Background

About the Industry

India has a fast-growing mobile services market with excellent potential for the future. With

almost five million subscribers amassed in less than two years of operation, India's growth

tempohas far exceeded that of numerous other markets, such as China and Thailand, which

have takenmore than five years to reach the figures India currently holds. The number of

mobile phonesubscribers in the country would exceed 90 million by 2010 and cross 900

million by 2015,according to Cellular Operators Association of India (COAI).

According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market,

suchgrowth rates can be greatly attributed to the drastically falling price of mobile handsets,

withprice playing a fundamental role in Indian subscriber requirements. Subscribers in

certain regionscan acquire the handset at almost no cost, thanks to the mass-market stage

these technologieshave reached internationally. The Indian consumer can buy a handset for

$150 or less. Thisshould lead to increased subscribership. This market is growing at an

extremely fast pace and sois the competition between the mobile service providers.

With the presence of a number of mobile telephony services providers including market

leaderslike Airtel, Reliance, Idea Cellular, Tata Indicom, Spice Communications etc. who are

providingeither of the two network technologies such as Global System for Mobile

Communications(GSM) and Code Division Multiple Access (CDMA). In cellular service there

are two maincompeting network technologies: Global System for Mobile Communications

(GSM) and CodeDivision Multiple Access (CDMA). Understanding the difference between

1
GSM and CDMA willallow the user to choose the preferable network technology for his

needs.

Global System for Mobile Communication (GSM) is a new digital technology developed by

theEuropean community to create a common mobile standard around the world. It helps

you achievehigher sell capacity and better speech quality and one can enjoy crystal clear

reception on onesmobile phone. It automatically solves the problem of eavesdropping on

ones calls.

Before analyzing the telecom licensing framework in India, it is imperative that one

mustexamine what is a license. License issued by the government is an authority, given to a

personupon certain conditions to do something which would have been illegal or wrongful

otherwise.

For example, a driver‘s license issued by the government, gives the authority to a person to

drivea motor vehicle. There are three main types of license fee which the government

charges: (I)initial license fee, which generally is non-refundable,

(ii) annual license fee, and

(iii) additionalfee for allocation of spectrum.

Licensing framework has been an integral part of India‘s telecommunication law. Under the

Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any

person to establish, maintain or use a telegraph.

Code Division Multiple Access (CDMA) describes a communication channel access principle

2
that employs spread spectrum technology and a special coding scheme (where each

transmitter isassigned a code). It is a spread spectrum signaling, since the modulated coded

signal has a muchhigher bandwidth than the data being communicated. CDMA is the current

name for mobiletechnology and is characterized by high capacity and small cell radius. It has

been used in manycommunication and navigation systems, including the Global Positioning

System and theomnitracs satellite system for transportation logistics.

Indian mobile telephony market is increasing day by day and there is more to happen with

technological up gradations occurring nearly every day and the ever-increasing demand for

easier andfaster connectivity, the mobile telephony market is expected to race ahead.

National Telecom Policy 1994 (NTP-94)

The National Telecom Policy was announced in 1994 which aimed at improving India's

competitiveness in the global market and provide a base for a rapid growth in exports. This

policy eventually facilitated the emergence of Internet services in India on the back of

established basic telephony communication network. This policy also paved way for the

entry ofthe private sector in telephone services.

The main objectives of the policy were:

To ensure telecommunication is within the reach of all, that is, to ensure availabilityof

telephone on demand as early as possible

To achieve universal service covering all villages, that is, enable all people to access

certain basic telecom services at affordable and reasonable prices

To ensure world-class telecom services. Remove consumer complaints, resolve

3
disputes and encourage public interface and provide a wide permissible range of

services to meet the demand at reasonable prices

To ensure that India emerges as a major manufacturing base and major exporter of

telecom equipment

To protect the defence and security interests of the nation.

The policy also announced a series of specific targets to be achieved by 1997 and further

recognized that to achieve these targets the private sector association and investment

would berequired to bridge the resource gap.

Thus, to meet the telecom needs of the nation and to achieve international comparable

standards,the sector for manufacture of telecom equipment had been progressively

relicensed and the subsectorfor value-added services was opened up to private investment

(July 1992) for electronicmail, voice mail, data services, audio text services, video text

services, video conferencing, radiopaging and cellular mobile telephone. The private sector

participation in the sector was carriedout in a phased manner. Initially the private sector

was allowed in the value added services, andthereafter, it was allowed in the fixed

telephone services. Subsequently, VSAT services wereliberalized for private sector

participation to provide data services to closed user groups.

Establishment of TRAI

The entry of private players necessitated independent regulation in the sector; therefore,

theTRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs,

andalso to fulfil the commitments made when India joined the World Trade Organization

4
(WTO) in1995. The establishment of TRAI was a positive step as it separated the regulatory

function frompolicy-making and operation, which continued to be under the purview of the

DoT2.

The functions allotted to the TRAI included:

a. To recommend the need and timing for introduction of new service provider

b. To protect the interest of customers of telecom services

c. To settle disputes between service providers

d. To recommend the terms and conditions of license to a service provider

e. To render advice to the Central government on matters relating to the development of

telecommunication technology and any other matter applicable to the telecommunication

industry in general.

New Telecom Policy 1999 (NTP-99)

In recognition of the fact that the entry of the private sector, which was envisaged during

NTP-94, was not satisfactory and in response to the concerns of the private operators and

investorsabout the viability of their business due to non realization of targeted revenues the

governmentdecided to come up with a new telecom policy. Moreover, convergence of both

markets andtechnologies required realignment of the industry. To achieve India‘s vision of

becoming an ITsuperpower along with developing a world class telecom infrastructure in

the country, there wasa need to develop a new telecom policy framework. Accordingly, the

NTP 1999 was framedwith the following objectives and targets:

5
 Availability of affordable and effective communication for citizens was at the core of

thevision and goal of the new telecom policy

Provide a balance between provision of universal service to all uncovered areas, including

rural areas, and the provision of high-level services capable of meeting the needs of

theeconomy

Encourage development of telecommunication facilities in remote, hilly and tribal areas

of the nation

To facilitate India‘s journey to becoming an IT superpower by creating a modern

andefficient telecommunication infrastructure taking into account the convergence of

IT,media, telecom and consumer electronics

Convert PCOs, wherever justified, into public telephone information centers

havingmultimedia capability such as ISDN services, remote database access, government

andcommunity information systems etc.

To bring about a competitive environment in both urban and rural areas by providingequal

opportunities and level playing field for all players

Providing a thrust to build world-class manufacturing capabilities and also

strengthenresearch and development efforts in the country

Achieve efficiency and transparency in spectrum management

Protect the defense and security interests of the country

Enable Indian telecom companies to become global players.

In line with the above objectives, some of the specific targets of the NTP 1999 were:

6
 Make available, telephone on demand by 2012 and achieve a tele density of 7% by 2015

and 15% by 2017

Encourage development of telecom in rural areas by developing a suitable tariff structure

so that it becomes more affordable and by also making rural communication mandatory

for all fixed service players and thus to Achieve a rural tele density of 6% by 2016 and

provide reliable transmissionmedia in all rural areas.

Players in the market

BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per

cent market share. Next is Bharti Airtel at 10.9% followed by Tata and Reliance at 5%

and 4.1% respectively.

BSNL as a company is growing and showed annual revenues of approximately $4.5

billion as of 2016. BSNL is serving more than 125 million customers across the country

and is catalyst in checking the price point for telecom services.

Also, with the government intensifying its rural focus, only BSNL can turn into reality the

next wave of rural telecom penetration.

BSNL is a 100% Central Government entity and employees with BSNL are entitled to get

salaries and perks as decided by Government of India and not by BSNL

However both, MTNL and BSNL are plagued by declining revenues coupled with high

costs. BSNL has massive infrastructure, manpower, systems, and 80 per cent of landlines

7
and 90 per cent of broadband connections in India are operated by it.

―Vodafone is investing nearly US$ 3 billion over the next two years in India in expanding

its network infrastructure and distribution channel in the country,‖ as per Vittorio Colao,

CEO, Vodafone Plc.

