1111 Minor Project Report On MARKET SHARE OF AIRTEL Submitted in the degree of Bachalor of Business Administration (BBA) Submitted

t o: Asim sahore (Project guide) Submitted by: Simranjeet kaur 0631701707 TECNIA INSTITUTE OF ADVANCED STUDIES (Affiliated to Guru Gobind Singh Indraprast ha University) 2A & 2B, Madhuban Chowk, Rohini, Delhi-110085 1110/12/2009 1111 11- 1 -111 111111111111 22131 - 1 -1

2222 TABLE OF CONTENTS Acknowledgement Executive Summary Objective of Study Company Profile Market Rese arch Wallet Share Research Methodology Data Analysis New retailers added Conclus ion Limitations Recommendations Bibliography Annexure 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2210/12/2009 2211 22- 2 -222 111111111112 22131 - 2 -2

3333 ACKNOWLEDGEMENT My project work has been successfully accomplished due to cooperative efforts of many people. I would like to pay my sincere gratitude and thanks to those peopl e, who directed me at every step in the project work. I would like to express my sincere gratitude to Mr. Asim Sahore (Project guide) for constantly guiding me and acting as my mentor during the course of my project and tackling variety of hurdles with implicit patience throughout my research project and whose deep inv olvement and interest in the project infused in me great inspiration and confide nce in taking up this study in right direction. Without his overall guidance and help the project may not have seen to be completed. In the end, I also want to thanks my friends for their support and help during the project. Submitted by: S IMRANJEET KAUR 3310/12/2009 3311 33- 3 -333 111111111113 22131 - 3 -3

4444 Executive Summary Airtel comes to you from Bharti cellular Limited- a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which includes cellular, basic, internet and recently introduc ed National Long Distance. Bharti also manufactures and exports telephone termin als and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular services provider, with an all India footpr int covering all 23 telecom circles of the country. It has over 11 million satis fied customers. Project title is Market Share of Airtel. Main objective of the stu dy was to find the share of Airtel in the allotted market and to know its potent ial market. In this, non telecom shops are targeted and their demand or requirem ent is understood. Their interest is being taken into consideration i.e. whether they are interested or not interested if given an option to them to keep Airtel connection for selling. Also for existing telecom shops; retailers are being qu estioned about their level of satisfaction from the business, whether they keep Airtel connection, overall performance of each telecom services providers and th eir feedback for Airtel. The method which was used to study the replies of the t elecom and non telecom shops that may or may not be interested in having Airtel connections is through questionnaire. The questionnaires were filled by: - movin g to each and every market which was being allotted. Markets allotted are Rohini sector 11 and 16, Rohini sector 15, 17 and 18 and Rohini sector 9, 13, 14 and P rashant Vihar. Existing telecom shops and non telecom shops like chemist, genera l stores, STD/ PCO, gifts shops are mainly focused. The questionnaires were fill ed there and then by the retailers and then analysis is being done. The question naire was bifurcated into different segments i.e. general information about the retailers containing name, address, age, shop address, whether they keep Airtel or not, if no then their interest on keeping it. Also overall comparative perfor mance is being asked from existing telecom. 4410/12/2009 4411 44- 4 -444 111111111114 22131 - 4 -4

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Objective The objective of the project was to: To find the market share of Airtel in a ed markets. To measure the amount of the consumers total spending for Airtel tel ecom services. To know total amount of money non telecom shopkeepers can spend o n our product in planning and managing sales and marketing. To know how much Air tel has penetrated into the market. To know the satisfaction level from the exis ting telecom shopkeepers. To keep an eye on the competitors strengths and weakne sses. To study the hindrances in increasing the sales and market share of Airtel in prepaid category. To know which telecom operator is leading in the given mar ket. To study the comparative analysis of telecom operators according to dealers, ret ailers on a parameters like Value for money of which telecom operator. Customer p reference/ demand for which companys connection. Claim disbursement received by d ealer/ retailer from various companies. Number of activation per month. Which co mpanys connection faced the highest decline in the past three months? In the end from the facts and observations collected, we came up with the conclusion, which helps Airtel to attract more customers to be the part of Airtel family and the corrective measures to be taken for filling up the loopholes and how the Airtel share can be increased which is eaten away by the other competitors. 5510/12/2009 5511 55- 5 -555 111111111115 22131 - 5 -5

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7777 Company Profile Market The unprecedented growth in the mobile is, perhaps, the most vivid facet of Indi as economic transformation since the mid 1990s. Mobile technology and services cam e to India less than a decade ago. In the early days, a mobile was seen to be a fashion statement for the rich. Today, it is expected as a basic communication m edium for all socio- economic segments. As the pioneer and front runner, Airtel has been instrumental in leading and ushering in the mobile revolution in India. The Indian mobile market is, today, amongst the fastest growing and the most co mpetitive in the world. There were 34.6 million mobile phone subscribers in the country as of April 2004 (source: cellular operators association of India and as sociation of basic telecom operators) with approximately 7 million subscribers, Airtel commands nearly 20% of the share of the market- making is the number one brand in the country. Airtels world class service and innovative products have en abled it to establish this position of leadership. About Airtel Airtel is a brand of telecommunication services in India operated by Bharti Airt el. Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is amon g India s largest mobile phone and Fixed Network operators. With more than 40 mi llion subscriptions, the company is one of the world s fastest growing telecom c ompanies. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal, 7710/12/2009 7711 77- 7 -777 111111111117 22131 - 7 -7

8888 India s sixth richest man with a total worth of US$10 billion. The company is the only GSM operator to provide mobile services in all the 23 circles in Ind ia. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a s ubmarine cable landing station at Chennai, which connects the submarine cable co nnecting Chennai and Singapore. The company provides reliable end-to-end data an d enterprise services to the corporate customers by leveraging its nationwide fi ber optic backbone, last mile connectivity in fixed-line and mobile circles, VSA Ts, ISP and international bandwidth access through the gateways and landing stat ion. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Br oadband & Telephone Services (Fixed line and Internet Connectivity), Long Distan ce Services and Enterprise Services (Telecommunications Consulting for corporate s). Leading international telecommunication companies such as Vodafone and SingT el hold partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications licence in Jersey in the Channel Islands by the lo cal telecommunications regulator the JCRA. In September 2006 the Office of Utili ty Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunicatio ns licence. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch o f a relationship with Vodafone for island mobile subscribers. In July 2007, Bhar ti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network. 8810/12/2009 8811 88- 8 -888 111111111118 22131 - 8 -8

9999 Touchtel Until September 18, 2004, Bharti provided fixed-line telephony and broadband ser vices under the Touchtel brand. Bharti now provides all telecom services includi ng fixed-line services under a common brand "Airtel" Forbes Global 2000 Ranking - 2007 The Forbes Global 2000 list for the year 2007 ranked Bharti at 1149. Awards and recognition 2006 Wireless service provider of the year 2005 at the Frost and Sulivan AsiaPacific ICT awards. Competitive service provider of the year 2005 at the Frost and Suliv an AsiaPacific ICT awards In News Recently Sunil Bharti s Airtel launched its calling card in America specially fo r the NRI (Non-resident Indians) and people calling from America to India at a c heaper rate as compared to the tariff offered by other providers. On February 12 , 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US $1.6 billion ; and purchased a controlling stake in rival Hutchison Essar. In its monthly pre ss release, following statistics have been presented for end of April 2007. 9910/12/2009 9911 99- 9 -999 111111111119 22131 - 9 -9

