SUMMER TRAINING REPORT

ON

MARKETING STRATEGY OF AIRTEL

Submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Business Administration (BBA)
Affiliated To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Guide Name

Submitted by: Student Name Roll No.:

Institute of Information Technology & Management New Delhi 110018 Batch (2009-2012)

CERTIFICATE
I, Mr./Ms._______________________________, Roll No. ________________ certify that the Summer Training Report (Paper Code-------) entitled Marketing Strategy of Airtel is done by me and it is an authentic work carried out by me at ___________________________ (Name of the firm or company). The matter embodied in this has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

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Certified that the Summer Training Report (Paper Code-------) entitled ____________ done by Mr./Ms._______________________________, Roll No. ___________, is completed under my guidance.

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Countersigned Prof. .. Director

DECLARATION
This is to certify that the project report entitled Marketing Strategy of Airtel is an original work and has not been submitted is part or full to this or any other university/institution the award of any degree or diploma.

Signature of Candidate: NAME: ENROLMENT NO.:.. SESSION: ..

ACKNOWLEDGEMENT
The present work is an effort to throw some light on Marketing Strategy of Airtel. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people, ... With an overwhelming sense of gratitude, I acknowledge the valuable guidance and consistent encouragement extended to me by our knowledgeable faculty members like with whose guidance, I am able to accomplish this endeavor. Their technical acumen and years of experience have provided me with crucial inputs at a critical stage. I also extend my heartfelt thanks to my family and friends for their support directly or indirectly provided to me.

Enrollment no._________________

EXECUTIVE SUMMARY
Airtel realizes that what matters most in brand marketing has always been, and always will be, the relationship between a brand and its consumers. And the key to the brand relationship is trust. People are constantly being crowded with messages and information they dont have time to sort out therefore they want brands they can believe in. There is stiff competition from other players and consumer products are a highvolume, low-margin business. Airtel is well positioned, with good relationships with retailers and a strong manufacturing base in place. A key deciding factor in the marketing strategy is keeping in mind the lifestyle requirements of Indians and the income constraints. Marketing activities at Airtel are a mix of continuous, diverse and balanced initiatives based on the companys ethos, Demand More-demand more products, more quality, more personalized solutions from Airtel Aimed at consumers, channel partners and business associates, the companys strategy is to not only portray Airtel as a responsible brand through various above-the-line and below-the-line activities but also to provide them interactive platforms to enrich the touch & feel experience, which strengthen sales efforts and help in developing strong associations. The underlying objective is to make all associates feel proud of being a part of the Airtel family.

CONTENTS
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 Topic Certificate (s) Acknowledgements List of Tables List of Figures List of Symbols List of Abbreviations Chapter-1: Profile of the Firm/Company Chapter-2: SWOT Analysis of the Company Chapter-3: Analysis of Financial Reports of the Company Chapter-4: Lessons Learnt References/Bibliography Appendices Page No. -

C HAPTER -1 I NTRODU CTION

INTRODUCTION
Bharti Airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by business week. Bharti Airtel had 200 million customers across its operations. 1.1. Company profile of the organization

Bharti Airtel Bharti Airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by business week. Bharti Airtel had 200 million customers across its operations. 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 provider to launch National & International Long Distance Services in India. Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under

its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12 million customers across the length and breadth of India. Bharti Tele-Ventures Limited, a part of Bharti Enterprises is India's leading provider of telecommunications services. The businesses at Bharti Tele-Ventures have been structured into two main strategic business groups the Mobility Leaders business group and the Infotel Leaders business group. The Mobility business group provides GSM mobile services across India in twenty three telecom circles, while the Infotel business group provides broadband & telephone services, long distance services and enterprise services. All these services are provided under the Airtel brand.

Airtel comes to you from Bharti Cellular Limited - a part of

the biggest private

integrated telecom conglomerate, Bharti Enterprises. 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 and more than 7 million satisfied customers. Our brand: Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A spirit charged with energy, creativity and a team driven to seize the day with an ambition to become the most admired telecom service provider globally. airtel, in just ten years of operations, rose to the pinnacle of achievement and continues to lead.

As India's leading telecommunications company, airtel brand has played the role of a major catalyst in India's reforms, contributing to its economic resurgence. Today we touch people's lives with our Mobile services, Telemedia services, to connecting India's leading 1000+ corporates. We also connect Indians living in USA, UK and Canada with our callhome service. Highlights Airtel dedicates 4th Airtel Delhi Half Marathon to Friends 2011 FORMULA 1 AIRTEL GRAND PRIX OF INDIA set to flag off Indias Formula 1TM dreams Bharti Airtel announces two new CEOs for Consumer Business Group Bharti Airtel announces its first quarter ended June 30, 2011 on August 3, 2011 Bharti Airtel to announce its results for first quarter ended June 30, 2011 on August 03 2011 (Wednesday) Airtel digital TV adds 41 new channels

Contact Us Bharti Airtel Limited (A Bharti Enterprise) Aravali Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi 110 070, (India) Tel. No. : +91 11 46666100, +91 11 42666500, Fax No. : +91 11 4166-6137, Website: www.airtel.in UPW Bharti Airtel Ltd 4th Floor Krishna Plaza Tejgarhi Crossing Garh Road

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Meerut 250004 Punjab , Haryana, HP Bharti Airtel Limited , C-25 , Industrial Area , Phase -2 , Mohali . 55 Rajasthan Bharti Airtel Ltd A-5, SupportEscape Building , JamnaLal Bajaj Marg, CivilLines Railway Crossing Jaipur. Pune Bharti Airtel Limited - Enterprise (Corporate) 3rd Floor,C-Building, Vega Center ,Swarget, Oppo. Income Tax office Shankar Sheth Road , Pune-36 Bangalore Bharti Airtel Limited Enterprise (Corporate) Team Prestige Technology Park , Jupiter (2A) Block, Sarjapur-Marathhalli Ring Road , Kadabeesanahalli Village , Varthur Hobli, Bangalore 560087 Hyderabad Bharti Airtel Limited, Enterprise (Corporate)Team 6-3-1192/1, 7th floor Block 3, White House Kunda Bagh, Begumpe Hyderbad-500 016 Chennai Bharti Airtel Limited - Enterprise (Corporate) Bascon Futura S V,3rd & 4th Floor, #59L, Venkatanarayana Road , T.Nagar,Chennai-600017. UP East Bharti Airtel Limited - Enterprise (Corporate) 3rd floor, Airtel Towers 11