BlackBerry plans to set up enterprise solutions centres to educate corporate customers

about various BlackBerry Enterprise Service (BES) 10 solutions. "India is one of the

fastest growing markets in terms of smartphone and mobile data adoption,‖ said according

to Sunil Lalvani, Managing Director (MD), BlackBerry India.

Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the

country in the next two years.

Booming sectors

The tide has turned for the telecom sector in India, as growth and profitability has

accelerated in recent times. Tower companies are reaping benefits of a turnaround in the

sector as operators have started investing in networks to boost data penetration.

However it is in the country‘s booming mobile segment in which the major battles are

being fought. Three major private players – Bharti, Reliance and Vodafone - with a

formidable 54% share of the market between them, lead a large field of mobile operators.

State-owned enterprises –BSNL and MTNL – have also been making their presence felt

with a combined market share of 12%.

8
A look ahead

According to Craig Wigginton, vice chairman and U.S. Telecommunications leader,

Deloitte &Touche LLP, the big challenge for the telecom industry in 2016 – which also

presents a major growth opportunity for the sector – is that consumers are getting addicted

to connectivity and speed.

The ongoing expansion of the mobile ecosystem, coupled with demand for highbandwidth

applications and services such as video and gaming, is keeping pressure on the

industry to increase the availability and quality of broadband connectivity.

What does this mean for players in the sector? Carriers will continue to pursue

technological advancements to handle demand, including offloading some mobile

bandwidth needs to Wi-Fi, which is proving an effective complement to mobile networks.

At the same time, long-term spectrum availability, spectrum efficiency, small cells and

continued backhaul improvements are likely to be a key focus to assure continued mobile

broadband momentum.

9
 Company profile

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The businesses at

BhartiAirtel have been structured into three individual strategic business units (SBU‘s)

1. Mobile services

2. Broadband and telephone services (B&T)

3. Enterprise services

The Mobile services group provides GSM mobile services across India in 23 telecom circles,

whileB&T business group provides broadband & telephone services in 94 cities. The

Enterprise Servicesgroup has two sub-units – carriers (long distance services) and services

top corporates. All theseservices are provided under the Airtel brand

Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private

integrated

telecom conglomerate, Bharti Enterprises. A consortium of giants in the telecommunication

business.

10
In its six years of pursuit of greater customer satisfaction, Airtel has redefined the business

throughmarketing innovations, continuous technological up gradation of the network,

introduction of newgeneration value added services and the highest standard of customer

care.

Bharti is the leading cellular service provider, with an all India footprint covering all 23

telecom

circles of the country. It has over 25 million satisfied customers.

Bharti Airtel limited is a telecom MNC headquartered in New Delhi India, with a presence in

countries across the world its the 4th largest telecom company in the world in terms of

subscribersbase which was over 275 million as on July 2013. Airtel is also the largest telecom

company in Indiaand the second largest in country mobile operator by subscriber base after

china mobile.

11
 Founder

Sunil Bharti Mittal is the head of Airtel. Airtel is the largest provider of mobile telephony and

secondin terms of fixed telephony and also provides broadband and DTH services. Airtel

became the firstIndian company to get gold certification by CISCO.

Airtel is appreciated for forming a business strategy of outsourcing all its operations except

sales,marketing and finance ensuring low cost and high volumes. The network is outsourced

to Ericssonand Nokia Siemens whereas it is outsourced to IBM, transmission towers are

maintained by bhartiinfratel ltd. In India.

Cellular telephony was introduced in India during the early 1990s. At that time, there were

only twomajor private players, Bharti (Airtel) and Essar (Essar) and both these companies

offered onlypost-paid services. Initially, the cellular services market registered limited

growth. Moreover, theseservices were mostly restricted to the metros. Other factors such

as lack of awareness among people,lack of infrastructural facilities, low standard of living,

and government regulations were alsoresponsible for the slow growth of cellular phone.

With the presence of a number of mobile telephony services providers including market

leaders likeAirtel, Reliance, Idea Cellular, Tata Indicom, Spice Communications etc. who are

providing either ofthe two network technologies such as Global System for Mobile

Communications (GSM) and CodeDivision Multiple Access (CDMA). In cellular service there

are two main competing networktechnologies: Global System for Mobile Communications

(GSM) and Code Division Multiple Access(CDMA). Understanding the difference between

GSM and CDMA will allow the user to choose thepreferable network technology for his

needs.

12
Indian mobile telephony market is increasing day by day and there is more to happen with

technological up gradations occurring nearly every day and the ever-increasing demand for

easier andfaster connectivity, the mobile telephony market is expected to race ahead…

The mobile telephony services providers Airtel, Vodafone (Formerly Hutch), have been

competingaggressively for their market share with MTNL, Tata Indicom, Reliance and Idea

Cellular enteringinto the foray, this tussle has only become tougher. With major market

share in the hands of the likesof Reliance, Airtel, Vodafone (Formerly Hutch), Idea Cellular

the others have been finding it difficultto compete in the market.

The Telecom Regulatory Authority Of India (TRAI) has been playing an important role in

keeping awatch on these existing players and bringing new environment as well as policies

and reforms forthese Mobile Telephony Service Providers and permitting them to provide

mobile telephony servicesincluding permission to carry its own long distance traffic within

their service area without seeking anadditional license. TRAI’s mission is to create and

nurture conditions for the growth oftelecommunications including broadcasting and cable

services in the country in a manner andat a pace which will enable India to play a leading

role in the emerging global informationsociety. The service providers are free to provide, in

its service area of operation, all types of mobileservices including voice and non-voice

messages, data services and PCO‘s. The Operators would berequired to pay a one-time

entry fee. The basis for determining the entry fee and the basis forselection of additional

operators would be recommended by the TRAI. Apart from the one time entryfee, operators

would also be required to pay license fee based on a revenue share. It is proposed thatthe

appropriate level of entry fee and percentage of revenue share arrangement for different

serviceareas would be recommended by TRAI in a2

13
Although the cellular services market in India grew during the late 1990s (as the number of

playersincreased and tariffs and handset prices came down significantly) the growth was

rather marginal.This was because the cellular service providers offered only post-paid

cellular services, which werestill perceived to be very costly as compared to landline

communications. Following this realization,the major cellular service providers in India,

launched pre-paid cellular services in the late 1990s. Themain purpose of these services was

to target customers from all sections of society (unlike post-paidservices, which were

targeted only at the premium segment).

14
 Airtels’s Vision

By 2015 Airtel will be the most admired brand in India:

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our customers

and how

we want them to feel. We deliver what we promise and go out of our way to delight the

customer with

a little bit more

Bharti’s Mission

To be globally admired for telecom services that delight customers.

We will meet global standards for telecom services that delight customers through:

Customer Service Focus

Empowered Employees

Cost Efficiency

Unified Messaging Solutions

15
 STRENGTHS

· Cost advantage

· Current leaders in quality service

· Largest distribution network

· Ability to constantly innovate

· Highly skilled workforce

· Entrepreneurial zeal

· Airtel‘s increased equity and market cap.

WEAKNESSES

· To prove credibility

· Price pressures

· Need for Government support

· Awareness

· Sales and Marketing

OPPORTUNITIES

· To sustain passion and commitment

· Airtel‘s market share increasing at other service provider expense.

· Attain higher value services

· Collaborative business needs to be explored

16
· Vertical repeatable solutions.

· Low penetration level in rural markets.

THREATS

· Foreign investment

· Global trends moving from GPS to WLL.

· Lack of global parity in telecom tariff

· Other competition

17
 The Airtel Brand and its Logo

There has been no change in the brand name Airtel was born free, a force to unleash into

the marketwith a relentless and unwavering determination to succeed. A spirit charged with

energy creativityand team driven to seize the day with an ambition to become the most

globally admired telecomservice.

The Airtel logo is a strong, contemporary and confident symbol for a brand that is always

ahead ofthe rest. It is a specially drawn wordmark.

The unique symbol is an interpretation of the 'a' in Airtel. The curved shape & the gentle

highlights on the red color make it warm & inviting, almost as if it were a living object.

The logo represents a dynamic force of unparalleled energy that brings us and our

customerscloser," it added.

