INTRODUCTION

Introduction

In today’s globalizing economy competition is getting more and more fierce.

That means it becomes more difficult for products and services to differentiate
themselves from other offerings than ever before. Not only is the number of
competitive offerings rising due to globalization of production, sourcing, logistics and
access to information. Many products and services face new competition from
substitutes and from completely new offerings or bundles from industry outsiders.
Since product differences are closed at an increasing speed and many companies try
to win the battle for customers by price reductions, products and services tend to
become commodities.

Customer perceptions are influenced by a variety of factors. Besides the actual

outcome - i.e. did the product or service deliver the expected function and did it fulfil
the customers need - the whole process of consumption and all interactions involved
are of crucial importance.

Background of the Study

Today’s globalised information driven economy this can also comprise issues like

• How other customers or influencing groups perceive the product or brand

• The degree to which the customer feels the actual marketing campaign
addresses the most important issues

• Responsiveness and service quality of any affiliates, e.g. distribution partners

Customer perceptions are dynamic. First of all, with the developing

relationship between customer and company, his perceptions of the company and its
products or services will change.

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 INDUSTRY PROFILE
INDIAN TELECOM AND CELLULAR INDUSTRY

The telecom industry is one of the fastest growing industries in India. India
has nearly 200 million telephone lines making it the third largest network in the world
2cr China and USA. With a growth rate of 45%, Indian telecom industry has the
highest growth rate in the world.

History of Indian Telecommunications started in 1851 when the first

operational land lines were laid by the government near Calcutta (seat of Btish
power). Telephone services were introduced in India in 1881. In 1883 telephone
services were merged with the postal system. Indian Radio Telegraph Company (WI)
was formed in 1923. After independence in 1947, all the foreign telecommunication
companies were nationalized to form the Posts. Telephone and Telegraph (PTT), a
monopoly run by the governments Ministry of Communications. Telecom sector was
considered as a strategic service and the government considered it best to bring under
states control.

The first wind of reforms in telecommunications sector began to flow in 1980s

when the private sector was allowed in telecommunications equipment
manufacturing. in 1 985. I)epartment of Telecommunications (DOT) was established.
It was an exclusive provider of domestic and long distance service that would be its
own regulator (separate from the postal system). In 1986, two wholly government-
owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar Telephone Nigam Limited (MTNL)
for service in metropolitan areas.

In l990s, telecommunications sector benefited from the general opening up of

the economy. Also. examples of telecom revolution in many other countries, which
resulted in better quality of service and lower tariffs, led Indian policy makers to
initiate a change process finally resulting in opening up of telecom services sector for
the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a
comprehensive roadmap for the Indian telecommunications sector. In 1997. Telecom
Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a
regulator to facilitate the growth of the telecom sector. New National Telecom Policy
was adopted in 1999 and cellular services were also launched in the same year.

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 Telecommunication sector in India can be divided into two segments: Fixed
Service Provider (FSPS), and Cellular Services. Fixed line services consist of basic
services, national or domestic long distance and international long distance services.
‘The state operators (BSNL and MTNL), account for almost 90 per cent of revenues
from basic services. Private sector services are presently available in selective urban
areas, and collectively account for less than 5 per cent of subscriptions. However,
private services focus on the business/corporate sector, and offer reliable, high-end
services, such as leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for
Mobile Communications (OSM) and Code division Multiple Access (CDMA). The
GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the
CDMA sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are the major growth
drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which along with
rental was the main source of revenue. The reduction in tariffs for airtime, national
long distance, international long distance, and handset prices has driven demand.

The telecom sector is also afflicted by a number of restraints. These

include

• Sluggish pace of reform process.

• Lack of infrastructure in semi-rural and rural areas, which makes it difficult to

make inroads into this market segment as service providers have to incur a huge initial
fixed cost.

• Limited spectrum availability.

But notwithstanding these constraints, telecom sector has undergone a

revolution in the past decade and has played a major part in bridging the rural-urban
divide.

Policies of telecom industry in India

Government of India implemented the unified access licensing regime, which

enables basic and cellular mobile service to use any modern technology. In 1997,

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Telecom regulatory Authority of India (TRAI) was formed to facilitate the growth of
the telecom sector in India.

Major services and market potentiality of Telecom industry in India

Telecommunication sector in India is primarily subdivided into two segments,

which are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in
India constitutes some essential telecom services like telephone, radio, television and
Internet. Telecom industry in India is specifically emphasizing on latest technologies
like GSM (Global System for Mobile Communications), CDMA (Code Division
Multiple Access), PMRTS (Public Mobile Radio Trunking Services), Fixed Line and

WLL(Wireless Local Loop ). India has a prospering market specifically in GSM

mobile service and the number of subscribers is growing very fast.

Economic perspective of telecom industry in India

Telecom industry in India has a major role in Indian economy. The Indian
government is also enforcing some effective telecom policies and regulations for the
infrastructural growth of this industry. Indian telecom market provides a tele-density
of 8.5 percent as registered in the year 2009. A number of leading multinational
telecommunication companies are approaching and showing their interest to invest for
the telecom industry in India. Telecommunication industry of India ranked sixth
among all the Telecommunication Sectors in the World. In the year 2009, the total
number of telephone subscriptions was US$93.2.

The Indian telecommunications industry is one of the fastest growing in the

world. According to the Telecom Regulatory Authority of India (TRAT), the number
of telecom subscribers in the country reached 621 .28 million as on March 31, 2010,
an increase of 3.38 per cent from 600.9$ million in February 2010. With this the
overall teledensitv (telephones per 100 people) has touched 52.74. The wireless
subscriber base has increased to 584.32 million at the end of March 2010 from 564.02
million in February 2010, registering a growth of 3.6 per cent.

Value - Added Services (VAS) Market

Mobile value added services include text or SMS, menu-based services,

downloading of music or ring tones, mobile TV, videos and sophisticated
m-commerce placations. According to the Economic Survey 2009-b, prior to 2008 a

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majority of VAS revenue was attributed to SMS. But with greater penetration of new
services. availability of relatively inexpensive, feature-rich handsets and consumer
education value-added services other than SMS are gaining importance. It is expected
that over ‘the next few years non-SMS services will become a dominant contributor to
VAS revenue.

Major Investments

The booming domestic telecom market has been attracting huge amounts of
investment which is likely to accelerate with the entry of new players and launch of
new services. According to the Department of Industrial Policy and Promotion t
DIPP), the telecommunications sector which includes radio paging, mobile services
and basic telephone services attracted foreign direct investment (FDI) worth US$
2,495 million during April to February 2010. The cumulative flow of FDI in the
sector during April 2000 and February 2010 is USS 8,872 million.