12, Rani Laxmi Bai Marg Hazratganj Lucknow 226001 Mumbai Bharti Airtel Limited - Enterprise (Corporate) 6th Floor, Interface Building No-7, New Link Road , Malad West Mumbai-400064 Gujarat Bharti Airtel Limited - Enterprise (Corporate) 601-602, Corporate House Opposite Torrent House Off Ashram Road, Ahmedabad-380009 Madhya Pradesh Bharti Airtel Limited - Enterprise (Corporate) 47/49, Electronic Complex Pardesi Pura Indore - 452 010 Kolkata Bharti Airtel Limited - Enterprise (Corporate) 6-Hungerford Street , Regency Building 4th Floor, Kolkatta-17 Delhi / NCR Bharti Airtel Limited - Enterprise (Corporate) A-4, Sector 10 NOIDA The Milestones of Airtel First and only service to be adjudged the best mobile service in the country consecutively for four years 1997, 1998, 1999 and 2000 by Communications World and awarded the Techies Awards Frist to Launch Intelligent Network services. First to launch pre-paid roaming service. First to launch full roaming service on pre-paid First to launch 32 K SIM cards First to launch Local Direct dialing facility First to reach the 1 million customer mark in a single circle First to launch a dual band network in the country

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First to deploy Voice Quality Enhances to improve voice quality and acoustics. Bharti Cellular Limited is also the first telecom company in the world to receive the ISO 9001:2000 certification from British Standards Institute.

1.2. Explain the nature of the organization and its business Business divisions: Mobile Service: Bharti Airtel offers GSM mobile services in all the 22-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. Prepaid Services Postpaid Services BlackBerry Services International calling Reach airtel How to buy

Telemedia Services: The group offers high-speed broadband with the best in class network. With fixed line services in 87 cities, we help you stay in touch with your friends & family and keep you updated round the clock Enterprise Services: Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as the trusted communications partner to India's leading organizations, helping them to meet the challenges of growth. This business unit delivers end to end telecom solutions to Indias large corporates. It serves as the single point of contact for all telecommunication needs for corporate customers in India by providing full suite of communication services across data, voice

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and managed services. It specializes in providing customized solutions to address unique requirements of different industry verticals; BFSI, IT, ITeS, Manufacturing and distribution, media, education, telecom, Government and PSUs and retail among others. Backed by the alliances with leading technology companies worldwide and state of the art infrastructure, it offers complete range of telecom solutions. These solutions enable corporates to network their offices within India and across the globe, provide them infrastructure to run business critical applications and provide them means to connect with their customers, vendors and employees. These services include; Internet, MPLS -VPN, domestic and international private leased circuits, Satellite services (VSAT), Audio & Video conferencing, Data centre services, Managed network services, corporate value added services, EPBX, Centrex, Contact centre solutions. Carrier business unit provides long distance wholesale voice and data services to carrier customers as well as to other business units of Airtel. It also offers virtual calling card services in the overseas markets. The business unit owns a state of the art national and international long distance network infrastructure enabling it to provide connectivity services both within India and connecting India to the world. The national long distance infrastructure comprises of 83,389 Rkms of optical fibre, over 1,500 MPLS and SDH POPs and over 1,000 POIs with the local exchanges, providing a pan India reach. The international infrastructure includes ownership of the i2i submarine cable system connecting Chennai to Singapore, consortium ownership of the SMW4 submarine cable

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system and investment in capacities across a number of diverse submarine cable systems across transatlantic and transpacific routes. In recent past it has announced investments in new cable systems such as Asia America Gateway (AAG), India Middle East and Western Europe (IMEWE), Unity North, & EIG (Europe India Gateway). Digital Services: Discover the magical experience of digital enterainment with airtel. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best on-demand content on airtel Live, your TV viewing experience change forever with digital TV from airtel! Packages, IPTV, HD TV, HD recorder, Latest Offers, Contact Us

1.3. Mission & vision

VISION: To make mobile communications a way of life and be the customers' first choice. MISSION: We will meet the mobile communication needs of our customers through: Error- free service delivery Innovative products and services Cost efficiency Unified Messaging Solutions Our Vision & Promise By 2015 airtel will be the most loved brand, enriching the lives of millions. "Enriching lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having this focus we will enrich our own lives and those of our other key stakeholders.

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Only then will we be thought of as exciting, innovation, on their side and a truly world class company." CORE VALUE: We will delight our customer with our simplicity, speed & innovation. We will honours our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace.

1.4. Product range of the company

At Airtel, we have always sought to enhance value for you as a customer by providing you the most relevant and easy to use services through innovation and by harnessing the latest developments in technology. In line with this strategy, we have constantly introduced innovative products and services to suit your unique needs and wants. Our services range from CLI to Music Messaging to Lost Call Alerts you better. Table 1.1: Some services which we are providing: SMS Astrology Music Messaging Ring tones Dial-a-Ring tone Logos Blinking SMS Flash SMS Jokes Love Logos Caller Line Identification 16 Voice Mail Itemised Billing Inquiry Services Picture Messages Yahoo Dating Yahoo! Mail Yahoo Messenger Group Messaging Mobile Banking News Updates all to serve

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THE OUTSOURCING EXPERIMENT The world's most unconventional telecom experiment is being carried out by Sunil Mittal's Rs. 5,400- crore Bharti Tele-Ventures (BTV). Bharti decided to outsource both its IT systems management and its networks. These are things that all telcos globally consider their core business.

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Table 1.2: Finished Products

PRODUCT NAME Service Revenue Assembly Modems SIM Cards Goods Traded Airtel Products AIrtel Connections Postpaid Airtel Connections Prepaid Airtel Data Cards Airtel Blackberry phones Airtel I Phones Airtel Tv Other products & services we offer Airtel I Phones Airtel Landline Airtel Postpaid Airtel Prepaid Airtel Tv Bharti AXa Life Insurance Nokia Mobile Phones Airtel Blackberry Phones Airtel Broadband Airtel Data Cards UNITS N.A. N.A. N.A. N.A. N.A. INSTALLED PRODUCTION SALES CAPACITY 0.00 0.00 0.00 0.00 0.00 QUANTITY 0.00 0.00 0.00 0.00 0.00 QUANTITY 0.00 0.00 0.00 0.00 0.00 SALES VALUE (Rs Cr.) 37992.4000 20.8000 2.6000 0.0000 0.0000

1.5. SIZE OF ORGANIZATION.

10000 employees across India in Bharti Airtel

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1.6. Organization Structure of the Company

Fig. 1.1: CORPORATE STRUCTURE

1.7. Market Share & Position of the Company in the Industry

Bharti has 33% market share New Delhi: Despite stiff competition from players like Vodafone, Reliance Communication, BSNL and Idea among others, Bharti Airtel has a market share of almost 33% in mobile segment. At present, around 60% of Airtel's customer additions come from rural areas. It has already set up 14,000 Airtel Service Centres in rural areas and planning to have 1 lakh such centres across the country by March, 2010. "The Indian telecom sector, seen as providing the most affordable services in the world, has grown by leaps and bounds in the last decade. This remarkable journey to 100 million customers is a testament to the vision and