The "unboxed" having been freed of its rigid boundaries. Airtel calls the new logo youthful,

18
international, inclusive and dynamic – representing the journey of the first Indian brand to

gotruly global. The new identity underlines Airtel‘s willingness to embrace everything that is

new. The red color, which is an integral part of the brand, continues to represent the energy

and dynamism that has made Airtel the success it is today. The new curved addition to the

logo is a symbol which will help ensure instant recognition across diverse international

markets.

The color "Red is part of our heritage. It is the color of energy & passion that expresses the

dynamism that has made Airtel the success it is today, in India, and now on the global stage.

19
 BRAND AMBASSADORS USED BY AIRTEL

In order to take the advantage of the growing number of youth in our country, Airtel

introducedSachin Tendulkar, Shahrukh khan, Saifali khan, kareena Kapoor, Gautamgambhir

and many othersas brand ambassadors to tap the potential.

Airtel has taken the lead on many occasions. It has been the first

Launched Cellular service in Delhi on November, 1995.

Operator to revolutionize the concept of retailing with the inauguration of Airtel Connect

(exclusive showrooms) in 1995.

20
 To expand its network with the installation for second mobile switching center in April,

1997and the first in Delhi to introduce the Intelligent Network Platform First to provide

Roamingto its subscribers by forming an association called World 1 Network.

First to provide roaming facility in USA. Airtel has the largest automatic roaming service

"SMART ROAM"- National in 400 cities in India and "SMART ROAM" - International in

over 60 countries and 95 networks all over the world.

It is also the first company to export its products to the USA.

Airtel Networks

Cellular Service

Airtel Completes Its 23 Circle All India Footprint Airtel now connects India from the Indus to

the Indian Ocean and from Sabarmati to the Brahmaputra on a network of more than

10,000base stations with cumulative investments of more than Rs. 16,000 crores.

Internet infrastructure

Our Internet backbone involves state of the art high-end routers and switches as may

deployedon the best networks across the world to offer you reliable service of unmatched

quality. Threeyears back we had established satellite based gateway for internet access. This

was the firstgateway by a private operator. Now we have established our fibre gateway on

Network i2i,first private submarine cable owned by us and SingTel.

Fixed line infrastructure

Our high quality fibre-based, fixed line networks in Delhi, Haryana, Tamil Nadu, Karnataka,

Madhya Pradesh and Chahattisgarh , intensively covers the most prominent commercial and

21
business districts in the country. We provide the power of last mile fixed line network to

bringend-to-end voice and data solutions.

Long distance infrastructure

Our 25,000 km advanced fibre-optic cable long distance network covers India's top 200

cities.And it powers the services of India's leading private telecom service providers -

cellular, fixedline and internet through Our Long Distance Services.

Submarine cable

We have partnered with SingTel to create the world's largest submarine cable system-

Network i2i with 8.4 Tbps capacity. This 3200 km undersea cable structure stretches from

Chennai to Singapore and thereon to Tier-1 carriers on SingTel's capacity on 175,000 km of

cables. The huge capacity on network i2i is distributed locally in India through our 25,000 km

of advanced fibre-optic domestic long distance backbone, providing unprecedented

capacity,speed,reliability.

22
 Organization structure

Partners

The company has a strategic alliance with SingTel. The investment made by SingTel is one of

the

largest investments made in the world outside Singapore, in the company.

The company‘s mobile network equipment partners include Ericsson and Nokia. In the case

of thebroadband and telephone services and enterprise services (carriers), equipment

suppliers include

Siemens, Nortel, Corning, among others. The Company also has an information technology

alliancewith IBM for its group-wide information technology requirements and with Nortel

for call centertechnology requirements. The call center operations for the mobile services

have been outsourced toIBM Daksh, Hinduja TMT, Teletech &Mphasis. The company's

23
unique strategic outsourcing modelhas been studied and documented by Harvard Business

School as a case study which is available fordownload at: www.hbsp.harvard.edu.

Factsheet At-a-glance guide to Bharti Airtel

Organization Structure Organisation chart depicting the Senior Management positions

Shareholding Structure Details on the latest shareholding structure and major

shareholders, as onJune 30, 2007

Awards & Recognitions Laurels recognising Bharti's consistent efforts

Corporate Governance

Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is

committed toconduct its business in a manner, which will ensure sustainable, capital-

efficient and long-termgrowth thereby maximising value for its shareholders, customers,

employees and society at large.

Company‘s policies are in line with Corporate Governance guidelines prescribed under

Listing

Agreement/s with Stock Exchanges and the Company ensures that various disclosures

requirementsare complied in ‗letter and spirit‘ for effective Corporate Governance.

During the financial year 2003-04, your Company was assigned highest Governance and

Value

Creation (GVC) rating viz. ‗Level 1‘ rating by CRISIL, which indicates that the company‘s

capabilitywith respect to creating wealth for all its stakeholders is the highest, while

adopting sound CorporateGovernance practices. This rating was re-affirmed by CRISIL on

April 20,2006

24
 PRODUCTS

 POST PAID CARD

 PRE PAID CASH CARD

Post Paid Card

 Business Lifestyle Plan

 AirTel Standard

 Leisure Plan

 AirTel Easy

How much does it cost

Security Deposit (Refundable) Rs. 2000

Activation Charges Rs. 1260

Total Rs. 3260

Note: The above are one time entry cost. The deposit is completely refundable.

Airtime Rates

Business Lifestyle Plan

25
Monthly Rental Rs. 625 per month

Outgoing Rates(applicable 24 hours) Rs. 8 per minute

Incoming Rates(applicable 24 hours) Rs. 1 per minute

The rates are valid 24 hours a day/ 7 days a week

AirTel Standard Plan

Monthly Rental Rs. 475 per month

Rs. 4 per minute(Outgoing and

Rs. 3.90 per minute(Outgoing and

Rs. 2.90 per minute(Outgoing and

Billing pulse is of 30 seconds. On Sundays and National Holidays (15th Aug, 26th Jan & 2nd

Oct) the tariff rates are of Rs. 2.90 per minute (midnight to 8 am) & Rs. 3.90 per minute (8

am to midnight).

26
AirTel Leisure Plan

Monthly Rental Rs. 525 per month

Incoming & Outgoing Rates

8 pm to 8 am (Weekdays) 50 paisa per 30 seconds

8 am to 8 pm (Weekdays) Rs. 3 per 30 seconds

Sundays & National Holidays (all 24 hours) 50 paisa per 30 seconds

Weekdays are Monday to Saturday. National Holidays are 15th Aug, 26th Jan & 2nd Oct. The

billing pulse is 30 seconds on all days.

AirTel Easy

Monthly Rental Rs. 525 per month

Outgoing Incoming

Rs. 6.00 per Rs. 2.00 per

Rs. 6.00 per Rs. 2.00 per

Rs. 6.00 per Rs. 2.00 per

27
Pre Paid Cash Card

Magic Pre Paid Connection

What is Magic?

Magic Ready Cellular Card is your ready-to-use, no-hassle cellular connection. It comes pre-

activated with STD/ISD calling facility. Backed by AirTel, the leading cellular operator in

India, it gives you crystal clear communication in entire Delhi, Ghaziabad, NOIDA, Gurgaon,

Faridabad and Ballabhgarh.

Highlights

MAGIC... the simplest way to go cellular

Wide Availability

Magic Ready Cellular Card and Magic Recharge Cards are available widely all over the city at

over 1800 outlets.

No applying

Magic is available across the counter. You do not need to apply in advance or go through

complicated formalities to get connected.

Instant Connectivity

Magic Ready Cellular Card can be used as soon as it's bought. Your connection is pre-

activated with a host of other services.

Compatible with all Handsets

28
With only Magic, you are assured that it would work with all models of GSM cellular

handsets.

No Bills

No more keeping track of bills every month. With Magic, you pay when you want and as

much as you need.

Total Cost Control

Magic gives you complete control over your cellular expenses every month. The friendly IVR

service tells you your balance, free of cost, whenever you desire.

Convenient Recharging

Recharging your Magic card is very simple. Whenever your balance is running low, just buy a

recharge card of value most suitable or recharge on-line.

Free Home Delivery

Just call "Dial-a-Magic' at 333 (toll free) from your Magic to place the order, and get the card

delivered at your preferred address at no extra cost. Currently this service is available in

Delhi and Gurgaon only.

How does it work?