• Norway-based telecom operator Telenor has bought a further 7 per cent in

Unitech Wireless for a little over US$ 431.3 million. Telenor now has 67.25
per cent hold of the company. Telenor has now completed its four-stage stake
buy and has invested a total of US$ 1.32 billion in Unitech Wireless as agreed
on with the latter last year.

• The government has approved the foreign direct investment (FDI) proposal of
the Federal Agency for State Property Management of the Russian Federation
to buy 20 per cent stake in telecom service provider Sistema-Shyam for USS
660.1 million.

Cellular Industry in India

The Government of India recognizes that the provision of a world-class

telecommunications infrastructure and information is the key to rapid economic and
social development of the country. It is critical not only for the development of the
Information Technology industry, but also has widespread ramifications on the entire
economy of the country. It is also anticipated that going forward, a major part of the
GDP of the country would be contributed by this sector. Accordingly, it is of vital
importance to the country that there be a comprehensive and forward looking

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telecommunications policy which creates an enabling framework for development of
this industry.

New Telecom Policy 1999

Telecommunications is now universally recognized as one of the prime

movers of the modem economy; hence it’s vital importance for a developing country
like India. The availability of adequate infrastructure facilities is critical for
acceleration of the economic development of any country. In fact international studies
have established that for every 1% increase in tele-density, there is a 3% increase in
the growth of GDP.

Accordingly, the Government of India has accorded the highest priority to

investment and development of the telecommunications sector. Telecom requires very
heavy investment and it was not possible for the Indian Government to organize
public funding of this sector on such a massive scale. In fact the national telecom
Policy 1994, estimated a resource gap of Rs.23,000 crores to meet the telecom targets
of the eighth five-year plan of the Government of India (1992-97).

It was for this reason to bridge the resource gap between government funding
and the total projected funds requirement and to provide the additional resources to
achieve the nation’s telecom targets that the telecommunications sector was
liberalized in 1992 and the Government invited private sector participation in
telecommunications. Cellular mobile services were one of the first areas to be opened
up to private competition. The whole country was divided into the 4 metropolitan
cities of and 19 telecom circles, which were roughly analogous with the States of
India.

Cellular Licenses were awarded to the private sector - first in the metropolitan
cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom
circles in 1995. The first metro cellular network started operating in August 1995 in
Calcutta. When cellular mobile services were first introduced in 1994 it was as a
duopoly (that is a maximum of two cellular mobile operators could be licensed in
each telecom circle), under a fixed license fee regime and for a license period of 10
years.

The initial response of the private sector was very encouraging. The
attractiveness of the Indian market - the low tele density, the high latent demand and a

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burgeoning middle class - brought in some of the largest global telecom players,
foreign institutional investors and the major Indian industrial houses to invest in
telecom, especially the Indian cellular industry.

Telecom proved to be a powerful attractor of foreign investment. The

cumulative FDI inflow into telecom since 1993 has exceeded Rs.43,000 Million.
Within telecom, the cellular industry has attracted most of the foreign investment
since 1993, accounting for almost 50% of the FDI inflow into telecom - representing
amongst the biggest investments in any one sector in India.

Annual foreign investment in telecom increased steadily from an insignificant

Rs.20.6 Million in 1993 to Rs.17,756.4 Million in 1998. However, the attractiveness
of the Indian market did not last for very long, as by 1997-98, the private cellular
operators were confronted with a series of problems that threatened their very
viability and survival.

As a result of this, FDI inflow into telecom dropped sharply, declining by

almost 90% to Rs.2126.7 Million in 1999. This dropped further in Year 2000 – as
until June 2000, only Rs.918 Million had flown into the country.

One of the key factors responsible for the critical state of the telecom sector &
consequently also the cellular industry was that liberalization/deregulation was
undertaken in an inverted manner vis-a-vis international practices and generally
accepted norms. Usually, deregulation is preceded by tariff rebalancing, institution of
a strong and independent regulator and only then is private sector participation
invited.

In India, private sector participation was invited in 1992, the Regulatory

Authority was set up in 1997 and the tariff rebalancing exercise commenced in 1999
and is still far from complete. Further, even when the regulatory authority was set up,
there was considerable ambiguity on its powers, which resulted in virtually each and
every order of the Authority being challenged by the Licensor/incumbent. The
ambiguities in the jurisdiction of TRAI resulted in a limbo in the industry. Another
important factor was the basic approach of the Government towards liberalization.
Consumer benefit was given the go-by and the telecom sector was viewed as a
revenue generator/cash cow for the Government exchequer.

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 NTP 94 was basically a good policy. It clearly identified that the primary
objective of the policy was to make available affordable telecom services. However,
in actual policy implementation, this key/fundamental objective was disregarded.
Licenses were granted through an auction process and the enthusiastic private sector
deluded by the seemingly huge potential of the Indian market were lured into bidding
exorbitant sums of money for cellular licenses.

The huge license fees paid by the private operators resulted in a high cost
structure leading to un-affordable tariffs and lower growth of the market. By end-
1998, the cellular industry was on the verge of bankruptcy and at that time it appeared
that the liberalization dream was over & the nightmare had begun.

It was under the above circumstances that the Government undertook a review
of telecom policy & the role of the regulatory authority. The result was NTP 99,
which was announced in March 1999 & the amendment of the TRAI Act in January
2000.

NTP 99 is an extremely forward-looking policy. It significantly changed the

dynamics of the Indian telecom industry as it not only replaced the high cost fixed
licensing regime with a lower cost licensing structure through revenue sharing, but
also provides for greater degree of competition and more flexibility in choice of
technologies.

The amendments in the TRAI Act resulted in a considerable strengthening of

the Regulator & greater clarity on its role and powers. It also put in place a separate
dispute settlement mechanism in the form of the Telecom Dispute Settlement and
Appellate Tribunal to expeditiously deal with and resolve issues relating to the
telecom sector.

Existing private cellular operators migrated to the new telecom policy regime
with effect from August 1999. There can be no doubt that migration to a more
beneficial regime translated into tangible consumer benefits - lower tariffs, greater
subscriber uptake & increased coverage.

Cellular tariffs have dropped by over 90% since May 1999 - a feat
unparalleled by any other sector or industry in India. The average airtime tariff in
Year 2001 was prevailing around Rs.2 per minute as against the peak ceiling tariff of
Rs.16.80 per minute when NTP 99 was announced.

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 Parellely, there has also been a significant drop in the cost of mobile handsets.
Cellular handsets that were available for around Rs.25-30,000 in the initial days of
cellular have now dropped significantly, with a base level handsets being available for
as little as Rs.2,000 upwards. This has come about as a result of increased volumes
and some degree of rationalization of government levies.

