A SUTDY ON CUSTOMER SATISFACTION ON BHARTI AIRTEL 1

CHAPTER : 1
INTRODUCTION TO CUSTOMERS SATISFACTION:
Customer satisfaction is a term frequently used in Marketing. While it’s often abbreviated as
CAST, It is more correct to abbreviated it as CSAT. It is measured of how Products and
Services supplied by a company to meet Customer expectations. Customer satisfaction is
defined as “ the member of customer’s, or percentage of total customers, whose reported
experience with a firm, it’s products, or it’s Service ( rating) exceeds specific satisfaction
goals” . In a survey of nearly 200 senior marketing managers,71 percent responded that they
found a customer satisfaction metric very useful in managing and monitoring Their
businesses. It is seen as a key performance indicator Within business and is often part of a
balanced scorecard. In a competitive marketplace where businesses complete for customers,
Customer satisfaction is seen as a key differentiator and increasing has become a key element
of business strategy.

“In increasing satisfaction, firms generally ask customers Whether Their products or service
has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.
When customers have high expectations and the reality falls short, They will be disappointed
and will likely rate Their experience as less than Satisfying. Dir thus reason, a luxury resort,
for example, might receive a lower satisfaction rating than a budget motel—even through it’s
facilities and would be deemed superior in ‘absolute’ terms.

EXECUTIVE SUMMARY:

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's
largest mobile phone and Fixed Network operators. With more than 60 million subscribers as
of 31st March [Link] offers its mobile services under the Airtel brand and is headed by 6
Sunil Mittal 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 submarine cable
landing station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides reliable end-to-end data and enterprise services to the
corporate customers by leveraging 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.

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INTRODUCTION TO THE TELECOM INDUSTRY:

History of Indian Telecom Industry: (A brief idea)

1992- Telecommunication sector in India liberalized to bridge the gap through government
spending & to provide additional resources for the nation’s telecom target. Private sector
allowed participating.

1993- The telecom industry gets an annual foreign investment Rs 20.6 million.

1994- License for providing cellular mobile services granted by the government of India for
the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile service to be
duopoly (i.e. not more than two cellular mobile operators could be licensed in each telecom
circle), under a fixed license fee regime for 10 years.

1995- 19 more telecom circles get mobile licenses.

1995(August)- Kolkata became the first metro to have a cellular network.

1997- Telecom Regulatory Authority of India is set up.

1998- Annual foreign investment in telecom stands at Rs 17,756.4 million.

1999- FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million.

1999- Tariff rebalancing exercise gets initiated.

1999(March)- National Telecom Policy is announced.

2000(June)- FDI inflow drops further down to Rs 918 million coming.

2000(January)- Amendment of TRAI Act.

2000 onwards

CUSTOMER SATISFACTION MEASUREMENT:

A basic and effective base line Customer satisfaction survey program should focus on
Measuring customer perception of how will the company delivers on the critical success
factors and dimensions of the business as defined by the customer:

For example

• Service promptness

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• Courtesy of staff

• Responsiveness

Understanding the customer Two main factors determine the accuracy of CMS. The first is
the asking the right question And the second is the asking them to the right people sample of
customers which accurately Reflects the customer base.

Three things decide the accuracy of a sample.

They are:

• It must be representative.

• It must be randomly selected.

• It must be adequate enough.

SURVEYS:

Surveys and Questionnaires are the most common Marketing Research methods. Typically,
they are used to:

• Assess the level of customer satisfaction with a particular product, Service or experience.

• Identify factors that contribute to Customer satisfaction and dissatisfaction;

• Determine the current status or situation of a product Or Service;

• Compare and rank providers;

• Help establish Customer Service standards

BENEFITS AND CHALLENGES:

Surveys allow an organization to quickly capture Vital information with relatively little
expense and effort. A primary advantage of this method is its directness; “ the purpose is clear
and the responses straightforward”. Additionally, the information gathered by surveys can
easily be analysed and used to identify trends over time. The public views consumer product
polls and pollsters in generally positive manner compared to political and other polls. One
study found that at least sixth percent of the public feels that market research about products
and services has a positive impact on society. Seventy percent consider the people who
conduct such surveys to have positive impact on society.

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SCOPE OF THE STUDY:

➢ To identify the customer satisfaction level of airtel.

➢ To know about the telecom sector and the rising competition in this practical field.

➢ This study aims towards collecting information about consumers psychology towards airtel
and thus helping airtel in understanding customer’s nature and help in developing strategies
which will help them in increasing their business.

➢ This study helps to understand the satisfactory level of consumers towards the brand. And
also understanding the consumer attitude and their buying motives by means of company
brand image.

OBJECTIVE OF THE STUDY:

PRIMARY OBJECTIVES:

➢ To study the customer satisfaction towards AIRTEL.

SECONDARY OBJECTIVES:

➢ To analyze the consumer perception towards Airtel like Post Paid, Pre-Paid, GPRS
Services Etc.

➢ To know the network level satisfaction of customers.

➢ To analyze the Comparative study of different mobile company.

➢ To understand the needs of different consumer segments.

➢ To study the effectiveness of advertisements Effect on all Types of Airtel Services To

understand the awareness of Airtel products among consumers in market.