10101010 Bharti Airtel added the highest ever net addition of 53 lakh customers in a sing le quarter (Q4-FY0607) and also the highest ever net addition of 1.8 crore total subscribers in 2006-07 The company will invest up to $3.5 billion this fiscal (07-08) in network expans ion. It has an installed base of 40,000 cellsites and 59% population coverage Af ter the proposed network expansion, an additional 30,000 towers will result in t he company achieving 70% population coverage Bharti has over 39 million users as on March 31, 2007 It has set a target of 125 million subscribers by 2010 Prepai d customers account for 88.5% of Bhartis total subscriber base, an increase from 82.7% a year ago ARPU has dropped to Rs 406 Non-voice revenues, (SMS, voice mail , call management, hello tunes and Airtel Live) constituted 10% of total revenue s during Q4, lower than 10.7% in the Q4 of the previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes Has compl eted 100% verification of its subscribers and in the process disconnected three lakh subscribers Market News Market Capitalization Approx. Rs. 1,670 billion Closing BSE share price = Rs. 88 0.75 Sales : Profits : 02.62 Billion $ 00.46 Billion $ 101010/12/2009 101011 1010- 10 -101010 1111111111110 22131 - 10 -10

11111111 Mobile Services Post-paid Services Airtel Prepaid Roaming Value Added Services Coverage Bharti s partners in Airtel are Emtel, the premier GSM operator in Mauritius, some priva te investors. Registered as Telecom Seychelles Limited and operating under the b rand name of Airtel, the company is licensed to offer comprehensive telecom serv ices including GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roa ming, connectivity to Internet Services, Maritime Telecom Services (INMARSAT) an d International Collect and Credit Card calling. Dominating the market with its service and customer commitment - Airtel has always been at the forefront of inn ovation and change in the Telecom sector in Seychelles. Airtel s Head Office is in Providence & Anse Royale, Mahe. Airtel also has showrooms in Victoria, Mahe a nd Grand Anse, Praslin, that serve as one-stop shops for customers. Airtel provi des the whole range of telecom services, from GSM Mobile services, Airtel Prepai d Mobile Cards available at a string of outlets, International Roaming with 157 operators in 65 countries, a host of Value Added Services, Fixed Cellular servic es and a fast growing Fixed Line network as well. All this, of course, comes to you with the distinct Airtel advantage of excellen t Tariffs, the best GSM Coverage on the islands, world class Technology from ind ustry leaders like Ericsson and Scientific Atlanta and 24-hour Customer Care. In addition to telecom services, Airtel also recently acquired a 4-star luxury 124 bedroom hotel in Seychelles, called Le Meridien Barbarons Beach Hotel. 111110/12/2009 111111 1111- 11 -111111 1111111111111 22131 - 11 -11

12121212 AIRTEL VISION "To provide global telecom services and delight customers ." AIRTEL MISSION They will meet the mobile communication needs of customers thr ough: Error- free service delivery Innovative products and services Bharti Enterprises Bharti Enterprises is one of Indias leading business groups with interests in tel ecom, agri business, insurance and retail. Bharti Enterprises has successfully f ocused its strategy on telecom while straddling diverse fields of business. From the creation of Airtel , one of India s finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its Beetel b rand, Bharti has created a significant position for itself in the global telecom munications sector. Bharti Airtel Limited is today acknowledged as one of India s finest companies, and its flagship brand Airtel , has over 44 million custome rs across the length and breadth of India. While a joint venture with TeleTech I nc., USA marked Bhartis successful foray into the Customer Management Services bu siness, Bharti Enterprises dynamic diversification has continued with the company venturing into telecom software development. Bharti has successfully launched a n international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA. Bharti also has a joint venture - Bharti AXA Life Insurance Company Ltd. - with AXA, worl d leader in financial protection and wealth management. Bharti has recently fora yed into retail business under a company called Bharti Retail Pvt. Ltd. It also has an MoU with Wal-Mart for the cash & carry business. 121210/12/2009 121211 1212- 12 -121212 1111111111112 22131 - 12 -12

13131313 Bharti Tele-Ventures When EM Warburg Pincus went to invest in India the summer of 2001, it zeroed in on Bharti Televentures, a mobile telecom services company with fewer than 800,00 0 customers. The N.Y buyout firm, which invested $300 million in the Delhi enter prise, chose well. Today, Bharti has 11.4 million cell-phone subscribers, its st ock has grown fivefold since listing early in 2002, and its valuation is $10 bil lion. Warburg has made more than $1 billion on the deal and still owns 5.8%. Cha irman and Managing Director Sunil Mittal aims to maintain Bharti s 25% share of the Indian cellular market, which is forecast to reach 180 million customers in 2008. Company Snapshot Bharti Tele-Ventures Limited, through its subsidiaries, provides telecommunicati ons services in India. The company offers mobile, fixed line, national, and inte rnational long distance services, very small aperture terminal-based voice and d ata transmission services, Internet services, and network solutions. Bharti offe rs Internet and various Internet-related services, including dedicated leased li ne, virtual private networks, Web hosting and server collocation, and Internet m ailing services to both residential and corporate customers. The company provide s broadband connectivity for various end uses, including data, information techn ology-enabled services, and other high bandwidth services. It offered its servic es to approximately 11.05 million customers, including approximately 10.24 milli on mobile and 815,000 fixed line customers, as of January 31, 2004. Bharti TeleVentures was founded in 1995 and is based in New Delhi, India Business Profile Bharti Airtel (formerly Bharti Tele-Ventures), a part of Bharti Enterprises, wor ks through three individual SBUs -mobile services, broadband and telephone servi ces 131310/12/2009 131311 1313- 13 -131313 1111111111113 22131 - 13 -13

14141414 and enterprise services. The company, established in 1995, is a public limited company and is headquarted in New Delhi, India. The company provides GSM mobile services across India in 23 telecom circles, while the B&T business grou p provides broadband & telephone services in 15 circles. The enterprise services group has two sub-units - carriers (long distance services) and services to cor porates. Bharti Airtel is the largest mobile telephony operator in the GSM space with around 27 per cent market share in FY05. The company, apart from being the largest player in the mobile segment with subscribers in all the 23 telecom cir cles of the country, also provides varied services like fixed line, broadband an d retail internet access. The company is also one of the fastest growing fixed l ine and long distance (DLD as well as ILD) operators in the country. It offers b roadband and other data oriented services to corporate clients. The company has a strategic alliance with Singtel, the largest of its kind made by SingTel outsi de Singapore. The company also has a strategic alliance with Vodafone, which is one of the largest single foreign investments made in the Indian telecom sector. Bharti Airtel plans to foray into the retail segment, through a joint venture, which would be finalised depending on the kind of infrastructure required for th e retail foray. Financials Bharti Airtel registered a 151.71% growth in net profits to Rs 12,868.40 million for the quarter ended March, 2007 from Rs 5,112.40 million for the quarter ende d March, 2006. Net sales rose 59.58% to Rs 52,187.30 million for the quarter end ed March, 2007 compared with Rs 32,703.60 million for the quarter ended March, 2 006. Total income rose 59.58% to Rs 52507.7 million in the quarter ended March, 2007, from Rs 32,904.1 million for the quarter ended March, 2006. 141410/12/2009 141411 1414- 14 -141414 1111111111114 22131 - 14 -14