As a result of improved affordability, there an increased take-up of the service

and the cellular operators were able to venture into more and more cities & towns of
the country. In fact cellular services are now available in almost 1400 cities & towns
of India.

With the lower tariffs and increased coverage, there was also a resultant
increase in the number of cellular subscribers. The point of inflexion for subscriber
take-off is clearly post NTP-99. From 1.2 million subscriber in April 1999, to almost
2 million by April 2000, the number of cellular subscriber have now grown to almost
6.5 million by the end of March 2002.

By March 2001, the industry had invested nearly Rs.16,000 crores in cellular
infrastructure and it is estimated that these investments will grow to Rs.20,000 crores
in the next 4-5 years.

The year 2001 also saw the entry of BSNL and MTNL as the third cellular
operators as had been mandated in NTP 99. Further, in July 2001, cellular licenses
were awarded to the 4th cellular operators in different telecom circles. With this the
number of cellular operators has gone up to 89 licenses.

As of March 2002, the Indian cellular mobile industry had 42 networks on air,
serving over 1400 towns and cities and covering thousands of villages and serving
almost 6.5 million subscribers across the country.

The quality of the service is widely accepted to be of international standards

and till date there has been no waiting period involved in availing of this service.

The cellular industry has been growing at an average rate of 85% per annum
and it is hoped that the industry will be able to sustain this growth in the coming
years. The Working Group on the Telecom Sector set up by the Government of India
for the tenth five-year plan, has estimated that over the next five years, around 31.55
million cellular subscribers would be added all over India. To achieve this growth, the

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Working Group has also estimated that resources to the tune of about Rs.25,240
crores will be required over the next five years.

However, to attract foreign investments into India, it is imperative to ensure

the predictability and stability of the policy and regulatory regime of the Country.
Policy flip-flops & regulatory ambiguity have plagued the Indian telecom sector since
the introduction of privatization. This has had the unhappy result of putting the entire
sector into a state of limbo as investors - both foreign & domestic await clarity on the
final direction that the policy will take. In the meantime, foreign investors, who have
not committed themselves to the Indian market, will divert their interest &
investments to competing and more attractive FDI destinations.

Further, for the industry to attract the requisite investments and to reach the
growth targets set for the tenth five-year plan, it is imperative that a few crucial
industry issues that have been plaguing the industry be resolved on an urgent footing.
This includes most importantly:

• The early resolution of the dispute relating to the recent permission

• Granted to fixed operators to offer WLL based mobile services without a

mobile license and under the more advantageous terms of their fixed service
license and

• The institution of a formal interconnection agreement between the cellular

operators and the fixed service providers especially the incumbent fixed
service operators - BSNL and MTNL.

Going Global

In March 2010, Bharti Airtel bought the African operations of Kuwait-based

Zain Telecom for US$ 10.7 billion, driving the Indian player into the league of top ten
telecom players globally.

The Reserve Bank has liberalized the investment norms for Indian telecom
Companies by allowing them to invest in international submarine cable consortia
through the automatic route. In April 2010, P131 issued a notification stating “As a
assure of further liberalization, it has now been decided... to allow Indian companies
participate in a consortium with other international operators to construct and zaintain
submarine cable systems on co-ownership basis under the automatic route.” The

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notification further added, “Accordingly, banks may allow remittances by Indian
companies for overseas direct investment.”

3G Services

The Department of Telecom has taken the pioneering decision of launching of

30 services by BSNL and MTNL and initiation of process for auction of spectrum for
30 services to private operators. Al location of spectrum for third-generation (30) and
broadband wireless access (BWA) services was done through a controlled
simultaneous, ascending c-auction process.

All the 71 blocks that were put up for auction across the 22 service areas in the
country were sold, leaving no unsold lots. Auction for 30 spectrum ended on May 19,
2010 after 183 rounds of intense bidding over a span of 34 days. The Government is
expected to morph revenue worth USS 14.6 billion. All the available slots across 22
circles have been sold to seven different operators.

A pan-India hid for third generation spectrum stood at US$ 3,6 billion. The
Anil Ambani-led Reliance Communication bagged the highest number of 13 circles at
a cost of USS 1.9 billion, followed by Bharti Airtel in 12, Idea in 11 and Vodafone
and the Tata in nine circles each, according to the Department of
Telecommunications. MTNL and BSN L will have to pay USS 1.42 billion and US$
2.2 billion respectively.

Rural Telephony

According to the Economic Survey 2009-10, rural tele-density has increased

from 1.2 per cent in March 2002 to 15.1 per cent in March 2009 and further to 21.2
per cent at the end of December 2009.Rural telephone connections have gone up from
12.3 million in March 2009 to 123.5 million in March 2009 and further to 174.6
million in December 2009. The share of private sector players in the total telephone
connections has steadily increased from around 14 per cent in 2005 to 31 per cent as
on December 31, 2009. During 2008-09, the growth rate of rural telephones was 61.5
per cent as against 36.7 per cent for urban telephones. The private sector has
contributed significantly to the growth of rural telephony by providing 81.5, per cent
of the rural phones as on December 31, 2009. It is proposed to achieve rural tele-

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density of 25 per cent by means of 200 million rural connections by the end of the
Eleventh Five Year Plan.

Policy Initiatives

The government has taken many proactive initiatives to facilitate the rapid
growth of the Indian telecom Industry.

• In the area of telecom equipment manufacturing and provision of IT-enabled

services, 100 per cent PDI is permitted.

• No cap on the number of access providers in any service area. In 2008, 122
new Unified Access Service CUAS) licenses were granted to 17 companies in
22 services areas of the country.

• Revised subscriber based criteria for allocation of Global System of Mobile

Communication (GSM) and Code Division Multiple Access (CDMA) spectra
were issued in January 2008.

• To provide infrastructure support for mobile services a scheme has been

launched to provide support for setting up and managing 7,436 infrastructure
sites spread over 500 districts in 27 states. As on December 31, 2009, about
6,956 towers had been set up under the scheme.

According to the Consolidation Foreign Direct investment (F 1)1) Policy

document, the FDI limit in telecom services is 74 per cent subject to the following
conditions:

• This is applicable in case of Basic, Cellular, Unified Access Services,

National! international Long Distance, V-Sat, Public Mobile Radio Trunked
Services (.PMRTS), Global Mobile Personal Communications Services
(GMPCS) and other value added Services.

• Both direct and indirect foreign investment in the licensee company shall be
counted IBR the purpose of FDI ceiling. Foreign investment shall include
investment by Foreign Institutional Investors (FITs), N on-resident Indians
NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository
Receipts (ADRs), Global Depository Receipts (GDRs) and convertible

12
 preference shares held by foreign entity. In any case, the ‘Indian’ shareholding
will not be less than 26 per cent.

