PROJECT REPORT ON

SUBMITTED TO:
Dr. M.J Menon. Faculty of Marketing.

SUBMITTED BY:
Aditi Bhardwaj (Seat no: 43) Aditya Garg (Seat no: 44) Gaurav Upreti (Seat no: 45) Prachi Mehta (Seat no: 46)

INTRODUCTION

The telecommunications sector of India is one of the fastest growing sectors of our country. It is the second largest in the world based on the total number of telephone users (both fixed and mobile phones). Major sectors of Indian telecommunication industry are telephony, internet and television broadcasting. Indian telecom industry underwent a high pace of market liberalization and growth since 1990s. The industry has grown over twenty times in just in just twelve years, from 37 million subscribers in 2001 to 960.9 million subscribers in 2012. Its rural tele-density is about 33%. This presents an excellent opportunity for the telecom companies to expand their business and reap benefits. The entry of foreign giants like Vodafone into the market is a testimony for the attractiveness of Indian telecom sector. In the initial stages, Indian telecom sector was a monopoly of the Department of Telecom. But with the government allowing private participation in the sector the growth has been phenomenal. In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. By 2001, it expanded their services to four more states. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India and is also a provider of broadband and subscription television services. Bharti Airtel remained the leader in wireless segment with 22.3 per cent market share, followed by Reliance and Vodafone with 17.72 per cent and 17.27 per cent respectively.

YEARS
1851 1881 1947 1985 1986 1992 1994 1997 1999 2000 2002
First operational landlines introduce Merger with postal system Merger of ETC and IRT into IRCC DOT established Conversion of DOT into VSNL and MTNL Private players were allowed in VAS

National Telecom Policy (NTP) was formulated Independent regulator, TRAI, was established NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime BSNL was established by DoT ILD services was opened to competition, Go-ahead to the CDMA technology, Internet telephony initiated, Reduction of licence fees Unified Access Licensing (UASL) regime was introduced Broadband policy 2004 was formulatedtargeting 20 million subscribers by 2010 FDI limit was increased from 49 to 74 percent Number portability was proposed Decision on 3G services

2003 2004 2005 2006 2007

EVOLUTION OF TELECOM INDUSTRY IN INDIA: ABOUT THE COMPANY

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular service provider in India, with more than 183 million subscribers as of November 2012. With this, Bharti is now the world's third-largest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and broadband Internet access (DSL) in top 95 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV. Shahrukh Khan is the brand ambassador of the mobile company and Kareena Kapoor and Saif Ali Khan are the brand ambassadors of the DTH company. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 19% share of the wireless services market, followed by 17% for Reliance Communications and 16% for Vodafone. In January 2010, company announced that Manoj Kohli, Joint Managing Director and current Chief Executive Officer of Indian and South Asian operations, will become the Chief Executive Officer of the International Business Group from 1st April 2010. He will be overseeing Bharti's overseas business. Current Dy. CEO, Sanjay Kapoor, will replace Manoj Kohli and will be the CEO with effective from 1st April, 2010.

VISION
By 2015 Airtel will be the most loved brand, enriching the lives of the millions. By this vision, Airtel aims to be globally admired for telecom services that delight customers. By providing innovative products and services and error-free services they want to meet the mobile communication needs of their customers.

MISSION
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 This mission statement is more of customer centric that shows their concern to revolve around there customers they cater. Technology plays an important role in telecommunication, but mission remains silent in it as Airtel has outsourced this aspect who are already well equipped to handle this aspect

OBJECTIVE / GOALS
To undertake transformational projects that has a positive impact on the society and contribute to the nation building process. To diversify into new businesses in agriculture, financial services and retail business with world-class partner. To lay the foundation for building a conglomerate of future.