SWOT ANALYSIS:

SWOT analysis is a strategic planning method used to evaluate strength, weakness,

opportunity and threats involved in a project or in business. SWOT analysis will give us a
quick review of an organization current status for Airtel of India.

STRENGTHS:

• Cost advantage

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• Current leaders in quality service

• Largest distribution network

• Ability to constantly innovate

• Highly skilled workforce

• Entrepreneurial zeal

• Airtel’s increased equity and market shares

WEAKNESSES:

• To prove credibility

• Price pressures

• Need for government support

• Awareness

• Sales and marketing

OPPORTUNITIES:

• To sustain passion and commitment

• Airtel market share increasing the other service provider expense

• Attain higher value services

• Collaborative business needs to be explored

• Vertical repeatable solutions

THREATS:

• Foreign investment

• Global trends moving from GPS to WLL

• Lack of global party in telecom tariff

• Other competition

METHODOLOGY & PROCEDURE OF WORK:

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RESEARCH DESIGN AND SURVEY DESIGN:

 Research approach would be based on the qualitative section. Here, the data and
information gathered would be in moreover in the form of text, comments or numeric
value. We have to screen all the collected data and information and scratch out the
required information out of that.
 Here, we have to rely on the information, comments and data provided by the
employees of Bharti Airtel and previous books, journals and web – information.  The
data would be gathered and distributed in form of text and numeric only and put at the
required stages.
 The survey would be started by preparing a concrete questionnaire and getting that
filled from the Employees of Bharti Airtel.

SAMPLING METHOD:

Here, in this case, the information can be extracted from the employees of Bharti Airtel.

 The Sample will be chosen out of the different departments, mainly from marketing
department.
 The respondents have been contacted via email and telephones.
 There are total 100 samples chosen for the study.

DATA ANALYSIS:

The Data would be analysed from the texts, numeric information provided by the employees
and samples. This information would be segregated as per the requirement and the concrete
information will be distributed according to the required heads.

 Primary Data – The data would be collected from the questionnaire filled by the
respondents and information collected by personal interview.

 Secondary Data – The data would be collected from the earlier Journals, and data
collected from the designated authorities.

The data would be moreover in the form of numeric value of text information, so that has to
be converted into presentable or graphical form as per the requirement of the project.

RESEARCH METHODOLOGY:

Historical research

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It generates descriptions & sometimes attempted explanations, of conditions, situations and

events that have occurred in the past. For Example, A study that documents the evolution of
teacher training program since the turn of century, with the aim of explaining the historical
origins of the content and processes of current programs (Postlethwaite, 2005)

Here, in this study, this methodology cannot solve the problem because, the issues studied
here is Study and evaluation of performance management system and employee engagement
activities at Bharti Airtel, and the study has to be done on the basis of future prospects.

Descriptive research

It provides information about conditions, situations and events that occur in the present. For
example, a survey of the physical conditions of school building in order to establish a
descriptive profile of the facilities that exist in a typical school. (Postlethwaite, 2005)

This is a very elaborative and correct kind of research method, where we not only rely on the
past trends and studies but also can observe the current studies and current concepts.
Correlation research

It involves the search for relationship between variables through the use of various measures
of statistical association. For example, an investigation of the relationship between teachers’
satisfaction with their job and various factors describing the provision and quality of teacher
housing, salaries, leave entitlements, and the availability of class room supplies.
(Postlethwaite, 2005)

Correlation research method makes relationship between two variables. And our study does
not satisfy this methodology because we are studying only about the Study and evaluation of
performance management system and employee engagement activities at Bharti Airtel. In
case, we are studying the trend of two different motivational tools and comparing the trends
of both, then this kind of study would be suitable.

Causal research

It aims to suggest casual linkages between variables by observing existing phenomena and
then searching back through available data in order to try to identify plausible casual
relationships. For example, a study of factors related to student ‘drop out’ from secondary
school using data obtained from school records over the past decade. (Postlethwaite, 2005)

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Our study regarding “Study and evaluation of performance management system and
employee engagement activities at Bharti Airtel” does not satisfy this kind of research
methodology because, this study is completely depended on the factual data and theories, and
casual method simply solves the problems which have been already almost solved. It means,
this method is suitable when you already know the results but you simply need any fact to
support that.

Experimental research

It is used in settings where variables defining one or more “causes” can be manipulated in a
systematic fashion in order to discern “effects’ on other variables. For Example, an
investigation of the effectiveness of two new textbooks using random assignment of teachers
and students of three groups – two groups for each of the new textbooks, and one group as a
‘control’ group to use the existing textbook. (Postlethwaite, 2005)

Experimental research methodology is suitable where we are completely studying any field
or study which is altogether virgin and has not been touched earlier. And the researcher has to
make various experiments to come out on one result. Here, we are studying a field where, we
are moreover relied on the persons and information which is already existed in this field.

Case study research

It generally refers to two distinct research approaches. The first consist of and in depth of a
particular student, classroom or school with the aim of producing a nuanced description of
pervading cultural setting that affects education, and an account of the interactions that take
place between students and other relevant persons. For example, an in-depth exploration of
the patterns of friendship between students in a single class, the second approach to case
study research involves the application of quantitative research methods to non-probability
samples-which provide results that are not necessarily designed to generalizable to wider
populations. For example, a survey of the reading achievements of the students in one rural
region of a particular country (Postlethwaite, 2005)

Case study research more over focus on the past data and past information, where we study a
case, which is almost similar to our current problem or study so, as such we are not dealing
with such kind of study or case, we are collecting desecrated information from different
places and gathering at one common place to come out on one judgment.