• FDI up to 49 per cent is on the automatic route and beyond that on the
government route. FD1 in the licensee company/Indian promoters/investment
companies including their holding companies shall require approval of the
Foreign’ Investment Promotion Board (FIPB) if it has a bearing on the overall
ceiling of 74 per cent. While approving the investment proposals, FIPB shall
take note that investment is not coming from countries of concern and/or
unfriendly entities.

• The investment approval by FIPB shall envisage the conditionality that the
Company would adhere to license Agreement.

• FDI shall be subject to laws of India and not the laws of the foreign
country/countries.

Contributions of the Cellular Industry to the Indian Economy

1. World Class Infrastructure

The Indian cellular industry has been instrumental in bringing to the Indian
consumer, a world-class telecom infrastructure.

The Indian Cellular Industry is

• The flag-bearer of the Indian liberalization process.

• The largest recipient of Foreign Direct Investment (around Rs.2200 Crores)-A

responsible performing sector that has met all its obligations to the GOT.

The Industry would have invested over Rs.25,000 crores to

• Set up 69 Networks

• Serve over one crore subscribers as of December 2002

• Offer Services in over 1575 cities & towns and

• Cover over 14,000 villages

2. Reputed Indian Business Houses & International Telecom Majors

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 The privatization of Indian cellular brought into the arena some of the most
reputed business houses of the country as also biggest names in the international
telecommunications industry. These included:

Reputed Indian Business Houses - Birla, BPL, Escorts, Essar, Reliance, RPG, Tata,
and Thapar.

International Telecom Majors - Singtel, Asia Tech, AT&T, Bell South, Nynex,
Millicom, First Pacific, Hutchison Whampoa, Telecom Italia, New York Life,
Telecom Investments, Tele system International Wireless, Cell Net and others.

3. Increased Connectivity

There are presently 42 networks operating in the country covering over 1350
cities and towns and directly servicing over 6.7 million subscriber’s nation-wide.
Importantly, the connectivity benefits also extend to over 33.5 Mn PSTN subscribers
of BSNL & MTNL who can now reach the cellular subscribers “anytime and
anywhere”. In addition the cellular radio waves cover over 28,000 villages, where
connectivity can be provided at a very short notice at a nominal incremental cost.

4. Employment Generation

As the 3rd and 4th Cellular Licensees would start their operations and with 77
networks (42 presently and 35 new networks) on air, the employment generated by
the industry would be promising. In addition to the direct employment generated by
these networks, there is also the multiplier effect of indirect employment generated
down the supply chain comprising vendors, infrastructure suppliers, contractors,
dealers, etc. It is estimated that the total employment generated by the cellular
industry would be in the tune of a few lakhs once the new networks are rolled in.

5. Increased FDl Flows

The Telecom sector is the largest attractor of Foreign Direct Investment in the
country, accounting for almost a fifth of FDI approvals since 1991.

6. Heavy Investment in Infrastructure

The cellular industry is responsible for the single largest chunk of investment
by any individual industry. The industry has already invested over Rs.20,000 crores
and is expected to invest even more in the years to come.

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7. Revenue Generation for the Government of India

The cumulative revenues that have flowed to the Government are already
about Rs.10,000 crores from license fee and service-tax alone.

COAT (Cellular Operators Association of India)

COAT (Cellular Operators Association of India) was set up in 1995 as a

registered non- governmental, and non-profit society. The Cellular Operators
Association of India was established with the aim that it would be dedicated to the
advancement of modern communication.

COAT encourages the advancement of communication through Services of

Mobile Cellular Telephone. The vision of COAT (Cellular Operators Association of
India) is to set up and sustain cellular infrastructure that is of world class standard and
also to encourage mobile communication services that is affordable in the country.
Cellular Operators Association of India is the official voice for the cellular industry in
India and it interacts on its behalf with the licensor, the telecom industry associations,
the management spectrum agency, and the policy makers. The chairman of COAT
(Cellular Operators Association of India) is Mr. Sanjeev Aga and the vice- chairman
is Mr. Naresh Gupta. COAT (Cellular Operators Association of India) has many
committees under it such as the Executive Council Committee, Business
Development Committee, Finance and Commercial committee, Regulatory Council
Committee, and Technology Committee.

The various objectives of COAT (Cellular Operators Association of India) are

that it would study the best research and practices of the cellular industry in India and
at the same time analyze the worldwide cellular experience. Further the various
objectives of COAl are to encourage mobile telephony services at affordable rates for
the Indians, to improve the competitiveness and standards in the Indian cellular
industry, and also reach the status of top class infrastructure. Also the various
objectives of Cellular Operators Association of India are to improve the quality and
standards of services by consulting GSM India that is the Indian chapter of the
Association GSM and to help the authorities that are relevant by giving them
information with regard to the cellular industry in order to help them form suitable
polices which would help in the growth of the industry.

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 COAI (Cellular Operators Association of India) objectives includes to upgrade
and maintain services such as security, speech transmission, coverage, and access in
order to help in the expansion of the cellular services in the country and to make
continuous efforts to satisfy the customers. Further the various objectives of COAT
are to address the problems of the cellular operators that relate to financial,
operational, licensing, or regulatory by interacting with the Ministry of Finance,
Department of telecommunications, Financial Institutions, Ministry of
Communications & IT, Ministry of Commerce, and Telecom Regulatory Authority of
India. Also the objectives of Cellular Operators Association of India are to make
efforts to achieve the country’s objectives of better rural access and increased
teledensity and also to spread information and dispense awareness among consumers
and operators on issues relating to the various kinds of services provided by the
service operators to their customers.

Future of Mobile Industry in India

The mobile subscriber base is expected to zoom to 893 million by 2012. This
is a 150 million increase of what was projected earlier, as per a report by Cellular
Operators Association of India (COAT). The COAT’s earlier estimates had shown
that mobile user base will reach 743 million by 2012. The major reason stated for the
increase is the huge adoption of the mobile services in the rural areas, reported The
Business Line.

India is now the second largest mobile market in the world after China, which
has over 650 million subscribers, with India having 400 million mobile users.
According to COAT’s projection, there will be 1.24 billion mobile users in 2015-
which means one phone for every Indian.

16
 COMPANY PROFILE

BHARATI AIRTEL PROFILE

"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."

Sunil Bharti Mittal (Group Chairman and Managing Director)

Bharti Enterprises has been at the forefront of technology and has

revolutionised 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. As of October 31, 2004, Bharti had approximately 9.83 million total customers
– nearly 9.06 million mobile and 776,000 fixed line customers.