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commitment of a company that benchmarks itself with the best in the world,'' Sunil Bharti Mittal, chairman and group chief executive officer of Bharti Enterprise said. After achieving this landmark, the next big challenge for Sunil Mittal is to globalise his company. And, he is satisfied with his position in Indian market. Bharti Airtel suffered the biggest market share decline during 2010 owing to the entry of new operators, followed by Reliance and Vodafone, according to full year subscriber numbers released by the Telecom Regulatory Authority of India (Trai).The biggest winner in the market share game was Uninor, which gained nearly 2%, followed by Videocon, which increased its market share by around 1%. The data, however, also showed that a large portion of subscribers, of the new operators, had bought their connections to try out and did not use it regularly. From January 2010 to December 2010, the four incumbent GSM operators - Airtel, Vodafone, Idea and BSNL - saw their combined mobile market share decline around 3.4% percentage points, from 62.6% at the end of January to 59.2% at the end of December 2010. The decline would be steeper for the standalone GSM market, but the numbers have not been released by the regulator. Uninor, the biggest gainer, increased its market share from around 0.5% of the total wireless market to 2.5% of the market, followed by Videocon, which went from zero to 1% during the same period. None of the traditional GSM operators were able to increase their market share, with Bharti Airtel leading the losses with a 2.1% percentage point loss to end the year at 20.3%. It was followed by Reliance, which lost 1% and Vodafone, which lost 0.75%. Losses for Idea Cellular were the least, at around 0.1%, while BSNL too managed to limit its losses to 0.4%. Tata was the only big operator that did not see a decline in its subscriber market share, primarily due to its blazing subscriber acquisition rates after launching its Tata DoCoMo GSM service. The firm, which introduced its GSM service during last year, increased its market share 21

marginally from 11.1% to 11.2% even as its CDMA peer Reliance lost market share. Aircel also, put up a good show, increasing its total market share from 6.1% to 6.7%, while MTS went from 2% to 2.9%. The market share gains of new operators, however, look far less flattering when read with their subscriber dormancy rates - the portion of subscribers who have not switched on even once during the last 1-3 days. New operators tend to have a high dormancy rates, as many subscribers taking SIM cards are enticed by low call rates, but soon stop using them due to poor signal coverage, making the connection dormant. MTNL led the dormancy figures, with only 35% of its subscriber base switching on at least once during the 72-hour window under check, followed by Videocon with 37% and Uninor and STel with just 45% live subscribers. They were followed by Tata CDMA, with 47% switched on subscribers and TATA GSM and MTS with 50% each. Notably, Aircel Cellular - a new operator - managed to notch up 60% switched on subscribers, higher than even traditional operator BSNL, which had just 57% of its customers turn on during the period under study. Unsurprisingly, the highest proportion of switched on subscribers were found on Airtels network, with 92%, followed closely by Idea, with 90%. India mobile subscriber base touched 826.93 million in April 2011 Indian wireless telecom market ends April 2011 with subscriber base of 826.93 million with addition of 15.34 million during April 2011, monthly growth rate of 1.89% Overall mobile teledensity stands at 69.19% (Urban 152.41%, Rural 33.44%) Urban to rural subscriber ratio is 66.20% to 33.80% According to VLR data, India had 583.22 million active mobile subscribers. Hence, actual wireless teledensity in India is 48.80% by April 2011

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 Top 5 mobile telecom players account for 83% of overall subscriber base . Bharti Airtel has maintained its leadership position with 25.3% market share in India Idea has largest proportion of active mobile users at 92.92% Top 5 players in Indian wireless telecom industry accounts for 83% market share in terms of active subscriber base Reliance (19.16%) added highest amount of subscribers in April 2011 followed by Idea (15.97%), Airtel (15.72%) and Vodafone (15.71%) BSNL added only 1.13% of total new subscriber additions while MTNL added just 367 new subscribers indicating serious problems for PSU operators

Fig. 1.2

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Fig. 1.3

1.8. Present Leadership

Sunil Bharti Mittal: Chairman & Group CEO Sunil Bharti Mittal is the Founder, Chairman and Group CEO of Bharti Enterprises. Sunil started his career at 18 after graduating from Punjab University in India in 1976 and founded Bharti. Today he heads a successful enterprise which employs over 38,000 people. Rakesh Bharti Mittal: Vice Chairman & MD Rakesh Bharti Mittal is Vice-Chairman and Managing Director at Bharti Enterprises. He is the is Chairman of Bharti AXA Life Insurance, Bharti AXA General Insurance, FieldFresh Foods, Comviva Technologies, Centum Learning and Beetel Teletech. Rakesh is also a Director on the Board of Bharti Airtel. Rakesh is

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Rajan Bharti Mittal: Vice Chairman & MD Rajan joined Bharti Enterprises after graduating from the Punjab University. An alumnus of Harvard Business School, he is actively involved in overseeing the activities of the group at the corporate level. With his rich experience in the marketing function, he is also involved in many of the new Akhil Gupta: Deputy Group CEO & MD Akhil Gupta is the Deputy Group CEO & Managing Director of Bharti Enterprises and a Director of Bharti Airtel Limited. He has been closely associated with a range of strategic, financial, mergers and acquisitions and business performance issues of the group. Akhil has played a pivotal role in Bhartis Inder Walia: Group Director Human Resources Inder Walia joined Bharti Enterprises Ltd in August 2007 as Group Director-Human Resources and Integration of Bharti Group. He is also a member of the Bharti Management Board. Prior to joining Bharti Enterprises, Inder was the Executive Vice President- Human Resources and a member of the Group Management Manik Jhangiani: Group CFO Manik Jhangiani joined Bharti Enterprises Ltd in May 2009 in the capacity of Group Chief Financial Officer. He is also a member of the Bharti Management Board. Prior to joining Bharti Enterprises, Manik was the Chief Financial Officer of Coca-Cola Hellenic based in Athens, Greece.