15151515 The earnings per share (EPS) of the company stood at Rs 6.79 in the qua rter ended March, 2007. About Idea As India s leading GSM Mobile Services operator, IDEA Cellular has licenses to o perate in 11 circles. With a customer base of over 10 million, IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA C ellular s footprint currently covers approximately 45% of India s population and over 50% of the potential telecom-market.As a leader in Value Added Services, I nnovation is central to IDEA s VAS Factory. It is the first cellular company to launch music messaging with Cellular Jockey , Background Tones , Group Talk , a voice portal with Say IDEA and a complete suite of Mobile Email Services.A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the dis tinction of offering the most customer friendly and competitive Pre Paid offerin gs, for the first time in India, with Super Power , 2 Minutes Outgoing Free, Li felong offer and other segmented offerings like Women s Card. Lifetime Idea is the first and only loyalty program, for pre paid customers, introduced by a Cel lular brand. Customer Service and Innovation are the drivers of this Cellular Br and. A brand known for their many firsts, Idea is only operator to launch GPRS a nd EDGE in the country. The latest feather in the IDEA cap is the GSM Associatio n Award for Bill Flash, it has recently won making it the first cellular operato r in India to win an award on this platform. Idea Cellular is part of the Aditya Birla Group, which is India s first truly multinational corporation. Global in vision, rooted in Indian values, the group is driven by a performance ethic pegg ed on value creation for its multiple stakeholders. The combined holding of the Aditya Birla Group companies in Idea stands at 98.3 per cent. Mr Kumar Mangalam Birla has been named the Chairman of the company. The other directors on the boa rd are: Mrs. Rajashree Birla, Chairperson, Aditya Birla 151510/12/2009 151511 15 15- 15 -151515 1111111111115 22131 - 15 -15

16161616 Centre for Community Initiatives and Rural Development; Mr. Sanjeev Aga , Managing Director, Aditya Birla Nuvo; Mr. Debu Bhattacharya, Managing Director , Hindalco; Mr. Saurabh Misra, Director, Aditya Birla Management Corporation Ltd . and CEO, UltraTech; and Mr. M. R. Prasanna, Group Executive President (Legal), Aditya Grasim 7.5 per cent, and Birla Hindalco 10.1 per cent in Group. Idea. Ad itya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd. 44.9 per cent, With ambitious future plans, the company is poised for rapid growth. Hutch Essar Hutch is the fourth largest cellular operator in India that covers most of the c ountry.It offers both prepaid and postpaid GSM cellular phone coverage throughou t India and is especially strong in the major metros. The company is often prais ed for its award winning advertisements which all follow a clean, minimalist loo k. A recurrent theme is that its message Hi stands out visibly though it uses on ly black letters on white background. Another recent successful ad campaign in 2 003 featured a dog following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. Hutch Essar is owned by Vodafone 52%, Essa r Group 33%, and other Indian nationals, 15%. Vodafone and the Essar group have reached an agreement on the management of the company, which will be renamed Vod afone Essar in the near future. In Mumbai it was earlier known by the name Orang e. It offers both prepaid and postpaid GSM cellular phone coverage throughout In dia and is especially strong in the major metros. 161610/12/2009 161611 1616- 16 -161616 1111111111116 22131 - 16 -16

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18181818 Marketing Research Research is the scholarly or scientific practice of gathering existing or new in formation in order to enhance one s knowledge of a specific area. Research has m any categories, from medicine to literature. Marketing Research, or Market Resea rch, is a form of business research and is generally divided into two categories : consumer market research and business-to-business (B2B) market research, which was previously known as Industrial Marketing Research. Consumer marketing resea rch studies studies the buying habits of individual people while business-tobusi ness marketing research investigates the markets for products sold by one busine ss to another. Consumer Marketing Research is a form of applied sociology that c oncentrates on understanding the behaviours, whims and preferences, of consumers in a marketbased economy. The field of consumer marketing research as a statist ical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. Market research and marketing research are often confused. Marke t research is simply research into a specific market. It is a very narrow conce pt. Marketing research is much broader. It not only includes market research , but also areas such as research into new products, or modes of distribution su ch as via the Internet. Here are a couple of definitions: "Marketing research is the function that links the consumer, customer, and public to the marketer thro ugh information - information used to identify and define marketing opportunitie s and problems; generate, refine, and evaluate marketing actions; monitor market ing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications." 181810 /12/2009 181811 1818- 18 -181818 1111111111118 22131 - 18 -18

19191919 American Marketing association -Official Definition of Marketing Resear ch Obviously, this is a very long and involved definition of marketing research. "Marketing research is about researching the whole of a company s marketing pro cess." This explanation is far more straightforward i.e. marketing research into the elements of the marketing mix, competitors, markets, and everything to do w ith the customers. The Marketing research Process. Marketing research is gathered using a systematic approach. An example of one fo llows: 1. Define the problem. Never conduct research for things that you would like to know. Make sure that you really need to know something. The problem t hen becomes the focus of the research. For example, why are sales falling in New Zealand? 2. How will you collect the data that you will analyze to solve your p roblem? Do we conduct a telephone survey, or do we arrange a focus group? 3. Sel ect a sampling method. Do we us a random sample, stratified sample, or cluster s ample? 4. How will we analyze any data collected? What software will we use? Wha t degree of accuracy is required? 5. Decide upon a budget and a timeframe. 6. Go back and speak to the managers or clients requesting the research. Make sure th at you agree on the problem! If you gain approval, then move on to step seven. 7 . Go ahead and collect the data. 8. Conduct the analysis of the data. 9. Check f or errors. It is not uncommon to find errors in sampling, data collection method , or analytic mistakes. 10. Write your final report. This will contain charts, t ables, and diagrams that will communicate the results of the research, and hopef ully lead to a solution to your problem. Watch out for errors in interpretation. 191910/12/2009 191911 1919- 19 -191919 1111111111119 22131 - 19 -19

20202020 Sources of Data - Primary and Secondary There are two main sources of data - primary and secondary. Primary research is conducted from scratch. It is original and collected to solve the problem in han d. Secondary research, also known as desk research, already exists since it has been collected for other purposes. Marketing research methods Methodologically, marketing research uses the following types of research design s Based on questioning: Qualitative marketing research - generally used for exploratory purposes small n umber of respondents - not generalizable to the whole population statistical sig nificance and confidence not calculated - examples include focus groups, in-dept h interviews, and projective techniques Quantitative marketing research - generally used to draw conclusions - tests a s pecific hypothesis - uses random sampling techniques so as to infer from the sam ple to the population - involves a large number of respondents examples include surveys and questionnaires Based on observations: Ethnographic studies -, by nature qualitative, the researcher observes social ph enomena in their natural setting - observations can occur cross-sectionally (obs ervations made at one time) or longitudinally (observations occur over several t ime-periods) - examples include product-use analysis and computer cookie traces Experimental techniques -, by nature quantitative, the researcher creates a quas i-artificial environment to try to control spurious factors, then 202010/12/2009 202011 2020- 20 -202020 1111111111120 22131 - 20 -20

21212121 manipulates at least one of the variables - examples include purchase l aboratories and test markets Researchers often use more than one research design . They may start with secondary research to get background information, then con duct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client. 212110/12/2009 212111 2121- 21 -212121 1111111111121 22131 - 21 -21