Its services sector businesses include mobile operations in Andhra Pradesh,

Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata,
Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Rajasthan, Tamilnadu,
Uttar Pradesh (East) circle, Uttar Pradesh (West) circle and Jammu & Kashmir. In
addition, it also has fixed-line operations in the states of Madhya Pradesh and
Chattisgarh, Haryana, Delhi, Karnataka and Tamilnadu and nationwide broadband
and long distance networks.

Bharti has recently launched national long distance services by offering data
transmission services and voice transmission services for calls originating and
terminating on most of India's mobile networks. The Company is also implementing a
submarine cable project connecting Chennai-Singapore for providing international
bandwidth.

Bharti Enterprises also manufactures and exports telephone terminals and

cordless phones. Apart from being the largest manufacturer of telephone instruments,
it is also the first telecom company to export its products to the USA.

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1. Group structure

Introduction

Bharti Teletech, the manufacturing arm of Bharti Enterprises, with an installed

capacity of 5 million telephone sets per annum, is India's leading manufacturer of
high quality telephones. Today Bharti Teletech is the major PTT supplier in South
Asia. It has ISO 9002 accreditation and also an OEM for Sprint Corporation and
Siemens. It's range of products marketed under the brand name Beetel constitute a
30% market share in India thereby making it the market leader in the domestic
market.

Services

• The largest private sector integrated telecommunications services group in

India in terms of the number of customers.

• Largest Mobile footprint in India, covering 18 of the 23 licensed areas.

• Proven track record of managing growth - both organic as well as by way of

acquisitions.

• First and largest private telecommunications services company offering fixed-

line services in India.

• Existing foreign shareholders have acquired direct and indirect equity interests
in the Company for a total consideration exceeding US$1 billion.

• First private telecommunications company to launch long distance services.

18
 • First off the block to launch fixed-line services in all the four circles of Delhi,
Haryana, Karnataka and Tamil Nadu.

Bharti Tele-Ventures, its subsidiaries and management have received several awards
and recognitions, including:

• Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in

November 2001 in the Asian edition of the "tele.com" magazine with
analytical inputs from research consultants Frost & Sullivan.

• The leading telecommunications service provider in India in a survey of

Indian companies conducted by Business World in association with Indian Marketing
Research Bureau in September 2001;

• The “Techies” award from Information Communications World, an

international business magazine, for four consecutive years (1997 to 2000) for brand
excellence, network quality, customer service and value added service in our Delhi
mobile circle;

• Golden Peacock National Training Award – 1999 to Bharti Cellular for our
Delhi mobile operations from the Institute of Directors, a non-profit association in
India committed to improving the competitiveness of Indian business by focusing on
development of business leaders, for the best human resources and training practices.

• Ascent – Times of India and Sodexho Pass award in 1999 from the Asia
Pacific HRD conclave to Bharti Cellular for corporate excellence in the category of
most innovative human resource practices.

• Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was
honored as "One of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars
of Asia" for the year 2001 by international business magazine, Business Week.

• Mr. Sunil Bharti Mittal was selected as the "Businessman of the year 2002" by
Business India.

• Mr. Sunil Bharti Mittal was awarded the “Dataquest IT man of the year 2002”.

• Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by World
HRD congress.

19
• Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief
Financial Officer for year 2001 for Mergers & Acquisitions activities by EIU.

Corporate Structure

20
Management Structure

The group has been structured to create functional and operational

specialisation with a linear vision of business lines and functional areas.

The Company is headed by Chairman and Group Managing Director- Sunil

Bharti Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and
Rajan Bharti Mittal. The Company also has two Presidents- President Mobile Services
and President Infotel Services, this responsibility includes Fixed-line, Long Distance
and Broadband Services. The Presidents report to the Group Chairman and Managing
Director. The head of units and SBUs report to the respective business's President.

An apex team of Corporate Directors has been constituted. The corporate

directors have supervisory and strategic responsibilities for functional areas across
business lines. The directors oversee functional areas including Business
Development, Human Resources, Marketing, Corporate Communication, IT &
Technology, Finance, Legal, Corporate Affairs, Corporate Strategy & Planning and
Supervisory Director cum Chief Mentor - mobility.

21
 The organisation structure is designed to ensure that identical businesses are
run along similar lines and best resources in any functional field, be tapped to serve
the best interests of the entire group.

The structure also defines the role of the Head of the units who are totally
empowered to manage their respective companies and are fully responsible for
business operations to build world-class organizations with a high degree of customer
focus.

Board of Directors

Mr. Sunil Bharati Mittal

Mr Rakesh Bharti Mittal

Mr. Rain Bharti Mittal

Mobile Division Overview

Bharti Tele-Ventures vision for its mobile business is “To make mobile
communications a way of life and be the customers first choice”.

The mission is to meet the mobile communication needs of the customer

through 1) error free service 2) Innovative products and services and 3) cost
efficiency. The Company’s strategic objective is to consolidate its leadership position
amongst the mobile service providers in India. The Indian mobile market, according
to the COAI, has increased from approximately 1.2 million subscribers as of March
31, 1999 to approximately 34.77 million subscribers as of October 31, 2009.

Despite this rapid growth, the mobile penetration rate in India, at

approximately 3.4% as of October 31, 2009, is significantly lower than the average
mobile penetration rate in other Asian and international markets. Bharti Tele-Ventures
believes that the demand for mobile services in India will continue to grow rapidly as
a result of the following factors:

• Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM
services in all the twenty-three telecom circles in India. It proposes to
consolidate all its subsidiaries providing mobile services under Bharti Cellular
Limited. As of October 31, 2009, approximately 96% of India's total mobile

22
 subscriber market resided in the Company's nineteen mobile circles, which
collectively covered only 56% of India's land mass.

Mobile Footprint
The map below depicts the location of, and provides certain information for,
Bharti Tele-Ventures' existing mobile circles in India:

Source

1. Population estimates are as per National Census, 2001 and are as of March 1,
2001. The population for Uttar Pradesh (West) circle is approximately 37% of
the total population for the state of Uttar Pradesh.

2. Wireless subscriber statistics are as of Oct 31, 2004 and are based on data
released by COAI. Wireless market size comprises the total number of
wireless subscribers of all the service providers in a circle.

3. Demographics of Maharashtra and Tamil Nadu do not include demographics

of state capitals (metros) Mumbai and Chennai respectively.

23
 4. Demographics of Haryana does not include Faridabad & Gurgaon as they are
included in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) &
Uttaranchal does not include Noida & Ghaziabad as they are included in Delhi
NCR.

The significant growth in the Company's mobile business has been through a
combination of organic growth and acquisitions of additional licenses and has been
summarized below. The information given below is for the total market and is not
representative of our market share or network coverage.

1) Comprises the circles of Delhi and Himachal Pradesh.

2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka and Andhra

Pradesh.

3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh

and Chennai.

4) Comprises the sixteen operational circles of Bharti Tele-Ventures.