When you buy a Magic Ready Cellular Card pack you get a SIM card and a recharge card in

the pack. Your Magic SIM card is already activated and just needs to be loaded with calling

value, which you can do by using the Magic Recharge Card.

29
  This calling value is valid for a pre-defined period called the validity period. You can

make and receive calls only during this validity period.As and when you make or

receive calls the calling value balance on your Magic Card account keeps reducing as

per the applicable airtime rates. You must get your Magic Card recharged before the

calling value is over or the validity period ends. Magic Recharge Cards are widely

available at over 2400 outlets spread across the city in convenient denominations of

Rs.500, Rs.1000, Rs.2000 and Rs.3000.

 Every time you recharge your Magic Card you get a credit of calling value which has a

new validity period attached to it. The validity period is followed by a grace period of

15 days during which no calls can be made or received, but the Magic Card Account

can be recharged. During the grace period you can also order for a Magic Recharge

Card to be delivered at your doorstep, absolutely free of cost, by simply dialing 333

from your Magic.

MAGIC ... the most affordable cellular

 No Rentals

 No Security Deposits

 Pre-activated STD/ISD

 Free CLI

Cost Package

Magic "Regular" pack

30
MRP Rs. 1525

Inclusive of :

Calling Value Rs. 785.71

Activation Fee Rs. 500

Processing Fee Rs. 166.67

Service Tax Rs. 72.62

Recharging Magic CardOne can either recharge Magic online or purchase a recharge card

from any of our outlets spread across the city. Recharge cards are available in four

convenient denominations of Rs.500, Rs. 1000, Rs. 2000 and Rs 3000.

Value added services

Value added services can play a major role in determining the market leader of the future.

The following are the value added services and special services provided by AirTel.

31
Value Added Services from

AirTel offers you a host of value added services. These are available on request. They

include :

 Smart Mail

Smart Mail lets you receive messages even when your handset is switched off or when you

are outside the coverage area. You can then retrieve these messages at your own

convenience.

 AirTel's Fax and Data Service

If you can connect to AirTel's Fax and Data service , you can take your office wherever you

go. You can send and receive data/fax documents, access the internet, email accounts and

corporate databases whenever you are on the move.

 AirTel's Fax Service

If you connect to AirTel's Fax service , you can take your office wherever you go. You can

send and receive fax documents whenever you are on the move.

 Smart Roam

AirTel's Smart Roam service allows you to use your mobile phone to make or receive

32
 calls from almost anywhere in India and abroad (59 countries) at NO extra cost

Smart Roam gives you two great options:

 Smart Roam National

Enjoy roaming in India across 25 partner networks and over 350 cities.

 Smart Roam International

Roam across international destinations, in 59 countries including USA,

Canada, UK etc. with 95 partner networks (where GSM phase II networks exist).

 Itemised Bill

This is a comprehensive statement of all details on the outgoing calls made by you and the

incoming calls received by you for the billing period.

 Itemized Calls

The call breakdown shows date of calls, the destination of calls, the length of calls and the

relevant cost.

 Call Conference

It help's you hold a tele-conference with 6 different people simultaneously. Infact you can

set up a conference, even if the other five are using the PSTN line.

 Call Line Identification Presentation

CLIP gives you the power to know the phone number of the calling party even before you

answer the call. Thus giving you the choice to either reject or take the call.

 Handset Insurance Service

33
AirTel and New India Insurance present the exclusive Handset Insurance service. The

Handset Insurance service is an exclusive privilege for AirTel customers like you.

 Call Line Identification Restriction

If you don't want others to know your number, you can use the CLIR service, so that your

cellular number is not displayed on the phone screen of the person you call.

 Call Wait

This service is available to all Air Tel customers. If you are on a call and somebody else calls

your number , your Call Waiting feature alerts you with a special audible tone. You then

have the option to either:

 Put the call-in-progress on hold, and answer the new call, or

 Reject the incoming call

 Call Hold

This service allows you to put an on-going conversation on hold, and call someone or

receive a call from another person. You may switch between the two calls any time.

 Call Divert

Call Divert allows you to divert incoming calls to another number

 Safe Custody

When you travel out of town for a short time AirTel can keep your connection in Safe

Custody where the connection is kept inactive for a short period, without actually cancelling

it. You need not pay the monthly rentals during this period.

34
  Smart Access

Smart Access - the Interactive Voice Response (IVR) service for accessing information related

to your cellular phone. All you have to do is dial our toll-free number 747 from your AirTel

cellular or 98101-74700 from a landline any time of the day or night.

 Mobile Hunting

A group of mobile connections is given one virtual mobile number, which is known as the

Pilot or Hunting number and other mobile numbers remain the same, allowing you to make

and receive calls

 STD/ISD

The STD/ ISD facility allows you to make long distance calls in India and Overseas from your

cellular phone. This service is applicable to both AirTel and Magic customers.

 STD/ISD Dynamic Locking and Unlocking

This is a new service available to AirTel customers to lock and unlock STD /1SD facility from

his handset (from specific handsets only) and avoid misuses

Special Services

AirTel's m-Banking Services

m-banking provides you with access to banking and credit card services directly from your

cellular phone. With m-banking you can now conduct banking and credit card transactions

from your AirTel without making a call from anywhere in India and over 46 countries

35
Currently, you can access HDFC Bank accounts, ICICI bank and credit card accounts. You

need to have accounts with either of the banks to be able to use m-banking.

Car Helpline dial 930

Introducing Car Help Line, from AirTel. It is designed to provide you help when your car

breaks down on the road. All you have to do is dial 930 from your AirTel and help will reach

you within thirty minutes.

Heart Helpline dial 707

AirTel provides you a unique service called Heart Helpline. A panel of heart specialists at the

Escorts Heart Institute and Research Center are only a call away to answer queries and

guide you through an emergency. All you have to do is to dial 707 from your AirTel cellular.

"Heart Helpline" is a round the clock service which shall provide answers to almost all heart

related problems arising out of chest pain, palpitations, shortness of breath, abdominal

discomfort, weakness etc.

36
 Competitors in the market

 BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5

percent market share. Next is Bharti Airtel at 10.9% followed by Tata and

Reliance at 5%and 4.1% respectively.

 BSNL as a company is growing and showed annual revenues of approximately

$4.5billion as of 2016. BSNL is serving more than 125 million customers across

the countryand is catalyst in checking the price point for telecom services.

 BSNL is a 100% Central Government entity and employees with BSNL are entitled

to getsalaries and perks as decided by Government of India and not by BSNL

 However both, MTNL and BSNL are plagued by declining revenues coupled with

highcosts. BSNL has massive infrastructure, manpower, systems, and 80 per cent

of landlinesand 90 per cent of broadband connections in India are operated by it.

 Vodafone is investing nearly US$ 3 billion over the next two years in India in

expandingits network infrastructure and distribution channel in the country,‖ as

per Vittorio Colao,CEO, Vodafone Plc.

 BlackBerry plans to set up enterprise solutions centres to educate corporate

customersabout various BlackBerry Enterprise Service (BES) 10 solutions. "India is

one of thefastest growing markets in terms of smartphone and mobile data

adoption,‖ said accordingto Sunil Lalvani, Managing Director (MD), BlackBerry

India.

 Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across

thecountry in the next two years.

37
 Achievements and Milestones

Awards for the year 2012-2013

 Bharti Airtel Shared Services Team won two awards in categories of

Value Creation and Innovation & Improvement at the SSON (Shared Services & Outsourcing

Network) Excellence Awards 2012.

 Bharti Airtel won four Effie awards at the Effie Awards 2012. Airtel's extremely

popular 'Harek friend zaroorihotahai' campaign conceptualized by Taproot India,

stood out as acampaign amongst all nominations, winning three Gold Effie awards.

Apart from a Gold inthe'Telecom & Related Services' category, the campaign won a

Gold each in 'DigitalAdvertising' and 'Integrated Advertising'. Bharti Airtel also won

one Silver Effieaward for its 'Baatsirfpaisonkinahinhai' campaign for Airtel moneyin

the telecomcategory.