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23232323 Market Share The total amount of money a customer can spend on a certain product category is a vital piece of information for planning and managing sales and marketing effor ts. This amount is usually referred to as the customers wallet (also called oppor tunity) for the product category. There are many possible uses for wallet estima tes, including straightforward targeting of sales force and marketing actions to wards large wallet customers and prospects. In a more sophisticated sales and ma rketing environment, the combination of classical propensity models for a partic ular product category with the knowledge of the wallet for the same category can direct the sales efforts: it allows a company to market not only to customers o r potential customers with a large wallet, but also to those with a high probabi lity of buying specific products in the category. By combining the customer wall et estimates with the data on how much they spend with a particular seller, we c an calculate the share-of-wallet that the seller has of each customer for a give n product category. This information allows the seller to target customers based on their growth potential, a combination of total wallet and shareof-wallet. Th e classical approach of targeting customers that have historically generated lar ge amounts of revenue for the company (known as lifetime value modeling) does no t give enough importance to customers with a large wallet, but small share-of-wa llet, which are the ones with presumably the highest potential for revenue growt h. Share-of-wallet is also important for detecting partial defection or silent a ttrition, which occurs when customers increase their spending in a given categor y, without increasing the amount purchased from a particular company. In certain industries, customer wallets can be easily obtained from public data. For examp le, in the credit card industry, the card issuing companies can calculate the wa llet size and respective share-of-wallet using credit records from the three maj or credit bureaus. For most industries, however, no public wallet information is available at the customer level. 232310/12/2009 232311 2323- 23 -232323 1111111 111123 22131 - 23 -23

24242424 In this case, there are two approaches used in practice for obtaining wallet est imates: 1. Top-Down: starts from a public aggregate estimate for the overall ind ustry opportunity in a given country and splits this estimate across the individ ual customers using heuristics based on the customer characteristics. For exampl e, if the customers are companies, the overall opportunity could be divided amon g the companies proportionally to their number of employees. 2. Bottom-Up: estim ates the wallet directly at the customer level, using heuristics or predictive m odels based on customer information. A common approach is to obtain actual walle t information for a random subset of customers/prospects through primary researc h. A model is then developed based on this data to predict the wallet for the ot her customers/prospects Many people, even marketing professionals, consider shar e of wallet a calculation of frequency and amount of purchases. Real share of wallet measures the amount of the customers total spending you are capturing in any par ticular category. Factors The key to increasing share of wallet is to understand what factors influence pu rchasing behavior among your customer base. Your task is to find out why your cu stomers divide their purchases over multiple outlets, and how they choose who th ey purchase from. Regardless of your industry, you have points of contact with you r customers; they arent limited to but ultimately coincide with a purchase. Use t hat contact opportunity to gather loyalty data. This may require an incentive (e specially in retail sectors and e-commerce) to prompt customer participation. 242410/12/2009 242411 2424- 24 -242424 1111111111124 22131 - 24 -24

25252525 You want to dig deeper than the traditional what is your satisfaction le vel type questions. Find out why they buy from you, who else they buy from and wh at tips their scale. A question we ask when conducting marketing research for ou r clients is: if you had to decide between purchasing from two different stores o r companies, what is the most important factor in that decision? This always reve als great insight. Strategies Once you understand the factors that drive purchasing behavior, you can adjust y our marketing approach to line up with those factors. Following are a few exampl es of strategies that effectively increased share of wallet. Most airlines jumpe d on the frequent flyer bandwagon, which commoditized the concept and made it mund ane. So, Hawaii Airlines began allowing its points to be redeemed for rental car s, hotels and golf. This strategy distinguished its program and appeals to diffe rent behavior-based segments of the market. Consider the Capital One advertising slogan: Whats in your wallet? This is the ultimate definition of share of wallet. They were leaders in offering balance transfers (from competing cards) to suppor t their lower interest rate value proposition. Frito-Lay launched Tostitos Chips i n 1981. Ten years later they introduced Tostitos Salsa. This increased their sha re of wallet through a product relationship strategy by selling dip to their chip customerstwo products that often are purchased at the same time. As you develop y our wallet strategy, keep in mind that the three most important factors that incre ase wallet share are: distinction, value and product relationship. 252510/12/2009 252511 2525- 25 -252525 1111111111125 22131 - 25 -25

26262626 262610/12/2009 262611 2626- 26 -262626 1111111111126 22131 - 26 -26

27272727 Research Methodology On defining the objective of the project, a plan was developed to gather informa tion most efficiently. Decisions were taken on the data sources, sampling plan, research tools and contact methods. Data Sources: - Primary and secondary data w as gathered. 1. Primary Data:- was gathered by carrying out a market survey of v arious telecom and non telecom shops in the Rohini markets for example- Rohini s ector 11 and 16, Rohini sector 15, 17 and 18 and Rohini sector 9, 13, 14 and Pra shant Vihar. Current perceptions of existing retailers is been taken to judge th eir expectations from Airtel and its services. Also non telecom shops are been c aptured so as to know their interests in keeping Airtel. Tools used for market s urvey are: Questionnaires for retailers. Questionnaires were given to approximate ly 150 shopkeepers. Visited three markets: - Rohini sector 11 and 16, Rohini sec tor 15, 17 and 18 and Rohini sector 9, 13, 14 and Prashant Vihar. The dimensions addressed in the questionnaire were:o Linking about their business. o Whether t hey are telecom shops or non telecom shops. o Do they keep Airtel connections? o How many connections of each telecom services are sold per month? o Are non tel ecom shops interested in having Airtel connections? o What kind of services they want- activation, recharge or both. o Overall performance of each telecom servi ces. o Satisfaction level of retailers. 272710/12/2009 272711 2727- 27 -272727 1 111111111127 22131 - 27 -27

28282828 o Feedback from existing retailers. 2. Secondary Data: - The researcher would have to decide which sort of data he would be using for his study and acc ordingly he will have to select one or other method of data collection. Informat ion was gathered from the internet, media and print so as to obtain relevant inf ormation such as industry background and also public perception of Airtel, Hutch and Idea. Secondary data is very carefully used in research process because it is just possible that the secondary data may be unsuitable or may be inadequate in the content of the problem which we want to study. The data used in research is reliable according to our research needs. Data should be suitable and adequat e. Internet Airtel has its own site in which all details are given www.airtelwor ld.com www.coai.com www.hutch.co.in www.idea.com www.google.com Are the main sit es which are been used for collection of data in our research. 3. Target Respond ents Shopkeepers of each and every market visited. 4. Sampling Sample size of 26 0 individuals relatively covering Rohini under the distributor was taken. The ar eas covered were 282810/12/2009 282811 2828- 28 -282828 1111111111128 22131 - 28 -28

29292929 5. Execution After collection of relevant data and sample planning done , the questionnaires were filled by the retailers by personally interviewing the m. 292910/12/2009 292911 2929- 29 -292929 1111111111129 22131 - 29 -29

30303030 DATA ANALYSIS Area 1: Rohini sector 11 and 16 SAMPLE SIZE: 94 Q1 Do you keep TELECOM connectio ns? Reply of respondent Yes No No. of respondents 74 20 Percentage of respondents 79% 21% Do you keep TELECOM connections Yes No Conclusion: Majority 79% out of 94 keeps the telecom connections available in se ctor 11 and 16 and rest 21% dont have the telecom connections services available in their shops. 303010/12/2009 303011 3030- 30 -303030 1111111111130 22131 - 30 -30

31313131 Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers? Reply of respondent No. of respondents 74 74 55 43 37 74 Airtel Hutch Reliance Tata Dolphin Idea Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers Airtel Hutch Reliance Tata Dolphin Idea Conclusion: Airtel, Hutch and Ideas activation sims are kept by all the existing retailers whether telecom or non telecom but tata, reliance and dolphin are kept mostly by telecom shops. 313110/12/2009 313111 3131- 31 -313131 1111111111131 22131 - 31 -31