Ethnographic research

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It usually consists of a description of events that occur within the life of a group – with
particular reference to the interaction of individuals in the context of socio cultural norms,
rituals and beliefs shared by the group. The researcher generally participates in some part of
the normal life of the group and uses what he or she learns from his participation to
understand the interactions between group members. For example, a detailed account of the
daily tasks and interactions encountered by a school principal using observations gathered by
a researcher who is placed in the position of “Principal’s Assistant’ in order to become fully
involved in the daily life of the school. (Postlethwaite, 2005)

This type of method suffices the kind the research which is not based on data and facts but on
the social and cultural behaviour of the people. For example, to understand the customers
purchasing behaviour etc., so, our study does not suit this method.

Research and development research

It differs from the above types of research in that, rather than bringing new information to
light, it focuses on the interaction between research and the production and evaluation of a
new product. This type of research can be ‘formative’. For example, an investigation of
teachers’ reactions to the various drafts and redrafts of a new mathematics teaching kit, with
the information gathered at each stage being used to improve each stage of the drafting
process. Alternatively, it can be used summative. For example, a comparison of the
mathematics achievements of student exposed to anew mathematics teaching kit in
comparison with students exposed to the established mathematics curriculum. (Postlethwaite,
2005)

Well, this kind of method itself defines that it is not suitable for our study, which we are
doing on “Study and evaluation of performance management system and employee
engagement activities at Bharti Airtel”.

So, finally, from all the above mentioned research methodology, we reached on the point that,
the current study “Study and evaluation of performance management system and employee
engagement activities at Bharti Airtel” satisfy the Descriptive research method. Because, here
we are supposed to deal with the information and data which is based on the past facts and
figures and at the same moment current judgment and studies.

RESEARCH DESIGN:

Phase I- Exploratory work

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Exploratory information has been collected from the interviews (mentioned in various
journals) of the various senior officials related to Bharti Airtel.

Phase II- Descriptive research

Descriptive study is done from the various journals, websites & from the books of the
authors, who have specifically written about the Study and evaluation of performance
management system and employee engagement activities at Bharti Airtel. Research Type:
Descriptive.

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CHAPTER : 02

INDUSTRY PROFILE AND COMPANIES PROFILE

COMPANY PROFILE:

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group
has a diverse business portfolio and has created global brands in the telecommunication
sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU
with Wal-Mart for the cash & carry business. It has successfully launched an international
venture with EL Rothschild Group to export fresh agro products exclusively to markets in
Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint
venture with AXA, world leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom
sector in the country with its world class products and services. The businesses at Bharti
Airtel have been structured into three individual strategic business units (SBU’s) - mobile
services, broadband & telephone services (B&T) & enterprise services. The mobile business
provides mobile & fixed wireless services using GSM technology across 23 telecom circles
while the B&T business offers broadband & telephone services in 94 cities. The Enterprise
services provide end-to-end telecom solutions to corporate customers and national &
international long distance services to carriers. All these services are provided under the
Airtel brand.

Airtel is a brand of telecommunication services in India operated by Bharti Airtel. 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), Broadband & Telephone Services (Fixed line and
Internet Connectivity), Long Distance Services and Enterprise Services (Telecommunications
consulting for corporate).

Leading international telecommunication companies such as Vodafone and SingTel hold

partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a

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telecommunications licence in Jersey in the Channel Islands by the local telecommunications

regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded
Guernsey Airtel with a mobile telecommunications licence. In May 2007 Jersey Airtel and
Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile
subscribers. In July 2007, Bharti Airtel signed a MoU with Nokia-Siemens for a 900 million
dollar expansion of its mobile and fixed network. Until September 18, 2004, Bharti provided
fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides
all telecom services including fixed-line services under a common brand "Airtel"

It offers its mobile services under the Airtel brand and is headed by Mr. Sunil Bharati Mittal,
India's sixth richest man with a total worth of US$6.9 billion. The company is the only
operator to provide mobile services in all the 23 licensed jurisdictions (also known as
Telecom Circles) in India. An aggregate of 33,711,837 customers as of December 31, 2006,
of whom 31,974,038 subscribed to GSM services and 1,737,799 subscriptions as of
September 2006, the company is one of the world's fastest growing provider of broadband &
telephone services either for voice or broadband access delivered through DSL (Digital
Subscriber Link. 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 provides reliable end-to-end
data and enterprise services to the corporate customers by leveraging its nationwide fiber
optic backbone, last mile connectivity in fixed-line and mobile circles and international
bandwidth access through the gateways and landing station.

NAME DESIGNATION

Sunil Bharti Mittal Chairman & Managing Director

Manoj Kohli President & Chief Executive Officer

Akhil Gupta Joint Managing Director

Sarvjit Dhillon Chief Financial Officer & Director

Strategy

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FOUNDER

Sunil Bharti Mittal is the Founder and Chairman of Bharti Enterprises, one of India's
foremost first-generation corporations with interests in Telecom, Space Communications,
Digital Solutions, Real Estate and Hospitality.