 Sanjay Kapoor was awarded the "Telecom Person of the year 2012" at the "Voice &

DataTelecom Leadership Awards 2012". The award was accorded by Honourable

Minister ofNew and Renewable Energy, Dr. Farooq Abdullah.Won the QUEST Forum

India Quality Award for the Top Telecom Service Provider.QuEST Forum is a unique

collaboration of information and communication technologies(ICT) service providers

and suppliers across the world, dedicated to improving operationaland supply chain

quality and performance.

 Awarded the #1 Service brand in Brand Equity's List of "Most Trusted Brands".

 Bharti Airtel was felicitated for 'Best Mobile Service Provider' and 'Innovation

inmMoney' at Aegis Graham Bell Awards held on November 1, 2012.The Aegis

Graham Bellawards honor the best innovations in the field of TIME (Telecom,

38
 Internet, Media &Edutainment) recognizing the most exceptional contributions in

the respective fields.

 Bharti Airtel was awarded the 'Brand of the Year' at the CNBC TV18's flagship

initiative,the India Business Leader Awards (IBLA) for its HarEk Friend

ZarooriHotaHai campaign. The IBLA Brand of The Year Award seeks to recognize a

brand mass media/communication campaign based on its key message, popularity

amongst the target audienceand impact on the brand.

 Bharti Airtel won the 'Excellence in First People Initiative' award at the first, People

2012Awards. Airtel HR's multiple initiatives in enhancing the internal customer's

experiencethrough innovation and leveraging mobile technology helped us to win

the prestigious award.

 The Airtel Centre of Excellence (ACE) received the 'Excellence Award for Shared

ServiceCentre Operations in India' in the 2nd National Shared Services Council by

All IndiaManagement Association and Delhi Management Association in recognition

of theiroutstanding efforts to identify key strategic drivers and implementing them

to deliver value toall.

 Bharti Airtel won the highly prestigious Porter Prize in the 'Exploiting Trade-offs'

category.

The Porter Prize Awards, named after Professor Michael Porter – the father of

modernstrategic field, are the most coveted awards in the field of strategy and

competitiveness. Theaward recognises and honours Indian companies which have embraced

the best strategicmanagement practices.

 Bharti Airtel Sri Lanka bagged a silver at the prestigious HRM awards. Airtel Sri Lanka

wasrecognized for their HR practices by HRM awards.

39
  Bharti Airtel won the Star News Viewer’s Choice Best Mobile Network, Best

QualityMobile Network Service Provider, at the 6th National Telecom Awards 2012

hostedby CMAI in May 2012.

 Bharti Airtel won 5 awards at the Telecom Operator Awards 2012, announced in

March 2012by Tele.net . Airtel bagged the 'Best National Mobile Operator', 'Best

VAS Provider','Best Enterprise Services Provider', 'Best Ad Campaign by an

Operator' and 'Mostinnovative Solution' for Airtel money.

ADDRESS.

1 POINT 1 SOLUTIONS Private Ltd.

127,Danji shamjiudyogbhawanBaareDasal Road, Andheri (west), Mumbai-400053, INDIA

Contact - +912261459000

Web address – www.1point1solutions.in

40
 OBJECTIVES OF STUDY

 To Know about the Airtel company.

 To know about its promotional activities.

 Its market Position.

 Sales& Marketing Performance to evolve a strategy for increasing market

share.

 Airtel’s level of customersatisfaction.

 Its history and the companyprofile.

 Cost savinginitiatives

41
 Scope And Rationale of the study

 The Sample Size is Limited, So as to give the accurate information regarding

Customer Satisfaction.

 The scope is very limited, because attitude & expectations of the people change

according to the time & situation.

 The study is restricted only to Delhi and that to among respondents.

 The study is conducted only for 60 days.

 Consistency was lacking with regard to the information given by few customers.

42
 Introduction of the Topic

“SALES & MARKETING PERFORMANCE & TO EVOLVE A STRATEGY FOR

INCREASING MARKET SHARE”

“Sales& Marketing performance & to evolve a strategy for increasing market share” As we

know that the Airtel industry is facing immense competition from both inside & outside the

country. So to deal with that a firm like Airtel needs a strong competitive strategy that is the

reason behind choosing such topic so as to improve my practical & theoretical knowledge &

contribute something in this field.

Research Methodology

Research as a scientific and systematic search for pertinent information on a specific topic.

ResearchMethodology is a way to systematically solve the research problem. It may be

understood as a scienceof studying how research is done scientifically. In it we study the

various steps that are generallyadopted by a researcher to know not only the research

methods or techniques but also themethodology. We not only talk of the research methods

but also consider the logic behind themethods we use in the context of our research study

and explain why we are using a particular methodor evaluated either by the researcher

himself or by others.

Purpose of the study

43
The purpose is to check out the consumer preference towards Airtel and its services and

whatare their requirements and why a problem costumer faces.

Research Objective of the study

The objective of the study is to check out the preference of consumer towards Airtel and

study therequirements of consumer and their grievances towards the company. The

secondary objective of thestudy.

To study Advertising Strategy of Airtel Cellular Service: Ads are an internal part of

every company and company has to know how and when to use it.

Its effect on existing mobile users: The cellular services market in India grew during

thelate 1990 and is increasing. Airtel has to launch services in the market.

Research methodology of the studyResearch methodology is done to solve the research

problems involving a study of varioussteps that are adopted by the researcher in studying

his problem.

Throughout the entire project the emphasis was to check the awareness level of the

customerstowards the different services of Airtel and there views and perception about the

same.Finally the project was concluded by taking the feedback from the customers.

Research Design

The project is more of a qualitative than quantitative study. The project aims at the

perception ofconsumers regarding the consumers.

Explorative Research: Explorative Research includes surveys and fact-finding enquiries of

differentkinds. The major purpose of description of the state of affairs it exists at present. In

social science andbusiness research we quite often use the term expost factor research for

descriptive research studies.

44
A Main characteristic of this method is that the researcher has no control over the variables;

he canonly report what has happened or what is happening.

DATA COLLECTION METHOD

THERE TWO TYPE OF METHOD OF DATA COLLECTION.

 PRIMARY DATA

 SECONDARY DATA

DATA USED FOR THE RESEARCH WORK WAS PRIMARY

Primary Data: The primary source of data collection is through questionnaire.

Thequestionnaires are distributed among 35 peoples and the there view is recorded and

used inanalyzing the data Secondary sources. Primary source is a term used in a number

ofdisciplines to describe source material that is closest to the person, information, period,

or ideabeing studied. In the study of history as an academic discipline, a primary source

(also calledoriginal source or evidence) is an artifact, a document, a recording, or other

source ofinformation that was created at the time under study. If created by a human

source, then asource with direct personal knowledge of the events being described. It

serves as an originalsource of information about the topic. Similar definitions are used in

library science, and otherareas of scholarship. In journalism, a primary source can be a

person with direct knowledge of

a situation, or a document created by such a person.Primary sources are distinguished

fromsecondary sources, which cite, comment on, or build upon primary sources, though

thedistinction is not a sharp one. "Primary" and "secondary" are relative terms, with

sourcesjudged primary or secondary according to specific historical contexts and what is

beingstudied.

Secondary Data :

45
 Secondary sources include online sites (www.Google.Co.in, www.Airtel.com),

newspapers(Times of India) and templates from AIRTEL distributions centers and AIRTEL

CustomerCare. In scholarship, a secondary source is a document or recording that relates or

discussesinformation originally presented elsewhere. Secondary source contrasts with a

primary source,which is an original source of the information being discussed; a primary

source can be aperson with direct knowledge of a situation, or a document created by such

a person.

Secondary sources involve generalization, analysis, synthesis, interpretation, or evaluation

ofthe original information. Primary and secondary are relative terms, and some sources may

beclassified as primary or secondary, depending on how it is used. An even higher level,

thetertiary source, resembles a secondary source in that it contains analysis, but attempts

toprovide a broad overview of a topic that is accessible to newcomers.

Sample designing

Target population:- The Target population under this survey are the consumers of

mobilenetwork providers.

The target population is limited to the central Delhi.

SAMPLE SIZE : - The sample size included 100 related people in various different location.

Search process was done by interacting with number of customers during the activities

performed, which included, markets, cold calling, canopies, etc. Sample design consist of

CONVIENCE SAMPLING.

46
Hypothesis

A hypothesis is a tentative statement about the relationship between two or more variables.