5) Based on data released by the COAI on the total number of persons

subscribing to mobile services in our licensed areas.

Mobile Strategy

• Capture maximum telecommunications revenue potential with minimum

geographical coverage to maximise its revenues and margins.

• Build high quality mobile networks by deploying state-of-the-art technology to

offer superior services.

• Use the experience it has gained from operating its existing mobile networks to
develop and operate other mobile networks in India and to share the expertise
across all of its existing and new circles.

• Attract and retain high revenue generating customers by providing competitive

tariffs, offering high quality customer support, proactive retention programs
and roaming packages across all of its mobile circles.

• Provide affordable tariff plans to suit each segment of the market with a view
to expand the reach, thereby increasing the mobile customer base rapidly.

24
 PRODUCT PROFILE
Introduction

Bharti Telesoft, the telecom and e-commerce venture of Bharti Enterprises,

India has maintained a very close track on technology and new services to help its
customers and partners thrive on change.

Bharti Telesoft is fast on the way to attaining a position of leadership in the IT

world, through its clear focus on telecom, backed by rich domain expertise. The
company has one of the best development facilities in the country, and has offices in
India, United States and United Kingdom.

Bharti Healthcare

The corporate ethos of providing the best to our customers carries extra
relevance when it comes to healthcare products. One sector where quality implies the
saving of lives and the promotion of healthy living. Offering quality support to the
pharmaceutical industry, Bharti Healthcare has been engaged in the manufacture of
empty hard Gelatin capsules since 1982.

Bharti's firm commitment to quality and customer satisfaction is duly

acknowledgement by the list of prestigious clients including Pfizer, Parke Davis,
Wockhardt, Ranbaxy and Glaxo amongst others. Bharti also exports its capsules to
overseas markets like USA, Hong Kong, Malaysia, Thailand, Indonesia, Sri Lanka,
Iran, Bangladesh, Syria and Cyprus. The US FDA has recently assigned Drug Master
File (DMF) number to BHCL as an acknowledgement of it's firm commitment to
adhere to globally recognized quality standards in the Pharmaceutical industry. BHCL
is also an ISO 9002 certified company.

About AIRTEL

Airtel comes from Bharti Cellular Limited – a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti Enterprises has been at
the forefront of technology and has revolutionized telecommunications with its world
class products and services. Established in 1976, Bharti has been a pioneering force in
the telecom sector with many firsts and innovations to its credit. Bharti has many joint
ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA;

25
Telia, Sweden; Asian infrastructure find, Mauritius; International Finance
Corporation, USA and New York Life International, USA.

Bharti provides a range of telecom services, which include Cellular, Basic,

Internet and recently introduced National Long Distance. Bharti 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.

Bharti is the leading cellular service provider, with a footprint in 15 states

covering all four metros. It has over four million satisfied customers. So come explore
the making of the brand, which touches the lives of 600 million people across 16
states of India. From the meaning of our logo to downloadable goodies for your
computer, it's all here

Brand & Advertising

For a brand to be successful, it must build enduring relationships with its

different audiences. Integral to this relationship is the visual image of the brand the
consumer carries in his/her mind. The Airtel brand image is created through the
consistent application of a carefully developed visual identity, which helps Airtel
distinguish itself in a cluttered market. Airtel's visual identity helps create instant
brand recall and strengthens the relationships that its audiences have with it. The
Airtel visual identity has different elements that work together to create a strong and
consistent identity for the brand. The most important of these are:

The Airtel logo is a strong, contemporary and confident symbol for a brand
that is always ahead of the rest. It is a specially drawn word mark.

26
The Airtel Image style

It incorporates two solid, red rectangular forms whose counter form creates an
open doorway.

The Airtel Typographical style

The title case lettering with its capital 'A' was deliberately chosen to reinforce
the brand's leadership position. The red dot on the letter form 'I' cues Airtel's focus on
innovation. The words 'Express Yourself' are very much part of the brand identity.

The Airtel Colour Palette

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

27
 OBJECTIVES OF THE STUDY

• To know the customer perception on Airtel.

• To know the promotional activities of Airtel.

• To provide more benefits to the customers.

• To suggest any possible changes and requirements, if required.

28
 SCOPE OF THE STUDY

In today’s globalizing economy competition is getting more and more fierce.

That means it becomes more difficult for products and services to differentiate
themselves from other offerings than ever before. Not only is the number of
competitive offerings rising due to globalization of production, sourcing, logistics and
access to information. Many products competition from substitutes and from 1ete1y
new offerings or bundles from industry outsiders. So the study about perception of
customers is an important aspect.

29
 LIMITATIONS OF THE STUDY

• The methods used in this project are random sampling methods and results
obtained may not be accurately fully accurate and believable.

• The research has been centered to only hundred Customers of Airtel, rather
than innumerable Customers dealing with different products of different brands across
the globe.

• The analysis is purely based on closed ended questions and due their
deliberate manipulation, important information may be lost and even barriers of
communication would cause a limitation.

30
 RESEARCH METHODOLOGY

Research Design

Descriptive research design is used to collect the data from the respondents.

Research Instrument

Questionnaire

A Questionnaire is carefully completed logical sequence of question

directed to a define objective. It is the outline of what information is required and
the framework on which the data is built upon. Questionnaire is son commonly
used in securing market information that its preparation deserves utmost skill and
care.

Forms of Questions

Open Ended Questions

They are descriptive in nature. Respondents are allowed to answer in their

own words. Such questions buying the actual opinion of the respondent regarding
a product.

Closed ended questions

They are not descriptive in nature. They will be given certain choices and
the respondents have to choose choice among them. They make analysis easy but
sometimes they restrict the respondents’ choices.

Data Collection Methods

One of the important tools for conducting marketing researching is the

availability of necessary and useful data. Data collection is more of an than science
the methods of marketing research are in a way the methods of data collection. The
sources of information fall under two categories.

Internal sources

Every company has to keep certain records such as accounts, records,

reports, etc., these records provide sample information which can organizations
usually keeps collecting in its working.

31
External sources

When internal records are insufficient and required information is not

available, the organizations will have to depend on external sources. The external
sources of data are:

Primary data

Primary data are data gathered for a specific purpose or for a specific
research report.

For systematically collecting the data the closed end questionnaire is used.
The questionnaire consists of questions relating to various aspects of the study for
proper data collection the questionnaire is divided into 2 sections. Both the sections
are meant for the respondent only.

Secondary data

Secondary data are data that are collected for another purpose and already
exist somewhere. Data pertaining to company is collected from company web site
company catalogues and magazines. The company profile gives a detailed report of
history various products manufacture by its etc.