32323232 Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:S. No. SERVICES 1: 2: 3: 4: 5: 6: AIRTEL HUTCH IDEA TATA INDICOM RELIANCE MTNL 0-125 125250 250375 375500 500725 725-875 851 729 677 279 428 130 level of activation per month fo r each availab le services no. of connections 1000 800 600 400 200 0 AIR TE L HUTC H IDE A TATA R ELIANC E MTNL IND IC O M 0-125 125-250 250-375 375-500 500-725 725-875 Se rv ice s Conclusion: Airtel is ruling in sales as compared to others with range 725- 875 but through better promotions, schemes and less claims issues Hutch and Idea is emerging as second and third respectively and may soon surpass Airtel in sales d ue to extensive advertising in this area. Reliance has pretty decent sales as co mpared to Tata Indicom and MTNL. 323210/12/2009 323211 3232- 32 -323232 1111111111132 22131 - 32 -32

33333333 Q4 If no, then are you interested in having AIRTEL connections with you now? Reply of respondent Yes No No. of respondents 5 15 Percentage of respondents 25% 75% Are you interested in having AIRTEL connection Yes No Conclusion: Out of the 20 respondents who dont keep Airtel connection in their sh op, only 5 are interested to keep Airtel connection i.e. 25% rest are still relu ctant to keep it. 333310/12/2009 333311 3333- 33 -333333 1111111111133 22131 - 33 -33

34343434 Q5 If yes, are you interested in having:a) b) c) Activation Recharge Both Reply of respondent Activation Recharge Both No. of respondents 1 1 3 Percentage of respondents 20% 20% 60% If yes then are you interested in having activation, recharge or both Activation Recharge Both 343410/12/2009 343411 3434- 34 -343434 1111111111134 22131 - 34 -34

35353535 Conclusion: Out of these 5 who are ready to keep Airtel connection 60% said they will keep both i.e. activation and recharge coupons, rest 20% each said that th ey want to keep activation and recharge only. Q6 Rank your choice of telecom service providers in with respect to their performance (1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5least preferred, N.Pnot preferred at all):ATTRIBUTES Max customer demand is for Value for money F.O.S service Activation complaints Claim disbursement Airtel 34 31 26 14 18 Idea 16 20 20 17 20 Hutch 28 23 38 13 36 Tata Indicom 12 14 6 26 14 Reliance 4 6 4 24 16 353510/12/2009 353511 3535- 35 -353535 1111111111135 22131 - 35 -35

36363636 R a n k in g o f te le c o m s e rv ic e p ro v id e r w.r.t th e ir p e rfo rm a n c e 40 30 20 10 0 A irte l Id e a H utc h Ta ta R e lia nc e Ind ic o m s e rv ic e s Ma x. cu s to m e r d e m a n d is Varlu e fo r m o n e y .S s e rvice Activa ti o n co m p la in ts la im d is b u rs e m e n t fo F.O C Conclusion: This data provide us with the overall view of the performance of all telecom connections in this market area. As it is clearly observed that Airtel is ranked 1 in maximum customer demand and value for money and ranked 2 in F.O.S service. Airtel close competitor is observed to be Hutch in maximum customer de mand and value for money and though hutch ranked 1 in F.O.S service. But in case of activation complaints Airtel ranked 4 due to the more activation complaints in this area. In claim disbursement Airtel is also lacking behind as compared to Idea and Hutch and Hutch is considered to be no. 1 in claim disbursement follow ed by Idea. Area 2: Rohini sector 15,17 and 18 SAMPLE SIZE: 81 Q1 Do you keep TELECOM connections? Reply of respondent Yes No No. of respondents 56 25 Percentage of respondents 69% 31% 363610/12/2009 363611 3636- 36 -363636 1111111111136 22131 - 36 -36

37373737 Do you keep TELECOM connections Yes No Conclusion: Majority 69% out of 81 keeps the telecom connections available in se ctor 15,17 and 18 and rest 31% dont have the telecom connections services availab le in their shops Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers? Reply of respondent No. of respondents 56 56 34 43 24 56 Airtel Hutch Reliance Tata Dolphin Idea 373710/12/2009 373711 3737- 37 -373737 1111111111137 22131 - 37 -37

38383838 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers 60 50 40 30 20 10 0 No. of respondents Airtel Hutch Reliance Tata Dolphin Idea Conclusion: Airtel, Hutch and Ideas activation sims are kept by all the existing retailers whether telecom or non telecom but tata, reliance and dolphin are kept mostly by telecom shops. Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:S. No. 1:00 2:00 3:00 4:00 5:00 6:00 SERVICES AIRTEL HUTCH IDEA TATA INDICOM RELIANCE MTNL 0-125 125-250 250-375 375-500 477 500-725 725-875 822 657 279 230 95 383810/12/2009 383811 3838- 38 -383838 1111111111138 22131 - 38 -38

39393939 le v e l o f a c tiv a tio n p e r m o n th fo r e a c h a v a ila b le s e rv i c e s no. of connections 1000 800 600 400 200 0 AIR T E L H UT C H ID E A T AT A R E L IANC E MT NL IN D IC O M 0-125 125-250 250-375 375-500 500-725 725-875 S e r v ice s Conclusion: Hutch is ruling in sales as compared to others with range 725-875 an d on the other hand in this area Airtel is on number 3 due to better schemes of hutch and idea in his area. And other major reason of airtel become number 3 is activations complaint and claim disbursements. Tata indicom and reliance have pr etty descent sales in this area Q4 If no, then are you interested in having AIRTEL connections with you now? Reply of respondent Yes No No. of respondents 5 20 Percentage of respondents 20% 80% 393910/12/2009 393911 3939- 39 -393939 1111111111139 22131 - 39 -39

40404040 Are you interested in having AIRTEL connection Yes No Conclusion: Out of the 25 respondents who dont keep Airtel connection in their sh op, only 5 are interested to keep Airtel connection i.e. 20% rests are still rel uctant to keep it. Q5 If yes, are you interested in having:d) e) f) Activation Recharge Both 404010/12/2009 404011 4040- 40 -404040 1111111111140 22131 - 40 -40

41414141 Reply of respondent Activation Recharge Both No. of respondents 0 1 4 Percentage of respondents 0% 20% 80% If yes then are you interested in having activation. recharge or both Activation Recharge Both Conclusion: Out of these 5 who are ready to keep Airtel connection 80% said they will keep both i.e. activation and recharge coupons, and 20% said that they wan t to keep recharge only. Q6 Rank your choice of telecom service providers in w.r.t their performance (1most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P- not preferred at all):414110/12/2009 414111 4141- 41 -414141 1111111111141 22131 - 41 -41