It is a specific, testable prediction about what you expect to happen in a study. For example,

a study designed to look at the relationship between sleep deprivation and test

performance might have a hypothesis that states, "This study is designed to assess the

hypothesis that sleep-deprived people will perform worse on a test than individuals who are

not sleep deprived."

A hypothesis often follows a basic format of "If {this happens} then {this will happen}." One

way to structure your hypothesis is to describe what will happen to the dependent

variable if you make changes to the independent variable.

The basic format might be: "If {these changes are made to a certain independent variable},

then we will observe {a change in a specific dependent variable}."

Method of data collection

Instrument of Data collection

Data Collection is an important aspect of any type of research study. Inaccurate data

collectioncan impact the results of a study and ultimately lead to invalid results. For the

above objectives,quantitative methods were used. Interviews were studied for the

employees and structuredQuestionnaires were given to them. Then the data was analyzed

and interpreted in the form oftabulation and charts.

There are two types of data collection methods used:

1. Primary data collection

47
2. Secondary data collection

Primary data collection method-

Primary data is the data in which the researcher collects data through various methods

likeinterviews, surveys, questionnaires etc., to support the secondary data.

Primary data collected in this project is using the interview and questionnaire.

Secondary data collection method-

Secondary data is data collected by someone other than the user. Common sources of

secondarydata for surveys, organizational records and data collected through qualitative

methodologies orqualitative research.

Secondary data used in this project is records of Human Resource Department for the

service fileof the separating staffs, various HR Journals, projects and research papers of

different scholarsboth national and international.

Drafting of a questionnaire

A questionnaire consisting of 18 questions was prepared which consisted of questions like

theworking of various welfare committees of the organization and the development

systems, canteenand rest room facilities etc. So, keeping in view all the aspects of research

and it consisted offollowing types of questions-

Close ended Questions- A closed-ended question is a question format that limits

respondents with a list of answer choices from which they must choose to answer the

question. Commonly these type of questions are in the form of multiple choices, either

with one answer or with check-all-that-apply, but also can be in scale format, where

respondent should decide to rate the situation in along the scale continuum, similar to

Likert questions.

Types of closed ended questions used-

48
1. Dichotomous Questions- Fixed-alternative question that can only be answered in

one of the two indicated ways, such as 'A' or 'B', True or False, Yes or No.

1. Multiple Choice Questions- Multiple choice is a form of assessment in

whichrespondents are asked to select the best possible answer (or answers) out of

thechoices from a list. The multiple choice format is most frequently usedin

educationaltesting, in market research, and in elections, when a person

choosesbetween multiple candidates, parties, or policies. Multiple choice testing

isparticularly popular in the United States. If guessing an answer, there's usually a25

% chance of getting it correct on a 4 answer choice question.

49
 “STUDY OF THE TOPIC”

SALES & MARKETING PERFORMANCE & TO EVOLVE A STRATEGY FOR INCREASING

MARKET SHARE”

It has described a category scheme consisting of three general types of strategies that are

commonly used by businesses to achieve and maintain competitive advantage. These three

generic strategies are defined along two dimensions: strategic scope and strategicstrength.

Strategic scope is a demand-side dimension and looks at the size and composition of the

market you intend to target. Strategic strength is a supply-side dimension and looks at the

strength or core competency of the firm. In particular he identified two competencies that

he felt were most important: product differentiation and product cost (efficiency).

He originally ranked each of the three dimensions (level of differentiation, relative product

cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a

three dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cubes.

But most of the 27 combinations were not viable.

50
In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors, Porter

simplifies the scheme by reducing it down to the three best strategies. They are cost leadership,

differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while

both cost leadership and differentiation are relatively broad in market scope.

Empirical research on the profit impact of marketing strategy indicated that firms with a high market

share were often quite profitable, but so were many firms with low market share. The least profitable

firms were those with moderate market share. This was sometimes referred to as the hole in the

middle problem. Porter’s explanation of this is that firms with high market share were successful

because they pursued a cost leadership strategy and firms with low market share were successful

because they used market segmentation to focus on a small but profitable market niche. Firms in the

middle were less profitable because they did not have a viable generic strategy.

Porter suggested combining multiple strategies is successful in only one case. Combining a market

segmentation strategy with a product differentiation strategy was seen as an effective way of

matching a firm’s product strategy (supply side) to the characteristics of your target market segments

(demand side). But combinations like cost leadership with product differentiation were seen as hard

(but not impossible) to implement due to the potential for conflict between cost minimization and the

additional cost of value-added differentiation.

Since that time, empirical research has indicated companies pursuing both differentiation and low-cost

strategies may be more successful than companies pursuing only one strategy.[1]

Some commentators have made a distinction between cost leadership, that is, low cost strategies, and

best cost strategies. They claim that a low cost strategy is rarely able to provide a

sustainablecompetitive advantage. In most cases firms end up in price wars. Instead, they claim a best

cost strategy is preferred. This involves providing the best value for a relatively low price.

Cost Leadership Strategy

51
This strategy involves the firm winning market share by appealing to cost-conscious or price- sensitive

customers. This is achieved by having the lowest prices in the target market segment, or at least the

lowest price to value ratio (price compared to what customers receive). To succeed at offering the

lowest price while still achieving profitability and a high return on investment, the firm must be able to

operate at a lower cost than its rivals. There are three main ways to achieve this.

The first approach is achieving a high asset turnover. In service industries, this may mean for example a

restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In

manufacturing, it will involve production of high volumes of output. These approaches mean fixed

costs are spread over a larger number of units of the product or service, resulting in a lower unit cost,

i.e. the firm hopes to take advantage of economies of

scale and experience curve effects. For industrial firms, mass production becomes both a strategy and

an end in itself. Higher levels of output both require and result in high market share, and create an

entry barrier to potential competitors, who may be unable to achieve the scale necessary to match the

firms low costs andprices.

The second dimension is achieving low direct and indirect operating costs. This is achieved by offering

high volumes of standardized products, offering basic no-frills products and limiting customization and

personalization of service. Production costs are kept low by using fewer components, using standard

components, and limiting the number of models produced to ensure larger production runs.

Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost-

conscious culture, etc. Maintaining this strategy requires a continuous search for cost reductions in all

aspects of the business. This will include outsourcing, controlling production costs, increasing asset

capacity utilization, and minimizing other costs including distribution, R&D and advertising. The

associated distribution strategy is to obtain the most extensive distribution possible. Promotional

strategy often involves trying to make a virtue out of low cost product features.

52
The third dimension is control over the supply/procurement chain to ensure low costs. This could be

achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting

competitive bidding for contracts, working with vendors to keep inventories low using methods such

as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for squeezing its

suppliers to ensure low prices for its goods. Dell Computer initially achieved market share by keeping

inventories low and only building computers to order. Other procurement advantages could come

from preferential access to raw materials, or backward integration.

Some writers posit that cost leadership strategies are only viable for large firms with the opportunity

to enjoy economies of scale and large production volumes. However, this takes a limited industrial

view of strategy. Small businesses can also be cost leaders if they enjoy anyadvantages conducive to

low costs. For example, a local restaurant in a low rent location can attract price-sensitive customers if

it offers a limited menu, rapid table turnover and employs staff on minimum wage. Innovation of

products or processes may also enable a startup or small company to offer a cheaper product or

service where incumbents' costs and prices have become too high. An example is the success of low-

cost budget airlines who despite having fewer planes than the major airlines, were able to achieve

market share growth by offering cheap, no-frills services at prices much cheaper than those of the

larger incumbents.

A cost leadership strategy may have the disadvantage of lower customer loyalty, as price- sensitive

customers will switch once a lower-priced substitute is available. A reputation as a cost leader may also

result in a reputation for low quality, which may make it difficult for a firm to rebrand itself or its

products if it chooses to shift to a differentiation strategy in future.

53
Differentiation Strategy

Differentiate the products in some way in order to compete successfully. Examples of the successful

use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athletic shoes, Perstorp

BioProducts, Apple Computer, and Mercedes-Benz automobiles.

