attractive, even if that means taking a hit on their revenues initially. Voice services make up nearly
80% of the revenue for the incumbent carriers
Airtel and Idea have already said they will aggressively contest the 4G space with bundled plans
once Jio starts charging customers Jios free voice and data welcome offer is valid till year-end
for those who subscribe to its services till December 3. Airtel indicated that it will retain some
regular tariff plans that charge voice and data separately.
Talking to ET recently, Bharti Airtel India CEO Gopal Vittal said half the countrys telecom market
in the medium term would comprise feature phones where voice and data tariffing would remain
44

decoupled, while the smartphone turf could see more demand for bundled products.

45

Questionnaires
1) Which telecomunication service do you use?

46

2)Which telecommunication service would you prefer for postpaid?

47

3)Which telecommunication service would you prefer for prepaid?

48

4)What factors do you consider in order to subscribe for a telecom service?

49

5)Whose network is better?

50

6) WHO PRICING STRATEGIES IS BETTER?

51

WHICH COMPANY PROMOTIONAL STRATEGICES DO YOU

7)

PREFER?

52

8) WHO HAS A BETTER CUSTOMER CARE SERVICE?

53

9) WHICH COMPANY PLANS(INTERNET,CALL RATE,MESSAGE) DO

YOU LIKE THE MOST?

54

10) CONSIDER PRICE AND OTHER FACTORS\WHICH OF THE

FOLLOWING DO YOU PREFER FOR THE INTERNET SERVICE?

55

21. LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints that
we underwent during the study. The following points in this direction would add to our total
deliberations:1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2.

The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/whole sellers refuse to cooperate with the queries.
5. Some retailers/wholesalers gave biased or incomplete information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience due to short period of time.
8. Some retailers did not answer all the questions or do not have time to answer.

56

22. SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and image of the
products concerned.
1. PRODUCT
*Modification must be brought about in AIRTEL, in terms of quality. Its demand should be
increased.
2. PLACE
* The brands must be made available easily in, PCO & general stores.
3. PROMOTION
*Company must undertake extensive promotional activities like advertisements must be released in
different Medias to create brand awareness.
*Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests
and coupons must be given to retailers as well as customers and prospects.
* Catalogues should be distributed among customers.
4. PRICE
* Price should be as competitive as other company maintains
* Distribution of new connection should be in reach of customer pocket

57

23. RECOMMENDATIONS
I have made following recommendation to the company after doing the summer training there:

The company should modify its credit policy as they only target the cash paying customers
who are not easy to trace.

The company should emphasis more on the quality of Pharmaceuticals Products it was
mostly claimed by the exporters that their receipts from company doesnt matches with the
samples quality shown before giving orders.

The company should make its marketing strategy flexible enough in order to face
competition.

The company should keep an eye on the proper delivery of the goods to exporter on time,
as it has been recommended by exporters to make the delivery on time.

The company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then he may continue buy the goods and can be a
permanent customer for the company.

The company should offers such rate in the market so that it may able to catch a bigger
market share and it should be able to compete with the local traders and commission agents while
having a brand name.
The company should take the opinion of exporters from time to time to know what problems they
are facing from the companys side. And if any change they require in present supplying
condition?

58

24. CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel lagged behind its
competitors as far as customer service and availability is concerned. The maximum no. of people
who use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of mobile
connections, as they are consumer friendly and recharging the connection is not a problem.
Maximum no. of people spends RS 500 on their connections. As Airtel is the only company having
the maximum no of mobile connections so it must seriously look into the loop holes of the existing
customer service department.
As we know that now Airtel has already launched its product with logo Aisi azaadi aur kahan
has already became popular in market. So we can say that in spite of so many competitors in the
market Airtel is having a good position just because every time, it tries its best to understand the
need of its important customers.
From the comparison and deep analysis of every aspect of business of both the companies we can
conclude that bharti Airtel has to more work in every field of communication business.
It is the time not only to survive but to sustain in the market for a long time.
For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and
when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of population of India
lives in these areas.
The other segment may be costumers of all age groups.

59

25.ANNEXURE
1) Which telecommunication service do you use?
o
o
o
o

Airtel
Vodafone
Idea
Others

2) Which telecommunication service would you prefer for postpaid?

o Airtel
o Vodafone
3) Which telecommunication service would you prefer for prepaid?
o Airtel
o Vodafone
4) What factors do you consider in order to subscribe for a telecom service?
o
o
o
o

Customer care
Plans
Network
Others

5) Whose network is better?

o Airtel
o Vodafone
6) WHO PRICING STRATEGIES IS BETTER?
o Airtel
o Vodafone
7) WHICH COMPANY PROMOTIONAL STRATEGICES DO YOU PREFER?
o Airtel
o Vodafone
8) WHO HAS A BETTER CUSTOMER CARE SERVICE?
60

o Airtel
o Vodafone

9) WHICH COMPANY PLANS (INTERNET, CALL RATE, and MESSAGE) DO YOU LIKE
THE MOST?
o Airtel
o Vodafone
10) CONSIDER PRICE AND OTHER FACTORS\WHICH OF THE FOLLOWING DO YOU
PREFER FOR THE INTERNET SERVICE?
o Airtel 4G
o Vodafone 3G

61

26. BIBLIOGRAPHY

WEBSITES
http://www.counterpointresearch.com/marketmonitorindia2015q1
http://www.phonearena.com/
http://www.idc.com/
WWW.91MOBILES.COM
BOOKS REFERED
2.Kotler, P. and Keller, K.L. Marketing Management. Pearson Education 2006;
Fig 6.6. Steps between Evaluation of Alternatives and a Purchase
decision,p197

62