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Narender Gupta: Group Director - Corporate Affairs Narender Gupta leads the Corporate Affairs for Bharti Group looks at the regulatory, policy and strategic issues for the Group including international operations. Narender joined Bharti in 1999 in the Delhi circle where he was heading Regulatory, Legal, Secretarial and functions relating to Government Vijaya Sampath: Advisor to the Chairman and Group CEO Vijaya Sampath is Advisor to the Chairman and Group CEO, Bharti Enterprises. She is also the Ombudsperson for Bharti group. Vijaya is counted amongst the top General Counsels in India. In her previous role as the Group General Counsel and Company Secretary at Bharti Enterprises, she played a key role in Dr. Jai Menon: Group Director - Innovation and IT Dr. Jai Menon leads global innovation, driving the strategic product roadmap and partner ecosystem for Airtel across all its operations in nineteen countries in Asia and Africa. He is also the Group CIO across all businesses of Bharti Enterprises including telecom, towers, agriculture, retail, manufacturing/ Mukesh Bhavnani: Group General Counsel and Company Secretary Mukesh Bhavnani is the Group General Counsel and Company Secretary, Bharti Enterprises. He is responsible for facilitating all strategic and high impact legal policy and structuring across Bharti

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businesses, litigation related to key matters, M&A and overseeing the group Secretarial function. Mukesh has Sarvjit S. Dhillon: Group Director Sarvjit has over twenty three years of general and financial management experience in multinational and national corporations of which over thirteen years have been with Bharti. He is in his 22nd year in the telecommunications sector, having lived and worked in London, Singapore, Sydney and Delhi. He worked Ananda Mukerji: Group Director Business Development Ananda Mukerji is the Group Director Business Development, Bharti Enterprises. At Bharti, Anandas role involves strategic projects for alliances, M&A and evaluating new business opportunities and avenues for Group expansion developing talent and introducing global best practices. Additionally, as the

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CHAPTE R -2 OBJECTI V ES AND SCOPE

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OBJECTIVES AND SCOPE

RESEARCH OBJECTIVES
The following are the objectives of my research study To examine the level of competition in the Cellular industry and identify the entry marketing strategies adopted by Airtel. To identify the key success factors for Airtel in Airtel industry. To conduct a survey of Airtel users in Delhi Region in order to gauge their satisfaction with respect to quality of services, value added features, pricing and support provided by their respective service provider.

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C HAPTER -3 L IMITATI O NS

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LIMITATIONS
Limitation of the Study
Time might be the biggest constraint in my research study, since it might not give me the freedom to spend the kind of attention, which I would have otherwise spend. It might prove to be tedious and difficult job to collect primary data for my research work since, not many companies might be willing to share their internal information with the researcher.

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CHAPTE R -4 THEORE TI CAL PERSPE CT IVE

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THEORETICAL PERSPECTIVE
COMPETITIVE MARKETING STRATEGIES OF AIRTEL The companys marketing strategy varies from product to product. It is focusing on both corporate as well as household sector for most of its products. In the corporate sector it is looking at verticals like education, financial institutions, hospitality, BPOs and IT. As far as home sector is concerned, entertainment is the companys main focus and it is targeting young, professional and technology savvy people. Airtel believes in offering sustained value to its customers through better cost of ownership rather than just initial cost of products. Its BEE labeled products of consumers substantial savings by reducing their power bills. The company believes in having a good quality product that meets customer needs is the best advertisement. Airtel has been pioneering new technologies in HVAC for over 20 years. It is a fullfledged company that provides total solutions with products from window ACs to a 3,000 ton chiller plants, commercial refrigeration for the entire cold chain, from farmer to consumer, mobile phones and satellite television solutions. Besides, its products and serivices have also become very popular. Metros, mini-metros and A-class cities are its main focus. The company would be investing more resources in expanding its channel network in the coming year. Also it is looking forward to supporting its channel friends with regular promotions, loyalty programmes, certification programmes, all-round training of the products and latest technologies, dealer meets and opening of Airtel zones. The companys focus is to increase their profitability.

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The company is focused on the premium electronic segment in which it has a significant market share. It is highly active in the field of research and development of energy-efficient technologies and refrigerants that are ozone-friendly. Airtels global philosophy is Quality firstleading to products with highest performance, comfort, energy saving, silence and high reliability. Airtel has been continuously focusing on technologically advanced products and thus the pricing of its products is based on superior value available through these products. Airtel has been highly focused on its pursuit of Total Service Quality which means service to users in areas of presales, post sales, installation and after sales service. Training has been a continuous process in Airtels system for dealers as well. Airtel has adopted the dealer-oriented market strategy for CTVs, DVD players, and home theaters. The company is trying to penetrate the Indian market by expanding its dealer and distribution channels. It is planning to promote its products through ground level activities and advertisements in local areas. The major challenge facing the manufacturers is to introduce innovative products and consistently upgrade the technology, so as to cater the changing consumer preferences and offer value for money at every price point. Airtel is investing in training all its dealers. The company has more than 80 dealers all over India and is providing intensive technical training for quality improvement through field installation and after-sales services to them. This emphasis for training as key ingredient for improving quality in all spheres of operations shall continue. Airtel plans to increase its market share in India by taking advantage of the current boom in the real estate, commercial offices, hotel industry, information technology, BPO industry, shopping malls etc. which has led to an increase in demand. The electronics goods

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market in India has been growing at an average rate of 30 percent. The company plans to achieve its goal by introducing technologically advanced products continuously, expanding organization and its dealer network while continuing the domination of premium and affordable electronics goods market. The companys strategic initiatives are design need to grow its market share and expand core business operations. As a leading supplier the company intends to maintain and expand its current leadership position through a continued focus on operational and manufacturing efficiencies and continued innovation and quality. The company is strategically focused on further increasing its presence in Indian markets. Airtel has global quality manufacturing infrastructure in place; the company has made investments in developing extensive distribution and after-sales service for its products. Airtel will also focus on strengthening its dealer network. The companys advertising campaigns will include brand building campaigns through mass media including TV, newspapers, magazines and other outdoor medium in select cities. It has also designed many sales promotions and events to motivate dealers. The companys mantra continues to be unrelenting focus on providing relevant technology to its consumers and this remains the basis for all new product development undertaken at Airtel. Continuous research helps the company to be in touch with consumer needs and gather insights for product development. Airtels marketing strategy is centered on the abovedelivering superior technology that is relevant to the consumers. Airtel realizes that what matters most in brand marketing has always been, and always will be, the relationship between a brand and its consumers. And the key to the brand relationship is trust. People are constantly being crowded with messages and

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information they dont have time to sort out therefore they want brands they can believe in. There is stiff competition from other players and consumer products are a highvolume, low-margin business. Airtel is well positioned, with good relationships with retailers and a strong manufacturing base in place. A key deciding factor in the marketing strategy is keeping in mind the lifestyle requirements of Indians and the income constraints. Airtels target is to become one of the prominent players in the Indian market in the coming years. This can only be achieved by following the localization strategy, where R&D, manufacturing & marketing activities are carried out as per local way. The manufacturing and R&D facility will help in creating India centric products and provide the best buying experience to the consumers in India and the region at large and at the same time also highlight Airtel Indias strengths and world-class capabilities to deliver products to the global as well as Indian customers. Innovation has been a practice at Airtel and the company believes in creating products that can truly bring in a difference in the Indian consumers lifestyle. The next three years the company intends to consolidate its reach with its world class products and also come up with new line up in every category that would be specifically developed for the Indian market and the Indian consumers. Marketing activities at Airtel are a mix of continuous, diverse and balanced initiatives based on the companys ethos, Demand More-demand more products, more quality, more personalized solutions from Airtel Aimed at consumers, channel partners and business associates, the companys strategy is to not only portray Airtel as a responsible brand through various above-the-line and below-the-line activities but also to provide them interactive platforms to enrich the touch & feel experience, which strengthen sales