HISTORY OF BHARTI AIRTEL:

1984 - Sunil Mittal started assembling push-button phones in India, which he earlier used to
import from a Singaporean company, Singtel, replacing the old-fashioned, bulky rotary
phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated
and entered into a technical tie-up with Siemens AG of Germany for the manufacture of
electronic push-button phones. By the early 1990s, Bharti was making fax machines, cordless
phones and other telecom gear. He named his first push-button phone as 'Mitbrau'.

1992 - he successfully bid for one of the four mobile phone network licenses auctioned
in india. One of the conditions for the Delhi cellular licenses was that the bidder have some
experience as a telecom operator. So, Mittal clinched a deal with the French telecom
group Vivendi. He was one of the first Indian entrepreneurs to identify the mobile telecom
business as a major growth area. His plans were finally approved by the Government.

-
1994 he launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was
formed to offer cellular services under the brand name Airtel. Within a few years, Bharti
became the first telecom company to cross the 2 million mobile subscriber mark. Bharti also
brought down the STD/ISD cellular rates in India under the brand name 'India one'.

1999 - Bharti Enterprises acquired control of JT Holdings, and extended cellular operations
to Karnataka and Andhra Pradesh.

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2000 - Bharti acquired control of Skycell Communications, in Chennai.

2001 - the company acquired control of Spice Cell in Kolkata. Bharti Enterprises went public.

2002 - and the company was listed on Bombay Stock Exchange and National Stock Exchange
of India.

2003 - the cellular phone operations were re-branded under the single Airtel brand.

2004 - Bharti acquired control of Hexacom and entered Rajasthan.

2005 - Bharti extended its network to Andaman and Nicobar. This expansion allowed it to
offer voice services all across India.

2006 - Airtel launched "Hello Tunes", a caller ring back tone service (Ringing Tone)
becoming the first operator in India to do so. The Airtel theme song, composed by A.R.
Rahman, was the most popular tune in that year.

2008 - it emerged that Airtel was exploring the possibility of buying the MTN Group, a South
Africa-based telecommunications company with coverage in 21 countries in Africa and the
Middle East. Financial Times reported that Bharti was considering offering US$45 billion for
a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian
firm. However, both sides emphasize the tentative nature of the talks, while The
Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has
more subscribers, higher revenues and broader geographic coverage. However, the talks fell
apart as MTN Group tried to reverse the negotiations by making Bharti almost a subsidiary of
the new company.

2009 - Bharti Airtel again confirmed that it was in talks with MTN and the companies agreed
to discuss the potential transaction exclusively by 31 July 2009. Talks eventually ended
without agreement, some sources stating that this was due to opposition from the South
African government. Bharti negotiated for its strategic partner Alcatel-Lucent to manage the
network infrastructure for the fixed-line business. Later, Bharti Airtel awarded the three-year
contract to Alcatel-Lucent for setting up an Internet Protocol access network across the
country. This would help consumers access internet at faster-speed and high-quality internet
browsing on mobile handsets. Airtel launched its first international mobile network in Sri
Lanka.

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2010 - Bharti acquired the African business of Zain Telecom for $10.7 billion, making it the
largest ever acquisition by an Indian telecom firm.

2012 - Bharti tied up with Walmart, the US retail giant, to start a number of retail stores
across India. In 2014, Bharti planned to acquire Loop Mobile for ₹7 billion (US$82 million),
but the deal was called off later.

On 18 November 2010, Airtel rebranded itself in India in the first phase of a global
rebranding strategy. The company unveiled a new logo with 'airtel' written in lower case.
Designed by London-based brand agency, Super union, the new logo is the letter 'a' in
lowercase, with 'airtel' written in lowercase under the logo. On 23 November 2010, Airtel's
Africa operations were rebranded to 'airtel'. Sri Lanka followed on 28 November 2010 and on
20 December 2010, Warid Telecom rebranded to 'airtel' in Bangladesh.

2024 – in may Google Cloud partnered with Airtel.

Airtel always thinks in fresh and innovative ways about the needs of the customers and how
they want them to feel. They deliver what they promise and go out of way to delight the
customer with a little bit more.

Bharti Airtel is one of India's leading private sector providers of telecommunications services
based on an aggregate of 42,685,530 customers as on May 31, 2007, consisting of 40,743,725
GSM mobile and 1,941,805 broadband & telephone customers.

The businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise
services. The mobile services group provides GSM mobile services across India in 23
telecom circles, while the B&T business group provides broadband & telephone services in
94 cities. The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates. All these services are provided under the Airtel brand. Company
shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange
of India Limited (NSE).

AIRTEL VISION

"To provide global telecom services and delight customers."

By 2010, we want Airtel to be the most admired brand in India.

 Loved by more customers

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 Targeted by top talent

 Benchmarked by more business

AIRTEL MISSION

We will meet the mobile communication needs of our customers through:

 Error- free service delivery

 Innovative products and services
 Cost efficiency
 Unified Messaging Solutions

AIRTEL BRAND ATTRIBUTES

 Fresh
 In-touch
 On my side
 Can-do

Awards & Achievements

Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has established itself
across India in sixteen states covering a population of over 600 million people. Airtel will
soon cover the entire country through a process of acquisitions and green field projects. As
evidence of its fine record, Airtel has also been conferred with numerous awards.