Sampling

It is not always necessary to collect data from whole universe. A small

representative sample may serve the purpose. A sample means a small group
should be emanative cross section and really “representative” in character. This
selection process is called sampling.

Sampling Technique

Random Sampling Method

The method adopted here is random sampling method. A random sample is

one where each item in the universe has as equal chance of known opportunity of
being selected.

Sampling Unit

The sampling unit is the existing and prospective Airtel users

32
Sampling Frame

Sampling frame for his study is Airtel Customers

Sample Size

Samples are devices for learning about large masses by observing a few
individuals. The selected sample is 100.

Data Analysis Method

The collected data has been analysed by using simple percentages,

tabulation.

33
 DATA ANALYSIS AND INTERPRETTION
 The Types of Consumers of Purchase of Airtel

Table 3.1

Factors No. of Respondents Percentage

Employees 15 30%
Business Personnel 26 52%
Profession 3 6%
Students 6 12%
TOTAL 50 100%

Interpretation

According to the survey, it was clearly found that among all the types of
consumers, business persons are preferring to purchase Airtel.

34
  The Types of Consumers of Purchase of Airtel

Graph – 3.1

30
26
25

20
15
15

10
6 12%
5 3 6%
30% 52%
0
E mployees Business P rof ession Students

NO.OF RESPONDENTS PERCENTAGE

Interpretation

According to the survey, it was clearly found that among all the types of
consumers, business persons are preferring to purchase Airtel.

35
  Income level of Customers

Table 3.2

Attributes No. of Respondents Percentage

2000 – 4000 7 14%
4000 – 8000 12 24%
8000 -12000 17 34%
More than 12000 14 28%
Total 50 100%

Interpretation

Out of 50 respondents, the income level of consumers having 2000-4000 are

(15%), 4000-8000 are (24%), 8000-12000 and more than 12000 (28%), are preferring
to purchase AIRTEL.

36
  Income level of Customers

Graph 3.2

18
16
14
12
10
8
6
4
2
0
2000 – 4000 4000 – 8000 8000 -12000 More than
12000

Interpretation

Out of 50 respondents, the income level of consumers having 2000-4000 are

(15%), 4000-8000 are (24%), 8000-12000 and more than 12000 (28%), are preferring
to purchase AIRTEL.

37
  Influencing factors to purchase of AIRTEL

Table 3.3

Factors No. of Respondents Percentage

Friends 11 22%
Advertisements 10 20%
Goodwill/Fame 14 28%
Personal Choice 15 30%
Total 50 100%

Interpretation

In the total survey of 50 respondents, Friends 22%, advertisements 20%,

Goodwill/Fame 28%, Personal choice 30% are the factors influencing to purchase of
AIRTEL.

38
  Influencing factors to purchase of AIRTEL

Graph 3.3

NO.OF RESPONDENTS

11
15

10

14

FRIENDS ADVERTISEMENTS

Interpretation

In the total survey of 50 respondents, Friends 22%, advertisements 20%,

Goodwill/Fame 28%, Personal choice 30% are the factors influencing to purchase of
AIRTEL.

39
  The level of satisfaction of consumers towards the purchase of
AIRTEL.

Table 3.4

Attributes No. of Respondents Percentage

Very Good 5 10%
Good 20 40%
Average 19 38%
Satisfactory 6 12%
Total 50 100%

Interpretation

Out of the 50 respondents, 5 felt very good, 20 good, 19 respondents felt that
their satisfaction is average and 12 respondents are satisfactory with Airtel purchase.

 The level of satisfaction of consumers towards the

purchase of AIRTEL.

Graph 3.4

40
 25
20 19
20

15

10
6
5
5
10% 40% 38% 12%
0
VERY GOOD GOOD AVERAGE SATISFACTORY

NO.OF RESPONDENTS

Interpretation

 Out of the 50 respondents, 5 felt very good, 20 good, 19 respondents felt that
their satisfaction is average and 12 respondents are satisfactory with Airtel
purchase.

41
  The level of satisfaction of consumers towards the purchase of AIRTEL.

Table 3.5

Attributes No. of Respondents Percentage

Very Good 10 20%
Good 21 42%
Average 16 32%
Not Satisfied 3 6%
Total 50 100%

Interpretation

Out of total 50 respondents, 10 respondents felt very good, 21 good, 16

respondents felt their satisfaction is average and 3 respondents are not satisfied with
Airtel services.

42
  The level of satisfaction of consumers towards the purchase of AIRTEL.

Graph 3.5

Interpretation

Out of total 50 respondents, 10 respondents felt very good, 21 good, 16

respondents felt their satisfaction is average and 3 respondents are not satisfied with
Airtel services.

43
  Type of Promotional Activity towards To Purchasing Airtel

Table 3.6

Factors No. of Respondents Percentage

Advertisement 11 22%
Publicity 10 20%
Sales Promotion 14 28%
Word of Mouth 15 30%
TOTAL 50 100%

Interpretation

According total respondents, 11 respondents responded that they are

influenced by advertisements, 10 through publicity, 14 through sales promotion and
15 through word of mouth towards purchase of Airtel out of 50 respondents.

44
  Type of Promotional Activity towards To Purchasing Airtel

Graph 3.6

No. of Respondents

11
15

Advertisement
Publicity
10 Sales Promotion

14 Word of Mouth

Interpretation

According total respondents, 11 respondents responded that they are

influenced by advertisements, 10 through publicity, 14 through sales promotion and
15 through word of mouth towards purchase of Airtel out of 50 respondents.

45
  The Connection that Most Prefer By Advertisements

Table 3.7

Attributes No. of Respondents Percentage

Reliance 9 18%
Airtel 21 42%
Idea 10 20%
Vodafone 10 20%
Total 50 100%

Interpretation

Out of the 50 respondents it was revealed that 18% prefer Reliance, 42%
prefer Airtel and 20% preferred Vodafone through advertisements.

46
  The Connection that Most Prefer By Advertisements

Graph 3.7

N o . o f R e s p o n d e n ts
25
20
15
10
5
0
R e lia n c e A ir t e l Id e a V odafone

Interpretation

Out of the 50 respondents it was revealed that 18% prefer Reliance, 42%
prefer Airtel and 20% preferred Vodafone through advertisements.

47
  Prepaid & Postpaid Connections of Airtel

Table 3.8

Factors No. of respondents Percentage

Prepaid 35 70%
Postpaid 15 30%
Total 50 100%

Interpretation

Out of the total survey of total 50 respondents, 35 respondents are preferring

prepaid connection and rest 15 are preferring postpaid connections.

48
 
Satisfaction of postpaid consumers with Airtel rental plans

Graph 3.8

80%

70%

60%

50%

40%

30%

20%

10%

0%
PREPAID POSTPAID

Interpretation

Out of the total survey of total 50 respondents, 35 respondents are preferring

prepaid connection and rest 15 are preferring postpaid connections.