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efforts and help in developing strong associations. The underlying objective is to make all associates feel proud of being a part of the Airtel family. Product innovation is definitely one of the key strategies that will drive company growth. In the first half of the year, Samsung has launched more than 100 new models across its audio video and home appliance products. The companys marketing strategies involve investment in the future. The company is broadening the offerings through three different ranges addressing the different price and want points in this evolving category. Marketing and advertising tools Online Banners Ads in the Global electronics Net-Letter and Premium Net-Letter On site Hall display banners Bunting Bharti is to first achieve critical mass, then drill deep instead of spreading thin. Thereafter, it is ready for controlled expansion. In keeping with this, the company has been providing excellent service to its subscribers in various states. It controls a portfolio of India's most attractive and contiguous telecom geographies, including the states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh and Delhi

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(inclusive of NCR). With a footprint dominating the map of India, Airtel accesses over 45% of India's total telephony potential. With the objective of critical mass achieved, Airtel turned to drilling deep.

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M ETHODO LO GY AND PROCED U RE OF WOR K

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C HAPTER -5

METHODOLOGY AND PROCEDURE OF WORK

A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below. Exploratory Research: this kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research Nature of Data Primary Data: questionnaires Secondary Data: Secondary data that is already available and published .it could be internal and external source of data. Internal source: which originates from the specific field or area where research is carried out e.g. publish broachers, official reports etc. External source: This originates outside the field of study like books, periodicals, journals, newspapers and the Internet. Data Collection Primary Data: To be collected through structured questionnaires, personal interviews/ discussions with focus on his/ her choice before availing for the service. Data which is collected through direct interviews and by raising

40

SAMPLE DESIGN Sampling unit: (a) Airtel Vendors (b) Airtel Executives (c) Field Officers Sample size: Research Location: 100 Delhi, India

Sampling Procedure
Respondents are chosen through stratified random sampling

Data Collection
Sources of data: 1) Primary Data which included the input received from directly the employees through questionnaire and interview 2) Secondary data from the books, journals and internet etc. Method of collecting data: Questionnaire (Schedule) & Interview method Secondary Data: Secondary data will be collected through the following sources

Articles, Reports, Journals, Magazines, Newspapers and Internet Research Constraints: Geographical Limitation; Busy Schedule of the officials and customers of Airtel

Scope of This Research

The research will be limited to analyzing the market and recharge strategy of Airtel in NCR Delhi market only

41

Statistical Techniques to be tool used

The data was shown with the help of diagrams and bar graphs.

42

CHAPTE R -6 ANALYS IS O F DATA

43

DATA ANALYSIS
1. How do you see the market for Airtel in India? Very demanding ------------------------ 18 per cent Demanding ------------------------------ 42 per cent Not demanding ------------------------- 17 per cent Not at all demanding ------------------- 06 per cent Do not know/ Can not say ------------ 17 per cent

45% 40% 35% 30% 25% 20% 15% 10% 18%

42%

17%

17%

Very demanding Demanding Not demanding Not at all demanding Do not know/ Can not say

6% 5% 0%

Fig. 6.1: Market Response

Interpretation:
From the above response, we can say that the demand for Airtel products in India is demanding in India.

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2. For how many years you are in the communication segment of business? Less than one year ------------------------------ 32 per cent >One year but<five year ----------------------- 36 per cent More than five year ----------------------------- 15 per cent Do not know/ Cannot say ---------------------- 17 per cent

40% 36% 35% 30% 25% 20% 15% 10% 5% 0% 15% 17% Less than one year >One year but<five year More than five year Do not know/ Cannot say 32%

Fig. 6.2: Communication segment of business

Interpretation:
As regards the user profile of our respondents, it may be stated that 36 per cent of the respondents are in the communication technology business for a period of more than one year but less than five years, followed by 32 per cent of the respondents who are users for less than one year and 15 per cent of the respondents who are in this business for more than five years.

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3. What factors do the consumers consider while they go for a new Airtel connection? You can chose more than one options Tariff Structure ------------------------- 67 per cent Network connectivity ------------------ 53 per cent Value added service provided -------- 35 per cent Other factors ---------------------------- 15 per cent

70% 60% 50% 40% 30% 20% 10% 0%

67%

53% Tariff Structure Network connectivity Value added service provided Other factors 15%

35%

Fig. 6.3: Airtel connection

Interpretation:
As regards the factors that determine the choice of the customers with regard to use or not to use a service provider, the study suggests that the important factors are: Tariff structure followed by network connectivity and the value added services offered by the service providers.

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4. How do you perceive Airtel as a brand in the telecom market from the cost factor point of view? Cost effective --------------------------30 per cent 48 per cent 22 per cent Costly in comparison to other service providers--- Do not know/ Can not say ------------------------

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 30%

48%

Cost effective 22% Costly in comparison to other service providers Do not know/ Can not say

Fig. 6.4: Airtel as a brand in the telecom market

Interpretation:
As regards the cost factor, 30 per cent of the respondents are of the opinion that Airtel is cost effective service provider in comparison with the other service providers available in the market. As against this, 48 per cent of the respondents opined that Airtel is a costly service provider wile compared with other service providers in the market.

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5. How do you place Airtel vis-a vis other satellite service providers with regard to various value added services offered to the customers? Airtel provides better value added services -------------------------------------------- The value added services are worse ---------------- Do not know/ Can not say ---------------------------43 per cent 36 per cent 08 per cent 13 per cent Value added services are more or less similar across the service providers

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

43% 36% DTH provides better value added services Value added services are more or less similar across the service providers The value added services are worse 13% Do not know/ Can not say 8%

Fig. 6.5: Services offered to the customers

Interpretation:
FTH leads the satellite television market as far as the value added services offered to the customers by the service providers.

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6. Do you think the promotional measures undertaken by Airtel Companies helps in their market expansion? Yes --------------------------------------- 40 per cent No ----------------------------------------37 per cent Do not know/ can not say ------------- 23 per cent

40% 35% 30% 25% 20% 15% 10% 5% 0%

40% 37%

23%

Yes No Do not know/ can not say

Fig. 6.6: Market expansion

Interpretation:
The above analysis suggests that the promotional measures of the Airtel brand is effective in market expansion, however, the degree and the extent of effectiveness could not be measured out of the study result and this may be treated on out the various limitations of the present study.