For the year 2007-08

 Bharti Airtel has won the CNBC-TV18 India Business Leader Award for the
Outstanding Company of the year, 2007
 Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007 37
 Bharti Airtel Ranked 3rd on Shareholder Returns in BusinessWeek IT 100 List
 Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B.
Pant University.

For the year 2006-07

 Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007
 Bharti Airtel awarded the prestigious QCI-DL Shah Award on Economics of Quality

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 Sunil B. Mittal chosen for this year’s Padma Bhushan Awards

 Bharti Airtel is amongst India’s Most Admired Knowledge Enterprises in 2006
 Bharti Airtel draws Top Honors at the MIS Asia IT Excellence Awards 2006
 Bharti Airtel among the top 10 best performing companies in the world according to
BusinessWeek IT 100 list
 Sunil Bharti Mittal is ‘CEO of the Year’ at the Frost & Sullivan Asia Pacific ICT
Awards 2006 & Bharti Airtel bags ‘Wireless Service Provider of the Year' and
'Competitive Service Provider of the Year'
 Bharti Tele-Ventures is the “BEST INDIAN CARRIER” at Telecom Asia. (05-05 06)
Wins this award for the second consecutive year.

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Chapter : 03

ORGANIZATIONAL STRUCTURE:

As an outcome of a restructuring exercise conducted within the company; a new integrated

organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Bharti’s key team players. With effect from March 01, 2006, this unified
management structure of 'One Airtel' will enable continued improvement in the delivery of
the Group’s strategic vision.

KEY FACTS:

 Bharti Airtel added the highest ever net addition of 53 lakh customers in a single 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 expansion.

 It has an installed base of 40,000 cellsites and 59% population coverage.

 After the proposed network expansion, an additional 30,000 towers will result in the
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.

 Prepaid customers account for 88.5% of Bharti’s 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 revenues 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.

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 Has completed 100% verification of its subscribers and in the process disconnected three
lakh subscribers?

FACT SHEET:

CORPORATE SOCIAL RESPONSIBILITY:

At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the
stakeholders and environment within their work context. Bharti encourages employees to take

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decisions and design business-linked processes that are sensitive to communities and
environment.

Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social
outreach programs. It is an integral part of the way Bharti conducts its business. The essence
of Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate
Values’, which stem from its deepest held beliefs. These Values are:

 To be responsive to the needs of our customers

 To trust and respect our employees

 To continuously improve our services – innovatively and expeditiously

 To be transparent and sensitive in our dealings with all stakeholders

They encourage their employees to take decisions and design business processes, keeping in
mind the following:

 Ethics, fairness and being correct

 Meeting and going beyond compliances and legal requirements

 Showing respect and sensitivity towards stakeholders and communities, and

 Nurturing the environment

Their practice CSR beliefs and commitments through a three-pronged approach:

 Engaging with stakeholders

 Ensuring stakeholder sensitive policies and practices

 Undertaking programs for our employees, community and environment

Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it
is important that each employee should understand the importance of environmental, social
and economic aspects while taking business decisions. At Bharti, each employee is sensitized
towards CSR issues and thus operations at the ground level are influenced. Such sensitization
exercises have resulted in many socially and environmentally sensitive decisions on the
ground. For example, Confidence Plan for hearing impaired people, covers noise-making DG
sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile
are some examples of the above.

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EMPLOYEES

They believe that one of the most important drivers of growth and success for any
organization is its people. At Bharti Airtel, their ‘Mantra’ for employee delight focuses on 5
Ps – People, Pride, Passion, Processes and Performance.

Bharti Airtel has been recognized among the Best Employers in the Country for two
successive years – being 14th in 2003 & jumping ahead of several other large conglomerates
to an enviable position of the 2nd Best Employer in the Country in 2004. This is a clear
demonstration & acknowledgement of the robust, progressive, people as well as business
aligned Human Resource practices, which the organization has developed and implemented
remarkably in a very short span of time.

Bharti Airtel follows an “open door policy” to approach the management, which helps resolve
issues with mutual agreements. They encourage people to stand up against any unfair
treatment for which they have the Office of the Ombudsman, where employees can raise any
issues regarding business and workplace conduct. Bharti ensures transparency through the
various communication policies, strategies and plans. Regular Employee Communication
Forums provides a platform for the employees to raise issues that require resolution.

Their leaders strongly believe in facilitating and initiating activities that help employees
manage their health and well-being. Their focus always remains to redefine leadership; they
develop leaders who enable performance and inspire their people to unleash their potential.
Their people orientation reflects in their vision of being “targeted by top talent”, and a key
aspect of their business focus “building a best-in-class leadership team that nurtures talent at
every level.”

Employee friendly HR policies have been put in place, which amply reflect the organization’s
concern for its people. Some typical examples of these policies and practices include a
family-day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days
off, festival celebration with family, no official meetings on weekends, five day weeks,
concierge services, call center engagement programs etc. These “care” policies and practices
are applied across the organizational levels without any discrimination.