A differentiation strategy is appropriate where the target customer segment is not price-sensitive, the

market is competitive or saturated, customers have very specific needs which are possibly under-

served, and the firm has unique resources and capabilities which enable it to satisfy these needs in

ways that are difficult to copy. These could include patents or other Intellectual Property (IP), unique

technical expertise (e.g. Apple's design skills or Pixar's animation prowess), talented

personnel (e.g. a sports team's star players or a brokerage firm's star traders), or innovative processes.

Successful brand management also results in perceived uniqueness even when the physical product is

the same as competitors. This way, Chiquita was able to brand bananas, Starbucks could brand coffee,

and Nike could brand sneakers. Fashion brands rely heavily on this form of image differentiation.

Variants on the Differentiation Strategy

The shareholder value model holds that the timing of the use of specialized knowledge can create a

differentiation advantage as long as the knowledge remains unique.[2]This model suggests that

customers buy products or services from an organization to have access to its unique knowledge. The

advantage is static, rather than dynamic, because the purchase is a one-time event.

The unlimited resources model utilizes a large base of resources that allows an organization to outlast

competitors by practicing a differentiation strategy. An organization with greater resources can

manage risk and sustain profits more easily than one with fewer resources. This deep-pocket strategy

provides a short-term advantage only. If a firm lacks the capacity for continual innovation, it will not

sustain its competitive position over time.

54
Focus or Strategic Scope

This dimension is not a separate strategy per se, but describes the scope over which the company

should compete based on cost leadership or differentiation. The firm can choose to compete in the

mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment with a

narrow scope. In either case, the basis of competition will still be either cost leadership or

differentiation.

In adopting a narrow focus, the company ideally focuses on a few target markets (also called a

segmentation strategy or niche strategy). These should be distinct groups with specialized needs. The

choice of offering low prices or differentiated products/services should depend on the needs of the

selected segment and the resources and capabilities of the firm. It is hoped that by focusing your

marketing efforts on one or two narrow market segments and tailoring your marketingmix to these

specialized markets, you can better meet the needs of that target market. The firm typically looks to

gain a competitive advantage through product innovation and/or brandmarketing rather than

efficiency. It is most suitable for relatively small firms but can be used by any company. A focused

strategy should target market segments that are less vulnerable to substitutes or where a competition

is weakest to earn above-average return on investment.

Examples of firm using a focus strategy include Southwest Airlines, which provides short-haul point-to-

point flights in contrast to the hub-and-spoke model of mainstream carriers, and Family Dollar.

In adopting a broad focus scope, the principle is the same: the firm must ascertain the needs and

wants of the mass market, and compete either on price (low cost) or differentiation (quality, brand and

customization) depending on its resources and capabilities. Wal Mart has a broad scope and adopts a

cost leadership strategy in the mass market. Pixar also targets the mass market with its movies, but

adopts a differentiation strategy, using its unique capabilities in story-telling and animation to produce

signature animated movies that are hard to copy, and for which customers are willing to pay to see

55
and own. Apple also targets the mass market with its iPhone and iPod products, but combines this

broad scope with a differentiation strategy based on design, branding and user experience that

enables it to charge a price premium due to the perceived unavailability of close substitutes.

Recent developments

Michael Treacy and Fred Wiersema (1993) in their book The Discipline of Market Leaders have

modified Porter's three strategies to describe three basic "value disciplines" that can create

customer value and provide a competitive advantage. They are operational excellence,

productleadership, and customerintimacy.

Criticisms of generic strategiesSeveral commentators have questioned the use of generic strategies

claiming they lack specificity, lack flexibility, and are limiting.

In particular, Miller (1992) questions the notion of being "caught in the middle". He claims that there is

a viable middle ground between strategies. Many companies, for example, have entered a market as a

niche player and gradually expanded. According to Baden-Fuller and Stopford (1992) the most

successful companies are the ones that can resolve what they call "the dilemma ofopposites".

A popular post-Porter model was presented by W. Chan Kim and Renée Mauborgne in their 1999

Harvard Business Review article "Creating New Market Space". In this article they described a "value

innovation" model in which companies must look outside their present paradigms to find new value

propositions. Their approach fundamentally goes against Porter's concept that a firm must focus either

on cost leadership or on differentiation. They later went on to publish their ideas in the book Blue

Ocean Strategy.

56
 Data Analysis & Interpretation

AGE GROUP

Age Group (in years) Users

15-21 29

21-28 56

28-35 15

Users

15-21
21-28
28-35

Interpretation:

As we can see from the above graph, the people who are in the age group of 21-28 years are the ones

who are the maximum users of mobile phones. This segment is the one which give maximum business

to the mobile operators. This segment constitutes the young executives and other office going people.

They are 65% of the total people who were interviewed. The next age group are the people who are

28-35 years old. They are 20% of the total. They are those who are at home or have small business

units etc. And the next age group is the youngest generation who are 15-21 years old. They are school

57
and college going students and carry mobile phones to flaunt. They are 15% of the total interviewed

people.

Occupation

Occupation Users

Student 15

Executive 55

Household 20

Other 10

Interpretation

Above graph shows that 55% of the total people interviewed are working. So, these people are the

ones who are the maximum users of mobile phones. They are the young executives, managers etc.

58
who require mobile for their official purposes. The next category is the households 20 %, who are

either housewife, small units which operate from their homes etc. The next segment is the students.

They are 15%of the whole. And 10% of the whole is categories who are the professionals.

59
What is your satisfaction level with Airtel?

Satisfied Users

Fully dissatisfied 10

Fully Satisfied 20

Dissatisfied 60

Partially 10

Interpretation

As the above graph clearly shows that customer services at Airtel seems poor. 60% of

the people are dissatisfied with the customer services provided by Airtel. They are the

ones who have the maximum share in the market but they are lagging behind in the

customer services. This could leave an impact on the mind of the consumer.

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 Which feature of AIRTEL convinced you to use Airtel?

Convincing Factor Users

Advertisement 23

Scheme 8

Connectivity 58

Goodwill 19

Interpretation

The above data shows that the connectivity of the Airtel is its backbone and it is

the main reason that the consumers are using it and the network is still is in usage

and goodwill of the company is at risk and falling at a huge rate.

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 Which service do you use of Airtel ?

Usage Users

DTH 10

Internet 25

Mobile Service 64

Others 8

Others Users
8%

DTH
9%

Internet
23%

Mobile
Service
60%

Interpretation

It can be seen from the data represented above that most the customers use Airtel because of its Mobile

service‘s rather than any other requirement as it provides them the best service in Airtel in the service

Department.

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 Monthly expense graph

Expenses Users

500-1000 24

1000-2000 64

2000 & Above 12

Users
2000 & Above
12%

500-1000
24%

1000-2000
64%

Interpretation

People on an average spend RS 500 per month as their mobile phone expense. 64%

people spend this amount. 24% people spend RS 300 per month as their monthly

mobile expense. And the remaining 12% had an expense more than RS 1000, they

could the ones having sim connections or having cash cards and having a lot of

business calls on their mobiles.

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 What makes Airtel different from others?

Factors Users

Connectivity 72

New schemes 14

Tariff plans 32

Other 12

Users
Other
9%

Tariff plans
25%
Connectivity
55%

New schemes
11%

Interpretation

The above figure shows that connectivity is the favored influencer of Airtel and it persuades consumer to

use the network and later on tariff and schemes play there role in the company.

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 Which celebrity you like very much in AIRTEL

Celebrities Users

Shahrukh Khan 36

Kareena Kapoor 2

A.R. Rehman 19

Sachin Tendulkar 28

Interpretation

The main celebrity that is responsible for the success of the Network is Shahrukh khan then Sachin

Tendulkar and behind him is A.R. Rehman and Kareena Kapoor comes in the last.These celebrity did their

best to promote it but the network was hugely favored by the above data.

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What type of Airtel service you use?

Card Users

Prepaid 46

Postpaid 54

Interpretation

The above data shows that earlier prepaid was the favorite of consumers but with the flow of time the

time this preference has shifted towards the postpaid side and now they are in demand as earlier only

network was used for call‘s only and now it provides number of facilities like internet etc.

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 Service Provider Graph

Which was your first choice of cellular service when you want to use mobile phone?

Networks Users

Vodafone 25

Idea 5

Airtel 35

Reliance 15

Others 20

Interpretation

The above graph shows a slice of 50%. These are the total no. of people who are using Airtel. It

seems that people are more aware of Airtel than any other brand. The next popular brand is Hutch.