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7. Do you agree that the customers are satisfied with the services offered by Airtel companies? Yes ----------------------------------------------- 53 per cent No ------------------------------------------------- 38 per cent Do not know/ Can not say -------------------- 09 per cent

60% 53% 50% 40% 30% 20% 10% 0% 9% 38% Yes No Do not know/ can not say

Fig. 6.7: Satisfied services offered by Airtel companies

Interpretation:
The above response suggests that Airtel provide quality services to their customers but a significant number of 38 per cent as dissatisfied customers also speaks something.

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8. Do you agree that customer augmentation is the sole objective behind the reduction in tariff rate and the subsequent price war in the cellular sector in India? Agree --------------------------------------------- 66 per cent Disagree ----------------------------------------- 14 per cent Do not know/ Can not say --------------------- 20 per cent

70% 60% 50% 40% 30% 20% 10% 0%

66%

Agree Disagree Do not know/ Can not say 20% 14%

Fig. 6.8: Customer augmentation

Interpretation:
As regards the reason behind the prevailing price war in the Cellular sector, 66 per cent of the respondents have impressed upon customer augmentation as the sole reason for occurrence of this phenomenon. This has not been agreed upon by 14 per cent of the respondents.

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9. What are the Market strengths and weaknesses of Airtel brand in the Indian consumer sector? STRENGTHS: Largest customer base -------------------------- 47 per cent Improved Technological innovation --------- 24 per cent Better value added services -------------------- 18 per cent Others --------------------------------------------- 11 per cent

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

47%

Largest customer base Improved Technological innovation Better value added services Others 11%

24% 18%

Fig. 6.9: Airtel brand in the Indian consumer sector

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WEAKNESSES:
High price structure -------------------- 40 per cent Lack of rural penetration -------------- 33 per cent Poor distribution network ------------ 12 per cent Others ------------------------------------ 15 per cent

40% 35% 30% 25% 20% 15% 10% 5% 0%

40%

33% High price structure Lack of rural penetration Poor distribution network Others

15% 12%

Fig. 6.10: Weaknesses

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10. Do you consider consumers choice when you launch your promotional schemes? Yes --------------------------- No ---------------------------86 per cent 07 per cent

Do not know/ can not say --- 07 per cent

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

86%

Yes No Do not know/ can not say

7%

7%

Fig. 6.11: Promotional schemes

Interpretation:
Consumers interests and preferences are well taken care of by the company while launching promotional schemes.

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11. Future of Airtel in Indian market? Has a lot of potential for future growth ---54 per cent Has reached its saturation limit --------------- 26 per cent Future is uncertain ------------------------------ 07 per cent Do not know/ Can not say --------------------- 13 per cent

60% 54% 50% 40% 30% 20% 13% 10% 0% 7% Has a lot of potential for future growth Has reached its saturation limit Future is uncertain Do not know/ Can not say

26%

Fig. 6.12: Future of Airtel in Indian market

Interpretation:
Airtel has a good growth potential as a telecom service provider in the Indian market. The future growth of Indian economy and a growing middle class as well as market expansion strategies adopted by it from time to time will help it further.

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ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

Table 6.1: Balance Sheet of Bharti Airtel Balance Sheet of Bharti Airtel Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 1,898.80 1,898.80 278.60 0.00 41,932.10 2.10 44,111.60 17.10 11,880.40 11,897.50 56,009.10 Mar '11 12 mths 61,437.50 20,736.70 40,700.80 6,497.60 11,813.00 34.40 2,375.80 126.60 2,536.80 11,186.10 7.20 13,730.10 ------------------- in Rs. Cr. ------------------Mar '10 12 mths 1,898.77 1,898.77 186.09 0.00 34,650.19 2.13 36,737.18 39.43 4,999.49 5,038.92 41,776.10 Mar '10 12 mths 44,212.53 16,187.56 28,024.97 1,594.74 15,773.32 27.24 2,104.98 54.89 2,187.11 7,072.42 761.86 10,021.39 Mar '09 12 mths 1,898.24 1,898.24 116.22 0.00 25,627.38 2.13 27,643.97 51.73 7,661.92 7,713.65 35,357.62 Mar '09 12 mths 37,266.70 12,253.34 25,013.36 2,566.67 11,777.76 62.15 2,550.05 153.44 2,765.64 5,602.83 2,098.16 10,466.63 Mar '08 12 mths 1,897.91 1,897.91 57.63 0.00 18,283.82 2.13 20,241.49 52.42 6,517.92 6,570.34 26,811.83 Mar '08 12 mths 28,115.65 9,085.00 19,030.65 2,751.08 10,952.85 56.86 2,776.46 200.86 3,034.18 5,103.13 302.08 8,439.39 Mar '07 12 mths 1,895.93 1,895.93 30.00 0.00 9,515.21 2.13 11,443.27 266.45 5,044.36 5,310.81 16,754.08 Mar '07 12 mths 26,509.93 7,204.30 19,305.63 2,375.82 705.82 47.81 1,418.52 239.11 1,705.44 3,160.02 541.35 5,406.81

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances

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Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

0.00 16,104.80 627.60 16,732.40 -3,002.30 0.00 56,009.10 49,771.40 115.42

0.00 12,979.55 658.75 13,638.30 -3,616.91 0.00 41,776.12 3,921.50 96.24

0.00 13,832.49 634.40 14,466.89 -4,000.26 0.09 35,357.62 4,104.25 145.01

0.00 12,400.38 1,961.95 14,362.33 -5,922.94 0.20 26,811.84 7,140.59 106.34

0.00 9,809.83 1,232.84 11,042.67 -5,635.86 2.66 16,754.07 7,615.04 60.19

Table 6.2: Profit & Loss account of Bharti Airtel Profit & Loss account of Bharti Airtel Mar '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 38,015.80 0.00 38,015.80 218.20 7.20 38,241.20 251.30 0.00 1,304.50 14,204.20 8,137.70 699.60 0.00 24,597.30 Mar '11 12 mths 13,425.70 13,643.90 296.70 ------------------- in Rs. Cr. ------------------Mar '10 12 mths 35,609.54 0.00 35,609.54 1,118.46 -34.91 36,693.09 278.72 0.00 1,401.66 11,882.41 6,856.42 1,482.39 -293.31 21,608.29 Mar '10 12 mths 13,966.34 15,084.80 283.35 Mar '09 12 mths 34,048.32 0.00 34,048.32 -1,261.75 5.29 32,791.86 286.94 0.00 1,397.54 8,627.13 9,385.68 1,409.89 -269.25 20,837.93 Mar '09 12 mths 13,215.68 11,953.93 434.16 Mar '08 12 mths Mar '07 12 mths