49
 
Satisfaction of postpaid consumers with Airtel rental plans

Table 3.9

Attributes No. of Respondents Percentage

Yes 20 53%
No 18 47%
Total 38 100%

Interpretation

Out of total 50 respondents regarding postpaid connection 20 respondents are

satisfied with postpaid Airtel rental plans and other 18 are not.

50
 
Satisfaction of postpaid consumers with Airtel rental plans

Graph 3.9

No. of Respondents

20.5

20

19.5

19

18.5

18

17.5

17
Yes No

Interpretation

Out of total 50 respondents regarding postpaid connection 20 respondents are

satisfied with postpaid Airtel rental plans and other 18 are not.

51
 
Customer level of satisfaction with regard of Maintenance

Table 3.10

Attributes No. of Respondents Percentage

Very Good 9 18%
Good 16 32%
Average 10 20%
Satisfactory 15 30%
Total 50 100%

Interpretation

For the total survey, it reveals that with regard of Maintenance 9 respondents
felt very good, 16 good, 10 are feeling average and other 15 are just satisfied.

52
 
Customer level of satisfaction with regard of Maintenance

Graph 3.10

18
16
14
12
10
8
6
4
2
0
Very Good Good Average Satisfactory

Interpretation

For the total survey, it reveals that with regard of Maintenance 9 respondents
felt very good, 16 good, 10 are feeling average and other 15 are just satisfied.

53
 
Customer level of satisfaction with regard of Price

Table 3.11

Attributes No. of Respondents Percentage

Very good 6 12%
Good 11 22%
Average 21 42%
Satisfactory 12 24%
Total 50 100%

Interpretation

With regard of Price 6 respondents felt very good, 11 felt good, 21 are feeling
average and other 12 are just satisfied out of total 50 respondents.

54
 
Customer level of satisfaction with regard of Price

Graph 3.11

25

20

15

10

0
Very good Good Average Satisfactory

Interpretation

With regard of Price 6 respondents felt very good, 11 felt good, 21 are feeling
average and other 12 are just satisfied out of total 50 respondents.

55
 
Customer level of satisfaction with regard of Performance

Table 3.12

Attributes No. of Respondents Percentage

Very good 5 10%
Good 22 44%
Average 16 32%
Satisfactory 7 14%
Total 50 100%

Interpretation

On the survey of 50 respondents, it revealed that with regard of Performance 5

respondents felt very good, 22 felt good, 16 are feeling average and other 7 are just
satisfied.

56
 
Customer level of satisfaction with regard of Performance

Graph 3.12

25

20

15

10

0
Very good Good Average Satisfactory

Interpretation

On the survey of 50 respondents, it revealed that with regard of Performance 5

respondents felt very good, 22 felt good, 16 are feeling average and other 7 are just
satisfied.

57
 
Customer level of satisfaction with regard of After Sales Service

Table 3.13

Attributes No. of respondents Percentage

Very Good 7 14%
Good 21 42%
Average 16 32%
Satisfactory 6 12%
Total 50 100%

Interpretation

Out of 50 respondents with regard of After Sales Service 7 respondents felt

very good, 21 felt good, 16 are feeling average and other 6 are just satisfied.

58
 
Customer level of satisfaction with regard of After Sales Service

Graph 3.13

25

20

15

10

0
Very good Good Average Satisfactory

Interpretation

Out of 50 respondents with regard of After Sales Service 7 respondents felt

very good, 21 felt good, 16 are feeling average and other 6 are just satisfied.

59
FINDINGS

 It was found that 52% of the customers are Business persons.

 The study stated that the income levels of Airtel consumes are high in range of
8000 to 12000.

 As per the study among all the factors that are influencing to purchase Airtel
the following have their role as friends 22%, Advertisements 20%, Goodwill/Fame
28%, Personal Choice 30% are the factors influencing to purchase of AIRTEL.

 It was found that 10% felt very good, 40% good, 38% are felt average and
12% are satisfactory with Airtel purchase.

 With regards of Airtel services 20% felt very good, 42% good, 32% felt the
satisfaction is average and 6% are not satisfied.

 As per the study 11 respondents responded that they are influenced by

advertisements, 10 through publicity, 14 through sales promotion and 15 through
word of mouth towards purchase of Airtel.

 The study stated that there are 62% prepaid connection customers. Rest 38%
are postpaid users.

 Out of total 10 respondents regarding postpaid connection 10 respondents are

satisfied with postpaid Airtel rental plans and other 9 are not.

 As per the study 17% felt very good, 32% good, 21% felt their satisfaction is
average and 30% are not satisfied towards the maintenance of Airtel services.

 As per the study 12% felt very good, 23% good, 42% felt their satisfaction is
average and 23% are not satisfied towards the pricing strategy of Airtel services.

 As per the study 9% felt very good, 44% good, 32% felt their satisfaction is
average and 15% are not satisfied towards the performance of Airtel services.

 As per the study 14% felt very good, 425 good, 32% felt their satisfaction is
average and 13% are not satisfied towards post sales services of Airtel.

60
RECOMMENDATIONS

 The major consumers of Airtel are business people, so the company even has
to concentrate more on other segments of consumers like employees, students and
others.

 Company has to strive hard to increase the good will of company.

 The satisfaction level of consumers has to be increased by promoting their

services t best they can.

 Advertisements have to be in the way that they reach every corner of place, so
that everyone will be aware of Airtel.

 Company should concentrate more on postpaid connections along with

prepaid.

 AIRTEL should concentrate on the promotional activities for the customers

and for the retailers.

 Improve the marketing personnel and they should give full knowledge to the
customers and retailers.

 AIRTEL must improve their personnel selling direct contacting customers to

give awareness of their products.

61
CONCLUSION

Consumers can evaluate a product along several levels. Its basic

characteristics are inherent to the generic version of the product and are defined as the
fundamental advantages it can offer to a customer. Generic products can be made
distinct by adding value through extra features, such as quality or performance
enhancements. The final level of consumer perception involves augmented
properties, which offer less tangible benefits, such as customer assistance,
maintenance services, training, or appealing payment options. It terms of competition
with other products and companies, consumers greatly value these added benefits
when making a purchasing decision making it important for manufacturers to
understand the notion of a “total package” when marketing to their customers.

From the project conclude that Marketing is a domain which is dynamic i.e.
involves change, an important phenomenon not to be overlooked. We have come
across a term “Unique Selling Proposition (USP) which companies feel as a constant
factor. Every organization is an open system of management which means change is
inevitable and is associated with environmental factors. Companies need to focus not
only on USP of their products but also on the “Unique Customer Perception” (UCP)
of the final end users.

62