From self-management workshops to aerobics sessions, yoga classes to provision of

relaxation/meditation rooms, they ensure that every employee keeps a check on his/her
fitness. Tie-ups with leading health service organizations enable our employees to undertake

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periodical health check-ups depending upon their age. This facility is also extended to
employee family members at discounted rates. The company provides Flexible Group Med
claim insurance to all employees, covering all kinds of illnesses, accidents and hospital
coverage for serious ailments. Apart from these specific engagements, we regularly organize
health check-up camps, eye check-up camps and stress management sessions. Some of their
offices have opened gymnasiums/fitness facilities to ensure that the fitness fanatics do not
have to worry about time constraints to remain fit. At many of their locations, they have hired
psychologists who undertake personal counselling sessions for employees.

Bharti Airtel offers a flexible compensation structure to its employees wherein the employees
have the flexibility to structure their fixed component of their compensation according to
their requirements within the ambit of legislation.

Partners:

Bharti has redefined paradigms in the telecom industry through its innovative managed
services agreements in the area of mobile network maintenance, management and
deployment with Ericsson, Nokia and with IBM for the consolidation, transformation and
management of the comprehensive IT infrastructure and applications. Bharti has a market
capitalization of over USD14 billion and has SingTel and Vodafone as international strategic
partners.

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CHAPTER : 04

DEPARTMENTAL STUDY/FUNCTIONAL AREAS

MARKETING STRATEGY

Bharti Airtel bold strategy for the growth –company business and marketing. India’s first
private operator to make cellular profile has an aggressive marketing strategy in all areas of
fixed and wireless telecoms Airtel’s marketing strategy to penetrate different segments:

 Focusing its attention on youth ,women and senior citizens, cellular service provide
Airtel unveiled its new market segmentation strategy by introducing prepaid, postpaid
plans.
 Another plan was launched for the senior citizens and women
 In short Airtel wants to penetrate in all the feasible segments
 AIRTEL offers GPRS.
 Network connectivity in rural areas along with existing circles is specially taken care
of and $15 bn was spent for this purpose.

FLANKING: (THE COMPETITION)

Thus facing a tough a competition Airtel does have a strategy to maintain its position.

 It continues to target the interior packets of the mobile industry

 Had been targeting the youths and launched “FREINDZ” for it’s customers of age
between 15-19 yrs
 Launched a innovative “LADIES SPECIAL”
 Launched “KHUSI” - cheapest ever service
 Launched of BLACK BERRY dominated it as leader
 Launched of “FUTURE FACTORY” centers of innovation & pioneer mobile
applications like
 mobile pay phones
 mandi rates

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 mobile register

MARKETING OBJECTIVES

Bharti’s objective is to differentiate itself in India’s highly Competitive communications

environment by ensuring customer delight through personalized customer service and
accomplishing this through a highly cost-effective business model.

PROGRAMME OBJECTIVE

BRAND & ADVERTISING:

Airtel and Visual Identity

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

its different audiences integral to this relationships is the visual image of the brand the
consumer carrier in his/her mind. The Airtel brand image is created through the consistent
application of a carefully developed visual identity, which helps AIRTEL distinguish itself in
a cluttered market. Airtel’s visual identity helps create instant brand recall and strength the
relationships that its audience have with it.

The AIRTEL visual identity has different eliminate that work together to create a strong and
consistent identity of the band. The most important of these are:

 AIRTEL LOGO – The AIRTEL - logo is a strong, contemporary and confident

symbol for a brand that always ahead of the rest. It is specially drawn word mask.
 AIRTEL IMAGE STYLE – It incorporate two solid, rectangular forms counter
forms creates an open doorway.
 AIRTEL TYPOGRAPHICAL STYLE – The title case lettering with its capital ‘A’
was deliberately chosen to reinforce the brand’s leadership position. The red dot on
the letterform ‘1’ was Airtel’s focus on innovation. The ‘Express yourself’ are very
much part of the brand identity.
 AIRTEL COLOR PALETTE – The lettering is grey as that the pure black of Airtel
is visually unharmed CATEGORY ANALYSIS

PROMOTION

The early advertising for Airtel focused on mobile phones as a key business and lifestyle tool.
The tag line 'Power to keep in Touch' used in the brand promise was designed to make the

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user feel 'in control…powerful'. As the category developed with prices going down sharply,
Airtel began talking to a wider spectrum of potential users. This was the birth of the 'Touch
tomorrow' positioning. Airtel started talking to new segments by positively positioning and
establishing itself as a brand that improved the quality of life. In its strategic drive to
emotionally connect with the mass market, Airtel has also used cricket, Bollywood and music
as carriers. Through this exciting journey Airtel has been personified as a leader - innovator,
likened to Amitabh Bachchan, Sachin Tendulkar and Shah Rukh Khan. Airtel has always
stood out as a dynamic and a caring brand. In this journey Airtel has created some highly
acclaimed.

Campaigns like the Leadership campaign, the Quality Time campaign, Magic Dalo, Say
Hello launch campaign, the Magic Hai to Mumkin Hai campaign, the

A R Rehman Live Every Moment campaign and the new Express Yourself campaign. Much
like a pied piper, the Airtel brand has attracted and retained the first customer it acquired in
1995 to the six-millionth it acquired in 2003.

BRAND VALUE:

Airtel impacts the lives of millions across India - it gives people the unlimited freedom to
communicate so that they can express themselves freely. Airtel's brand values are centered
around leadership, performance, trust, care, innovation and sensitivity. These are reflected not
just through advertising, but in fact through each interface Airtel has with its customer.