MARKET SHARE OF AIRTEL

RELIANCE COM, 11.50% BSNL, 10.20%

Idea cellular, 12.10%

vodafone, 20.70%

Bharti airtel, 33.38%

Customer share of Airtel

Idea cellular, 11.20% Reliance com, 18.90%

Vodafone, 18.80%

BSNL, 12.70%

Bharti airtel, 24.30%

Revenue Share of Airtel

MARKETING STRATEGIES

Airtel used to apply different marketing strategies for different circles depending upon the strategies of their competitors. While the company was focusing on its pricing strategy, which was easily copied by its competitors, hence they started focusing on developing value added offerings and schemes to expand its market and gain customer loyalty. Analyst remarked that the players coming up with new schemes or value-additions almost every week to get the better of their competitors. By constantly keeping itself abreast with the moves of its competitors and various proactive/reactive schemes Airtel was able to retain its leadership position. Despite continual attacks from Vodafone, Reliance, Idea cellular and BSNL, Airtel cellular services remained on top. In order to build brand preferences and promote brand awareness, airtel put up a large number of hoarding and kiosks as a part of their promotion campaign. It is trying to set up a thematic campaign to build a stronger brand equity for airtel. In the telecommunication sector it is the network efficiency and quality of service that plays an integral role .What the buyer now looks is to get the optimum price performance package. In its former stage of promotion airtel began with a series of teaser hoardings bearing just the companys name without explaining what airtel was. And then for the next phase they associated airtel with cellular services. From handing out brochures to using direct callers, airtel used every kind of direct marketing. This helped them to entrench their name in consumers mind. In the first four months alone, airtels spending in advertisement exceeded Rs. 4crores where the campaign now focused on the utility of cell phone. Airtel, keeping in mind the importance of the customer retention, values its heavy users the most and constantly indulges in service innovation. But, since heavy users comprise only15-20% of the population, the other segment cannot be neglected. The population which has just realized the importance of cellular phones has to be roped in. It is for this reason that the service provider offers a plethora of incentives and discounts. Concerts like the "Freedom concert" are being organized by Airtel in order to promote sales. The media channel is chosen with economy in mind. The target segment is not very concrete but, there is an attempt to focus on those who can afford. The print advertisements and hoarding are placed

in those strategic areas which most likely to catch the attention of those who need a cellular phone. The product promise (which might cost different 1 higher) is an important variable in determining the target audience. Besides this, other promotional strategies that Airtel has adopted are:

MARKET SEGMENTATION
Segmentation is very important because of the better predictability of the target consumer group and to design the proper marketing mix strategy. Segmentation is done on the following grounds:

Geographic variables
Region wise: East Region (West Bengal, Assam, Arunachal Pradesh etc). West Region (Gujarat, Rajasthan, Maharashtra etc). South Region (Andhra Pradesh, Karnataka, Kerala etc). North Region (Punjab, Haryana, Himachal Pradesh etc). Central Region (Madhya Pradesh, Chhattisgarh, Jharkhand, etc).

Density of area: Urban (Cities Such As Mumbai, Delhi, Pune, Jaipur etc). Semi-urban (Nasik, Aurangabad, Ahemadnagar etc). Rural (Baramati, Khed, Saswad etc).

Demographic variables
Age From age group 18 to 35.

As most of the people start using a mobile from the age of 18 so we may make a segment of a age group 18 to 35 as most of them will be students and remaining will be freshers working in the industry. So they need SMS plans for chatting and they also need cheap calling rates. We may provide the FRINDZ card to them. 35 and above As most of these groups will be working and dont use mobile for SMS and chatting. So this group needs only the calling facility at a reasonable rate. This Group may continue using the general plans.

Income
Prepaid and postpaid. Generally the mobile service providers plan their marketing strategies according to the prepaid market and postpaid market. So it is basically depends upon the income of the consumer that whether he selects the prepaid or postpaid. Generally the consumers with low income choose prepaid and consumers with income choose postpaid.

Behavioral variables
Brand loyalty We can also segment it on the basis of the loyal customers and non loyal customers of the brand. We can provide various schemes and offers to the loyal customers to retain him with our product.