25,761.11 17,851.61 0.00 0.00 25,761.11 17,851.61 104.04 105.62 9.05 30.07 25,874.20 17,987.30 42.90 0.00 1,297.88 7,339.01 5,892.50 535.46 0.00 52.16 0.00 1,076.95 5,017.27 4,030.48 444.28 0.00

Operating Profit PBDIT Interest

15,107.75 10,621.14 Mar '08 Mar '07 12 mths 12 mths 10,662.41 7,260.54 10,766.45 7,366.16 393.43 282.07

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PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

13,347.20 4,193.70 417.90 8,735.60 11.80 8,747.40 1,007.60 7,716.90 24,346.00 0.00 379.80 60.10 37,975.30 20.32 20.00 115.42

14,801.45 3,890.08 207.84 10,703.53 -50.78 10,652.75 1,177.87 9,426.15 21,329.56 0.00 379.79 64.55 37,975.30 24.82 20.00 96.24

11,519.77 3,206.28 178.82 8,134.67 -46.15 8,088.52 321.78 7,743.84 20,551.00 0.00 379.65 64.52 18,982.40 40.79 20.00 145.01

10,373.02 3,166.58 266.07 6,940.37 -60.67 6,879.70

7,084.09 2,353.30 137.80 4,592.99 9.92 4,602.91

632.43 566.79 6,244.19 4,033.23 15,064.84 10,568.98 0.00 0.00 0.00 0.00 0.00 0.00 18,979.07 18,959.34 32.90 21.27 0.00 0.00 106.34 60.19

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Table 6.3: Cash Flow of Bharti Airtel Cash Flow of Bharti Airtel ------------------- in Rs. Cr. -------------------

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing

Mar '11 Mar '10 Mar '09 12 mths 12 mths 12 mths 8725.80 10699.25 8161.54 13215.40 12692.63 11853.15

Mar '08 12 mths 6972.54 10459.85

Mar '07 12 mths 4601.37 8107.95 -7975.05

-19075.00 -10601.66 -10894.38 -11648.41

5646.50 -2539.32 Activities Net (decrease)/increase In Cash -213.10 and Cash Equivalents Opening Cash & Cash Equivalents 341.50 Closing Cash & Cash Equivalents 128.40 Source : Dion Global Solutions Limited Explore Bharti Airtel connections -448.35 789.88 341.53

-672.00

898.03

340.13

286.77 503.31 790.08

-290.53 793.47 502.94

473.03 307.43 780.46

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S.W.O.T ANALYSIS OF AIRTEL

Strength: Technology: Both the facets of technology i.e. backbone as well as value added

services have already been mentioned earlier. Airtel is performing up to the mark in both areas and hence it is strength but in the future it shall have to upgrade at even faster as more players especially multinationals enter the fray. Customer care: Airtel prides itself on being really close to its customers, it is

as explained earlier investing heavily in this area. Market share: Since Airtel was a first cellular provider it has always had the

highest market share as far as customer base is concerned. Brand & promotions: Airtel as a brand in more prevalent in the customers

mind than that of Vodafone. Its promotion has always been of connectivity and a good live than promoting cell phones. It has a strong brand image and always uses promotional strategies that are used to communicate to a mass of people, one being hoardings at the bus stops. Weakness Losing lead on technical expertise: Though Airtel has managed to keep its

nose ahead on basic technical aspects of telecommunication, Vodafone backed by Hutchison & MTNL are bridging the gap. Susceptible to a price war: A price war is a distinct possibility since Orange

may choose this as a strategy to Upstage Airtel. MTNL is also likely to make a strong bid to fight on the price front. Bharti can ill-afford to wage a price war as it has already investment heavily on the telecommunication infrastructure front. Outer Delhi range inadequate: On and around the outskirts of Delhi the voice

and signal quality of Airtel services tends to deteriorate. This is a source of irritation and hence customer dissatisfaction. Opportunities Change in customer profile: It has been observed that the customer profile has

shifted from rich businessmen to youngsters, traders, executives, working women 60

etc. This is a segment, which is yet to be tapped. The lower middle class is yet another segment to be targeted as first time users Technical manpower dearth at VODAFONE: An exodus of lower level

technical staff has weakened Vodafones maintenance and technical support base. This could lead to a fall in quality of their systems. It is a good time for Airtel to score over Vodafone on this front. Growth of cell users: The past couple of years has seen a nearly exponential further in the future due to

growth in cell subscribers. This is because of the drop in handset prices and tariff rates. These two prices are likely to go down is to open up. Threats: Vodafone is gaining technologically: Vodafone has now acquired outsourcing technological breakthroughs and Government policies. Hence a huge customer base

for all its new projects. Motorola is the company, which provides this outsourcing. This though expensive has greatly increased the efficiency and speed of Vodafones projects. It is a big challenge for Airtel; as its technological superiority could be challenged which would seriously affect its status as market leader of cellular services. Vodafone: deeper pockets!! Hutchison, the cellular giant has started giving

Vodafone technological and financial support. As a result it has made it possible for Vodafone to expand and improve all its operations be it on the services, promotion, advertising or marketing fronts. This is a cause of worry for Airtel as Vodafone would be a greater force to reckon with, given the advantages cited. Third and Fourth players: MTNL is to be the third player in the Delhi circle.

It has already got most of the Infrastructure in place for commencement of operations. They have put the infrastructure in place by acquiring the expertise from LUCENT Technologies. MTNL also has control of the landline systems, which exist. Another advantage is the government backing that MTNL will always enjoy.

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C HAPTER -7 F INDINGS , I NFEREN C ES AND R ECOMM E NDATIO N S

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FINDINGS, INFERENCES AND RECOMMENDATIONS

From above discussion and analysis I conclude that 70% Airtel users preferred to remain with Airtel. Also good nmber of users who were willing to switch from their respective subscribers showed interest in Airtel. Hence, these statistics imply a bright future for the company. Also the company is now providing more services like the door to door services which is you dial the Airtel customer care and would like to send someone flowers the Airtel company delivers those flowers to the person concerned. Also Airtel is providing free text messaging service and free voice mail service. Call conferencing is also another feature Airtel provides. Airtel connections are selling because of best network coverage. Good relationship of FOS & retailer is being helpful in selling. Large market coverage, easy availability of coupons. Customer care number does not connect easily and executives there were also not aware of the schemes.

RECOMMENDATION
IMPROVING CUSTOMER SERVICES To build itself as a brand that makes available the telecom services at a cheaper price. Presently it has been perceived as a costly brand. In a developing country like India, this strategy would help a lot. Market expansion and penetration into the rural market. Adoption of more innovative marketing strategies like using celebrities at the local level and joint venture with the reputed and cost effective Airtel, dealers and retailers.