BRAND POSITIONING:

In late-2002, Bharti Cellular Ltd. (Bharti), India's largest cellular telephone company released
a television commercial (TVC), which despite using the 'oft-repeated' celebrity endorsement
route was unusual in terms of its celebrity selection. Instead of using the usual movie
stars/sports celebrities, it chose one of the country's most successful music composers, A.R
Rahman to promote its brand.

The company also decided to undertake a comprehensive brand-building program for the
company and chose the slogan 'Unlimited Freedom' for the same. Commenting on these
changes, company sources said, "Airtel's brand identity and campaign will now have a new
younger and international look and feel. Bharti's massive media expenditure plans were no
surprise, considering the fact that it was the largest cellular telecom company in the country -
reaching over 600 million people in 16 (out of 29) states of India.

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PRODUCTS
1. Telemedia Services (Broadband and Telephony Services)
2. Wireless Services
3. Value added services
4. Blackberry Solutions
5. Business Solutions

PRODUCT LIFE CYCLE: At a growth stage.

Major Competitors of Airtel in India

 Tata Teleservices Ltd
 Tata Teleservices (Maharashtra) Ltd
 MTNL
 BSNL
 MTNL
 Reliance Communications Ltd

POINTS OF DIFFERENCE:

1. Widest spread network.

2. Congestion free network.

3. Customized Service

In order to maintain its profitability and sales volumes it has encompassed these steps:

 Total cost control

 Value added services

Thus with its better cost control and with value added benefits to its consumers
“AIRTEL” can maintain NO 1 position in the market.

Business Divisions:

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1) Mobile Services

2) Airtel Telemedia Service

3) Enterprise Services (Corporates)

4) Enterprise Services (Carrier Services)

1) Mobile Services:

Airtel offers mobile and fixed wireless services (FWP) using GSM technology on 900MHz
and 1800MHz bands, and are the largest wireless service provider in the country, based on the
number of customers, with 31,974,038 mobile customers accounted for a market share of
21.8% of wireless market, as on December 31, 2006.

Airtel offer postpaid, prepaid, roaming and value added services through extensive sales and
distribution channel covering over 490,000 outlets. There network is present in 4,581 census
towns and 176,593 non-census towns & villages in India, thus covering approximately 54%
of the country’s population.

Airtel provide broadband (DSL) & telephone services (fixed line) in 94 cities with 1,737,799
customers as on December 31, 2006 of which 31.6% subscribed to broadband services. The
objective of broadband & telephone business is to have a presence in cities with high revenue
potential. Airtel product offering in this segment includes supply & installation of fixed-line
telephones providing local, national & international long distance voice connectivity and
broadband Internet access through DSL. The business also provides value added services
such as intelligent network 32 based advanced management services, viz. toll free numbers,
virtual private automatic branch exchange networks, ring back tones and call forwarding
among others.

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

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PREPAID: Enter the world of limitless possibilities with Airtel Prepaid. The service that
helps you give, words to every feeling, an expression to every emotion.

POSTPAID: Life becomes much simpler with your Airtel Postpaid. It gives you the
unlimited freedom to reach out to people in your special way.

2) Airtel Telemedia Service:

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.

Features on Broadband:

a) Speed on Demand: With our innovative service, you can enjoy a dedicated speed of
up to 2 Mbps without having to change your
subscription [Link]’s more, you only
pay for what you use.

b) Game on Demand: Airtel, in alliance with Indiagames brings you a wide range of
high-quality and exciting games. Enjoy
unlimited games at Rs. 199 per month.

c) Airtel PC Secure: One of the best in PC security, to provide you and your family
with our great value online security
package.

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d) Wifi: Advantage of Wireless networking.

3)Enterprise Services(Corporates):

The group focuses on delivering telecommunications services as an integrated offering

including mobile, broadband & telephone, national and international long distance and data
connectivity services to corporate, small and medium scale enterprises.

a) Mobile Service

b)Voice Service

c) Office Solutions

d) Data internet services

e) E-Business Services

f) Satellite Services

g) Carrier service

h) International Service

4) Enterprise Services(Carrier Services) :

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The broadband & telephone services with national and international long distance services. It
has over 35,016 route kilometers of optic fibre on its national long distance network. For
international connectivity to east, it has a submarine cable landing station at. For international
connectivity to the west, the Company is a member of the South East Asia-Middle East-
Western Europe – 4 (SEA-ME-WE-4) consortium along with 15 other global telecom
operators.

a) Domistic Voice
 International Data
 International voice
 Network & Satelite Service
 Remote Managemant

AIRTEL BROADBAND SERVICE:

Now experience the internet in a new way with Airtel Broadband. It is powered by DSL
technology which gives you blazing-fast; secure Internet access as soon as you switch on
your computer. We give you the power of limitless discovery on Internet – from shopping to
banking, paying bills to making new friends and not to mention endless fun & learning for
children.

Broadband Advantage:

 No Need to wait for connect:

With Airtel Broadband, the internet is always ON, always available! No more waiting for
dial-up to connect. You are ready to use the internet as soon as you switch on your
computer.

 Power surfing:

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With speed of up to 2Mbps, feel the excitement of doing more on Internet. Shop,
download MP3, exchange heavy files and chat at an enviable speed, all thanks to an
extensive Broadband Services infrastructure. No more disconnections in the middle of
download.