42424242 ATTRIBUTES Max. customer demand is for Airtel 13 Idea 24 23 25 12 25 Hu tch 26 27 25 13 31 Tata Reliance Indicom 11 11 6 21 7 7 5 5 10 4 Value for money 15 F.O.S service 20 Activation 27 complaints Claim disbursement 14 R anking of telecom serv ice w .r.t their perform ance 40 30 20 10 0 A irtel Id ea H utch Tata Relia nce Indicom se rvices M ax. custom er dem a nd is foralue for m oneyF .O .S service A ctivation com pl a intsC laim d isbursem e nt V Conclusion: This data provide us with the overall view of the performance of all telecom connections in this market area. As it is observed that hutch and idea is ruling as compared to Airtel in maximum customer demand and value for money. Reasons for airtel lacking behind in this area is maximum activations complaint and less claim disbursement . F.o.s service of Airtel is pretty fine in this are a. In claim disbursement also hutch is ranked number 1. Retailers in this are ha ppy to sell hutch and idea due more margin cuts(profits) Area 3: Rohini sector 9 , 13, 14 and Prashant vihar SAMPLE SIZE: 85 Q1 Do you keep TELECOM connections? 424210/12/2009 424211 4242- 42 -424242 1111111111142 22131 - 42 -42

43434343 Reply of respondent Yes No No. of respondents 61 24 Percentage of respondents 72% 28% Do you keep TELECOM connections Yes No Conclusion: Majority 72% out of 85 keeps the telecom connections available in se ctor 9, 13, 14 and prashant vihar and rest 28% dont have the telecom connections services available in their shops Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers? Reply of respondent Airtel 434310/12/2009 434311 No. of respondents 61 - 43 -43 4343- 43 -434343 1111111111143 22131

44444444 Hutch Reliance Tata Dolphin Idea 61 35 43 24 61 Which Telecom company products (NEW ACTIVATION SIMS) do you keep in your shop to sell to consumers 80 no of 60 responden 40 ts 20 0 Airtel Hutch Reliance Tata No. of respondents S ervices Dolphin Idea Conclusion: Airtel, Hutch and Ideas activation sims are kept by all the existing retailers whether telecom or non telecom but tata, reliance and dolphin are kept mostly by telecom shops. Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:444410/12/2009 444411 4444- 44 -444444 1111111111144 22131 - 44 -44

45454545 S. No. 1:00 2:00 3:00 4:00 5:00 6:00 SERVICES AIRTEL HUTCH IDEA TATA IN DICOM RELIANCE MTNL 0-125 125-250 250-375 375-500 500-725 670 720 725-875 800 340 477 120 L evel o f activatio n per m o nth for each availab le service no of connection 1000 800 600 400 200 0 AIRTEL HUTCH IDEA TATA RELIANCE MTNL IND ICO M 0-125 125-250 250-375 375-500 500-725 725-875 Se rv ice s Conclusion: Idea is ruling in sales as compared to others with range 725- 875 wh ereas hutch and airtel is at number 2, 3 with number of connection is in range 5 00725 respectively. In this area airtel is lacking behind hutch and idea due to increase in service complaints and on the other hand, Claim disbursement is give n on time by hutch and idea in this area. Mtnl has the lowest number of selling connection in this area. Reliance has pretty descent sales Q4 If no, then are you interested in having AIRTEL connections with you now? 454510/12/2009 454511 4545- 45 -454545 1111111111145 22131 - 45 -45

46464646 Reply of respondent Yes No No. of respondents 8 16 Percentage of respondents 33% 66% Are yo u in terested in h avin g AIR T E L co n n ec tio n Y es No Conclusion: Out of the 24 respondents who dont keep Airtel connection in their sh op, only 8 are interested to keep Airtel connection i.e. 33% rest are still relu ctant to keep it. Q5 If yes, are you interested in having:g) Activation 4646- 46 -464646 111111111 1146 22131 - 46 -46 464610/12/2009 464611

47474747 h) i) Recharge Both Reply of respondent Activation Recharge Both No. of respondents 0 2 6 Percentage of respondents 0% 25% 75% If yes then are you interested in activation, recharge or both Activation Recharge Both Conclusion: Out of these 8 who are ready to keep Airtel connection 75% said they will keep both i.e. activation and recharge coupons, rest 25% said that they wa nt to keep recharge only. Q6 Rank your choice of telecom service providers in w. r.t their performance 474710/12/2009 474711 4747- 47 -474747 1111111111147 22131 - 47 -47

48484848 (1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- lea st preferred, N.P- not preferred at all):ATTRIBUTES Airtel Idea 23 22 20 5 20 Hutch 21 21 23 7 21 Tata Indicom 1 3 2 10 4 Reliance 1 2 1 13 3 Max. customer 14 demand is for Value for money 12 F.O.S service 15 Activation 26 complaints Claim disbursement 12 R a n k i n g o f t e le c o m s e r v i c e p r o v i d e r w . r . t t h e i r p e r f o r m a n c e 30 20 10 0 A i r te l Id e a H u tc h T a t a In d i c R m li a n c e oe S e r v ic e s M a x . c u s t o m e r d e mV aanlu e i sf ofo m F nO .S s e r vAi ccet i v a ti o n c o m Cp la i m tsd i s b u r s e m e n t d r r o. ey n Conclusion: This data provide us with the overall view of the performance of all telecom connections in this market area. As it is clearly observed that idea an d hutch are leading in maximum customer demand and value for money . Airtel is o nly number 1 in activation complaints. Due more numbers of activation complaints airtel is lacking behind in maximum customer demand and value for money as comp ared to hutch and idea in this particular area. In this area , airtel is ranked number 3 in all major attributes. On the other hand tata indicom and reliance ar e very less in demand in this area Area 1: Rohini sector 11 and 16 SAMPLE SIZE: 94 484810/12/2009 484811 4848- 48 -484848 1111111111148 22131 - 48 -48

49494949 Type of shops (out of 94) Type Chemist General Store STD/PCO Telecom Others Stat ionary Total number 5 7 12 57 6 7 Type of shops Percentage 5% 7% 13% 62% 6% 7% Chemist General Store STD/PCO Telecom Others Stationary Conclusion: Majority of the shops covered are the telecom shops at around 62%, n ext are the STD/PCO with 13%, and then general stores and stationary with 7% eac h and with least share are the chemist with 5%.As Detailed description A. Chemist (out of 5) 494910/12/2009 494911 4949- 49 -494949 1111111111149 22131 - 49 -49

50505050 Reply of respondents Have activation Interested to have Not interested No. of re spondents 1 0 4 Percentage of respondents 20% 0% 80% Chemist Have actrivation Interested to have Not interested Conclusion: Majority of chemists is not interested in investing on selling Airte l connection with 80% and the remaining already has Airtel. B. General store (out of 7) Reply of respondents Have activation Interested to have No. of respondents 4 1 P ercentage of respondents 57% 14% 505010/12/2009 505011 5050- 50 -505050 1111111111150 22131 - 50 -50

51515151 Not interested 2 29% General stores Have activation Interested to have Not interested Conclusion: Majority already has Airtel connection and only 14%of total 7 shops are interested in keeping Airtel for selling. C. STD/PCO (out of 12) Reply of respondents Have activation Interested to have No. of respondents 5 1 P ercentage of respondents 42% 8% 515110/12/2009 515111 5151- 51 -515151 1111111111151 22131 - 51 -51

52525252 Not interested 6 50% STD/PCO Have activation Interested to have Not interested Conclusion: Majority of the STD/PCO i.e. 50 %are not interested in investing on selling Airtel connection. Out of 12,5shops already provide with Airtel connecti on service. D.Others (out of 6) Reply of respondents Have activation No. of respondents 2 Percentage of responde nts 33% 525210/12/2009 525211 5252- 52 -525252 1111111111152 22131 - 52 -52