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 305 of the people interviewed had Hutch connections. The next popular brand was Idea. 15% people

had Idea connections. As it came very late in the market when Airtel had established it self verywell.

AIRTEL is #1 in India

Opinion Users

Yes 87

No 13

Interpretation

The above graph shows the result of the survey that how many people think Airtel is best in its services.

According to the survey done, 95% of the people think that Airtel is the best which provides better

telecommunication services and only 5% of the people thinks vice- versa. Purple color shows people who

say ‗yes‘ to the survey that Airtel is No. 1 and maroon color shows who do not agree.

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 Type of Card Graph

Cards Users

Sim Card 15

Cash cards 85

Interpretation

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users were

having cash card connections. This means that the cash cards should be easily and readily available in the

local markets. Airtel should make sure that Magic is available in each and every nook and corner of the

market. 15% of the people were having sim connections which is the regular bill.

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 Advertisement

Type of advertisement you most like in AIRTEL

Advertisement Users

Audio 20

Audio Visual 58

Print 22

Users

Print Audio
22% 20%

Audio Visual
58%

Interpretation

It can be seen from the above data that audio visual advertisements are still the best mode of reaching

the consumers and influence them.

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 Findings

Airtel is a very successful brand in India as it covers a wide network and is still one of the best

still in network coverage and stands one of the best network in the world and has covers

major of the population coverage.

There is still scope of improvement as some of the rural and remote areas are not till covered

by any service provider and the company is shifting its focus towards them as well to reach a

wide area and generate loyalcustomers.

Business houses are the major users of Airtel as it is better than all other network‘s in

broadband coverage and plans are better thanany.

Airtel focuses on its customer‘s satisfaction but it can provide some more relaxation to its

users and provide some more incentives for its dealers so that they can be more loyal

towards the company and market itbetter.

Company is undertaking extensive promotional activities like advertisements released in

different Medias to create brand awareness in target pulling areas like campuses etc. Free

samples should be distributed among the prospects like free recharge or sims & sales

promotion tools like gifts, contests and coupons must be given to retailers as well as

customers and prospects. Catalogues should be distributed amongcustomers.

The company is focusing more on the Youth & the untapped areas of the country like rural

areas to hold a strong position in the country and prosperfurther.

Company has shifted to its concern to one of the most influential target market i.e. YOUTH as

population concern more on the youth as they consist majority of the population in the

country and are most spenders in today‘sage.

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Airtel provides value added packs for its heavy users as to retain them as postpaid

connections are on the rise as compared toprepaid.

It is used mainly for its mobile network coverage across the globe as it covers a huge area so

its connectivity is high and the goodwill factor comes intoplay.

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 Conclusion

Airtel is a very successful brand in India & providing customer satisfaction is to be there main

motive.Provides Internet access on the move as people are more dependent on it in their daily

lives like wide network and good 3G services.

Airtel possesses congestion free & wide network, unique value added & customer services.

Providing customer satisfaction is the most crucial step of the company as they are to be satisfied and

provides Internet access on the move such as Wide network and good 3G services as they are important

and technology advanced stuff required by almost everybody in today‘s environment,

Airtel is a home brand and a very successful brand in India and overseas and one of the most successful

brands still to date. It possesses congestion free & wide network, unique value added & customer

services to cover one of the widest areas.

From the details it can be concluded that 70% of Airtel users preferred to remain with Airtel. Also good

number 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 used mainly by

executives who want wide coverage for their operations but the problem of customer satisfaction still

persists with the company and cause of its lacking new customers.

Connectivity is the backbone of the company and it is still the reason why consumers use it and the most

users of the company fall in the youth category and are now using postpaid services as they are aware of

the services provided as the youth is the main target of major of companies as the country mainly

comprises of them.

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 Limitations

The project has been successfully completed with certain inherent limitations, which are as follows:

 This Project report is based on the secondary sources for data collection and no Primary data

has been used, due to which there is lack of practicalknowledge.

 Time and work constraints were alsothere.

 Limited information & Respondent‘s unavailability.

 Time pressure and fatigue on the part of respondents andinterviewer.

 Courtesy bias& the behavior of the customer while approaching them to fill the

questionnaire wasunpredictable.

 Lack of customer‘s cooperation was a majorconstraint.

 Majority of the customer were too aggressive innature.

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 SUGGESTIONS AND RECOMMENDATIONS

Following are the few suggestions to AIRTEL for improving the market share and image of the

productsconcerned.

Modification must be brought about in AIRTEL, in terms of quality. Its demand should be

increased and provides its consumer with value added services as to retainthem.

In today‘s age the brand must focus on other areas to market it like Malls, theatre and

crowed area to get attention and market it and gather audienceinterest.

Most of the respondents are satisfies with the services provided by Airtel to mobile user

steps to be taken to make customers more satisfied but many are still not aware of phone

plus facility and steps are to be taken to popularizeit.

Many of the respondents are not satisfied with the features provided to prepaid users as

compared to Landlineusers.

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 Bibliography and References

In this project report, while finalizing and for analyzing quality problem in details the following

Books, Magazines/Journals and Web Sites have been referred. All the material detailed below

provides effective help and a guiding layout while designing this text report.

 Books:

 Kothari. C.R (2004): Research Methodology Methods & Techniques‟, New Age

International Publishers, New Delhi, 2ndEdition.

 Richard I. Levin, David S. Rubin (2004): „Statistics for Management‟, Prentice Hall of India

Private Limited, New Delhi, 7thEdition.

 Principles of Marketing –Philip Kotler & Kevin keller edition12

 Market Research – D.D.Sharma

 Research Methodology – C.R.Kothari

 Websites:

 www.Airtelworld.com

 www.google.com

 www.info-matic.com

 http://en.wikipedia.org/wiki/Bharti_Airtel

 http://www.slideshare.net/muskan19/airtel-brand-analysis

 http://www.airtel.in/

 http://www.slideshare.net/dpdas3/bharti-airtel

 http://www.authorstream.com

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 http://www.moneycontrol.com/competition/bhartiairtel/comparison/BA08

 http://wirelesstelecom.wordpress.com/2013/11/11/swot-analysis-

of-indias-largest-mobile-telecom-operator-bharti-airtel/

 http://www.ukessays.com/essays/marketing/history-about-the-

generic-strategies-marketing-essay.php

 http://www.themediaant.com/airteladvertising

 http://mythbhagat.blogspot.in/2009/04/successful-sales-and-

distribution.html

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 ANNEXURE

QUESTIONNAIRE

 NAME:

 ADDRESS:

 OCCUPATION:

2. Do you think that Airtel tariff plans are better than others?

 Yes

 No

3. Which service do you use ofAirtel?

 Mobile service

 Internet

 DTH

 Other

4. Which was your first choice of cellular service when you want to use mobilephone?

 AIRTEL

78
  HUTCH

 IDEA

 RELIANCE

 TATAINDICOM

 OTHERS

5. How did you know about AIRTEL cellularservice?

 Friends

 Advertisements

 Relatives

 Other Sources

6. Which feature of AIRTEL convinced you to useAIRTEL?

 Advertisements

 Connectivity

 Schemes

 Goodwill

7. Which feature of AIRTEL is better than your previous cellularservice?

 Advertisements

79
  Connectivity

 Schemes

8. What is yourage?

 15-21years

 21-28years

 28-35years

9. Which type of advertisement you most like inAIRTEL?

 AudioVisual

 Print

 Audio

10. Which celebrity you like very much inAIRTEL?

 SachinTendulkar

 Shahrukh khan

 Kareenakapoor

 A.R.Rehman

80
11. What is youroccupation?

 Student

 Household

 Professional

12. Are you an Airtelcustomer?

 Yes

 No

13. What type of Airtel service youuse?

 Postpaid

 Prepaid

14. How did you come to know aboutAirtel?

 Friend

 Dealer

 Advertisement

 Other

15. What makes Airtel different fromothers?

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  Connectivity

 Tariff plans

 Newschemes

 Other

16. What is your satisfaction level with Airtel?

 Fully

 Partially

 Distassified

 Fullydistassisfied

17. How much is your monthlyexpenses?

 500 –1000

 1000 – 2000

 2000 &above

82