 Surf while talk:

No more missed calls or blocked telephone lines while using the internet. Airtel
Broadband Services connection does not block existing telephone lines and allows one
family member to use the phone while another member surfs the net. No more missed
calls and no more fights.

 Robust installation:

The world class infrastructure & end-to-end digital network of underground copper cable
lines ensure an extremely robust connection that eliminates the risk of damage. Superior
server technology and a dedicated port provide total security to data storage and
information exchange through the Internet.

 24x7 customer support:

just Airtel customer service centre need a email or a phone call . Round-the-clock, 365
days a year.

Technology used for the broadband services:

 Airtel Broadband is powered by DSL technology:

DSL provides blazing-fast, secure Internet access and can be delivered to both homes and
to businesses. Delivered right through a regular telephone line, data rates can vary from
128Kb to 8Mb per second depending on the type and cost of the service.

 Instant access :

Digital Subscriber Line (DSL) technology provides instant Internet and network access at
speeds up to 50 times faster than a 28.8Kbps modem on a standard analogue phone line.
There are no dial-up delays, no busy signals. What used to take minutes or hours to
download, will now take just seconds or minute.

 Experience Multimedia:

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With DSL Internet Service you can download graphics-heavy files, large documents,
software, photos, email attachments, and more, instantly. It's perfect for real-time
interactive multimedia, broadcast quality video, distance learning, and video on-demand.
And because DSL Internet Service sends data and voice over the same line, you can talk
on the phone while you are online.

Internet Services (Data Card and GPRS)

DATA CARD:

With the Airtel Data Card, you have the freedom to access the Internet anytime, anywhere
across India, on Airtel network. You can also use this service, as you roam internationally in
an increasing number of destinations. With EDGE and GPRS enabled Airtel Data Card you
can send and receive SMS and what's more, it is compatible with Windows 2000/XP/XP
Tablet/XP Pro and Mac operating systems.

Some great advantages of Data card :

1) High speed 24/7 Internet connectivity through Airtel EDGE network .

2) No automatic disconnection, like normal dial-up connections.

3) Connectivity to Internet while traveling in India and abroad and so you save on high
Interne charges.

4) Easy to install & simple to use with choice of tariffs to suit you needs.

5) Send and Receive SMS via the Airtel Data Card.

USB Modem:

Now get an instant access to internet and your corporate applications. Airtel brings to you
USB modem which is backed by our five core promises.

 Simple: It is quick and easy to install, both for your LAPTOP and PC.

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 Secure: It supports IP Sec client software for secure VPN.

 Control: It ensures minimal investment with built-in cost management capability so
that you save on roaming.
 Performance: It gives uniform, easy, end2end experience across largest footprint
along with service level guarantee and high speed data
 Support: It also provides support for account management, technical call centre and
service level agreements.

GPRS/MO SERVICE

MO means Mobile Office in which we surf internet in the handset itself by connecting GPRS
to the service provider. GPRS Service means we surf internet on a PC or Laptop by
connecting it to the phone through a data cable.

Airtel provides two scheme for its customers:

Prepaid:- Rs 299/month

Postpaid:- Rs 199/month

Rivalry among existing firm:

Number of existing competitors of Airtel in KOLKATA market under Broadband Services

are: Reliance, Tata Indicom, BSNL, SIFY, Alliance . Out of these rate of industry growth of
BSNL and Alliance are more than others. Still all are strong and aggressive competitors of
Airtel. Here the exit barriers are high as no one is interested to go out of the existing segment.
All try to remain inside the segment by giving a big competition in terms of price on their
broadband services and better value added services and best customer services. This result in
frequent price war, advertising battles, new product introduction, better services. This made
sometimes AIRTEL very expensive to compete.

Threat of new entrants:

The existing competitors of Airtel are Reliance Broadband services, Tata Indicom, BSNL ,
SIFY broadband services, and also Alliance . The main 49 threat to Airtel in new entrants are
Vodafone and newly entered Aircel. They are also planning to occupy the Kolkata Market
within short period of time. In this segment the entry barrier is high as the new competitors,
for making a good market value in Broadband service Bharti Airtel needs product variation,
needs more capital for their advertising. Again in this segment the exit barrier is also high as

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the existing poor competitors of Airtel don’t left and compete within the segment. Here
though Airtel is making PROFIT POTENTIAL but it is facing more risk.

Threat of substitute services:

Through Broadband service Bharti Airtel grab the 33% of market of Kolkata Broadband
service market, by the Broadband speed upto 8Mbps, but the BSNL, the top Broadband
service provider only give the speed upto 512Kbps and the most cheapest one. BSNL also
provides the service of IPTV, Wifi hotspot services which Airtel going to launch in this year
in Kolkata. Hence main substitute for Airtel is BSNL. It also provide services at a very
cheaper rate than Airtel. Hence this segment is unattractive as there are actual and potential
substitutes.

Bargaining power of buyers:

Here the buyers are the customers. They have a very high bargaining power as they got
different option to choose different services. Here also the segment is unattractive as
customers have strong and growing bargaing power. There switching cost is also low here.
Bargaining power of suppliers: Airtel totally depends on the vendors for the network
outsourcing. These vendors can any time increase their price of outsourcing. So the
bargaining power of the suppliers is very high. They can reduce their quality and quantity at
any time they want. Suppliers are very powerful here.

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