53535353 Interested to have Not interested 1 3 17% 50% Others Have activation Interested to have Not interested Conclusion: In other category shops like gift shops etc. majority is in favor of not keeping Airtel connection i.e. 50%. And only 17% are interested to keep Air tel connection with them out of 6. E. Telecom (out of 57) Reply of respondents Have activation No. of respondents 50 Percentage of respond ents 88% 535310/12/2009 535311 5353- 53 -535353 1111111111153 22131 - 53 -53

54545454 Interested to have Not interested 5 2 9% 3% Telecom Have activation Interested to have Not interested Conclusion: Majority of telecom retailers i.e. 88%already have Airtel connection with them and 9% are interested to have while the remaining 3% showed no intere st in keeping the connection. F. Stationary ( out of 7) Reply of respondents No. of respondents Percentage of respondents 545410/12/2009 545411 5454- 54 -545454 1111111111154 22131 - 54 -54

55555555 Have activation Interested to have Not interested 4 0 3 57% 0% 43% Stationary Have activation Interested to have Not interested Conclusion: in this category 57% already had Airtel connection and the remaining were not interested to keep i.e. 43%. Area 2: Rohini sector 15, 17 and 18 SAMPLE SIZE: 81 555510/12/2009 555511 5555- 55 -555555 1111111111155 22131 - 55 -55

56565656 Type of shops (out of 81) Type Chemist General Store STD/PCO Telecom Others Stationary Total number 9 8 4 48 10 2 Percentage 11% 10% 5% 59% 12% 3% Type of shops Chemist General Store STD/PCO Telecom Others Stationary Conclusion: Majority of the shops covered are the telecom shops at around 59%, n ext are the others, chemist and general stores with 12%, 11% and 10%respectively and next are the Std/PCO with 5% and with least share are the stationary with o nly 3%. Detailed description A.Chemist (out of 9) Reply of respondents Have activation No. of respondents 3 Percentage of responde nts 33% 565610/12/2009 565611 5656- 56 -565656 1111111111156 22131 - 56 -56

57575757 Interested to have Not interested 1 5 11% 56% Chemists Have activation Interested to have Not interested Conclusion: Majority of chemists are not interested in investing on selling Airt el connection. Only 11%are interested in keeping Airtel for selling. B. General stores (out of 8) Reply of respondents Have activation Interested to have Not interested No. of re spondents 3 2 3 Percentage of respondents 38% 24% 38% 575710/12/2009 575711 5757- 57 -575757 1111111111157 22131 - 57 -57

58585858 General stores Have activation Interested to have Not interested Conclusion: Majority of them are not interested in investing on selling Airtel c onnection. Only 24%are interested in keeping Airtel for selling. C. STD/PCO (out of 4) Reply of respondents Have activation Interested to have Not interested No. of re spondents 1 1 2 Percentage of respondents 25% 25% 50% 585810/12/2009 585811 5858- 58 -585858 1111111111158 22131 - 58 -58

59595959 STD/PCO Have activation Interested to have Not interested Conclusion: As there are only 4 STD/PCO in this area. So 1 of them is already ha ving Airtel connection and 1 is interested in keeping it and other 2 are not. D.Telecom (out of 48) Reply of respondents Have activation Interested to have Not interested No. of re spondents 40 3 5 Percentage of respondents 84% 6% 10% 595910/12/2009 595911 5959- 59 -595959 1111111111159 22131 - 59 -59

60606060 Telecom Have activation Interested to have Not interested Conclusion: Majority of telecom retailers i.e. 84% already have Airtel connectio n with them. Out of remaining 5 are not interested while 3 are interested to kee p Airtel connection with them. E. Others (out of 10) Reply of respondents Have activation Interested to have Not interested No. of re spondents 5 1 4 Percentage of respondents 50% 10% 40% 606010/12/2009 606011 6060- 60 -606060 1111111111160 22131 - 60 -60

61616161 Others Have activation Interested to have Not interested Conclusion: In this category only one shop was interested in having Airtel conne ction. Out of 10, 5 already had Airtel connection and the remaining 4 were not i nterested. F. Stationary (out of2) Reply of respondents Have activation Interested to have Not interested No. of respondents Percentage of respondents 1 0 1 6161- 61 -616161 1111111111161 22131 50% 0% 50% - 61 -61 616110/12/2009 616111

62626262 Stationary Have activation Interested to have Not interested Conclusion: In this area out of 2 stationeries, 1 already had Airtel connection while the other was not interested. Area 3: Rohini sector 9, 13, 14 and Prashant Vihar SAMPLE SIZE: 85 Type of shops (out of 85) Type Chemist General Store 626210/12/2009 626211 Total number 6 4 6262- 62 -6262 62 1111111111162 22131 Percentage 7% 5% - 62 -62

63636363 STD/PCO Telecom Others Stationary 13 47 9 6 15% 55% 11% 7% Type of shops Chemist General Store STD/PCO Telecom Others Stationary Conclusion: Majority of the shops covered in this area also are the telecom shop s at around 55%, next are the STD/PCO and others with 15% and 11% respectively, next are chemists and stationary with 7% each and with least share are the gener al store with 5%. Detailed description A.Chemist (out of 6) Reply of respondents Have activation Interested to have Not interested No. of re spondents 3 1 2 Percentage of respondents 50% 17% 33% 636310/12/2009 636311 6363- 63 -636363 1111111111163 22131 - 63 -63

64646464 Chemist Have activation Interested to have Not interested Conclusion: 50% i.e. 3 out of 6 already had Airtel connection and 2 responded ne gatively while 1 was interested to have the Airtel connection. B. General store (out of 4) Reply of respondents Have activation Interested to have Not interested No. of re spondents 0 3 1 Percentage of respondents 0% 75% 25% 646410/12/2009 646411 6464- 64 -646464 1111111111164 22131 - 64 -64

65656565 General stores Have activation Interested to have Not interested Conclusion: Majority of them i.e. 75% were interested in selling Airtel connecti on while the remaining shops were already selling Airtel connection. C. STD/PCO (out of 13) Reply of respondents Have activation Interested to have Not interested No. of re spondents 8 2 3 Percentage of respondents 62% 15% 23% 656510/12/2009 656511 6565- 65 -656565 1111111111165 22131 - 65 -65

66666666 STD/PCO Have activation Interested to have Not interested Conclusion: 62% already have Airtel connection in this category and 23% are not interested to keep Airtel connection and the remaining 15% showed interest. D.Telecom (out of 47) Reply of respondents Have activation Interested to have Not interested No. of re spondents 35 3 9 Percentage of respondents 74% 7% 19% 666610/12/2009 666611 6666- 66 -666666 1111111111166 22131 - 66 -66

67676767 Telecom Have activation Interested to have Not interested Conclusion: Majority of the telecom shops i.e. 74% already have activation and f rom the remaining 19% were not interested while 7% were interested to have the A irtel connection. E. Others (out of 9) Reply of respondents Have activation Interested to have Not interested No. of re spondents 4 2 3 Percentage of respondents 45% 22% 33% 676710/12/2009 676711 6767- 67 -676767 1111111111167 22131 - 67 -67

68686868 Others Have activation Interested to have Not interested Conclusion: 4 out of 9 i.e. 45% were already selling Airtel connection while oth er 33% were not interested to have and the remaining 2 were interested to have t he connection. E. Stationary ( out of 6) Reply of respondents Have activation Interested to have Not interested No. of re spondents 4 0 2 Percentage of respondents 67% 0% 33% 686810/12/2009 686811 6868- 68 -686868 1111111111168 22131 - 68 -68