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CHAPTE R -8 CO NCLUSI ONS

64

CONCLUSIONS
The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research It may be concluded from the discussion regarding wage and salary administration that wages and salary can be fixed between two limits of minimum wages and livings wages. Living wage should enable the earner with more to provide for himself and his family not merely the basic essentials of food, clothing and shelter, but a measure of frugal comforts including 1. Education for children 2. Protection against ill-health 3. Requirements of essential social need and 4. A measure of insurance against the more important misfortunes including old age. The actual determination of wages and a salary is governed by productivity of workers, prevailing rates of wages and salary level of national income, capacity of the industry to pay wage differentials and fringe benefits in corresponding place and the importance of industry in relation to national economy. The efficiency of an industry is directly related with the quality of relationship which is being built up among the individuals who work together. Wages and salaries have far reaching efforts on labour management relations. Better the wage policies of a factory, better will be relation between employees and employer. If the relationship between worker and the management is better will be the production and according to the desired goal of the employer.

65

C HAPTER -9 S UMMAR Y OF THE PROJECT REPORT

66

SUMMARY OF THE PROJECT REPORT

Marketing activities at Airtel are a mix of continuous, diverse and balanced initiatives based on the companys ethos, Demand More-demand more products, more quality, more personalized solutions from Airtel Aimed at consumers, channel partners and business associates, the companys strategy is to not only portray Airtel as a responsible brand through various above-the-line and below-the-line activities but also to provide them interactive platforms to enrich the touch & feel experience, which strengthen sales efforts and help in developing strong associations. The underlying objective is to make all associates feel proud of being a part of the Airtel family. Airtel realizes that what matters most in brand marketing has always been, and always will be, the relationship between a brand and its consumers. And the key to the brand relationship is trust. People are constantly being crowded with messages and information they dont have time to sort out therefore they want brands they can believe in. There is stiff competition from other players and consumer products are a highvolume, low-margin business. Airtel is well positioned, with good relationships with retailers and a strong manufacturing base in place. A key deciding factor in the marketing strategy is keeping in mind the lifestyle requirements of Indians and the income constraints.

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10.1: Questionnaire

CHAPTE R -10 ANNEXU R E

Annexure- 1
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1. How do you see the market for Airtel in India? Very demanding ------------------------- Demanding -------------------------------- Not demanding --------------------------- Not at all demanding --------------------- Do not know/ Can not say --------------2. For how many years you are in the communication segment of business? Less than one year ----------------------------- >One year but<five year ----------------------- More than five year ------------------------------ Do not know/ Cannot say -----------------------3. What factors do the consumers consider while they go for a new Airtel connection? You can chose more than one options Tariff Structure --------------------------- Network connectivity -------------------------------- Value added service provided ------------------------- Other factors 4. How do you perceive Airtel as a brand in the telecom market from the cost factor point of view? Cost effective ------------------------------ Costly in comparison to other service providers--- Do not know/ Can not say ------------------------

5. How do you place Airtel vis-a vis other satellite service providers with regard to various value added services offered to the customers? Airtel provides better value added services ------------ Value added services are more or less similar across the service providers 69

 The value added services are worse ---------------- Do not know/ Can not say ----------------------------

6. Do you think the promotional measures undertaken by Airtel Companies helps in their market expansion? Yes -------------------------------------- No ---------------------------------------- Do not know/ can not say ------------7. Do you agree that the customers are satisfied with the services offered by Airtel companies? Yes ---------------------------------------------- No ------------------------------------------------- Do not know/ Can not say -------------------8. Do you agree that customer augmentation is the sole objective behind the reduction in tariff rate and the subsequent price war in the cellular sector in India? Agree --------------------------------------------------- Disagree ----------------------------------------------- Do not know/ Can not say --------------------------9. What are the Market strengths and weaknesses of Airtel brand in the Indian consumer sector?

STRENGTHS:
Largest customer base -------------------------- Improved Technological innovation -------------- Better value added services ----------------------- Others ---------------------------------------------

WEAKNESSES:
High price structure -------------------------- Lack of rural penetration -------------------70

 Poor distribution network ----------------------- Others -----------------------------------------10. Do you consider consumers choice when you launch your promotional schemes? Yes --------------------------- No --------------------------- Do not know/ can not say --11. Future of Airtel in Indian market? Has a lot of potential for future growth ----------- Has reached its saturation limit -------------------- Future is uncertain ----------------------------- Do not know/ Can not say ----------------------------------

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ANNEXURE 3
10.3: REFERENCES/BIBLIOGRAPHY
Books Bungess, L.R. 1984. Wages and Salary Administration. Charles E. Merrie Publishing co. Column US. Arm strong, M. and Helen Muslis, 1980.Salary Administration, Lo gan page ltd. London. Suri, G.K. 1976. Productivity wages industrial relations. Affiliated East west Press New Delhi. Bhattacharya, Research Methodology, Publisher Customer Service Manual (Airtel) HR Manual, Policies & Procedures, BTVL Books & magazine on mobile communication Marketing Management by Philip Kotler Research Methodology by C.R. Kothari MAGAZINES & JOURNALS HR Executive Editorial Survey (2007), Workplace Turnover Study, Human Resource Executive Magazine Indian Management Magazine, Vol 44 Issue 1, Jan2008

INTERNET WEBSITES
www.callcentrehelper.com www.keepemployees.com www.airtelworld.com www.bhartiteleventures.com 72

ANNEXURE 4
10.4: LIST OF FIGURES, CHARTS, DIAGRAMS
Figure No. Fig. 1.1: Fig. 1.2 Fig. 1.3 Fig. 6.1: Fig. 6.2: Fig. 6.3: Fig. 6.4: Fig. 6.5: Fig. 6.6: Fig. 6.7: Fig. 6.8: Fig. 6.9: Fig. 6.10: Fig. 6.11: Fig. 6.12: Particular CORPORATE STRUCTURE Airtel Market Share of Airtel Market Market Response Communication segment of business Airtel connection Airtel as a brand in the telecom market Services offered to the customers Market expansion Satisfied services offered by Airtel companies Customer augmentation Airtel brand in the Indian consumer sector Weaknesses Promotional schemes Future of Airtel in Indian market

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ANNEXURE - 5
10.5: LIST OF TABLES
Table No. Table 1.1: Table 1.2: Table 6.1: Table 6.2: Table 6.3: Particular Some services which we are providing:Finished Products Balance Sheet of Bharti Airtel Profit & Loss account of Bharti Airtel Cash Flow of Bharti Airtel

74