MARKET TARGETING

Target the premium and upper middle class :

The motto behind this only those segments should be targeted who value time and have the paying capacity. PAN-INDIA targeting High corporate clients. Professionals by giving free calls in postpaid connections. Entrepreneur by giving various plans in which they may get internal calling free. Youth with FRIENDS scheme. Targeting Students by introducing postpaid connection only for students and with zero rentals. Also by providing low tariff for night calling.

MARKETING MIX

PRODUCT MOBILE SERVICES: Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. PREPAID POSTPAID BLACKBERRY SMART PHONES CALLING CARDS

 AIRTEL TELEMEDIA SERVICES: The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with Indias best direct to home (DTH) service digital TV in more than 150 cities - BROADBAND - FIXED LINE 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. DIGITAL TV SERVICES: Discover the magical experience of digital entertainment with Airtel. From DVD quality picture and sound, the best and widest variety of channels and programmers to the best on-demand content on Airtel Live, your TV viewing experience change forever with digital TV from Airtel!

PROMOTION
People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent flier's programs. There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements,

promotional advertisements, attacking advertisements and tactical advertisements. In 2002 Airtel got its signature tune from A.R. Rehman, this signature tune us perhaps the most downloaded tune in India. Special discounts in calling rates and SMS services. Providing wallpapers and screensavers on website. Large scale print and video advertising.

PLACE
Distribution channel under the company

DSA
(Direct selling association)

FSA
(Franchisee selling association)

CSA
(Corporate selling association)

ARC (Airtel relationship center)

 PRICE
Airtel has customer base pricing strategies. PREPAID TARIFF: ONE TIME CHARGES

Pulse Rate Price of Pack (Rs.) Free Airtime on Pack (Rs.) Incoming Calls (Rs.)

Per Minute 31 0 Free

CALL CHARGES Airtel 0.50 0.50 SMS Local National International 1 1.5 5 CDMA/GSM 0.60 0.60 LANDLINE 0.60 0.60

LOCAL RATES STD RATES

POSTPAID TARIFF: ONE TIME CHARGES Activation Charges Membership Fee 500 0

Security Deposit

MONTHLY CHARGES (FIXED) (Rs.) Bill Plan Charge 233

CALL CHARGES AIRTEL 0.5 CDMA/GSM 0.5 LANDLINE 0.5

LOCAL RATES

STD RATES AIRTEL STD RATES 1.51 CDMA/GSM 1.51 SMS Local CDMA National International VAS 0.5 0.5 1.5 5 3 LANDLINE 1.51

 PROCESS
Process for availing services is very easy and customer can avail it very easily at his convenience. 121 is the customer support number which can be dialed from anywhere in India. PHSYICAL EVIDENCE Customer touch points are extravagant and appealing. Large showrooms and customer care centers. Unique and appealing brand logo.

PEOPLE
Dedicated and passionate workforce. Have various attractive schemes and plans or all the managements. Good and effective customer service.

AIRTEL NEW LOGO

On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding strategy. The company unveiled a new logo. It is designed by Londonbased brand agency. On 23 November 2010, Airtel's Africa operations were rebranded to 'Airtel'. Sri Lanka followed on 28 November 2010 and on December 2010, Warid Telecom rebranded to 'Airtel' in Bangladesh. The curved shape & the gentle highlights on the red color gives influence of warm & inviting. It represents a dynamic force of unparalleled energy that brings customers closer. The specially designed logo type is modern, vibrant & friendly. The use of all lowercase is Airtels recognition for the need for humanity. Red is part of 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.

CURRENT HAPPENINGS

Airtel announced organizational changes with the objective of enhancing its focus on expanding operations in the international market beyond India and south Asia and also to consolidate its position in India. Over the coming months, Bharti Airtel would invest heavily in outdoor, radio and digital advertising, as a part of marketing and advertising budget pegged to be close to Rs 300 crore. Music Maestro A.R Rehman has been signed to create a new tone for the company which will be available for the users to download. Moreover film actors like Kareena Kapoor and Saif Ali Khan have been signed as the brand ambassadors of Airtel. The new brand identity has been created to appeal to the customers not only in India but also in neighboring countries like Bangladesh and Sri Lanka.