69696969 Stationary Have activation Interested to have Not interested Conclusion: 67% of stationary in this area were already having Airtel connection while the remaining 33% were not interested. 696910/12/2009 696911 6969- 69 -696969 1111111111169 22131 - 69 -69

70707070 General Overview of Feedback Customer diversification from Airtel is increasing in regular basis due to incre ase in service complaints. Idea and Hutch giving better schemes and margin than Airtel. Need quick services to increase sales. 707010/12/2009 707011 7070- 70 -7 07070 1111111111170 22131 - 70 -70

71717171 More and vast visibility of Hutch and Idea boards and advertisements wh ich is improving their promotion and branding. Many telecom retailers want the d etailed description of incentives given to them i.e. on what basis and on how mu ch activation. Here lot of comparison is being made with Hutch as they are provi ding with detailed description of when and why of incentives. Customer demand is high for Airtel but due to services complaints, less advertisements and claims issues the retailers are diverting the customers to Hutch and Idea. Airtel is st ill ruling in sales as compared to others but through better promotion, schemes and less claims issues. Hutch is emerging as second best. So need to take action s for it. Customer diversification from Airtel is increasing in regular basis du e to increase in activation complaints. Network of Airtel is better than any oth er telecom services. New schemes are not properly being conveyed to the retailer s, so they are facing problem of no responses to customer queries. Customer dive rsification from Airtel is increasing in regular basis due to increase in delay of retailer incentive. Board and advertisements are required in many shops. It i s been observed that many shop[s dont even have normal banner of Airtel in their shop in spite of demanding of long. Schemes in Airtel and tariff plans are expen sive than other telecom services. Lot of technical problems are complained here due to that retailers dissatisfaction is increasing, also immediate services are not provided by the department from Airtel. There is different tariff plan for different connection in Airtel, that frustrates customers There is large number of rejection rate for taking up any new kind of business in the non- telecom sho ps this is due to lack of awareness and scarcity of resources in this area. 7171 10/12/2009 717111 7171- 71 -717171 1111111111171 22131 - 71 -71

72727272 Idea is provided with better schemes and Idea sale services are quickes t among all in this area. Claim problem is the major issue in this area. Mainly youth customers are attracted by H- card (Hutch) and I- card (of Idea) as compar ed to Yuva (Airtel) in this area. 727210/12/2009 727211 7272- 72 -727272 1111111111172 22131 - 72 -72

73737373 Limitations o The samples were taken on the basis of convenience sampling which may bring el ement of error. o Samples were only taken from Rohini area. o Survey times are a s such that maximum shop owners or respected persons were not available for surv ey. So, through contact basis survey is done. 737310/12/2009 737311 7373- 73 -73 7373 1111111111173 22131 - 73 -73

74747474 o The sample size is very small and the result of research cannot be ex pralated to the entire population. 747410/12/2009 747411 7474- 74 -747474 1111111111174 22131 - 74 -74

75757575 Recommendations Airtel should focus more on promotion and advertising part as areas which are su rveyed have very less awareness about the schemes and all. Working of sales depa rtment should be more flexible as complaints regarding incentives and claims are being observed. 757510/12/2009 757511 7575- 75 -757575 1111111111175 22131 - 75 -75

76767676 Major threat from hutch and Idea are seen as hutch is providing with qu ick sales facilities, excellent communication network and high promotion whereas Idea is giving very economical schemes and connectivity. So, to decrease custom er diversification and to maintain the brand name of the company better communic ation network should be established between sales management and the retailers b y attending their complaints properly, giving timely and verified incentives, in crease in manpower, taking regular feedback. By mismanagement on behalf of the d istributor side also many retailers grievances are increasing, complete check on workings on distributors should be done. Majority of STD/PCO shops showed inter est in having Airtel connection. So priority should be given to them, all their needs and demands should be thoroughly taken into consideration. Better schemes for dealers/ retailers so that they can be able to develop self interest and the y could try their level best to make more and more sale which would lead benefit to dealers and company as well. Brochures and catalogues should be made availab le. More claim margins: the dealers have this issue that working in a small marg ins is not acceptable to them i.e. just 2.47% margin is not much it should be in creased so that the dealers also be able to make some more profits. 767610/12/2009 767611 7676- 76 -767676 1111111111176 22131 - 76 -76

77777777 Conclusion The basic and to the point conclusion of the above discussed issue is that the c ompany can make more and more profits only when it can satisfy all its customers , 777710/12/2009 777711 7777- 77 -777777 1111111111177 22131 - 77 -77

78787878 dealers and distributors in order to do that the company should agree w ith all their fair suggestions and make them happy. If workers will be happy and satisfy then they will make sincere efforts to achieve their targets and increa se the sales of the company. 787810/12/2009 787811 7878- 78 -787878 1111111111178 22131 - 78 -78

79797979 Bibliography Books 797910/12/2009 797911 7979- 79 -797979 1111111111179 22131 - 79 -79

80808080 Marketing Research by Naresh K. Malhotra Marketing Management by Philip Kotler Websites www.google.com www.hutch.co.in www.wikepedia.com www.coai.com C ompany information www.airtel.com www.airtelworld.com Teleworld magazines Pamphl ets from various retailers 808010/12/2009 808011 8080- 80 -808080 1111111111180 22131 - 80 -80

81818181 QUESTIONNAIRE WALLET SHARE OF AIRTEL IN DELHI MARKET 818110/12/2009 818111 8181- 81 -818181 1111111111181 22131 - 81 -81

82828282 Dear Sir/ Madam, We believe that you are the spokesman for thousands of persons who are in telecom industry in Delhi and since we are interested in kno wing the performance of AIRTEL in Delhi in that we ask for your help. We believe that this survey would help in evolving wallet share of AIRTEL in the market of Delhi. Would you please, therefore, answer the enclosed questionnaire? The info rmation supplied by you will be treated as strictly confidential. NOTE: Please t ick () the option, which you find appropriate This is the survey regarding the evaluation of wallet share of Airtel in Delhi Q1 Do you keep TELECOM connections? Yes No Q2 Which Telecom company products (NE W ACTIVATION SIMS) do you keep in your shop to sell to consumers? Airtel Hutch R eliance Tata Dolphin Idea Q3 If yes, then please indicate your level of activation in your shop per month for each available services given below depending upon on your response:S. No. 1 : 2: 3: 4: 5: 6: SERVICES 0-3 AIRTEL HUTCH IDEA TATA INDICOM RELIANCE MTNL 3-7 8 -15 16-25 25-50 50+ 828210/12/2009 828211 8282- 82 -828282 1111111111182 22131 - 82 -82

83838383 Q4 If no, then are you interested in having AIRTEL connections with you now? Yes No Q5 If yes, are you interested in having:j) k) l) Activation Recharge Both Q6 Rank your choice of telecom service providers in w.r.t their performance(1mos t preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N. P- not preferred at all):ATTRIBUTES Max customer demand is for Value for money F .O.S service Activation complaints Claim disbursement Q7 According to you, which company connection faced the highest decline in past three months? If its AIRTEL then why? Airtel Idea Hutch Tata Reliance Indicom Q8 Please mention the areas that you would like AIRTEL to improve on its product and services. 838310/12/2009 838311 8383- 83 -838383 1111111111183 22131 - 83 -83

84848484 PERSONAL DETAILS We would like to know you better: Name: Age: Contact no. (Shop) (Mobile) Shop Ad dress: Cost efficiency Date of visit: Type of shop: 848410/12/2009 848411 8484- 84 -848484 1111111111184 22131 - 84 -84